Saturday, February 1, 2014

The Legal ball in the court of the #ChickenMafia

A previous Blog post published the draft Statement of Claim against the controlling minds of the #ChickenMafia (see SFPFC takes #ChickenMafia to Court over Bogus FCR).

One analogy of this situation is the Defendants were the security guards of the public treasury. Instead of protecting the treasury, they opened the doors and put out signs inviting their friends and any looters to come in and take whatever they wanted. They have some of the loot that they took for themselves (unjust enrichment), but the majority of the public treasure was taken by their friends and unknown looters (due to negligence by the security guards). The security guards however, as the controlling minds, have responsibility for what they did (both unjust enrichment and negligence), and the wrongs they allowed others to do by their negligence.  In the end, they are responsible for all of it.

It's going to be interesting to see how all the controlling minds in Chicken Supply Management respond to this. Some may want to resolve the issue and have it go away as quickly as possible.  Others will have the knee jerk reaction to open up their legal war chest, hire the best legal gun slingers available, and fight forever to block this issue and deny or avoid any resolution.

I'm sure they will want to have a united front, stick together through thick & fin, but with hard feelings between CFC and CFO, will the common enemy (Small Flockers) bring them together, or will it drive them apart? Will one blame the other for getting them into this mess? I'm sure there will be many dynamics and intrigue behind the scenes on this.

My personal lawsuit is nothing but a mosquito at their BBQ; a mere nuisance to them.  However, if successful, they know what comes next.  Somebody else will pick up the torch and try to follow in my path.  Then another.

Eventually, some enterprising lawyer sitting in the audience watching this spectacle will be unable to contain himself any longer.  He will salivate only so long over a potential Class Action lawsuit for all Canadians, and the full $10 Billion that the #ChickenMafia stole from Canadians.

That's when it will get really interesting.

This is way out there, but if it goes to the ultimate success via a Class Action lawsuit for all Canadians, where will the #ChickenMafia get the $10 Billion to pay the Court-awarded compensation to Canadians? At $1.5 million in quota value time 2,700 quota farmers, that is $4.05 Billion. Not quite enough.

Will they mail out 66% off retail store coupons for chicken to all Canadians until the debt is discharged?  How will they cash flow that loss of ongoing revenue?

I'm sure Farm Credit Canada ("FCC") will loan the #ChickenMafia the money to pay the Court judgement.  Oh wait, FCC is very over-extended already, and may have great difficulty collecting on the loans they already stuffed into farmer's pockets (see FCC: The Farm Debt Trafficker and Frightening Farm Finances ).

A previous Blog posting The New Chicken Farmer shows that the starter chicken farm has a capital investment of $4.6 Million. Some farms are bigger than this "starter" farm, but depreciation of the older assets may bring it back to somewhere close to this value. At 2,700 quota farmers in Canada, this is a total capital asset of $12.42 Billion, which will cover the Court award with $2.4 Billion left over for legal fees and miscellaneous costs.

Here's a wild and crazy solution.  Perhaps Canadians should "nationalize" the quota-based chicken farms as part of the settlement.  Canadians will own all quota-based chicken farms (as a National Co-op perhaps ?), and each farmer gets a $888,000 buyout paid over 20 years (the $2.4 Billion excess divided up amongst the 2,700 farmers, which is a $44,400 per year per farmer payout) as a levereged buyout (see LBO).  If they want, the quota-based farmers can keep their jobs, now as a wage slave, running those publicly owned quota-based chicken farms.

Interesting turn of events, don't you think?

Of course, all this is just wild speculation that will take at least the next 10 years to play out.  There is just a slim chance that any of this really occurs, but it's fun to dream.

Dreaming these kind of dreams also helps in the interim, to survive another day of oppression and tyranny at the hands of the #ChickenMafia without going crazy.

I can't wait to see how it all comes out.

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