Supreme Court rules CVEC-GPC grain contract can end

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Since it was constructed in the mid-1990s, the Chippewa Valley Ethanol Company has received its grain from Glacial Plains Cooperative, which constructed its grain handling facilty adjacent to the plant. The Minnesota Supreme Court has ruled that CVEC can end what GPC thought was a permanent contract.

Minnesota’s Supreme Court ruled June 6 that the contract for corn supply between the Chippewa Valley Ethanol Company (CVEC) and Glacial Plains Cooperative (GPC) is not of perpetual duration, overturning an earlier ruling from both the 8th Judicial District Court and state Court of Appeals.

It has remanded the case to the district court to now determine what is a “reasonable” amount of time for notice to end the grain handling contract.

“CVEC argues that given the 20-year length of the contractual relationship thus far, ‘as a matter of law’ the contract must have already lasted a reasonable time. We disagree,” the Court stated in its findings.

“A ‘reasonable time’ is determined not by a specific number of years, but by the individualized circumstances surrounding each case. It is for the district court, sitting in its role as factfinder, to weigh the evidence and apply the law to determine whether a reasonable time has passed. We therefore remand this case to the district court for proceedings consistent with this opinion....”

 

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Pictured: Since it was constructed in the mid-1990s, the Chippewa Valley Ethanol Company has received its grain from Glacial Plains Cooperative, which constructed its grain handling facilty adjacent to the plant. The Minnesota Supreme Court has ruled that CVEC can end what GPC thought was a permanent contract.

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