R-CALF actions no olive branch

By Leo McDonnell, Chuck Kiker, Jon Wooster, and Dennis McDonald
Wednesday, August 27, 2008 4:44 PM CDT

In the ongoing lawsuit initiated by R-CALF USA against three former directors, and the depositions of several former members, we are compelled to respond to the statement made yesterday (Aug. 21) by the R-CALF CEO. It has now become very apparent that producers deserve as much correct information as possible to make informed decisions.

Recently the Court ruled to dismiss the charges against Dennis McDonald and Chuck Kiker. Motions are now before the Court seeking to dismiss the charges against Jon Wooster. In dismissing the case as to Kiker, the judge indicated R-CALF’s allegation amounted to mere speculation. In dismissing the case against McDonald, the judge ruled there simply was no evidence to support R-CALF’s claims. Earlier, when R-CALF went after Leesa Kiewel, the judge said R-CALF was “speaking out of both sides of their mouth.” All of the court orders may be read at www.swiftstallions.com.

R-CALF leadership stated yesterday that the organization has now offered to settle its lawsuit against us. While the R-CALF CEO makes this claim publicly, the fact of the matter is during the past two weeks, R-CALF has amended its complaint before the Court alleging breach of fiduciary duty, signaling that the suit will be expanded under new allegations. In addition to this action, R-CALF has noticed and served Leo McDonnell and noticed Jane Wooster, wife of Jon Wooster, with subpoenas and has served notice to Jon Wooster that he will be deposed for the second time. All of these legal actions continue to cost precious resources.

“The amended complaint before the Court seeks $100,000 per person in damages from the individuals named in the suit. It can likely be concluded that the amended complaint seeking monetary damages related to an alleged breach of fiduciary duty will include Leo McDonnell as a defendant.

“These actions do not constitute an “olive branch” nor do they constitute a “settlement offer.”

Unfortunately, this lawsuit, which has likely cost producers hundreds of thousands of dollars in legal expenses, is not the result of a moral directive to serve the best interests of U.S. cattle producers. During the ongoing legal proceedings, we could not have made clearer that R-CALF USA membership lists or documentation were never used in forming any new organization. Our moral compass would not permit us to do so, and to be accused of these sorts of actions is an insult personally and professionally.

“While the R-CALF CEO claims to have offered to settle the suit, the actions of the organization before the Court signal something very different. R-CALF USA initiated this legal action and we have been forced, at enormous cost, to defend ourselves. We will continue to do so.

The real losers in this debacle are the cattle producers who have lost their confidence and trust in organizations and the means by which we represent ourselves in the democratic process. We’ve moved on, our hopes have always been that the plaintiffs in this case would also.

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