The Des Moines Register , Saturday, Nov. 4, 1989

JURY AWARDS DAIRY FARMER $4.2 MILLION FROM SILO FIRM
By JILL VANWYKE
Register Business Writer

A Lime Springs dairy farmer who claimed his three Harvestore silos didn't work as advertised has been awarded $4.2 million by a Howard County jury.

Darrell Souhrada had accused A.O. Smith Corp. and its subsidiary, A.O. Smith Harvestore Products Inc. of fraud and breach of contract, saying a design flaw allows air into the silos, resulting in hot, spoiled and moldy feed.

He said the spoiled feed was fed to his dairy herd, resulting in lowered milk production and costing him $2.8 million.

"When this feed is fed to dairy cows, or for that matter hogs ..., it decreases production with a corresponding loss in profits," said Souhrada's lawyer, Will Mahler of Rochester, Minn.

The bright blue Harvestores are a common sight in the Iowa countryside. Often costing two to three times as much as other silos, they have been called "the Cadillac" of silos.

Another of Souhrada's lawyers, Mark Liabo of Cedar Rapids, said, "What the jury found is that Harvestore silos are sold and represented as protecting the feed from ... air. In the case of Darrell Souhrada, their feed was not protected from ... air."

Chuck Wright, a spokesman for A.O. Smith Corp., said Friday the company maintains that there are no flaws in the silos. "We're extremely disappointed in the verdict," he said. A.O. Smith plans to appeal.

Wright said Souhrada never complained to his dealer or to Harvestore about a drop in milk production. He said the dairy's level of milk production is above average.

Souhrada sought $2.8 million to compensate him for lost production. The jury awarded him $2.2 million and also awarded him $2 million in punitive damages. Interest brings the total amount owed to $5.8 million.

Souhrada had settled out of court earlier with the silo's dealer, Skyline Harvestore of Nashua, which went out of business in 1985.

Souhrada, who spent $150,000 on three Harvestores 11 or 12 years ago, filed the lawsuit in 1985. The trial lasted about a month, and the eight jurors deliberated six hours before returning the verdict late Thursday.

Wright said there are 70,000 Harvestore silos in North America. "This product has been used on American farms since 1949," he said. "The vast majority of thousands of Harvestore owners are satisfied."

Mahler said A.O. Smith has been sued for similar problems by farmers in other states. In the last two or three years, he said, farmers have won about 18 of those lawsuits. A.O. Smith has won about three, he said.

Mahler represented a farmer in Blue River, Wis., who won a similar lawsuit in July against the Company. The farmer was awarded $425,000. A.O. Smith is also appealing that verdict.

Donna Souhrada said she and her husband are "really pleased and happy" with the verdict. "It still hasn't sunk in yet," she said Friday.

A.O. Smith Corp. has its headquarters in Milwaukee. Its subsidiary, Harvestore Products, is located in DeKalb, Ill.

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