UC Davis Seeks Dismissal of California Strawberry Commission’s Breach of Contract Suit

The University of California Davis, has reportedly filed a motion in California
state court to dismiss the breach of contract suit that the California Strawberry
Commission filed in October after it learned that the university may
stop breeding and selling strawberry germplasm to farmers. UC Davis has
developed and sold its strawberry germplasm at low royalty rates to the
commission for several decades through a research program headed by
two professors. According to the commission’s complaint, the professors
announced their intention to resign in 2012 and take their research to a
private company, raising the cost of royalties and limiting the sales to select
strawberry growers, and as a result, the university notified the commission of
its intention to shutter the program.

In its complaint, the commission argued that its growers have directly funded
the university program, so they are entitled to receive the new strawberry
varieties that the professors intended to take to the private companies to
further cultivate. The university sought “to take the fruits—both literally and
figuratively—of decades-long research that the commission funded for the
benefit of the California strawberry industry and hand them over to private
financial interests,” the commission argued. In a blog post announcing its
motion to dismiss the suit, UC Davis rejected the contention that the program
will end. “The strawberry breeding program at UC Davis is the preeminent
public breeding program in the world today and the only public breeding
program in the state,” said Chancellor Linda P.B. Katehi. “We are committed to
maintaining that status for years to come.” See UC Davis News, April 23, 2014;
Sacramento Bee, April 27, 2014.

Issue 522