January 10, 2006

Canadian government, feed producer sued over mad cow

The mad cow class action involving approximately 100,000 Canadian cattle farmers against the federal government and feed manufacturer Ridley Inc can be continued, Toronto Regional Senior Justice Warren Winkler ruled on Jan 5, according to a press release by the plaintiffs dated Jan 9.

The class action lawsuit alleges that the BSE crisis, the closing of the US and other international borders to Canadian cattle and beef, and the loss of billions of dollars by the Canadian cattle industry, was the result of gross incompetence on the part of the Canadian government and negligence on the part of Ridley Inc. The damages claimed are in excess of C$20 billion.

Justice Winkler dismissed a motion brought by lawyers acting on behalf of the federal government and Ridley Inc (Canada) to strike out the cattle farmers' claim. The motion to dismiss the claim against Ridley Corporation Limited (Australia) was granted.

The farmers charged that the government took too long--four years to be exact--to react even though it knew in August 1997 that bonemeal made from British cattle had reached Canada, thus causing the cattle industry billions of dollars in losses.

The federal government had also identified the most likely source of Canada's BSE case in December 2003 as resulting from a product known as Feed-Rite Calf-Glow, which contained ruminant meat and bonemeal contaminated with the BSE prion. The product was produced at the Feed-Rite mill, the predecessor company to Ridley Inc.