Tyson Foods Inc. intends to appeal a US$7.3 million verdict issued by a McCurtain County jury in a lawsuit filed by poultry producers against the company.

 

"We are extremely disappointed with the jury's decision, but given the manner in which this trial was conducted, we are not surprised the jury reached a runaway verdict," Tyson Foods said in a news release.

 

The company said the jury heard a "tabloid-style rumour mill of mostly fabricated evidence that had absolutely nothing to do with the plaintiffs' claims in the lawsuit."

 

Tony Benson, an attorney for the farmers said his clients felt "vindicated" but that an appeal was expected.

 

Seven former poultry growers for Tyson Foods won the damages following a three-week trial in McCurtain County District Court.

 

They were part of a lawsuit filed in May 2008 in the county by about 60 growers and former growers. The case was split up among plaintiffs to make it more manageable. The seven growers raised broiler chickens for Tyson as independent contractors.

 

The lawsuit charged fraud, negligence and violations of the Oklahoma Consumer Protection Act by Tyson in its dealings with the growers.

 

Benson said his clients received inferior chickens and bad chicken feed from Tyson as part of a system that favoured some growers and strived to keep others in debt.

 

In their first amended complaint, the growers alleged that Tyson took part in a series of improper acts designed to favour its interests. The allegations include misrepresentation of certain contract provisions and inducement of growers to unnecessarily finance expensive improvements to their facilities to satisfy Tyson.

 

Growers who did not upgrade their facilities were penalised with inferior birds and feed, Benson said.

 

"Anybody that's real familiar with the chicken industry knows that's something that has always alleged to occur, and we felt like that it has," he said.

 

The jury awarded a total of US$4.8 million in actual damages after deliberating more than eight hours. It later awarded an additional US$2.5 million in punitive damages following further deliberations, Benson said.

 

Tyson said in its statement that it abided by the terms of its contracts with the growers involved in the suit.

 

"There are 225 contract producers who raise broiler chickens for our Broken Bow plant, including 79 in McCurtain County, and we believe we have good working relationships with them,'' Tyson said.

 

The company said it was "very concerned about the legal climate in McCurtain County" and was "assessing all options available to us to address this injustice and to prevent it from happening again."