Bean v. Perdue

316 F. Supp. 3d 220
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 27, 2018
DocketCivil Action No.: 17–0140 (RC)
StatusPublished
Cited by6 cases

This text of 316 F. Supp. 3d 220 (Bean v. Perdue) 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
Bean v. Perdue, 316 F. Supp. 3d 220 (D.C. Cir. 2018).

Opinion

RUDOLPH CONTRERAS, United States District Judge

GRANTING DEFENDANT'S MOTION FOR SUMMARY JUDGMENT

I. INTRODUCTION

This action involves a dispute over the standards an agency must meet when mailing notices to regulated individuals. Plaintiff Robert Oneal Bean sued Sonny Perdue, the Secretary of the United States Department of Agriculture ("USDA"), claiming that USDA violated the Administrative Procedure Act ("APA") by failing to notify him of certain key information related to his USDA loan. More specifically, Mr. Bean alleges that he did not receive a letter that summarized USDA's decision not to reconsider accelerating his loan, and that explained his rights to mediation and appeal of that decision.

USDA has moved for summary judgment, asserting that it was not required by any regulation to send the letter at issue, and that regardless of the governing regulations, the record shows that the letter was sent. Although the Court finds that USDA regulations and internal handbook procedures required USDA to send the letter at issue, Mr. Bean has failed to raise a genuine dispute of material fact as to whether it complied with those regulations and procedures. Accordingly, for the reasons stated below, the Court grants Defendant's motion.

II. BACKGROUND

A. Regulatory Framework

The Farm Service Agency ("FSA") is an entity, housed within USDA, which administers loan programs for family-operated farms and ranches, among other activities. FSA, Farm Loan Programs , https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/index (last visited June 15, 2018). FSA is governed by Title 7, Chapter VII of the Code of Federal Regulations. See generally 7 C.F.R. §§ 700-799.

This case involves USDA's administration of "Primary Loan Servicing" for FSA farm loans, which is regulated by *2237 C.F.R. § 766. See FSA, Your FSA Farm Loan Compass , 39-44 (2017), https://www.fsa.usda.gov/programs-and-services/farm-loan-programs/farm-loanservicing/index. Primary Loan Servicing provides more lenient loan terms to a borrower who is financially distressed or delinquent on his or her FSA loans, provided that the distress or delinquency is due to circumstances beyond the borrower's control, including illness or injury. See 7 C.F.R. §§ 766.101, 104(a). A borrower may be considered for loan servicing only under certain conditions.1 See § 766.104(a). Under its regulatory scheme, USDA will send loan servicing information via certified mail to any borrower who is "90 days or more past due on loan payments," or to any borrower who "[r]equest[s] this information."2 7 C.F.R. §§ 766.101(b), app. A ("FSA-2510"), 766.101(c); Def.'s Mot. Summ. J. ("Def.'s Mot.") Ex. 1, ECF No. 27-2. However, if a borrower who has received a loan servicing application form "fails to timely respond or does not submit a complete application within [a] 60-day timeframe," USDA will notify the borrower by certified mail of its intent to accelerate the loan, and of the borrower's right to request reconsideration, mediation, or appeal of that decision.3 7 C.F.R. § 766.103(b) ; see Def.'s Mot. Ex. 3 ("FSA-2525"). Once all requests for reconsideration and administrative appeals are concluded, USDA will then accelerate the borrower's loan. See 7 C.F.R. § 766.351(b)(1) ; 7 C.F.R. § 766.355.

USDA's regulatory framework provides certain procedural protections for borrowers, including notice requirements and the opportunity to request mediation or informal review of certain USDA determinations. See, e.g. , 7 C.F.R. §§ 766.101(b), 766.103(b)(2), 780. For instance, Section 766, Subpart C, which addresses Primary Loan Servicing programs, includes three appended forms titled "Notice of Availability of Loan Servicing" ("Section 766 Notices"), stating that "[i]f [a reconsideration] meeting does not change the Agency decision, you will be notified and provided 30 days to request mediation, negotiation, or appeal." 7 C.F.R. § 766, subpt. C, apps. A-C(h) (emphasis added). Similarly, form FSA-2525, notifying a borrower of USDA's intent to accelerate the borrower's loans, informs the borrower of a right to reconsideration and states that "[i]f the reconsideration meeting does not change the Agency decision, you will be notified and provided 30 days to request mediation, or appeal as outlined." Def.'s Mot. Ex. 3. And 7 C.F.R. § 780 provides the process for appeal or reconsideration of adverse USDA decisions. It states that following the disposition of a reconsideration request, "[t]he official decision on reconsideration will be the decision letter that is issued ." 7 C.F.R. § 780.7(f) (emphasis added). Section 780 also provides that "[t]o the extent practicable, no later than 10 business days after an agency decision maker renders an adverse decision that affects a participant, FSA will provide the participant written notice of the adverse decision and available appeal rights." 7 C.F.R.

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Cite This Page — Counsel Stack

Bluebook (online)
316 F. Supp. 3d 220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bean-v-perdue-cadc-2018.