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(Pellegri Sr.), one of the more prominent farmers in the Tracy
area. In addition to allocating various expenses between the
parties, the agreement provided that Pellegri Sr. would manage
the apricot farm, and that he would receive as “rent” on the
apricot trees 70 percent of the revenue from the trees. The
management agreement was a 2-page, unsigned, undated, hand-
written document. It did not cover the question of how the
parties would resolve claims that might arise against third
parties.
Craig Miller (petitioner) had some involvement in the
operation of his apricot farm. Among other activities,
petitioner assisted in planting trees, applying protective coats
to the trees, and spraying ditches.
Pellegri Sr. purchased fertilizers and pesticides from John
Taylor Fertilizers Co., Inc. (JTF) for petitioners’ apricot farm.
Pellegri Sr. had been a regular customer of JTF in connection
with other farming activities before working with petitioners.
During 1999, Pellegri Sr.’s health suffered due to cancer.
As a result, Pellegri Sr.’s sons took an increasingly active role
in the management of petitioners’ apricot farm, and petitioners
dealt primarily with Stephen Pellegri, Jr. (Pellegri Jr.).
During April and May of 1999, petitioners’ apricots suffered
extensive damage due to misapplication of pesticides and a
failure to control a powdery mildew that developed on the
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