“The conditions at LaGrou’s cold storage warehouse at 2101 Pershing Road in Chicago were enough to turn even the most enthusiastic meat-loving carnivore into a vegetarian.” —Bauer, Judge 

Facts: LaGrou Distribution Systems, Incorporated, operated a cold storage warehouse and distribution center in Chicago, Illinois. The warehouse stored raw, fresh, and frozen meat, poultry, and other food products that were owned by customers who paid LaGrou to do so. More than 2 million pounds of food went into and out of the warehouse each day. The warehouse had a rat problem for a considerable period of time. LaGrou workers consistently found rodent droppings and rodent-gnawed products, and they caught rats in traps throughout the warehouse on a daily basis. The manager of the warehouse and the president of LaGrou were aware of this problem and discussed it weekly. The problem became so bad that workers were assigned to “rat patrols” to search for rats and to put out traps to catch rats. At one point, the rat patrols were trapping as many as 50 rats per day. LaGrou did not inform its customers of the rodent infestation. LaGrou would throw out products that had been gnawed by rats. One day, a food inspector for the U.S. Department of Agriculture (USDA) went to the LaGrou warehouse and discovered the rat problem. The following morning, 14 USDA inspectors and representatives of the federal Food and Drug Administration (FDA) arrived at the warehouse to begin an extensive investigation. The inspectors found the extensive rat infestation and the contaminated meat. The contaminated meat could transmit bacterial, viral, parasitic, and fungal pathogens, including E. coli and Salmonella, which could cause severe illness in human beings. The USDA ordered the warehouse shut down. Of the 22 million pounds of meat, poultry, and other food products stored at the warehouse, 8 million pounds were found to be adulterated and were destroyed. The remaining product had to be treated with strict decontamination procedures. The U.S. government brought charges against LaGrou for violating federal food safety laws. The U.S. district court ordered LaGrou to pay restitution of $8.2 million to customers who lost product and to pay a $2 million fine. In addition, it sentenced LaGrou to a five-year term of probation. LaGrou appealed. 

Issue: Has LaGrou knowingly engaged in the improper storage of meat, poultry, and other food products, in violation of federal food safety laws? 

Language of the Court: The conditions at LaGrou’s cold storage warehouse at 2101 Pershing Road in Chicago were enough to turn even the most enthusiastic meat-loving carnivore into a vegetarian. According to Dr. Bonnie Rose, the USDA microbiologist who testified, LaGrou’s warehouse was the “worst case” she had seen in her 28 years with the USDA. The instructions in this case explained that in order to convict LaGrou, the jury had to find that an authorized agent or employee of LaGrou knowingly stored products under insanitary conditions. LaGrou’s President, managers, and several employees were aware of the unsanitary conditions in the Pershing Road warehouse. 

Decision: The U.S. court of appeals upheld the U.S. district court’s finding that LaGrou had knowingly engaged in the improper storage of meat, poultry, and other food products, in violation of federal food safety laws. The court of appeals affirmed the judgment of the district court, except that it reduced the fine from $2 million to $1.5 million. 

Ethics Questions: Did LaGrou management knowingly engage in improper storage of food products? Do you think that the penalties imposed on LaGrou were sufficient?