Merchant law suit

[riders2010]

Law suit filed for 15 billion, so will the reform government pay farmers that they oh so dearly represent? They had better!

So, how do we all want our money from the assets of the now defunct cwb? I'll accept a cheque. lol

[TOM4CWB]

"A class action lawsuit was launched in Saskatoon Monday seeking $15.4 billion in damages resulting from changes made by the Harper government to the Canadian Wheat Board.

Plaintiff Duane Filson, a farmer, teacher and municipal politician from Woodrow, Sask., represents a class that could include any Prairie grain farmer who sold wheat or barley to the Canadian Wheat Board in 2011 or 2012.

Filson ran for the federal Liberals in the 2011 general election in the riding of Cypress Hills-Grasslands, losing to the current parliamentary secretary responsible for the Canadian Wheat Board, Conservative David Anderson.

Merchant Law Group LLP launched the suit on farmers' behalf. Class action lawsuits must be certified by a judge before they can proceed, and the claims in the suit have not been proven in court.

The first court date to consider the certification of the class is expected in about two months.

"This lawsuit is not about the single desk [monopoly marketing system]," said Tony Merchant. "If you're going to make changes, you have to compensate," Merchant said, noting that when the federal government ended the Crow Rate subsidy for shipping grain by rail, farmers were compensated.

Documents filed in court say that farmers should be compensated for losing all of the wheat board's assets at the time the government's changes took effect: $100 million in cash, over 3,000 rail cars, the prepaid purchase value of lake freighters for shipping grain by sea, an office building in Winnipeg and other intangible assets, as valued by experts for the purpose of the lawsuit. Part of the claim includes damages for lost price premiums previously obtained with the selling power of the board's monopoly.

Monopoly ends Aug.1

The wheat board had operated as a shared governance organization since 1998, with farmer-elected directors constituting the majority of the representatives on its board. Proceeds from the board's sales were returned to Prairie grain farmers.

Legislation that received royal assent Dec. 15 ended the wheat board's monopoly over marketing Prairie wheat and barley as of Aug. 1, 2012. The eight remaining farmer-elected board members were dismissed, leaving five government-appointed directors in charge of the organization's future.

The board continues to operate for the 2012 crop year and beyond as a voluntary seller for Prairie grain farmers, who may now also sell to other private sector buyers in an open market.

After a five-year transition period, the government appointees who now manage operations will determine if the wheat board can continue to operate as a viable voluntary organization in an open market. If it cannot, it could be dissolved by the government altogether.

Changes ended farmers' control

The lawsuit argues that when the changes were made, sole control over the wheat board moved out of farmers' hands and into the government's, despite the fact that it will continue to exist as a voluntary seller.

"A corporate dissolution requires surplus funds, proceeds and assets to be returned to appropriate creditors and stakeholders," the lawsuit argues. "The dissolution of the [farmer-controlled wheat board].… requires the return of all funds, proceeds and assets accumulated … back to the class, the rightful owners of the CWB value."

The lawsuit deems the legislation as having "unlawfully repurposed" tangible and intangible assets of farmers, causing $15.4 billion in estimated damages and removing all the value and benefits derived from the previous marketing system.

Further, it argues that the government has "wrongfully and intentionally interfered with the business relations" between the plaintiff, the wheat board and the former farmer-elected directors. The lawsuit claims a "breach of implied trust" to maintain the wheat board's assets to the benefit of the farmers it served, and claims that the new voluntary wheat board controlled by the government has been "unjustly enriched" by the changes.

"How can a voluntary wheat board function? What can they offer?" Merchant said. "Economists say it isn't going to work and those assets will be dissipated."

"Farmers say give me my share right now. I don't want to go into that new gamble," Merchant says.

"Our government has delivered marketing freedom for Western Canadian farmers and we will continue to work with farmers to make sure the CWB remains a viable marketing option," said Agriculture Minister Gerry Ritz in a statement Monday.

"It's disappointing to see further misguided legal action," the statement says, adding that this "baseless action" does not affect the arrival of an open market for Prairie wheat and barley as of Aug. 1, 2012.

http://www.cbc.ca/m/touch/politics/story/2012/01/09/pol-wheat-board-class-action.html

[wilagro]

Good, sue the snot out of the b***ards...might teach them a valuable lesson.

[blackpowder]

The mandatory CWB is deader than Elvis. But the political mileage milked now and for generations out of this is what we now face.
The overwhelming point for me is the extent to which parts of our society have gone left. This very strong world view took generations to set in place. We will be suffering it's consequences for generations to come.
I believe it is part of the responsibilities now upon our industry and it's organizations. We need to maintain the fight in the courts and in the media. Allow future governments no ammunition whatsoever to let the pendulum swing back too far.
We have a lot of work to do in the next 3 years. Organizations like WCWGA that have carried the fight to the courts must not stop. Organizations like our future wheat commissions must make sure to follow the examples of canola. Never stop looking for new business and never stop presenting this message to government and media.
Has anyone ever heard anybody complain about canolas' progress?
Is it not a world class example?
Can it not be honestly defended on ANY talk show ANY where??
I rest my case!

[blackpowder]

Wilagro, you are simply being used for future Lib/NDPQ candidates to be able to point to some court decision as an example of the Cons' evilness.
Canada past your farmgate votes on soundbites and doesn't know the difference between wheat and canola.
By the way what's your opinion then of the Orders' in Council employed over the decades by past governments?

[TOM4CWB]

Blackpowder,

It is obvious lawyers will be the only winners in this battle... and they truly have been the biggest winners thus far.

NOT 1 Iota of common sense, respect for others... or their property.

Left Wing 'get something for nothing' socialists figure the free ride has one more pony to latch on to... Wilagro represents these folks well!

Cheers! 'We' are 'Them'... Wilagro... you just swore at yourself!

[blackpowder]

What wilagro may not realize is that the mandatory board is never coming back and these lawsuits no matter the ruling aren't going to bring it back.
They are carefully planned future ammunition for the transition from coffeeshop Phds to televised leadership debates!
Wilagro, you are a pawn! Unless of course you support the entire NDPQ platform?

[chuckChuck]

Isn't it ironic that those who hate the CWB, think government should get out of their way, are willing to defend the State taking over 100% control of the CWB, (nationalization) and the confiscation of farmer owned assets without compensation.

Hugo Chavez comes to mind.

[Braveheart]

This is such BS. There really is no better example of why farmers shouldn't be directing companies that have anything to do with the business of farming. The emotional thing kicks in. The political, entitlement, us vs them crap kicks in. It's just a freakin mess.

What we need to do is move on. Build the industry by allowing the forces of competition to work. Take the thumb out of the mouth, use it instead to hitch a ride to a marketing course, seminar or your local grain elevator, and start learning how to make the grain marketing freedom work for you.

[wilagro]

Braveheart: Actually, farmers should be directing far more enterprises that market, process and sell the products produced on farms and ranches.

Allowing others to control the farming industry has been the accepted way for far too long...that's why it is always in trouble.

[Braveheart]

Wilagro, experience shows that such enterprises usually fail. Farmer directors usually try to mold the enterprise to strongly enhance THE FARM at the expense of the sustainably of the enterprise they direct.

[stubblejumper]

Ritz and company ended it now its time to pay up

[Burbert]

Good fer Comedian framers. Finally a show
of guts fer a change. Here's hopin we all
get a big cheque, from the nationalizing,
sobs. We's getting lean and mean just
like our southern neighbours, let the
Courts decide what is true and correct.
Not a bunch of hillwilliam, suckholing
politicos, tryin ta please the chiseling
marketeering lobby........

[BreadWinner]

No more argrinvest
No more agristability
No more tax reform
No more gst exemptions
No more fuel tax rebates
More fertilizer taxes
More income taxes
On and On
If you want a war Im sure you will get one.

[bucket]

I hope filson has deep pockets to pay Merchant because I am pretty sure Tony(like the railways) will be paid before any farmer sees a dime.

It also makes you wonder how much the former cwb board paid to law firms to pursue law suits.