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R-CALF extends olive branch

Thought you should all see the attached letter recently published in the Agri-News as a letter to the editor from two Montana ranchers who were among the first members of R-CALF when it was formed 10 years ago by Leo McDonnell. Here is where they stand with the organization today:

Enough is Enough

Dear Editor,

On Aug. 15th, 2008 Leo McDonnell was served a subpoena initiated by R-CALF-USA and its directors to appear for deposition Sept. 10,, 2008 in the continuing litigation against past president Chuck Kiker, past director Jon Wooster, Dennis McDonald, and as stated on the subpoena, “John Does 1-5.” It’s ironic that Leo’s deposition will take place almost ten years later to the day that the original dumping suit against Canada was filed. Even more ironic though is that this all appears to be happening with the knowledge and approval of people Leo considered to be trusted friends like Herman Schumacher, Kathleen Kelley, Johnny Smith, and Randy Stevenson to name a few. The fact that Leo McDonnell has to spend money to defend himself against the very organization he founded is a travesty. All of the time Leo has spent away from his family and his business traveling around the country trying to get R-CALF off the ground wasn’t enough. All of the money Leo has spent including co-signing notes to the bank to keep R-CALF from going under wasn’t enough. Now Leo and Sam have to spend more time and money to hire legal council to defend themselves against the “new R-CALF.”

Mike and I would like to know how many R-CALF members understand that part of your dues dollars are possibly being used to sue some of the original members of R-CALF? How many of you people that will donate a calf for a roll over auction this fall understand that some of that money may well be used to sue the very people who spent their time and money to get R-CALF started? Do you know how many members have left since the board shake up, or that R-CALF shut down their Washington DC office because as one director said, it was a waste of resources to keep an office open in Washington DC? What is R-CALF’s deteriorating financial situation? While this witch hunt has been going on against some of the original members, what has R-CALF won for you? They lost the over 30 month case, which as we understand, their own lawyers told them they had a 99.9% chance they would lose, and what did that cost you in dollars and political clout? Too bad they would not pursue a legislative alternative to stop the over 30 month rule like Leo and Chuck wanted to. Obviously their odds could not have been much worse. If a corporation was being run this poorly there would be a house cleaning before it went bankrupt. We think R-CALF’s house cleaning should start with the out of control CEO and the directors that are too weak or complacent to do the job they signed on for.

If you think we get any joy out of writing this letter, you are wrong. No one believed in what the original R-CALF stood for more than we did but we refuse to sit by while this is being done to Leo and Sam. This letter is meant to shed light on some of the things a few of the so called leaders in R-CALF are doing, and if you as members don’t start raising some hell about it we doubt R-CALF will last. That’s not good for any of us cow-calf producers. If you already know all of this is going on and agree with it, that’s your business, but we believe there are a lot of contributors that don’t know any of this is happening and it’s high time you did.
Sincerely,
Jack McNamee, Miles City MT
Mike Karrels, Terry MT
 
The press release from Bullard "extending an olive branch" that started this session was the first post; however, I notice the response from those being sued was never posted so I have attached it below.

Also, the recent issue of the Western Livestock Reporter included both releases with the caption "Olive branch . . . or red herring?"

Webster: Olive Branch - an emblem of peace; hence, anything offered as a sign of peace

Webster: Red Herring - a subterfuge whose object is to distract or divert notice from the relevant problem


Joint Statement by Leo McDonnell, Chuck Kiker, Jon Wooster and Dennis McDonald

August 22, 2008 - This joint statement by Leo McDonnell, Columbus, MT; Chuck Kiker, Beaumont, TX; Jon Wooster, San Lucas, CA; and Dennis McDonald, Melville, MT is in response to a statement issued on August 21, 2008 by R-CALF CEO Bill Bullard titled "CEO Breaks Silence Regarding Director Shake-Up; Extends Olive Branch to End Lawsuits Against Former Directors."

"In the ongoing lawsuit initiated by R-CALF USA against three former directors, and the depositions of several former members, we are compelled to respond to the statement made yesterday by the R-CALF CEO. It has now become very apparent that producers deserve as much correct information as possible to make informed decisions.

"Recently the Court ruled to dismiss the charges against Dennis McDonald and Chuck Kiker. Motions are now before the Court seeking to dismiss the charges against Jon Wooster. In dismissing the case as to Kiker, the judge indicated R-CALF's allegation amounted to mere speculation. In dismissing the case against McDonald, the judge ruled there simply was no evidence to support R-CALF's claims. Earlier, when R-CALF went after Leesa Kiewel, the judge said R-CALF was 'speaking out of both sides of their mouth.' All of the court orders may be read at www.swiftstallions.com.

"R-CALF leadership stated yesterday that the organization has now offered to settle its lawsuit against us. While the R-CALF CEO makes this claim publicly, the fact of the matter is during the past two weeks R-CALF has amended its complaint before the Court alleging breach of fiduciary duty, signaling that the suit will be expanded under new allegations. In addition to this action, R-CALF has noticed and served Leo McDonnell and noticed Jane Wooster, wife of Jon Wooster, with subpoenas and has served notice to Jon Wooster that he will be deposed for the second time. All of these legal actions continue to cost precious resources.

"The amended complaint before the Court seeks $100,000 per person in damages from the individuals named in the suit. It can likely be concluded that the amended complaint seeking monetary damages related to an alleged breach of fiduciary duty will include Leo McDonnell as a defendant.

"These actions do not constitute an ‘olive branch’ nor do they constitute a ‘settlement offer’.

"Unfortunately, this lawsuit, which has likely cost producers hundreds of thousands of dollars in legal expenses, is not the result of a moral directive to serve the best interests of U.S. cattle producers. During the ongoing legal proceedings we could not have made clearer that R-CALF USA membership lists or documentation were never used in forming any new organization. Our moral compass would not permit us to do so and to be accused of these sorts of actions is an insult personally and professionally.

"While the R-CALF CEO claims to have offered to settle the suit, the actions of the organization before the Court signal something very different. R-CALF USA initiated this legal action and we have been forced, at enormous cost, to defend ourselves. We will continue to do so.

"The real losers in this debacle are the cattle producers who have lost their confidence and trust in organizations and the means by which we represent ourselves in the democratic process. We’ve moved on, our hopes have always been that the plaintiffs in this case would also."
 

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