Legal Development Updates

North Dakota - Seed Arbitration Board - Notice of Proposed Rulemaking Regarding Seed Arbitration

The North Dakota Seed Arbitration Board (Board) has issued a notice of proposed rulemaking to amend its rules to implement statutory changes relating to seed arbitration. Significantly, the proposal would eliminate seed arbitration as a prerequisite to a civil action and provide procedures for petitioning the Board for voluntary seed arbitration. In addition, the proposal would increase the Board's membership from five to six members and provide that seed dealers, as well as seed labelers and customers, may petition the Board for seed arbitration.

In eliminating mandatory seed arbitration, the proposal would also eliminate the requirement that seed companies provide information regarding seed arbitration to seed customers who allege damages stemming from a seed transaction. In addition, persons wishing to request arbitration would no longer be required to make that request within sixty days after the alleged defect or violation becomes or reasonably should have become apparent.

Instead, the proposed rule would allow seed labelers, dealers, or customers to petition for seed arbitration by filing a written complaint and fee of $250 with the Commissioner of Agriculture. The complaint would be required to contain: 1) certain factual information surrounding the allegation (i.e., purchase dates, planting dates, weather conditions, etc.); 2) information regarding the seed's alleged deficiencies; 3) a label sample; 4) contact information of any witnesses; and 5) damages sustained or to be sustained as a consequence of the allegations. The responding party would have the option to answer the complaint within twenty days after its receipt. After allowing sufficient time for the filing and service of an answer, and within sixty days after the Commissioner's receipt of the complaint, the Board would hold an initial hearing, unless an extension was requested and granted. Finally, as under the current regulatory scheme, the Board would issue a nonbinding recommendation for the resolution of the dispute within thirty days after the final hearing.