Dustman v. United Soybean Board

CourtDistrict Court, E.D. Missouri
DecidedJanuary 31, 2024
Docket4:23-cv-00592
StatusUnknown

This text of Dustman v. United Soybean Board (Dustman v. United Soybean Board) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dustman v. United Soybean Board, (E.D. Mo. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

EMILY DUSTMAN, ) ) Plaintiff, ) ) v. ) Case No. 4:23CV592 JAR ) UNITED SOYBEAN BOARD, ) ) Defendant. )

MEMORANDUM AND ORDER

This matter is before the Court on Plaintiff’s Motion to Remand to State Court. ECF No. 20. Defendant filed a response in opposition. The matter is fully briefed and ready for disposition. For the reasons set forth below, the Court will deny Plaintiff’s Motion. Background and Facts On March 31, 2023, Plaintiff Emily Dustman filed this employment discrimination action in the Circuit Court of St. Louis County, Missouri, against Defendant United Soybean Board (“USB”), alleging sex and race discrimination under the Missouri Human Rights Act. On May 5, 2023, Defendant USB removed Plaintiff’s Petition based on the federal officer removal statute pursuant to 28 U.S.C. § 1442(a)(1). On July 25, 2023, Plaintiffs filed the instant motion, alleging that the Court lacks subject matter jurisdiction because Defendant USB is not a United States defendant and cannot base its removal under 28 U.S.C. § 1442(a)(1). In its response to the instant motion, Defendant USB argues its notice of removal is properly filed under the federal officer removal statute because Plaintiff’s claims related to federally delegated duties overseen by a federal authority, and Defendant USB has a colorable federal defense. Plaintiff did not file a reply. Plaintiff’s Petition Plaintiff alleges that she worked for Defendant USB as a director of science communication and education, and she was also the director of diversity, equity, and inclusion (“DEI”) research. During her employment, Plaintiff maintains that she was subjected to sexual

harassment by an affiliate of Defendant USB at a mandatory work event. Plaintiff made a complaint about the sexual harassment, and the individual resigned because of the complaints from her and other women. Plaintiff also reported incidents of race discrimination. Plaintiff claims that instead of investigating her discrimination complaints, Defendant USB almost immediately terminated Plaintiff after she made her second complaint for discrimination and retaliation. Plaintiff requests damages, fees and costs. United Soybean Board The Soybean Promotion, Research, and Consumer Information Act (the “Act”) was established to maintain and expand domestic and foreign markets and uses for soybeans and soybean products. See 7 U.S.C. §§ 6301 et seq. Most relevant here, the Act established the USB,

which decides how the assessments on domestically produced soybeans will be invested. See 7 U.S.C. § 6304(b)-(f). The assessments are collected by a Qualified State Soybean Board, which the Act defines as “a [s]tate soybean promotion entity that is authorized by [s]tate law.” Id. at § 6302(14). Assessments are collected by Qualified State Soybean Boards in which they retain one-half and then remit the remainder to Defendant USB. Id. at § 6304(l)(1)(A)-(B), (m). This assessment process is often referred to as the “checkoff” program. The Agricultural Marketing Service (“AMS”), an arm of the United States Department of Agriculture, oversees Defendant USB.1 The rules of practice governing formal adjudicatory proceedings instituted by the

1 https://www.ams.usda.gov/rules-regulations/research-promotion (last visited January 12, 2024). Secretary of Agriculture are applicable to proceedings under the Act. See 7 C.F.R. §§ 1.130 to 1.151, discussed in §§ 34:1 to 34:74. Members of Defendant USB are appointed by the Secretary of Agriculture as provided in 7 U.S.C. § 6304. Id. at § 6304(b)(1). The Act authorizes Defendant USB to hire staff and enter

into contracts and agreements. Id. at § 6304(i)-(j). The Act directs that Defendant USB “shall review or, on its own initiative, develop plans or projects of promotion, research, consumer information, and industry information, to be paid for with funds received by the Board[,]” which must be approved by the Secretary. Id. at § 6304(f). The board members and boards’ staff carry out these plans and programs and day-to-day board management responsibilities. See 7 U.S.C. §§ 6304, 6111. Defendant USB does not receive federal appropriated funds and is responsible for its own expenses. Id. at § 6304(i)(1). Defendant USB is treated as a 501(c)(1) organization for tax purposes, which is “[a] corporation organized under an Act of Congress which is an instrumentality of the United States.” 26 U.S.C. § 501(c)(1); see also, ECF No. 30-1 at ¶ 15. The Secretary may remove any member of the board or any employee of the board if the

Secretary believes his/her continued service would be detrimental to the purposes of the Act. See 7 C.F.R. § 1220.208. The Secretary also holds the authority to terminate the existence or suspend the operation of any provision of Defendant USB, or Defendant USB in its entirety, if the Secretary finds that it “obstructs or does not tend to effectuate the declared policy” of the Act. 7 U.S.C. 6310. Legal Standard “The district courts of the United States ... are courts of limited jurisdiction. They possess only that power authorized by Constitution and statute[.]” Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546, 552 (2005) (internal quotations omitted). Federal district courts have

original jurisdiction over “all civil actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331. A civil action brought in state court may be removed to the proper district court if the district court has original jurisdiction of the action. 28 U.S.C. § 1441(a). The federal officer removal statute, 28 U.S.C. § 1442(a)(1), “grants independent jurisdictional grounds over cases involving federal officers where a district court otherwise

would not have jurisdiction.” Johnson v. Showers, 747 F.2d 1228, 1229 (8th Cir. 1984) (internal quotations and marks omitted). Section 1442 allows removal of any civil or criminal action against the United States, or “any agency thereof or any officer (or person acting under that officer) of the United States or any agency thereof,” when sued in an “official or individual capacity for any act under color of such office.” 28 U.S.C. § 1442(a)(1).

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Dustman v. United Soybean Board, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dustman-v-united-soybean-board-moed-2024.