Fleetwood Enterprises, Inc. v. United States Department of Housing and Urban Development

818 F.2d 1188, 1987 U.S. App. LEXIS 7422
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 10, 1987
Docket86-1512
StatusPublished
Cited by3 cases

This text of 818 F.2d 1188 (Fleetwood Enterprises, Inc. v. United States Department of Housing and Urban Development) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fleetwood Enterprises, Inc. v. United States Department of Housing and Urban Development, 818 F.2d 1188, 1987 U.S. App. LEXIS 7422 (5th Cir. 1987).

Opinion

RANDALL, Circuit Judge:

The United States Department of Housing and Urban Development (“HUD”) and the Secretary of HUD appeal from the district court’s grant of summary judgment in favor of Fleetwood Enterprises, Inc., and one of Fleetwood’s subsidiaries (referred to collectively as “Fleetwood”), the largest American builder of manufactured homes, in which the district court held that certain regulations promulgated by the Secretary conflicted with the National Manufactured Housing Construction and Safety Standards Act of 1974 (“the Act”), 42 U.S.C. § 5401 et seq., ordered the Secretary enjoined from conducting a formal administrative proceeding under those regulations, and issued a writ of mandamus ordering the Secretary to grant Fleetwood an informal administrative proceeding. Because we agree with the Secretary that the district court erred in holding that HUD had obligated itself under its regulations to conduct an informal proceeding, we reverse.

I.

A. The National Manufactured Housing Construction and Safety Standards Act of 1974:

In 1974, Congress enacted the National Manufactured Housing Construction and Safety Standards Act of 1974, Pub.L. No. 93-383, Title VI, 88 Stat. 700-14, codified as amended at 42 U.S.C. § 5401 et seq. Section 5401 sets out the congressional declaration of purpose, and states that “the purposes of this chapter are to reduce the number of personal injuries and deaths and the amount of insurance costs and property damage resulting from manufactured home accidents and to improve the quality and durability of manufactured homes.” Id. § 5401. The Act required the Secretary to establish by regulation federal manufactured home construction and safety standards. Id. § 5403. The Act prohibits the sale, lease, delivery, introduction, or importation of any manufactured home that does not comply with the standards promulgated by the Secretary. Id. § 5409. Civil penalties, criminal penalties, and injunctive relief are authorized against a manufacturer who violates the Act. Id. §§ 5410-11. Furthermore, the Act requires that a manufacturer give the purchaser of a manufactured home notice of any failure of the home to meet federal standards and, in certain cases, requires that the manufacturer bring the home into compliance with federal standards at no cost to the purchaser. Id. § 5414. The Secretary is given a wide *1190 range of powers to use in enforcing the provisions of the Act. See generally id. § 5413. Of particular importance to the issue in this appeal, the Secretary is authorized

to hold such hearings, take such testimony, sit and act at such times and places, administer such oaths, and require, by subpena or otherwise, the attendance and testimony of such witnesses and the production of such books, papers, correspondence, memorandums, contracts, agreements, or other records, as the Secretary or such officer or employee deems advisable.

Id. § 5413(c)(1) (emphasis supplied).

The Act also provides that should the Secretary determine that any manufactured home fails to comply with federal standards,

then he shall immediately notify the manufacturer of such manufactured home of such defect or failure to comply. The notice shall contain the findings of the Secretary and shall include all information upon which the findings are based. The Secretary shall afford such manufacturer an opportunity to present his views and evidence in support thereof, to establish that there is no failure of compliance.

Id. § 5414(e)(2) (emphasis supplied). The only issue in this appeal is the type of hearing that the Secretary must provide to a manufacturer to enable it to present its views and evidence.

B. The Regulations:

The Secretary has promulgated regulations to implement the requirement in 42 U.S.C. § 5414(e)(2) that the manufacturer be afforded “an opportunity to present his views and evidence in support thereof.” The regulations provide at the outset that the Secretary may employ two types of administrative proceedings to enable a manufacturer to present its views and evidence in support thereof. The regulations state as follows: “Section 3282 provides for two types of procedures which may be followed in these cases, one informal and nonadversary, and one more formal and adversary. It also sets out criteria to govern which type of procedure will be followed in particular cases.” 24 C.F.R. § 3282.151(a). The two types of procedures are termed “Hearings” and “Presentations of Views,” with hearings being the more formal procedure. See id. § 3282.-152(f) (presentation of views) & (g) (hearings). The regulations governing presentations of views provide as follows:

(f) Presentation of Views. (1) A Presentation of Views may be written or oral, and may include an opportunity for an oral presentation, whether requested or not, whenever the Secretary concludes that an oral presentation would be in the public interest, and so states in the notice. A presiding officer shall preside over all oral presentations held under this subsection. The purpose of such presentations shall be to gather information to allow fully informed decision making. Presentations of Views shall not be adversary proceedings. Oral presentations shall be conducted in an informal but orderly manner. The presiding officer shall have the duty and authority to conduct a fair proceeding, to take all necessary action to avoid delay, and to maintain order. In the absence of extraordinary circumstances, the presiding officer at an oral Presentation of Views shall not require that testimony be given under oath or affirmation, and shall not permit either cross-examination of witnesses by other witnesses or their representatives, or the presentation of rebuttal testimony by persons who have already testified. The rules of evidence prevailing in courts of law or equity shall not control the conduct of oral presentations of views.

Id. § 3282.152(f). The regulations governing hearings provide as follows:

(g) Hearings. (1) A Hearing is an adversary proceeding and includes an opportunity for the oral presentation of evidence. All witnesses shall testify under oath or affirmation which shall be administered by the presiding officer. Participants shall have the right to present such oral or documentary evidence and to conduct such cross-examination as the *1191 presiding officer determines is required for a full and true disclosure of the facts. The presiding officer shall receive relevant and material evidence, rule upon offers of proof and exclude all irrelevant, immaterial or unduly repetitious evidence.

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Cite This Page — Counsel Stack

Bluebook (online)
818 F.2d 1188, 1987 U.S. App. LEXIS 7422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleetwood-enterprises-inc-v-united-states-department-of-housing-and-ca5-1987.