Brundidge Banking Co. v. Pike County Agricultural Stabilization & Conservation Committee

899 F.2d 1154
CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 1, 1990
DocketNo. 89-7072
StatusPublished
Cited by1 cases

This text of 899 F.2d 1154 (Brundidge Banking Co. v. Pike County Agricultural Stabilization & Conservation Committee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brundidge Banking Co. v. Pike County Agricultural Stabilization & Conservation Committee, 899 F.2d 1154 (11th Cir. 1990).

Opinion

MELTON, District Judge:

This appeal from the order of the district court setting a permanent peanut quota on a particular tract of land concerns the scope of judicial review and remedy for an aggrieved party who maintains that the peanut quota applied to the parts of a reconstituted farm was determined erroneously.

A tract of land known as the Ramage Place, situated in Pike County, Alabama, and listed in records of the Agricultural Stabilization and Conservation Service (“ASCS”) as tract 823, came into the possession of O.K. McDowell, a defendant below who does not join this appeal, by way of inheritance in 1976. McDowell combined tract 823 with his other properties. ASCS identified the combined property as FSN G-56 and assigned a peanut quota to the farm as an entirety. In 1982, McDowell executed a mortgage to appellee Brun-didge Bank (“the Bank”) on the tract 823 portion of his farm; he subsequently lost the tract through foreclosure when he defaulted on his payments.

The underlying controversy grows out of the events surrounding the Bank’s preparation for foreclosure and sale of tract 823. The Bank sought advice on the method by which appellant Pike County Agricultural Stabilization and Conservation Committee (“County Committee”) would reallocate the peanut quota for FSN G-56 when tract 823 was separated from the farm through the foreclosure proceeding. The Bank suggested that the County Committee use the cropland method for allocating the quota. This method divides the quota assigned to the entire property using the proportion of cropland in the reconstituted farms relative to the amount of cropland in the original farm. If the cropland method was used to reallocate the quota for FSN G-56, tract 823 would receive a substantial share of the quota. The Bank preferred the cropland method because the alternative, the contribution method, would allocate the quota on the basis of a proportion derived from a comparison of the quota allotment, normal crop acreage and preceding year planted acreage that each piece of property being separated had at the time they were combined with the current quota allotment, normal crop acreage and preceding year planted acreage of the entire property. The Bank viewed the state of the records concerning FSN G-56 as too chaotic and uncertain to calculate the quota for the tract 823 portion of the entire property.1 The Bank faced the distinct possibility that the contribution method would result in no quota for tract 823, an event that would diminish significantly the property’s market value.

On May 5, 1986, the Bank made its initial inquiry of the Pike County ASCS Office. Officials of that agency advised the Bank that the cropland method would be used and they later estimated a quota using 1985 figures. A few days after the Bank received an estimated quota an official of the County Office called the Bank’s chief executive officer and retreated from the previous representation that the cropland method would be used. Instead, the Bank was informed, a historical method would be employed and the tract would receive no quota. Discussions between the Bank and the County Executive Director culminated in the identification of regulatory authority [1156]*1156that would permit the County Committee to impose the cropland method as necessary for a fair and equitable distribution under the circumstances. The Bank requested to meet with the County Committee for the purpose of presenting its case for the cropland method. At a formal hearing held May 21, 1986, the County Committee determined that it would use the cropland method, apparently grounding its decision on its reading of a manual based on 7 C.F.R. § 719.8.

Following the foreclosure sale of tract 823 on May 28, 1986, at which the Bank bought the property, the Bank credited McDowell’s account with the sale price less foreclosure expenses. This left a debt of approximately nine thousand dollars, which the Bank collected through a detinue action for cows previously pledged as additional security for the loan. The Bank communicated with the County Executive Director on three separate occasions during June and July to fix more precisely the amount of the quota that tract 823 would receive. The last of these communications, on July 29,1986, was in anticipation of a sale of the property to appellees Max C. and Lottie H. Sconyers. After receiving confirmation of an estimated quota calculated by reference to the cropland method, the Bank sold tract 823 to the Sconyers.

McDowell subsequently registered his complaint with the County Committee that the contribution method should have been used to allocate the quota. The County Committee met first with McDowell on August 13, 1986, and then with him and the Bank’s representatives two days later. The County Committee affirmed its decision to use the cropland method.

Timely appeal by McDowell to the Alabama State Agricultural Stabilization and Conservation Committee (“State Committee”) followed. On October 9, 1986, the State Committee reversed the County Committee and directed that the contribution method should have been used. The Bank then took timely appeal to the Deputy Administrator of State and County Operations (“DASCO”) of the ASCS, U.S. Department of Agriculture. On May 11, 1987, DASCO affirmed the State Committee’s decision.

Suit in the district court ensued. Appel-lees/plaintiffs originally asserted jurisdiction pursuant to 7 U.S.C. § 1365, the exclusive provision for statutory review of quota allocation decisions, and 28 U.S.C. § 1331. It became apparent during the progress of the action, however, that 7 U.S.C. § 1365 no longer applied to peanut quota determinations for the 1986 through 1990 crops by the terms of the Food Security Act of 1985, Pub.L. 99-198, tit. VII, § 701(4), 99 Stat. 1430 (1985).2 The district court permitted amendment of the complaint to assert jurisdiction under the Administrative Procedure Act, 5 U.S.C. §§ 701, et seq. Appellants/defendants unsuccessfully argued that 7 U.S.C. § 1385 precluded any judicial review whatsoever, but the district court did find that the section reduced the scope of its review.

On the merits of the suit, the district court declined to address whether the State Committee and DASCO were correct in imposing the contribution method in lieu of the County Committee’s decision to use the cropland method. Instead, the district court observed that DASCO found that the County Committee had “erred” in promising use of the cropland method. This admission, the district court reasoned, dovetailed with the program of reserve for the correction of error, 7 C.F.R. § 729.322. The district court ordered relief out of this reserve in the form of a permanent quota for tract 823.

The central issue on appeal is the propriety of the relief granted by the district court. We reverse, and remand for further proceedings. Section 729.322 does not independently authorize the relief obtained below.

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Bluebook (online)
899 F.2d 1154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brundidge-banking-co-v-pike-county-agricultural-stabilization-ca11-1990.