Monsanto Co. v. McFarling

Homan McFarling (defendant) bought patented genetically modified soybean seed from Monsanto (plaintiff) under an agreement barring him from saving seed for replanting or supplying it to third parties, with any violation triggering liquidated damages of 120 times the standard $6.50-per-bag fee. McFarling saved and replanted thousands of bushels of seed from his 1998 and 1999 crops, and Monsanto sued for breach, acknowledging that whether a grower saves seed for himself versus supplies it to others significantly affects the harm Monsanto suffers. The district court granted Monsanto summary judgment for $780,000 — 120 times the fee for McFarling's original 1,000 bags — and McFarling appealed.