Chip Steak, Inc. v. Hardin

353 F. Supp. 438, 1973 U.S. Dist. LEXIS 15136
CourtDistrict Court, N.D. California
DecidedJanuary 30, 1973
Docket71 49
StatusPublished
Cited by2 cases

This text of 353 F. Supp. 438 (Chip Steak, Inc. v. Hardin) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chip Steak, Inc. v. Hardin, 353 F. Supp. 438, 1973 U.S. Dist. LEXIS 15136 (N.D. Cal. 1973).

Opinion

MEMORANDUM OF DECISION

SWEIGERT, District Judge.

This is an action by Chip Steak Inc. (“Chip Steak”), a California meat processing firm, and Yao L. Cheney, president of Chip Steak, involving two separate claims against officials of the United States Department of Agriculture (“USDA”).

Under their first claim, plaintiffs seek a permanent injunction preventing USDA officials from taking samples of Chip Steak products without payment in the course of inspections conducted at Chip Steak’s plant, and, a declaratory judgment holding void and unenforceable USDA regulation 9 CFR 318.9, which provides, in effect, that USDA meat inspectors can take samples of meat products in the course of inspection without payment.

Second, plaintiffs seek a mandatory injunction compelling USDA officials to “retest” Chip Steak products that have been administratively detained by USDA under 21 U.S.C. § 672 on suspicion of having excessive fat content' if the USDA’s laboratory test results, showing excessive fat content, are contradicted by Chip Steak’s own laboratory test results.

This action originally came before the court for hearing on plaintiffs’ motion for a preliminary injunction. The initial hearing on that motion revealed only minor factual issues and no substantial claim of irreparable damage. We therefore continued the hearing on the preliminary injunction, and, invoking F.R.Civ.P. 65(a)(2), advanced trial on the merits to be consolidated with that hearing.

At trial, both parties submitted evidence by oral testimony and affidavits. 1 The action is therefore ready for final adjudication on the merits of plaintiffs’ two claims, which we shall consider separately.

PAYMENT FOR SAMPLES ISSUE

Plaintiff Chip Steak is a California corporation in the business of manufacturing processed meat food products at its plant in Oakland, California. The record shows that Chip Steak conducts business by buying boned meat from slaughterers or wholesalers, which it then cuts, grinds, prepares and otherwise processes, freezes and packages into small portions, and then sells to meat food product wholesalers for distribution in the retail market.

The Federal Meat Inspection Act requires, in Subchapter I, that, prior to entering Chip Steak’s plant, the meat used by it to prepare its meat food products must have undergone USDA antemortem and post-mortem inspection to insure that the meat is not “adulterated” within the meaning of the Act and the regulations promulgated thereunder. 2

In addition to the foregoing inspections, Subchapter I of the Act also requires, in 21 U.S.C. § 606, that meat food products, such as those prepared by Chip Steak, must themselves undergo *440 USDA inspection at Chip Steak’s plant to insure that these meat food products are not “adulterated” within the meaning of the Act and USDA regulations. That provision, which has remained substantially unchanged since its enactment in 1907, 3 provides, in pertinent part, as follows:

“For the purposes hereinbefore set forth the Secretary shall cause to be made, by inspectors appointed for that purpose, an examination and inspection of all meat food products prepared for commerce in any slaughtering, meat-canning, salting, packing, rendering, or similar establishment, and for the purposes of any examination and inspection said inspectors shall have access at all times, by day or night, whether the establishment be operated or not, to every part of said establishment; and said inspectors shall mark, stamp, tag, or label as ‘Inspected and passed’ all such products found to be not adulterated; and said inspectors shall label, mark, stamp, or tag as ‘Inspected and condemned’ all such products found adulterated, ft

The record shows that it has been the USDA’s long standing practice to take samples of meat food products without payment for purposes of conducting the inspection required under 21 U.S.C. § 606, supra. (McEnroe Affidavit, filed December 14, 1971). This practice has been formalized in USDA regulation 9 CFR 318.9, providing that:

“Samples of products, water, dyes, chemicals, preservatives, spices, or other articles in any official establishment shall be taken, without cost to the [Meat Inspection Program of USDA’s Consumer and Marketing Service], for examination, as often as may be deemed necessary for the efficient conduct of the inspection.”

In 1967, Congress amended the Federal Meat Inspection Act in several respects, including the addition of a new provision in Subchapter II of the Act, 21 U.S.C. § 642(a), which provides, in effect, that the specified categories of meat businesses set forth therein must maintain accurate records reflecting their business dealings, and, that the USDA has the authority to inspect the facilities, records and inventory of such businesses, and, “ . . .to take reasonable samples of their inventory upon payment . . . therefor.” 4 *441 The USDA has implemented the new authority to conduct inspections provided in this provision in regulation 9 CFR 320.4, which almost verbatim adopts the language contained in the statute. 5

The record here shows that on January 19, 1971, a USDA meat inspector assigned to Chip Steak’s plant for the purpose of conducting the inspection required under 21 U.S.C. § 606, supra, took some samples of a Chip Steak product known as “Randy’s Buttered Beef Steaks” in the course of such an inspection. (See, Cheney Affidavit, filed October 15, 1971). When the samples were taken, the product was still on the production line and had not yet been marked with an official inspection legend indicating that it had been “inspected and passed” pursuant to 21 U.S.C. § 606, supra. (See Trial Transcript, pp. 59 and 75). The purpose of the sampling was to determine whether the fat content of the product was such so as to render it adulterated within the meáning of USDA regulations. (Cheney Affidavit, supra).

Some time after the above occurrence, plaintiff Cheney made a formal demand that the USDA pay the fair market value of these samples, alleged to be somewhere in excess of one dollar, on the grounds that such payment was required under 21 U.S.C.

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Bluebook (online)
353 F. Supp. 438, 1973 U.S. Dist. LEXIS 15136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chip-steak-inc-v-hardin-cand-1973.