American Dairy of Evansville, Inc. v. Robert Bergland, Secretary of Agriculture

627 F.2d 1252, 201 U.S. App. D.C. 266
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 1, 1980
Docket77-1926
StatusPublished
Cited by23 cases

This text of 627 F.2d 1252 (American Dairy of Evansville, Inc. v. Robert Bergland, Secretary of Agriculture) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Dairy of Evansville, Inc. v. Robert Bergland, Secretary of Agriculture, 627 F.2d 1252, 201 U.S. App. D.C. 266 (D.C. Cir. 1980).

Opinions

WILKEY, Circuit Judge:

This appeal involves a provision in certain milk marketing orders whereby retroactive notice is given of Class II prices that milk handlers must pay producers. Appellant handlers and two dairy associations filed suit in the district court seeking judicial review of the retroactive notice provision. The district court granted in part the motion of appellees Department of Agriculture and various officials to dismiss the suit on grounds of mootness and failure to exhaust [1254]*1254administrative remedies, and granted their motion for summary judgment as to those issues over which the court found it had jurisdiction. For reasons to be discussed, we reverse the decision of the district court and remand the case with instructions to return it to the Secretary of Agriculture for further proceedings consistent with this opinion.

I. BACKGROUND

A. Statutory Framework

The Agriculture Marketing Agreement Act of 19371 authorizes the Secretary of Agriculture to regulate milk marketing and the relations between producers and handlers of milk. 7 U.S.C. § 608c(5) authorizes the Secretary to classify milk received by handlers according to its use and to establish minimum prices that handlers shall pay for each such class of milk and the time when payments shall be made. The methods for determining prices for the different classes of milk and time of announcement are set out in approximately fifty federal milk marketing orders currently in effect.2

Such milk marketing orders are issued in formal rulemaking proceedings with prior notice and hearing. The Act provides that any handler may petition the Secretary for relief from any provision of an order believed to be “not in accordance with law.”3 By regulation, administrative review of the orders is first made by an Administrative Law Judge, subject to review by the Secretary.4 The Secretary has delegated his statutory review authority to the Judicial Officer of the Department of Agriculture.5 The district court has jurisdiction to review the ruling of the judicial officer on a petition for review.6

B. The Course of These Proceedings

The relevant marketing orders classify milk into two and sometimes three classes. Class I is the largest class, and includes milk that is put to a fluid use. Class II is used to produce soft products such as yogurt, ice cream, and cottage cheese. Class III milk is used to produce hard products such as butter, powder, and cheese.7 This appeal concerns the price announcement scheme for Class II milk.

The uniform price for Class II milk in any given month is the so-called Minnesota-Wisconsin (M-W) price for that month plus ten cents per hundred weight.8 The price is announced on the 5th day of each month and applies to producer milk delivered to handlers during the preceding month.9 Appellants object to this retroactive notice provision for Class II milk.

1. The 1970-1974 Rulemaking Proceedings

(a) Docket No. AO 361-A3, et a 1.

On 1 July 1970 the Department published notice of a rulemaking proceeding (Docket No. AO 361-A3, et a 1.) to consider proposed amendments to seven marketing orders regulating milk handling in the Chicago regional and other marketing areas.10 On request of two dairy associations, advance notice or advanced pricing of Class II and Class III milk was designated as one of many hearing issues.11 A substantial [1255]*1255amount of evidence was taken in support of the proposal.12 On 11 June 1971 the Department published a Notice of Recommended Decision and Opportunity To File Written Exceptions in connection with the rulemaking proceeding.13 The deputy administrator found in the recommended decision that the advanced notice proposal “should not be adopted.”14 The decision noted the claims of handlers that the retroactive procedure disadvantaged them by preventing them from knowing the cost of producer milk until after the end of the month in which the milk was processed. The decision observed that the principal milk cooperatives opposed advance notice for Class III milk. It found that because of peculiarities in the Class III milk market that “the prices paid by regulated handlers for Class III milk should correspond very closely with the pay prices for manufacturing grade milk if these handlers are to be competitive in the sale of the principal surplus products. Basing the Class III price for a particular month on the prices paid for manufacturing grade milk in the preceding month would not result in the price coordination necessary for those regulated handlers heavily engaged in the production of cheddar cheese, non-fat dry milk, or butter.” 15

Thus the advance notice provision was rejected for Class III milk to protect handlers, the very parties who claimed to be disadvantaged by the existing retroactive provision. The decision found that “[t]he same considerations are involved in the case of an advance announcement of prices for milk used in the proposed Class II products.” It concluded, therefore, that “the prices for Class II milk should be announced on the same basis as the prices for Class III milk.”16

Following the recommended decision, exceptions were filed to the proposed denial of advanced notice for Class II milk by large numbers of handlers and associations of handlers. Significantly, the record discloses that the principal producer cooperatives in the seven marketing areas covered by the orders also took exception to the proposed decision. They wrote that “[t]he principal cooperatives supported at the hearing handlers’ proposal to announce order prices for Class II milk at the beginning of the month rather than at the end of the month in which the price applies. It is not necessary for the proposed Class II prices to correspond closely with prices being paid for manufactured grade milk - in the same month.”17 While the producers opposed advance notice for Class III milk,18 they were in favor of advanced notice for Class II milk.ls The recommended decision did not take note of this distinction.19

On 14 September 1973 a Notice of Revised Recommended Decision was issued by the Administrator of the Agricultural Marketing Service of the Department.20 The revised recommended decision failed even to mention the exceptions taken to the recommended decision with respect to advance notice of Class II prices. It simply reproduced word for word the language of the [1256]*1256recommended decision regarding advance notice. Exceptions were filed to the revised recommended decision.

On 4 March 1974 the final decision on the proposals was issued by the Assistant Secretary of Agriculture.21

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Global Tower Assets, LLC v. Town of Rome
810 F.3d 77 (First Circuit, 2016)
Hettinga v. United States
518 F. Supp. 2d 58 (District of Columbia, 2007)
Edaleen Dairy v. Johanns, Mike
467 F.3d 778 (D.C. Circuit, 2006)
Hershey Foods Corp. v. Department of Agriculture
293 F.3d 520 (D.C. Circuit, 2002)
United States v. Sunny Cove Citrus Ass'n
854 F. Supp. 669 (E.D. California, 1994)
Dewey Electronics Corp. v. The United States
803 F.2d 650 (Federal Circuit, 1986)
Intercity Transportation Company v. United States
737 F.2d 103 (D.C. Circuit, 1984)
Intercity Transportation Co. v. United States
737 F.2d 103 (D.C. Circuit, 1984)
United States v. Louisiana-Pacific Corp.
569 F. Supp. 1141 (D. Oregon, 1983)
Potomac Electric Power Co. v. Public Service Commission
455 A.2d 374 (District of Columbia Court of Appeals, 1982)
The Process Gas Consumers Group v. U. S. Department of Agriculture, John R. Block, Secretary of Agriculture, United Gas Pipe Line Company, Intervenors. United Gas Pipe Line Company v. U. S. Department of Agriculture, Bob Bergland, Secretary of Agriculture, Transcontinental Gas Pipe Line Corporation, Intervenors. The Process Gas Consumers Group v. United States Department of Energy, the Process Gas Consumers Group v. Federal Energy Regulatory Commission, American Bakers Association, Intervenors. Columbia Gas Transmission Corporation v. Federal Energy Regulatory Commission, United Distribution Companies, Intervenors. United Distribution Companies v. Federal Energy Regulatory Commission, Consolidated Gas Supply Corporation, Intervenor. United Distribution Companies v. Federal Energy Regulatory Commission, (Two Cases). The Brooklyn Union Gas Company v. Federal Energy Regulatory Commission, Public Service Commission of New York, Intervenor. State of Louisiana v. Federal Energy Regulatory Commission, (Two Cases). Columbia Nitrogen Corporation and Nipro, Inc. v. Federal Energy Regulatory Commission, First Mississippi Corporation v. Federal Energy Regulatory Commission, (Two Cases). Atlanta Gas Light Company v. Federal Energy Regulatory Commission, (Two Cases). Consolidated Edison Company of New York, Inc. v. Federal Energy Regulatory Commission, (Two Cases). United Gas Pipe Line Company v. Federal Energy Regulatory Commission, the Process Gas Consumers Group, American Industrial Clay Company of Sandersville and Georgia Kaolin Company v. Federal Energy Regulatory Commission, Allied Chemical Corporation v. Federal Energy Regulatory Commission, the Fertilizer Institute v. Federal Energy Regulatory Commission, Columbia Gas Transmission Corporation v. Federal Energy Regulatory Commission, the Brooklyn Union Gas Company v. Federal Energy Regulatory Commission, National Food Processors Association v. Federal Energy Regulatory Commission, Eli Lilly & Company v. United States Department of Energy, the Process Gas Consumers Group, American Industrial Clay Company of Sandersville and Georgia Kaolin Company v. U.S. Department of Agriculture, Bob Bergland, Secretary of Agriculture, United Gas Pipe Line Company, Intervenors. United Distribution Companies v. United States Department of Agriculture and Bob Bergland, Secretary of Agriculture, United Gas Pipe Line Company, Intervenors. United Distribution Companies v. United States Department of Agriculture and Bob Bergland, Sec. Of Agriculture, United Gas Pipe Line Company, Intervenors. United Gas Pipe Line Company v. U.S. Department of Agriculture and Bob Bergland, Secretary of Agriculture, Brooklyn Union Gas Company, United Distribution Companies, Intervenors. The Process Gas Consumers Group v. Federal Energy Regulatory Commission, Transcontinental Gas Pipe Line Corp., Intervenors. United Distribution Companies v. Federal Energy Regulatory Commission, Consolidated Edison Company of New York, Inc. v. Federal Energy Regulatory Commission, Columbia Nitrogen Corp. And Nipro, Inc. v. Federal Energy Regulatory Commission, Atlanta Gas Light Co., Intervenors. United Distribution Companies v. Federal Energy Regulatory Commission, United Gas Pipe Line Company, Intervenors. The Process Gas Consumers Group v. Federal Energy Regulatory Commission, United Distribution Companies, Intervenors. United Gas Pipe Line Company v. Federal Energy Regulatory Commission
694 F.2d 728 (First Circuit, 1982)
Franks v. Nimmo
683 F.2d 1290 (Tenth Circuit, 1982)
Angel v. Pan American World Airways, Inc.
519 F. Supp. 1173 (District of Columbia, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
627 F.2d 1252, 201 U.S. App. D.C. 266, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-dairy-of-evansville-inc-v-robert-bergland-secretary-of-cadc-1980.