H. Rouw Co. v. Crivella

105 F.2d 434, 1939 U.S. App. LEXIS 3341
Court of Appeals for the Eighth Circuit·Decided July 20, 1939·No. No. 11436·Published·Cited by 5 cases

Opinion

THOMAS, Circuit Judge.

This is an appeal from a judgment of the district court dismissing for want of jurisdiction an appeal from a reparation award of the Secretary of Agriculture made pursuant to the provisions of the Perishable Agricultural Commodities Act 1930, 7 U.S.C.A. § 499a et seq., Act of June 10, 1930, c. 436, § 18, 46 Stat. 538, 7 U.S.C.A. § 499r.

In his complaint before the Secretary Crivella claimed damages for less than $500. The Secretary, without a hearing, pursuant to the provisions of subsection (c) of section 499f of Title 7 U.S.C.A. (section 6 of the Act of June 10, 1930), awarded damages in the amount of $487.40. The order of the Secretary was entered August 11, 1938. On September 10, 1938, the appellant appealed to the United States District Court for the Western District of Arkansas in which the Rouw Company is located. Upon motion of Crivella the court dismissed the appeal on the ground that it was without jurisdiction. The only question for decision in this court is whether the district court erred in dismissing the appeal from the award of the Secretary.

We are concerned only with the jurisdiction of the court on appeal in cases in which the Secretary’s award against the appellant is for an amount less than $500. The original Act of June 10, 1930, did not provide for an appeal in any case. The Amendment of April 13, 1934, c. 120, §§ 8-10, 48 Stat. 586, 587, provided for appeals to the district court in the district in which the hearing was held in cases where the amount claimed was more than $500, but no provision was made for appeal in cases involving less than $500. Under the Act the right to appeal was limited to the cases in which there was a right to a hearing. Where the amount claimed exceeded $500 the respondent was entitled to a hearing before an examiner of the Secretary and to an appeal from the award. Subsection (c) of section 6 of the Act (section 499f (c), Title 7 U.S.C.A.) provided “That in complaints wherein the amount claimed as damages does not exceed the sum of $500 a hearing need not be held. * * * ”

By Act of Congress approved June 19, .1936, c. 602, § 3, 49 Stat. 1533, 1534, the Act of June 10, 1930, was further amended as follows:

“Sec, 3. That paragraph (c) of section 7 of the Perishable Agricultural Commodities Act, 1930, as amended, is hereby amended to read as follows:
“ ‘(c) Either party adversely affected by the entry of a reparation order by the Secretary may, within .thirty days from and after the date of such order, appeal therefrom to the District Court of the United States for the district in which said hearing was held: Provided, That in cases handled without a hearing in accordance with paragraphs (c) and (d) of section 6 or in which a hearing has been waived by agreement of the parties, appeal shall be to the District Court of the United States for the district in which the party complained against is located.’ ”

Section 7 of the Act was again amended August 20, 1937, c. 719, § 10, 50 Stat. 725, 728. The amendment provided “That section 7 of the Perishable Agricultural Commodities Act, 1930, as amended, is hereby amended to read as follows: [436] * * * (c) * * *Subsection (c) relating to appeals is the same as subsection (c) in the Act of June 19, 1936, except that the proviso is omitted. 7 U.S. C.A. § 499g(c).

The appeal to the district court was taken after the approval of the amendment of August 20, 1937. In this situation appellant concedes that the court would be without jurisdiction except for two reasons, as follows: (1) the appeal is authorized by a regulation of the Secretary and (2) the proviso authorizing appeals in cases handled without a hearing found in section 3 of the amendment of June 19, 1936, was not repealed by the amendment o.f August 20, 1937, but is still in effect.

The original Act of June 10, 1930, authorized the Secretary to make “such rules, regulations, and orders as may be necessary to carry out the provisions of this chapter.” Section 15, 7 U.S.C.A. § 499o. On August 4, 1934, the Secretary promulgated the following rule: “If either party appeals from a reparation order entered by the secretary without formal hearing as provided in subdivision D of Section 6 of the act, the suit shall be filed in the District Court of the United States for the district in which the respondent is located.”

The Secretary was authorized only to make rules “necessary to carry out the provisions” of the law. He had no authority under the powers delegated to enact “provisions” not in the statute. When an act uses ambiguous terms, or is of doubtful construction, a clarifying regulation or one indicating the method of its application to specific cases is valid. So, also, a regulation is valid in cases where the statute expresses only a general rule and gives the Secretary authority to make rules appropriate to its enforcement. But when as in this case the language of the Act is not ambiguous and provision for appeal is specifically declared the Secretary is without power by regulation to add a provision allowing appeals in cases not provided for in the statute. Koshland v. Helvering, 298 U.S. 441, 446, 56 S.Ct. 767, 80 L.Ed. 1268, 105 A.L.R. 756; Manhattan General Equipment Co. v. Commissioner, 297 U.S. 129, 134, 56 S.Ct. 397, 80 L.Ed. 528. The regulation relied upon does not confer jurisdiction upon the district court to hear the appeal. In attempting to do so it is inconsistent with the statute. The statute cannot be amended under the guise of a regulation.

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H. Rouw Co. v. Crivella, 105 F.2d 434, 1939 U.S. App. LEXIS 3341 (8th Cir. 1939).

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