A major dispute has erupted between two prominent companies over a failed equipment installation that allegedly resulted in significant financial losses. Land O’Lakes, Inc., a well-known Minnesota cooperative corporation, filed a complaint against Koss Industrial, Inc., a Wisconsin-based company, on January 26, 2026, in the United States District Court for the Western District of Wisconsin. The lawsuit accuses Koss Industrial of breaching contract terms and warranties related to equipment supplied for cheese production.
Land O’Lakes is seeking justice after experiencing severe operational disruptions due to faulty equipment provided by Koss Industrial. According to the complaint, both parties entered into a Short Form Equipment Agreement (SFEA) on September 22, 2023. Under this agreement, Koss was tasked with supplying and installing essential machinery at Land O’Lakes’ cheese production facility in Spencer, Wisconsin. The equipment included a block dumper, grinder, curd blower system, and electronic control systems necessary for efficient cheese processing. The total purchase price agreed upon was $706,820.
However, problems arose shortly after the initial installation in July 2024 when the grinder and curd blower became clogged during use. Despite modifications made by Koss to address these issues, including adding wiper blades to aid cheese movement through the grinder, further complications emerged. Routine inspections conducted by Land O’Lakes on July 22 and 23 revealed metal fragments contaminating their ground cheese due to friction within the machinery components. This contamination rendered approximately 142,050 pounds of cheese unfit for consumption.
The situation worsened when another inspection on September 30 uncovered additional metal shavings originating from the blower’s silencer. This discovery forced Land O’Lakes to discard an additional 116,300 pounds of contaminated cheese. As a result of these ongoing issues with the equipment provided by Koss Industrial—deemed not fit for its intended purpose—Land O’Lakes claims damages exceeding $1 million.
In their complaint, Land O’Lakes outlines multiple breaches by Koss Industrial under various counts: breach of contract; breach of express warranties; breach of implied warranty of merchantability; and breach of implied warranty for fitness for a particular purpose. Each count details how Koss failed to deliver functional equipment free from defects as promised under their agreement.
The plaintiff seeks compensatory damages exceeding $1 million along with prejudgment interest covering all costs incurred due to this debacle—including product loss expenses totaling over $500k across two separate incidents—and legal fees associated with pursuing this case against Koss Industrial.
Representing Land O’Lakes is Jonathan C. Miesen who serves as Associate General Counsel-Litigation based out of Arden Hills headquarters.
Source: 326cv00060_Land_O_Lakes_Inc_v_Koss_Industrial_Inc_Complaint_Western_District_Wisconsin.pdf
