Companies hired to construct a grain drying, handling and storage facility on a Mississippi farm are responsible for more than $946,000 in damage caused by the system's collapse, the farm operator's insurer told a federal court Wednesday, saying the system failed to perform as represented and warranted.
In an amended complaint, Mississippi Farm Bureau Casualty Insurance Co. said Valley View Agri LLC and subcontractors EDM Construction LLC and I & G Construction Inc. are jointly and severally liable for the damage to Middleton Planting Co.'s property in Glen Allan, Mississippi.
According to the complaint, Middleton hired Valley View in August 2022 to build a grain bin storage facility, grain drying system and grain handling system on its property. In turn, Valley View subcontracted with EDM and I & G for certain aspects of the construction and installation of the system.
Farm Bureau said the companies represented and warranted to Middleton that the system would be installed in a timely and workman-like manner, would properly function and would meet expectations.
"Middleton relied on the representations and warranties made by defendants and thereafter agreed to purchase the [system] and fully paid defendants for the installation and construction," the complaint stated.
In August 2024, about two years after the system was installed, one of the grain bins "experienced a catastrophic failure in the form of a buckling collapse," the insurer said. The incident destroyed one grain bin, damaged an adjacent grain bin and truck loading system, damaged a lawn mower and caused damage to other aspects of the grain loading complex that rendered the entire system inoperable, according to the complaint.
Farm Bureau said it investigated the loss and found that a proximate cause of the collapse was the improper installation and construction of the system. The insurer said it paid Middleton over $946,000 for the damage, and therefore is subrogated to its insured's claim.
Despite the promises made to Middleton in its agreement with Valley View, Farm Bureau said, the companies breached their contractual obligations, including warranties to construct and install the system in a proper and workmanlike manner and pursuant to the terms and specifications set forth in the contract.
The companies knew, or should have known, that their improper installation and construction would result in the catastrophic collapse of the system, the insurer alleged.
Farm Bureau further asserted that the companies breached the implied warranty of merchantability by using components that were improperly sized or otherwise defective, as well as the implied warranty of workmanship by failing to correctly install and construct the grain bin that collapsed.
The companies, "collectively and/or individually, or in concert, are responsible for negligently installing the defective grain bin and/or components and placing said goods into the stream of commerce," the insurer added.
The companies also negligently hired, retained, trained or supervised their subcontractors, independent contractors, and workers, and therefore are responsible for their actions, Farm Bureau alleged.
Representatives of Farm Bureau and Valley View declined to comment. Representatives of EDM and I & G did not immediately respond to requests for comment Wednesday.
Farm Bureau is represented by Michael C. Gatling and Bradley R. McDill of McDill Gatling PLLC.
Valley View is represented by Joseph G. Baladi and Corey D. Hinshaw of Watkins & Eager PLLC.
Counsel information for EDM Construction and I & G Construction was not available.
The case is Mississippi Farm Bureau Casualty Insurance Co. v. Valley View Agri LLC et al., case number 4:25-cv-00129, in the U.S. District Court for the Northern District of Mississippi.
Dec 3
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