By Ken Stern 

Tulip Town sues Tulip Valley Farms for competing

 

April 19, 2023

Ken Stern

BRIGHT COLOR UNDER A GLOOMY SKY – Washington Bulb Company's Best Road tulip field was lonely for visitors Sunday as April stays stubbornly cool and cloudy. Down the road, fellow growers Tulip Town and Tulip Valley Farms are in a gloomy dispute.

The weather has not cooperated or coordinated itself with this year's Skagit Valley Tulip Festival, but sunny days are surely here again for Andrew Miller's new Tulip Valley Farms operation. His Bradshaw Road operation, in partnership with Larry Jensen and Shannon Perkes, continues to be open for business after an April 7 agreement between his lawyer and counsel for Spinach Bus Venture Group, owners of Tulip Town. Miller was sued on March 28 to halt his operations by Tulip Town's owners in Skagit Superior Court, through a preliminary and permanent injunction.

In court on April 7 the parties agreed to strike the pending motion for temporary restraining order and cancel the hearing on the motion. Though Tulip Town can return to court, outside lawyers assess the chances of Tulip Town getting relief against Miller as nil, that the attempt to enjoin Miller is over.

The complaint against Miller included alleged unlawful "duplicitous conduct" and breach of contract. But Miller countered that his Bus partners knew in fall 2022 of Miller's new company. Most critically, the 2019 operating agreement of Spinach Bus Venture Group LLC contained this provision: "Any member or manager may engage in or possess an interest in other business ventures of every nature and description, independently or with other, including but not limited to ownership, financing or management ... in businesses that are similar to the business of the Company ... ."

Partners no more

The owners of Tulip Town and Tulip Valley Farms – neighbors across Bradshaw Road from each other – are at odds with each other, with accusations and information listed in the March 28 complaint making the dispute public. Miller was the CEO of the Spinach Bus Venture Group when it bought Tulip Town in 2019. The ventures expanded fairly rapidly with the purchases of Fairhaven Mill, Skagit Acres and Skagit Landing Restaurant within two years.

Then, Miller created Tulip Valley Farms with Larry Jensen and Shannon Perkes in 2022, planting two tulip fields on land leased from Jensen.

In its complaint, Spinach Bus Venture Group was critical of Miller's performance, stating he was one of two paid owners, at $120,000 and benefits annually. He was removed from the CEO position in September 2021, kept on salary for the next year, then in August 2022 told unless "the consulting business drastically improved" his pay would come to an end.

Miller was sued for breaches of contract, fiduciary duty, implied covenant of good faith and misrepresentation and conversion.

Miller's response, filed in court April 6, states that his former partners knew by October 2022 of Miller's "alleged misbehavior" but waited till March 28, days before the start of the Tulip Festival, to file their complaint. It notes "the request for injunctive relief (was) clearly timed to cause the most disruption to Tulip Valley and Mr. Miller."

 

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