Justice Prevails: Janzen Schroeder Ag Law Wins Major Verdict for Farmers in Crop Insurance Case

Along with crops and animals, trust is a precious commodity on Indiana farms. The team at Janzen Schroder Ag Law was hired to represent a farm family after trust was broken by a crop insurance company leading to a catastrophic loss. Ultimately, the jury returned a favorable verdict to bring justice to these hardworking farmers. (The farm’s name has been withheld to protect their privacy.)

The Case

This case arose after an insurance company persuaded the diversified farming operation to forego purchasing traditional crop insurance (which they had always purchased) and instead purchase a new, novel insurance product called Whole Farm Revenue Protection (WFRP). The result was devastating, as the farm suffered over $1.5 million in losses in 2016 (and more in 2017) and were told by the federal government that they were not covered by the WFRP policy. Worse still, the insurance company simply refunded the farm’s premiums and argued that resolved any problems.

This farm needed help and engaged the Janzen Schroeder team to demonstrate how the insurer had misled the farm about the WFRP policy. The insurer did not inform the farmers of the record-keeping procedures and other detailed requirements regarding the novel WFRP insurance. A WFRP policy provides coverage for the “approved revenue” for an entire farming operation, including crops and livestock, based on historical records from the farm.

In multiple on-farm meetings, the insurance company’s regional vice-president reviewed the farm’s historical records and wrongly promised the farmers that this was the policy to protect their farm. But, when it mattered most, the insurance policies turned out to be worthless. The policies only provided “illusory coverage,” in violation of Indiana law. The farmers also brought claims for “promissory estoppel” (broken promises) and “fraud in the inducement” (misrepresentations at the beginning of a transaction).

The Five-Day Trial

At trial, counsel selected a jury of six citizens. The farm and insurance company presented evidence through documents, fact witnesses, and experts during the week-long judicial process.

“Our work to prepare for the trial ranged from preparing for witnesses, researching legal points, and organizing the evidence into a story the jury could understand. It was intense, but so important to help this family preserve their farming operation,” said Brianna Schroeder, partner, Janzen Schroeder Ag Law.

Janzen Schroeder established that the farm was entitled to recover against the insurer under claims for illusory coverage, promissory estoppel, and fraud in the inducement. The insurance company argued the farm should not recover anything because the farmer signed the application and the farm’s historical records did not meet the new WFRP standards.

The Verdict

Ultimately, the jury returned a sizable verdict in favor of the farmers, awarding them damages for all their losses. The trial court adjusted this number to account for previous settlement payments and to add interest on the judgment because of the time that had passed since the damages occurred. The insurer initially appealed the judgment but the parties were able to settle the dispute without engaging in any further litigation. This money will be used to help restore the farm after the difficult years with no effective insurance coverage.

“These farmers are a good, hardworking farm family who were just trying to minimize risk on their farm,” said Todd Janzen, partner at Janzen Schroeder Ag Law, when explaining why the farmers purchased the WFRP policy. “It is unfortunate that their insurer put them through this long, grueling legal battle, but we are elated that justice finally prevailed.”

The team at Janzen Schroeder was honored to represent these farmers and are committed to helping all our clients secure justice and continue advancing their agricultural operations.