Local meat processing plant sued after allegedly failing to pay for over $2 million worth of cattle
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UPDATE: The fraud allegations against David Adams have been dropped. Intermountain Packing is still accused of violating the Packers and Stockyards Act, breach of contract and unjust enrichment.
IDAHO FALLS — A local meat packing processor is accused of not paying for over $2 million worth of livestock from multiple dairies in Idaho and Washington.
Intermountain Packing in Idaho Falls is accused of violating the Packers and Stockyards Act by Dry Creek Dairies LLC and Idaho Magic Milk LLC in Twin Falls, and Washington Agri-Investments LLC in Yakima County, Washington. The local meat processor is also accused of breach of contract and unjust enrichment.
David Adams is listed in the lawsuit as an agent or employee of Intermountain Packing. According to his LinkedIn, he is the chief executive officer. The same lawsuit accuses him of fraud.
EastIdahoNews.com reached out to Intermountain Packing for comment on the allegations, and the company declined to speak with us.
According to the U.S. Department of Agriculture, the Packing and Stockyards Act exists to “assure fair competition and trade practices, safeguard farmers and ranchers, protect consumers, (and) protect livestock, meat, and poultry industry members from unfair, deceptive, unjustly discriminatory and monopolistic practices.”
The complaint alleges between Sept. 29, 2023, and Nov. 9, 2023, all three plaintiffs “entered into a transaction involving the purchase and sale of livestock in accordance with the Packers and Stockyards Act” with Intermountain Packing.
The companies say they agreed to deliver livestock to Intermountain Packing at a price between $1.03 and $1.10 per live weight pound.
Between those dates, the companies reportedly delivered livestock valued at least $2,148,749.
The complaint states the companies were never paid for the livestock, and Intermountain Packing “engaged in unfair, deceptive, and anti-competitive practices” and “failed to maintain or provide required records, in violation of 7 U.S.C. § 221, impairing Plaintiffs’ ability to verify payment and transaction terms.”
The companies allege that when confronted, Adams issued three post-dated checks to them with a “verbal promise for payment of the livestock.” Court documents say that when Dry Creek Dairies tried to negotiate the three checks, each was “dishonored pursuant to a stop payment request by defendants Intermountain and David Adams.”
According to the complaint, Adams made “repeated representations to (the companies) that payment would be forthcoming,” though he allegedly “knew or should have known his representations were false.”
Dry Creek Dairies reportedly demanded that all delivered items be “held in trust” pursuant to the Packers and Stockyards Act.
Intermountain Packing was then required to buy an additional 528,597 live pounds of livestock from the companies but reportedly failed to do so, “causing additional damage to (the companies) and (the companies) lost $0.33 per pound on such animals” for another loss of $174,437.01, according to court filings.
The companies state in the filing that because of the actions of Intermountain Packing, they have “suffered damages, including but not limited to lost revenue, financial harm, and reputational injury.”
The companies have demanded a jury trial and are asking for compensatory damages, pre-and post-judgment interest, that Intermountain Packing cease and desist from further violations of the Packers and Stockyards Act, and costs and reasonable attorney’s fees be paid.
Intermountain Packing and David Adams have not yet responded to the allegations.