Legal Education

Welcome back to our blog series on “Principles of Government,” where we explain key legal doctrines shaping today’s public discourse. In this article, we examine a legal strategy that has recently drawn attention: class action lawsuits. We will explain this concept in the context of the alleged fertilizer price-fixing cases currently pending in federal courts.

Several lawsuits have been filed alleging that large fertilizer companies engaged in price fixing. If history is any guide, it will not be long before farmers begin receiving letters from law firms suggesting they “sign up” for the case. This bulletin explains how class action lawsuits actually work and what farmers should do when those letters start showing up in the mailbox.¹

The Class Action

When a large number of people or businesses are affected by the same or similar alleged misconduct, a class action lawsuit is often used as the legal remedy. These lawsuits allow one or a few lead plaintiffs to represent a much larger group of individuals in the same position.

In practical terms, instead of 10,000 separate lawsuits alleging fertilizer price fixing, a single lawsuit is filed on behalf of the entire group. One or a few plaintiffs serve as representatives, while the remaining affected individuals are included in the “class” and share in any recovery.  For example, a class action was used a few years ago when Syngenta was sued due to China rejecting U.S. corn shipments due to an unapproved GMO trait.

Rule 23 of the Federal Rules of Civil Procedure sets out the criteria federal courts use to determine whether a case can proceed as a class action. To qualify, four requirements must be met:

(1) the class is so numerous that joining all members in a single lawsuit is impractical;

(2) there are common questions of law or fact shared by the class;

(3) the claims or defenses of the representative parties are typical of those of the class; and

(4) the representative parties will fairly and adequately protect the interests of the class.

Rule 23 also establishes the procedures courts follow in managing and administering class action lawsuits.

The Class Action Process

The first step in a class action lawsuit is identifying one or a few lead plaintiffs who have suffered damages due to the alleged misconduct of the defendant. The law firm filing the lawsuit will seek out a “named” plaintiff to represent the group. In the fertilizer cases, for example, Union Line Farms of Iowa is the lead plaintiff for a lawsuit filed in Colorado, while Fire Creek Farms of New York serves as the lead plaintiff for a separate lawsuit filed in Illinois. These plaintiffs have been identified as having experienced financial losses allegedly caused by price fixing among the fertilizer companies.

Next, the law firm representing the lead plaintiff asks the court to certify the case as a class action. The attorneys argue that many others have suffered the same type of damages from the same conduct, and that a class action is the most efficient and effective way to handle the claims. After reviewing the arguments from all parties, the judge will either approve the case as a class action or deny certification, in which case the lawsuit can proceed only on behalf of the named plaintiff(s).

As mentioned earlier, an Iowa farm is the lead plaintiff in a Colorado federal court, and a New York farm is the lead plaintiff in an Illinois federal court. Why not file in their home states? When the actions of the defendants affect people across the country, the lawsuit is often filed in federal court. Federal courts allow a person from one state to sue a defendant from another state as long as the defendant does business within that court’s jurisdiction. In the fertilizer case, the Colorado court can hear the Iowa farm’s lawsuit because the defendants sell products and conduct business in Colorado. This type of jurisdiction is sometimes called “diversity.”  The law firm representing the lead plaintiff typically chooses the court based on geographic convenience and the court’s experience handling large, complex class actions. In other words, the location of the lawsuit is usually about strategy and efficiency, not where the plaintiff or defendant is physically located.

At some point, the lawsuits filed in different jurisdictions will likely be combined. For example, the Colorado federal case may be consolidated with the Illinois federal case. If the issues and defendants are the same, there is little reason to have separate actions in different courts. Expect, therefore, that multiple class action lawsuits against the fertilizer companies will eventually be consolidated into a single case in one federal court.

Eventually, the matter will be resolved either through a settlement or a trial. Most class actions end in a settlement, but if the parties cannot agree, the case will proceed to trial. If there is a settlement or the plaintiff wins at trial, funds will be awarded to the lead plaintiff and other members of the class. The judge will also determine the legal fees for the plaintiff’s law firms and decide how the funds are distributed among class members. Generally, the available funds are divided based on the amount of damages each plaintiff suffered. In the fertilizer case, the more fertilizer a farmer purchased during the designated period, the larger their share of any award is likely to be. While these awards can be significant, they rarely fully compensate plaintiffs for their actual damages.

At this stage, everyone in the class will be asked to provide evidence and records to document their damages. In the fertilizer case, farms will submit records of their fertilizer purchases to show how much of the settlement or award they are entitled to receive. The law firms and the court use this information to calculate each farm’s share of the available funds. Accurate and complete records are important, because the amount of money each farm receives is generally based on the verified purchases during the designated period. While providing records may require some effort, it ensures that each farm receives a fair portion of the settlement.

Opt-Out

Most class actions automatically include all eligible persons in the class. However, if someone would rather file their own lawsuit or simply does not want to be part of the class, they can opt out. The court usually sends a form that allows class members to opt out. The form must be completed and returned by the deadline specified in the notice.

Remedies

A class action seeks legal remedies from the court. The most obvious remedy is financial compensation for economic damages. But class actions also serve another important purpose: deterring future misconduct. If the class action is successful, it can prevent the defendants from engaging in the same behavior again and signals to others in similar situations that such actions are likely to result in liability and payment of damages.

The Law Firms

While it would be appealing to imagine class action lawsuits arising when a group of aggrieved citizens bands together, the reality is that most are initiated by experienced law firms. These firms play a vital role in the legal system by identifying potential widespread harms, thoroughly investigating the merits of the claims, assessing the likelihood of success, and calculating potential damages or settlement values. They then locate suitable lead plaintiffs willing to represent the broader group. In doing so, plaintiff law firms provide an important service: they enable individuals and small businesses, such as farmers, who might otherwise lack the resources or expertise to pursue complex litigation on their own to seek justice and hold large corporations accountable. Without this mechanism, many legitimate claims would never be brought forward due to the high costs and risks involved.

It will likely come as no surprise that class action lawsuits can be very lucrative for law firms.  For example, in the Syngenta class action settlement, the legal fees awarded were in excess of $500 million dollars.  These fees were divided over many law firms and attorneys who represented individual clients.  But, as is obvious, there is great incentive for law firms to find and litigate large class action suits.

The legal fees must be approved by the judge overseeing the case.  The legal fees are usually 30-40% of the total damages.  It should be noted that the law firms work on contingency and often pay all the costs.  There is a risk that if the lawsuit is not successful that the law firms will receive no legal fees and are out their costs.  However, law firms are careful to take on class actions that are likely to prevail, limiting their risk.

Letters from Law Firms

Even if a person is automatically part of a class action, they may still receive letters from multiple law firms inviting them to “join” the case.  These firms want to identify additional class members, gather evidence, and sometimes recruit lead plaintiffs.

Receiving letters does not mean you need to sign up. If you are already in the class, the law firms representing the lead plaintiff automatically represent you. Ignoring the letters will not exclude you from the lawsuit, nor will it prevent you from receiving your share of any settlement or award.

Think of the letters as part of the law firm’s outreach, they are trying to maximize participation and document damages, which ultimately helps the case. Multiple firms may send letters for the same case because more participation can increase the potential recovery and, in turn, the legal fees.

Conclusion

If price fixing is proven or the parties reach a settlement, most farms across the country will likely be eligible for a share of any payments. For now, there is nothing farmers need to do. Eligible farmers are automatically included in the class and will have an opportunity later to submit fertilizer purchase records to establish eligibility and determine their share of any recovery.

These lawsuits will take many months, if not years, to resolve through settlement or trial. In the meantime, farmers should monitor the farm press and other reliable sources for updates as the cases develop.

¹ It is important to note that the price fixing claims are only allegations, have not been been proven by plaintiffs and are denied by the defendants.

By: David Marrison, OSU Extension Field Specialist, Farm Management

OSU Extension and the Ohio Farm Transition Network are pleased to be hosting the International Farm Transition Network’s (IFTN) Certified Farm Succession Coordinator Training on April 20-22 in Wooster, Ohio.  

Succession planning is not only about the transfer of assets, but also about the transfer of labor, skills, and decision making. It requires financial analysis to ensure the business can support the goals of all the members and requires planning and communication skills. Many farm businesses are realizing the importance of creating a succession plan and the value of a skilled facilitator to lead the process of clarifying their goals and ideas, exploring options, and coordinating communication. A facilitated process can lead to better informed business planning and estate planning decisions. This training will help equip professionals with the tools to work with farm families to strategically plan for the transition of their farm's assets and management.

Training Details

This 20-hour training will offer participants insight into the barriers to farm succession, strategies for working with families, facilitation tools to guide the process, and opportunities to consider real-life examples of farm transfer conflicts. Upon completion of the training, registrants are eligible to complete a certification exam to become a Certified IFTN Farm Succession Coordinator.

The training will be held at the Secrest Arboretum Welcome and Education Center in Wooster, Ohio on Monday, April 20 (8:30 a.m. to 5:00 p.m.), Tuesday, April 21 (8 a.m. to 5 p.m.) and Wednesday, April 22 (8 a.m. to 12 p.m.). Lunch will be provided each day as well as dinner on Monday. Tuesday evening dinner is on your own.

Instructors for this training include Joy Kirkpatrick (Farm Succession Outreach Specialist at the University of Wisconsin-Madison), Kiley Fleming (Executive Director of the Iowa Mediation Service), and David Marrison (OSU Extension Field Specialist in Farm Management). All have been farm succession instructors for over a decade and have extensive experience in human resources, facilitation, and mediation.

The early-bird registration fee is $900 per person before February 1 and $999 thereafter. The class is limited to the first 30 professionals registered. Pre-registration is required by March 15. The fee covers program materials, lunch each day, dinner on Monday evening, and a complimentary one-year membership to the International Farm Transition Network. Registration can be made at go.osu.edu/IFTN.

Hotel Block

A hotel block has been secured at the Hilton Garden Inn located at 959 Dover Road in Wooster, Ohio for $138/night (plus applicable taxes). Reservations can be made at: group.hiltongardeninn.com/emmmkw or by calling 330-202-7701 using the group code: IFTN.

Sponsors

Sponsors of this event include OSU Extension, Nationwide, Ohio Corn Checkoff, Ohio Small Grains Checkoff, Ohio Soybean Council, Ag Credit, Farm Credit Mid-America, Ohio Farm Bureau and OSU's Farm Financial Management and Policy Institute.

Registration

Click here for program flyer.

Click here for Registration and program details can be found at: go.osu.edu/IFTN

Location

Secrest Arboretum Welcome and Education Center 2122 Williams Road Wooster, Ohio

For More Information

More information can be obtained by contacting David Marrison, OSU Extension Field Specialist, Farm Management at 740-722-6073 or marrison.2@osu.edu

The OSU Agricultural & Resource Law Program is excited to host Agri-Law Summit 2025 in partnership with the Ohio State Bar Association's Agricultural Law Committee.  The day-long conference will be on August 14, 2025 at Retreat 21 Venue & Tap House near Marysville, Ohio.

Agriculture plays a major role in Ohio’s history and economy, and agricultural businesses have unique legal needs. The Agri-Law Summit brings attorneys together to focus on those legal needs.  In addition to practical legal skills, we'll discuss new and pending legislation and emerging legal issues for agriculture.  The goal is to grow our competency in meeting the legal needs of agricultural clients, both now and as new needs arise in the future. 

Because we also want to grow the next generation of agricultural attorneys, we're offering full scholarships for the conference to current and recently graduated law students, with support from the Paul L. Wright Endowment in Agricultural Law at Ohio State. 

The Summit program features a variety of speakers, from national to local levels and from practitioner, association, and academic arenas. Here's our line up for the day:

The State of Ohio Agriculture: Updates from ODA

• Tracy Intihar, Asst. Director, Ohio Department of Agriculture

Emerging Issues Facing Agriculture

• Ryan Conklin, Wright & Moore Law Co. LPA; Chad Endsley, Ohio Farm Bureau Federation; Harrison Pittman, National Agricultural Law Center and Barry Ward, Ohio State University

Managing Farm Risk with Insurance

• Ryan Geiser, Nationwide Agribusiness and Jeffrey K. Lewis, OSU Ag & Resource Law Program

Legal Needs for Value-Added Ag Businesses

• Rob Leeds, OSU Extension/Leeds Farm and Susan McDonald, Gottlieb Johnston, Beam & Dal Ponte/McDonald’s Greenhouse

From Field to Firewall: Sowing Cybersecurity

• Merisa K. Bowers, Ohio Bar Liability Insurance Co.

Ohio Legislative Roundtable

• Evan Callicoat, Ohio Farm Bureau Federation; Ellen Essman, OSU Ag & Resource Law Program and Milo Petruziello, Ohio Ecological Food & Farming Assoc’n

Tax Incentives for Ag and Conservation Easements

• Ellie Ewing, Captina Conservancy

Advising New Farmland Owners

• Robert Moore, OSU Ag & Resource Law Program

Drafting Tips for Operating Agreements

• Morgan Lyles, Stebelton Snider LPA

The program has been approved for 6.25 hours of Continuing Legal Education credit, including 1 hour of professional conduct credit.  We've also built a social aspect into the program, providing attendees time to engage with one another during a breakfast, lunch, and a post-conference social at Retreat 21's beautiful Tap House.

For more information and to register, visit https://farmoffice.osu.edu/agri-law-summit.   Current and recent law students should contact Peggy Kirk Hall at hall.673@osu.edu for scholarship information.

Final plans are underway for the first annual "Agri-Law Summit," co-hosted by our OSU Agricultural & Resource Law Program and the Ohio State Bar Association Agricultural Law Committee. The day-long continuing legal education program will be Thursday, August 14, 2025, at the Retreat 21 Venue and Taphouse near Marysville, Ohio.  

"Growing Our Competency in Counseling Agriculture" is the theme for the event, reflecting the goal of building expertise among the attorneys who work with agricultural businesses.  The conference will begin with a focus on emerging issues for agriculture, featuring discussions with Tracy Intihar, Assistant Director of the Ohio Department of Agriculture and Harrison Pittman, Director of the National Agricultural Law Center.  We're finalizing speakers for additional topics on the agenda, which will include:

• Guiding farm businesses on disaster risk mitigation
• Legal needs for value-added businesses
• Advising new farmland owners
• Drafting tips for LLC operating agreements
• Tax incentives for agricultural easements
• Cybersecurity management

Through the Paul L. Wright Endowment in Agricultural Law at Ohio State, law students and new law graduates can receive a scholarship to attend the Agri-Law Summit at no cost.

A final agenda and registration information for the Agri-Law Summit will be available soon on the Farm Office website at farmoffice.osu.edu/agri-law-summit.