State Supreme Court Says Lawsuit Against Tyson Must Be Heard In Court

The Arkansas Supreme Court on Thursday sided with pork producers who want their lawsuit against Tyson Foods Inc. heard in circuit court rather than arbitration. Tyson ended its live swine operation in Arkansas and Oklahoma, and producers sued to pursue claims that they invested in their businesses to work for Tyson. The producers sued in Pope County Circuit Court but Tyson wanted the case to be heard by an arbitrator. A judge ruled that the case belonged in circuit court but Tyson challenged that ruling, taking it as far as the state`s highest court. The supreme court on Thursday ruled against the world`s largest meat producer. Attorneys for the farmers argued that, at the root of the case, Tyson acted in bad faith because the company had farmers invest as much as $1 million in individual facilities before ending swine operations in 2002. Tyson decided in 2002 close company-owned and leased hog farms and end contracts with 132 hog producers in Arkansas and eastern Oklahoma. The company said the restructuring was intended to reduce operating losses.