Q: I operate a custom baling service. Two years ago, I was hired by a farmer to cut and bale his hay. I told him that the condition of the crop would affect how the hay would dry and when it would be best to bale. However, he was in a hurry and kept telling me when to bale. I did as he requested.
When I sent the bill to him, he told me that the hay had spoiled and he could not pay me for the job. Two people who work for me heard the farmer tell me to go ahead and bale the hay. What are my rights in this kind of situation?
Read Also
Stock dogs show off herding skills at Ag in Motion
Stock dogs draw a crowd at Ag in Motion. Border collies and other herding breeds are well known for the work they do on the farm.
A: Even though there might not be a formal written document between you and the farmer, in law a contract can arise through oral discussions and the actions of the parties. We need to look to that agreement to determine the rights of the parties.
Based on your situation, there are two ways we can interpret this contract.
We can say that the custom operator was hired not only to cut and bale, but to apply his expertise as to when was the best time to do that. This is similar to when we hire a mechanic to fix our combines, tractors and trucks. We are relying on their judgment and if they are wrong, we may have a claim against them. So too, when we hire a custom operator who doesn’t exercise good judgment, we may have a claim against them.
I say “may” advisedly. Just because a problem arises or we didn’t obtain the desired result doesn’t mean there is an automatic right to a claim. Should such a matter reach the courts, a judge will ask if the custom operator acted in a reasonable and professional manner. Did he act in a way that other custom operators would in the circumstances?
The other way to interpret this contract is that the operator was hired to do exactly what the farmer wanted. Decisions were made by the farmer and the operator was more like a hired hand who did what he was told.
In summary, the difference between the situations is who made the decision as to when to cut and bale.
There may be variations in these scenarios. Even where the farmer is making the decisions, there may still be some duty on the custom operator to at least advise the farmer the hay isn’t ready for baling. Whether this might be the case would require a detailed analysis of the relationship between the parties, including the knowledge of the farmer and the experience of the operator.
If the operator knows the farmer is young and inexperienced, there may be a duty to warn him that conditions are not right for baling.
If the matter cannot be resolved, you would have to go to court to collect. A judge would do the kind of analysis that I’ve described above. Claims under $25,000 in Alberta, $7,500 in Manitoba and $5,000 in Saskatchewan can be advanced in small claims court. Actions in contract disputes must be started within six years from the time of the contract.
