Primex Farms v. Roll Global CA5

FACTS AND PROCEDURAL HISTORY

Background Primex, which is owned by Ali Amin and his wife, has been in the business of processing pistachios for pistachio growers in California since 2002. From 2002 until 2006, pistachio grower Chaparral sold its pistachio crops to Primex for processing. In October 2006, Chaparral’s farm manager, Bill Klepper, signed a three-year contract with Primex to deliver its crops to Primex for 2006, 2007, and 2008. In July 2007, however, Chaparral entered into another three-year contract to sell all of its crops harvested in 2007, 2008, and 2009 to Cal Pure Pistachios, Inc. (Cal Pure). This contract was signed by Chaparral’s owner, M.T. Alaghbandian. Alaghbandian lived in Iran. Amin’s family knew Alaghbandian’s family, and Amin’s uncle had a friendship with Alaghbandian going back many years. Amin and his family were also pistachio growers with about 4,000 acres of orchards in Kern and Madera Counties in 2007. Klepper worked as the farm manager for Amin’s orchards from 1989 until his death in 2008.1 Prior lawsuit In an earlier lawsuit (the Chaparral case), Primex sued Chaparral for breach of contract based on Chaparral’s failure to deliver to Primex its…