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Decatur Dairy's Stettler, farmers at odds again
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MONROE - Steve Stettler and Decatur Dairy filed a request for an injunction March 19 against 16 farmers who threatened to sue Stettler over arguments raised last year about Stettler's business practices.

Stettler is asking the court enter an injunction against the 16 farmers, Robert P. Atkinson, Dan Ballmer, George Crooks, Dale Heath, James Lawrence, Dean Lederman, Joel Nieman, Brad Saunders, David Schenk, Herman Wellnitz, Joseph Wellnitz, Mark Wellnitz, Phil Wellnitz, James Wilke, Robert Wolfe and Jeff Border, to stop making claims and seeking to re-litigate past issues.

He's also asking the farmers be required to pay any costs for the proceedings.

The farmers have 45 days to respond to Stettler's filing.

Stettler said the charges made by the 16 farmers are baseless.

"We've got a positive environment and our cheese markets are doing well," Stettler said. "We want to move past this."

Stettler said the farmers in the co-op were paid for every pound of milk they sent to him and he was willing to move on.

In the court documents, Stettler, president and manager of the cheese factory, said he received a letter from Richard R. Grant of Cosigny, Andrews, Hemming and Grant in Janesville that he represented the farmers.

Grant informed Stettler in the March 5 letter that his clients were suing Stettler and Decatur Dairy for damages in lost cheese sales, all cost of litigation and costs for the investigation.

He said Stettler admitted he intentionally fabricated and under-reported the amount of cheese and the prices for cheese.

Grant said the amounts were not reported to either his clients or the Wisconsin Department of Agriculture.

"Particularly damning are your sworn affidavits for both the Co-op and the Dairy falsely reporting the volume of milk processed for some five years or more that prevented the Agriculture Department from blowing the whistle on my clients and the Co-op," Grant wrote.

According to Grant's letter to Stettler, included in Stettler's complaint, theft by fraud occurred and the 16 farmers are owed more than $870,000. Grant said triple damages are allowed under state statute and Stettler owes the farmers more than $2.6 million.

He offered Stettler a chance to settle the matter for $750,000.

Grant was not available for comment.

In court documents filed in Green County Circuit Court, Stettler contends the issues discussed by Grant were settled last May when Green County Circuit Court Judge James Beer ruled charges brought against Stettler by the co-op board were not proven.

The main allegation of the complaint filed on behalf of the co-op and the board alleged that Stettler and Decatur Dairy had "improperly reimbursed the dairy for marketing and packaging costs" that were not covered in the original 1981 contract between Stettler and the co-op.

However, according to the court, minutes from a 1988 co-op board meeting showed that the board had authorized Stettler be reimbursed for marketing and packaging costs.

Stettler said Grant's letter constitutes harassment. Stettler demanded all the confidential and proprietary records that are in possession of Nicole Roth, who formerly worked for the cheese factory, and the farmers be returned.

In March 2007, the previous board of directors filed a temporary restraining order to prevent Stettler from removing cheesemaking equipment from the factory and asked the court to grant a receivership for the equipment at the cheese factory, located west of Brodhead on County F.

That board also fired Stettler March 15 while Stettler was out of town. Stettler has managed the cheese factory since 1982. He owns the equipment in the cheese factory while the co-op owns the building.

The former board, which at that time included Wolfe, Wilke, Schenk and Charles Lederman, accused Stettler of mismanagement and said a $3.5 million discrepancy in financial records between January 2002 and September 2006 was a result of his actions.

At a hearing March 16 both sides reached an agreement that Stettler would continue to act as president and manager of the cheese factory until May 1 and the patrons would hold their annual meeting April 9.

At the annual meeting, co-op members replaced the board with David Weis, Steve Carpenter, Keith Trow, Mike Gough and Steve Case.