Defendants Cite Time Limits, Contract Clauses, and Legal Finality
Breckenridge responded Tuesday with a motion to dismiss, contending ProAg’s lawsuit misses critical legal deadlines and rehashes settled issues.
They argued that the contractual claims fall under Texas law—per a 2011 agreement—and are thus barred by the state’s four-year statute of limitations. Meanwhile, claims based in tort, such as negligence, fall under Michigan’s three-year window, which has also closed.
Moreover, they say ProAg could’ve brought these claims during arbitration with Mibelloon but didn’t—and can’t now resurrect them after the fact.
Reinsurance Roadblock: Agency Review Required
Breckenridge and Godley also argued the FCIC’s decision not to reinsure ProAg is not a judicial matter, but rather a question of federal administrative policy. As such, ProAg must first obtain a final agency determination from FCIC before seeking redress in court.
They further rebuffed ProAg’s indemnity and contribution claims, pointing out that Michigan no longer recognizes joint liability in most civil cases and that ProAg didn’t prove it was without fault in the original arbitration.
