Cattle Industry: August 23, 2008 | |
CEO Breaks Silence Regarding Director Shake-up; | |
Statement by R-CALF USA CEO Bill Bullard Contact: Shae Dodson, Communications Coordinator | |
Billings, Mont. - "R-CALF USA experienced a shake-up in early 2007. Driven by member-established policy, the majority of its directors had officially demanded that USDA (U.S. Department of Agriculture) not issue the over-30-month (OTM) Rule concerning BSE (bovine spongiform encephalopathy) because USDA failed to disclose its plan to allow both OTM cattle and OTM beef into the United States. The seated president and a minority of directors disagreed and took steps that reversed R-CALF USA's official action. This led to a vote by the board of directors to unseat the president. Resignations by the president, three additional board members and several committee chairs followed. During the next 18 months, R-CALF USA worked to reinstate its member-established position that the OTM Rule must be stopped, in part because the agency brazenly failed to disclose its true intentions. In July 2008, a federal court agreed and ordered USDA to open a new rulemaking to disclose the agency's true intentions. While R-CALF USA fought to stop the OTM Rule, departed directors and committee chairs formed a new organization to compete against R-CALF USA. One committee chair also claimed ownership of R-CALF USA's magazine. When R-CALF USA learned about a plan to use the organization's confidential membership list to solicit members away from R-CALF USA, and when confidential employee documents surfaced on the Internet, the R-CALF USA board of directors - in fulfilling its fiduciary duties to the organization - was compelled to file two lawsuits in state court to protect the proprietary information of its members and its organization. The lawsuits initially worked. R-CALF USA's rights to its magazine were restored, confidential employee documents were removed from the Internet, and R-CALF USA's confidential membership list was protected by a court order prohibiting any unauthorized use. Recent decisions by the state court would make it difficult for R-CALF USA to obtain any further relief without pursuing a protracted appeal that could take years to resolve. Upon obtaining the July 2008 federal court decision on the OTM Rule that corrected the departed directors' efforts to undermine R-CALF USA's member-established policy, R-CALF USA had achieved the most important purposes of its pending lawsuit against its former directors. And, R-CALF USA remains well positioned in its ongoing legal challenge of the OTM Rule. R-CALF USA has now offered to settle its lawsuit against the departed directors in full if the departed directors merely agree to return, destroy or otherwise not use R-CALF USA's confidential documents, including its membership lists, for any purpose. As a result of this experience, the R-CALF USA board of directors enacted new policies to ensure the protection of its members' and employees' confidential information, as well as its confidential information concerning specific legal strategies." # # # R-CALF USA (Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America) is a national, non-profit organization dedicated to ensuring the continued profitability and viability of the U.S. cattle industry. R-CALF USA represents thousands of U.S. cattle producers on trade and marketing issues. Members are located across 47 states and are primarily cow/calf operators, cattle backgrounders, and/or feedlot owners. R-CALF USA has dozens of affiliate organizations and various main-street businesses are associate members. For more information, visit www.r-calfusa.com or, call 406-252-2516. | |
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Good Neighbor Committee | Good Neighbor Law© 2006 | | |