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921 N.W.2d 615
Neb. Ct. App.
2018
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Background

  • Farm & Garden sued farmer Jim Kennedy for unpaid invoices totaling $104,180.27 for fertilizer, chemicals, and application services from the 2012 crop year; Kennedy counterclaimed for damages from alleged negligent application that reduced forage (stover) yields.
  • Kennedy operated the Home Place and rented the Leuthold Fields; in 2012 the Leuthold Fields showed "striping"/uneven growth after Farm & Garden applied fertilizer and chemicals, and Farm & Garden later made a remedial application billed at $7,511.20.
  • Kennedy and his farmhand testified to low stover bale counts on the Leuthold Fields versus the Home Place; Kennedy’s expert (Kucera) attributed striping to phosphorus misapplication and contended stover could exist without corresponding grain yields.
  • Farm & Garden’s expert (Goedeken) used a peer‑reviewed Nebraska Extension publication (a ‘‘rule of thumb’’ formula relating grain yield to residue/stover yield), USDA county yield data, and Kennedy’s records to conclude reported bale counts were improbably high and that many invoice charges were not in dispute.
  • A jury awarded Farm & Garden $104,180.27 and awarded Kennedy $7,511.20 on his counterclaim (matching the remedial application invoice). The district court denied Kennedy’s motion for new trial and awarded Farm & Garden $46,089.27 prejudgment interest under Neb. Rev. Stat. §45‑104 on the liquidated portion of the judgment.

Issues

Issue Plaintiff's Argument (Farm & Garden) Defendant's Argument (Kennedy) Held
Admissibility of Farm & Garden’s expert (Goedeken) Expert is qualified; methodology (Nebraska Guide formula + local yields) is reliable and assists the jury Methodology is flawed junk science; formula not applicable to drought‑stressed crops and cannot assume stover requires grain Court: No abuse of discretion admitting Goedeken; methodology peer‑reviewed, generally accepted, and fit the facts; any weaknesses go to weight
Prejudgment interest award Entitled to interest; invoices/statements are "instruments in writing" and most charges were liquidated Farm & Garden abandoned original statutory basis; claim was not liquidated because counterclaim put right and amount in dispute Court: §45‑104 applies to written invoices; $81,933.48 of judgment was liquidated and subject to 12% prejudgment interest; award affirmed
Sufficiency of verdict on counterclaim N/A (defendant sought damages) Jury award ($7,511.20) inconsistent with theory of lost stover bales; award should reflect lost forage value, not invoice amount Court: Verdict not clearly wrong; jury could reasonably award the remedial invoice amount as proximate damages; verdict affirmed
Denial of motion for new trial N/A Admission of expert and jury’s damage assessment were prejudicial errors warranting new trial Court: No abuse of discretion; motion denied

Key Cases Cited

  • Daubert v. Merrell Dow Pharm., 509 U.S. 579 (1993) (trial court gatekeeping standard for expert admissibility)
  • Kumho Tire Co. v. Carmichael, 526 U.S. 137 (1999) (Daubert principles apply flexibly to all expert testimony)
  • Schafersman v. Agland Coop., 262 Neb. 215 (Neb. 2001) (Nebraska adopts Daubert for expert evidence)
  • King v. Burlington N. Santa Fe Ry. Co., 277 Neb. 203 (Neb. 2009) (trial court must assess expert qualifications, methodology, and application)
  • Hemsley v. Langdon, 299 Neb. 464 (Neb. 2018) (standard of review for expert testimony is abuse of discretion)
  • Lombardo v. Sedlacek, 299 Neb. 400 (Neb. 2018) (abuse of discretion defined)
  • BSB Constr. v. Pinnacle Bank, 278 Neb. 1027 (Neb. 2009) (discusses prejudgment interest statutes and liquidated vs. unliquidated claims)
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Case Details

Case Name: Farm & Garden Ctr., L.L.C. v. Kennedy
Court Name: Nebraska Court of Appeals
Date Published: Nov 20, 2018
Citations: 921 N.W.2d 615; 26 Neb.App. 576; 26 Neb. Ct. App. 576; A-17-834
Docket Number: A-17-834
Court Abbreviation: Neb. Ct. App.
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    Farm & Garden Ctr., L.L.C. v. Kennedy, 921 N.W.2d 615