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Georgia farmers and businessman in contract dispute

A Georgia businessman and developer is the target of a pre-warrant application. The pre-warrant application was filed against the man by a Georgia farmer who appears to be claiming that the man has not honored contracts. News reports suggest the contract dispute isn't just with this one farmer, but rather a large group of farmers in Southwest Georgia.

A hearing is scheduled this week in connection with the filing. Neither party has commented on the case, but there have been remarks made by another farmer who is familiar with the matter.

The Georgia businessman targeted in the filing is the owner of Great Southern Peanut Co. and other companies including Georgia Farm Services. The farmer who made the filing, along with several other peanut growers, believes that contracts between the businessman and local farmers for crops have not been honored.

The contracts reportedly list prices of from $750 to $700 per ton, prices which have purportedly not been met. In addition, it is alleged that typical methods of payment for shelling and processing of the peanuts have not been followed.

The farmer who is commenting about the issue, and who happens to also be a Lee County commissioner, says he is owed around $12,000. But he says other farmers could have as much as $1 million on the line.

Contracts between businesses are meant to be binding. When one party does not hold up their part of the agreement, it can jeopardize the interests of the other party and sometimes those of other businesses. It can also erode the good will on which the contract was based. Businesses in the midst of a contract dispute should not try to face the challenge of navigating the litigation process without solid legal counsel.

Source: Albany Herald, "Contract dispute heads to Lee Magistrate Court," Danny Carter, Nov. 27, 2012

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