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UNITED STATES v. KINDER

December 5, 1956

UNITED STATES OF AMERICA, PLAINTIFF,
v.
G. A. HINDER, DEFENDANT.



The opinion of the court was delivered by: John E. Miller, District Judge.

This case is before the Court on plaintiff's motion for summary judgment. The pleadings, affidavits, and admissions on file disclose the following facts:

    "I then asked them how much insurance I would
  have, and they asked me what my average lint
  cotton production had been for the past years. I
  told them I had averaged 255 pounds to the acre,
  and they had a book or file with them which they
  turned to and looked up my average yield, and
  said, `Yes, that is right, your average is 255
  pounds'. They then told me that the insurance
  would be for either 75% or 80%, I am not sure
  which figure they named, of my average
  production. This would have been around 200
  pounds per acre. I then told them I would sign
  the paper they had, with the understanding that I
  would be insured for the approximate 200 pounds,
  which represented either 75% or 80% of my average
  yield.
    "At the time I signed this paper it was a blank
  form with none of the blanks filled in. I did not
  at that time authorize them to fill in any of the
  blanks nor did I later authorize anyone to fill
  in the blanks. I did not apply for any level of
  insurance, but only applied for insurance to
  cover the approximate 200 pounds per acre, which
  represented 75% or 80% of my average yield."

In regard to this matter, Henson's affidavit contains the following statements:

    "We explained that we did not have the county
  actuarial table or listing sheets which,
  according to the formula prescribed in the
  regulations, would determine the basis of the
  coverage and premium rate for Mr. Kinder's farm.
  I did tell Mr. Kinder that the coverage for C
  level insurance would be approximately 75 percent
  of his long time average yield of lint cotton per
  acre as established by the County ASC Committee
  and approved by the Federal Crop Insurance
  Corporation. On the basis of this explanation Mr.
  Kinder signed the application for cotton crop
  insurance for the year 1947. There was no
  possible source of knowledge from which I could
  have provided him with more detailed information
  concerning the coverage on his farm since the
  crop insurance program, as set up in the
  regulations, does not provide for offering an
  individual contract to a particular insured with
  initially determinable and fixed and certain
  coverage. The coverage in an individual contract
  must be determined by the Corporation according
  to a prescribed formula and is not determinable
  at the time of the making of the application for
  insurance."

Smith's affidavit contains the following statements:

    "We did not have with us the listing sheets or
  other information to enable us to discuss with
  Mr. Kinder his exact yield coverage. I do not
  recall the exact details of the conversation but
  to the best of my memory we did tell him that his
  coverage would be approximately 75 percent of his
  average yield for the period of years that was
  used in determining the coverage. I have no
  recollection of discussing with him any amount in
  pounds of yield. I, of course, had no authority
  to change any of the regulations governing
  federal crop insurance contracts. It is my
  recollection that

  Mr. Kinder signed the application for insurance
  on that date after our discussion with him."

The application which Kinder signed on March. 12, 1947, contained the following provisions:

             United States Department of Agriculture
             Production and Marketing Administration
               Federal Crop Insurance Corporation
Name and Address of Applicant:      71-070                7-166
                                  ______________________________________
                                  (State and County Code and Application
Name:     G. A. Kinder            number)
     __________________________
           (Type or Print)
Address:  Route 1, Smackover,      Union                 Arkansas
        _______________________   __________        ___________________
          (Type or Print)         (County)                (State)

Application for Cotton Crop Insurance

(Pursuant to the Federal Crop Insurance Act, as amended)

A.  The undersigned applicant hereby applies to the Federal
    Crop Insurance Corporation (herein called "the
    Corporation") for insurance to cover his interest as
    landlord, owner-operator, tenant, or sharecropper in
    American Upland cotton crops to be planted on all
    insurance units considered for crop insurance purposes to
    be located in the county designated above, in which the
    applicant has an interest at the time of planting. The
    insurance shall cover loss in yield of lint cotton (and
    cottonseed production if insured) due to unavoidable
    causes, including drought, flood, hail, wind, frost,
    winter-kill, lightning, fire, excessive rain, snow,
    wildlife, hurricane, tornado, insect infestation, plant
    disease, and such other unavoidable causes as may be
    determined by the Board of Directors of the Corporation.
    It is understood and agreed that this application, when
    accepted by the Corporation, and the Cotton Crop Insurance
    Regulations issued by the Corporation including any
    amendments thereto, shall constitute the insurance
    contract, and such contract shall be substituted for and
    take the place of any existing cotton crop insurance
    contract between the applicant and the Corporation as it
    relates to future crop years. If this application is
    accepted by the Corporation, the contract shall be in
    force and effect for the first crop year beginning after
    submission of the application and shall continue for each
    succeeding crop year thereafter until either party gives
    to the other party, on or before January 31 or the
    applicable calendar closing date for any year, whichever
    is later, written notice of termination effective at the
    beginning of the succeeding crop ...

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