Smithfield and Maxwell Settle Hog Contract Dispute on Eve of Trial

Smithfield Foods and Maxwell Foods have reached a last-minute settlement in their long-running legal dispute over a hog supply contract—just as the case was set to go to trial.

The conflict centered on a 25-year hog supply agreement that soured during the COVID-19 pandemic. Maxwell alleged that Smithfield refused to uphold agreed-upon pricing or renegotiate contract terms, prompting legal action. Smithfield responded with counterclaims, including force majeure and anticipatory breach, but the court ultimately ruled in Maxwell’s favor on all counts.

While the exact terms of the settlement remain confidential, it followed a series of legal setbacks for Smithfield. A North Carolina Business Court judge denied Smithfield’s request to split the trial into separate phases, citing potential delays and unfair prejudice to Maxwell. The court also permitted Maxwell to reference the prior breach ruling when presenting its damages claims, provided the context was not misrepresented.

This resolution ends a contentious chapter in what was once a decades-long business relationship between two of the pork industry’s notable players. The outcome reinforces the importance of contract clarity and responsiveness—especially during periods of volatility like the pandemic.

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