Grav v. United States

885 F.2d 1305
CourtCourt of Appeals for the Federal Circuit
DecidedOctober 4, 1989
DocketNo. 89-1180
StatusPublished

This text of 885 F.2d 1305 (Grav v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grav v. United States, 885 F.2d 1305 (Fed. Cir. 1989).

Opinions

MICHEL, Circuit Judge.

The United States appeals the decision of the United States Claims Court, Grav v. United States, 14 Cl.Ct. 390 (1988), granting the Gravs’ motion for summary judgment for $50,686.00 to which they were entitled and wrongfully denied under the Milk Diversion Program (MDP), 7 U.S.C. § 1446(d) (Supp. 1 1983). The Claims Court denied the United States’ (government’s) motion to dismiss and cross-motion for summary judgment. We affirm.

Background

The facts were stipulated by the parties as follows. In September, 1983, the Gravs and Ken Goodale entered into an agreement for the sale and purchase of seven milk cows. A price was agreed upon at this time.1 Removal of the cows from the Gravs’ property in South Dakota was the responsibility of Goodale and had to occur prior to February, 1984. Goodale took possession and paid for the cows on January 9, 1984. On January 9, 1984, the Gravs sold all their remaining dairy cattle for slaughter and applied for participation in the MDP. First National Bank, a secured creditor of the Gravs and the holder of a specific assignment of their right to payments under the MDP, failed to notify or to receive approval from the government of this assignment as required by 31 U.S.C. § 3727 (1982).

The Gravs’ application was ultimately denied on December 5, 1984, because the Department of Agriculture’s Agricultural Stabilization and Conservation Service officials for the Gravs’ county determined that the Gravs were ineligible for the program since they had transferred dairy cattle to a third person after the statutory deadline of November 8, 1983, thereby violating 7 U.S.C. § 1446(d)(3)(B)(iii) (Supp. 1 1983). After exhausting all their administrative remedies, the Gravs filed a complaint in the Claims Court seeking relief. A final judgment was entered against the government on October 25, 1988, for $50,686.00.

[1307]*1307OPINION

Our jurisdiction is based on 28 U.S.C. § 1295(a)(3) (1982), governing “an appeal from a final decision of the United States Claims Court.”

I.

The first issue before us is whether the Claims Court had jurisdiction. The Claims Court’s Tucker Act jurisdiction is limited to:

any claim against the United States founded either upon the Constitution, or any Act of Congress or any regulation of an executive department, or upon any express or implied contract with the United States, or for liquidated or unliq-uidated damages in cases not sounding in tort.

28 U.S.C. § 1491(a)(1) (1982). The government argues that the Claims Court did not have jurisdiction because the MDP was not a money mandating statute nor was there an implied-in-fact contract. The Claims Court concluded it had jurisdiction because the language of the statute setting up the MDP offered milk producers a unilateral contract, provided the Gravs met the criteria, which they could accept by performance, or because the MDP statute created an implied contract, provided the Gravs met the criteria, with intent for the government being manifested by the language of the statute and intent for the milk producer being manifested by his application for the program.2

Our analysis whether the Claims Court had jurisdiction turns on whether the Secretary of Agriculture was granted discretion to refuse participation by any applicant who was qualified for the program. We conclude the Secretary was not. Therefore, this is a money mandating statute that triggers Tucker Act jurisdiction in the Claims Court.

“ ‘[T]he starting point in every case involving construction of a statute is the language itself.’ ” Watt v. Alaska, 451 U.S. 259, 265, 101 S.Ct. 1673, 1677, 68 L.Ed.2d 80 (1981) (quoting Blue Chip Stamps v. Manor Drug Stores, 421 U.S. 723, 756, 95 S.Ct. 1917, 1935, 44 L.Ed.2d 539 (1975) (Powell, J., concurring)). The language in the first part of the Dairy Production Stabilization Act of 1983 is clear:

The Secretary shall, not later than January 1, 1984, provide for a milk diversion program under which the Secretary shall offer to enter into a contract, at any time up to February 1, 1984, with any producer of milk in the United States for the purpose of reducing the quantity of milk marketed by the producer for commercial use during the fifteen-month period beginning on January 1, 1984.

Pub.L. No. 98-180, tit. I, § 102(a), 97 Stat. 1128 (1983) (codified at 7 U.S.C. § 1446(d)(3)(A) (Supp. I 1983)) (emphasis added).

Within that same statute, Congress, in section 1446(d)(3)(E), used the word “may” to grant the Secretary discretion to modify contracts if the Secretary “determines that, as a result of contracts entered into under this paragraph, (i) there would be an excessive reduction in the level of milk production in the United States, or (ii) there has been a substantial hardship to producers of beef cattle, dairy cattle, hogs, or poulty [sic] sold for slaughter.” Within the statute, Congress appears to use the two words “shall” and “may” to differentiate tasks assigned to the Secretary that were mandatory from those that were discretionary.

“Where the plain language of the statute would settle the question before the court, the legislative history is examined with hesitation to determine whether there is a clearly expressed legislative intention contrary to the statutory language.” Madison Galleries, Ltd. v. United States, 870 F.2d 627, 629 (Fed.Cir.1989). As was point[1308]*1308ed out in the Claims Court’s opinion, the legislative history supports the interpretation that the statute is mandatory. According to S.Rep. No. 163, 98th Cong., 1st Sess. 36, reprinted in 1983 U.S.Code Cong. & Admin.News 1658, 1693, “the Secretary must offer to enter into a contract with any milk producer in the United States.” (emphasis added).

The government argues that the other language in the last part of 7 U.S.C. § 1446(d)(3)(A) permits the Secretary to reject or accept an application for participation in the MDP. We disagree. That part of the statute merely states:

In setting the terms and conditions of such contracts, the Secretary shall take into account any adverse impact of the reductions in milk production on beef, pork, and poultry producers in the United States and shall take all feasible steps to minimize such impact.

Id. (emphasis added).

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Related

Blue Chip Stamps v. Manor Drug Stores
421 U.S. 723 (Supreme Court, 1975)
United States v. Testan
424 U.S. 392 (Supreme Court, 1976)
Watt v. Alaska
451 U.S. 259 (Supreme Court, 1981)
United States v. Mitchell
463 U.S. 206 (Supreme Court, 1983)
Madison Galleries, Ltd. v. The United States
870 F.2d 627 (Federal Circuit, 1989)
Morgan v. United States
12 Cl. Ct. 247 (Court of Claims, 1987)
Grav v. United States
14 Cl. Ct. 390 (Court of Claims, 1988)
Cutler-Hammer, Inc. v. United States
441 F.2d 1179 (Court of Claims, 1971)
Adair v. United States
648 F.2d 1318 (Court of Claims, 1981)

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Bluebook (online)
885 F.2d 1305, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grav-v-united-states-cafc-1989.