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A Case Study in Premium Natural Beef – Federal Court Review of Premium Natural Beef LLC’s Motion to Compel Markforce LLC

June 14, 2021

A Case Study in Premium Natural Beef – Federal Court Review of Premium Natural Beef LLC’s Motion to Compel Markforce LLC

At the core of Premium Natural Beef is a commitment to high quality and sustainable production: First, all beef is Canadian individually hand raised by owners dedicated to their cows’ health, prosperity, and happiness. Then, all beef undergoes a Feed Certification Processes, assuring consumers that premium products meet the highest standards of animal husbandry and nutrition. Finally, premium beef is certified free of BSE (mad cow disease), Cows carrying WBS (Wetland Background Stream), and/or GMP (Genetic Modified Organisms). The Premium Natural Beef brand dedicates itself to maintaining a consistent high quality of the beef product for our customers.

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There are two important resources for learning about beef farming and the beef industry in general. The first is the Inside Agriculture magazine. This monthly journal offers perspectives on the beef industry from the perspective of the farmer. They will provide you with the latest news as well as an in depth case study on one ranch or farm in particular. In addition to their case studies, they publish an online blog as well as an Ezine. The beef blog features stories, news releases, and important issues pertaining to the beef industry.

The second resource is the Osage County website. This valuable site provides comprehensive information on the beef operation including the latest news. Additionally, they publish a bimonthly magazine and a business section. Their “Osage County Texas Limited Liability Company Operating Agreement” and” Operating Agreement for the Retail Funded Food Product Provider” are informational guides for business persons dealing with the beef processing and distribution operations. They also publish an “Osage County Texas Common Cause Consolidated Complaint AgainstTPWD.”

Lastly, the Texas Public Policy Foundation has a webpage that is dedicated to Premium Natural Beef products. On this webpage they publish an annual diversity index that they analyze using current and historical data to identify areas of operating disparity that might be a problem later on. Among the topics that they cover are: operating agreements, accounting claim records, and the subject matter jurisdiction law. Included herein is an excel file with a worksheet that you can use to conduct your own search on the contents of the premium natural beef diversity report.

The Texas Supreme Court found the following to be justified on the basis of the facts found in its order granting summary judgment in favor of the defendant: the defendant failed to prepare and maintain its books of accounts in compliance with the requirements of the laws of its incorporation; the defendant failed to make the required filings with the applicable state agencies; and the record containing the deficiency was lost. Pursuant to these findings, the court found that the first amended petition was defective because it did not conform to the correct accounting period of one year. Accordingly, the court found that the company did not preserve records that would enable the company to make its tax liability properly. Accordingly, the court entered its judgment against the defendant as a result of the first amended petition.

In reviewing the merits of the complaint, we think that there are a number of misstatements and/or errors with respect to the claims set forth in the complaint, as well as with respect to the underlying evidence regarding the preparation of the books of accounts and the first amendment petition. For example, we believe the complaint’s reference to the defendant’s failure to prepare its books of accounts in compliance with the requirements of theorporation law is simply an attempt by the complaint’s counsel to recoup some of the costs from the defendant through inference that the defendant has failed to comply with the provisions of its franchise contract. We also believe there are significant mischaracterizations of facts with regard to the parties’ relationship, the basis for the franchise agreement, and the contents of the books of accounts. We further believe that the entire basis of the complaint is a logical extension of the previous arguments regarding the subject matter jurisdiction discussed above.

Marcus Listeria
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