Hawkins v. Agricultural Marketing Service, Department of Agriculture, U.S.A.

10 F.3d 1125, 1993 U.S. App. LEXIS 33099, 1993 WL 525899
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 21, 1993
Docket92-5147
StatusPublished
Cited by43 cases

This text of 10 F.3d 1125 (Hawkins v. Agricultural Marketing Service, Department of Agriculture, U.S.A.) 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
Hawkins v. Agricultural Marketing Service, Department of Agriculture, U.S.A., 10 F.3d 1125, 1993 U.S. App. LEXIS 33099, 1993 WL 525899 (5th Cir. 1993).

Opinions

KING, Circuit Judge:

David L. Hawkins seeks review, pursuant to 28 U.S.C. § 2342, of a final order of the administrator of the Agricultural Marketing Service of the United States Department of Agriculture. The administrator affirmed the presiding officer’s decision, which found that Hawkins was “responsibly connected” with Fruit Jobbers, Inc., during a time when Fruit Jobbers committed “repeated and flagrant” violations of the Perishable Agricultural Commodities Act, 7 U.S.C. § 499a et seq. We deny the petition for review and affirm the order.

I. BACKGROUND

Fruit Jobbers was incorporated in Mississippi and licensed as a dealer of perishable agricultural commodities by the United States Department of Agriculture (USDA), pursuant to the Perishable Agricultural Commodities Act (PACA), 7 U.S.C. § 499a et seq. Its office was in Jackson, Mississippi. David L. Hawkins (Hawkins) began working at Fruit Jobbers in 1950. He became a shareholder in 1960, at which time he also became vice-president of the corporation. Eventually, Hawkins was a member of the board of directors. From the time he became a shareholder until August 1988, Hawkins received a salary and monthly stock dividends from Fruit Jobbers.

In August 1988, members of the Harrison family purchased approximately 78 percent of Fruit Jobbers’ stock. At that time, Hawkins held approximately 22 percent of the stock. Following their purchase of the stock, the Harrison family removed Hawkins as an officer and a member of the board of directors. They also offered to purchase Hawkins’ shares for the same price as they had purchased shares from other shareholders if Hawkins would sign a non-competition agreement, effective for five years and within a 150-mile radius of Jackson, Mississippi. Hawkins refused to sell his stock on those terms and resigned all positions and offices that he held with Fruit Jobbers on August 3, 1988. He received no salary or stock dividends from Fruit Jobbers after that date. He did, however, maintain his stock holdings. Hawkins subsequently went to work at D & D Produce, Hawkins’ own produce business licensed under the PACA, and at Capitol City Produce as a buyer.

On July 7, 1989, Hawkins filed suit in the Chancery Court of Hinds County, Mississippi, against Fruit Jobbers and the Harrison family to force them to provide documentation of Fruit Jobbers’ financial affairs. In the alternative, Hawkins petitioned the court to compel the Harrison family to buy his stock, or for the court to close the business and distribute the assets.

On February 1, 1990, before the chancery court litigation was completed, Fruit Jobbers filed a bankruptcy petition in federal district [1128]*1128court seeking relief pursuant to Chapter 11 of the Bankruptcy Code. The bankruptcy petition did not list Hawkins as a shareholder, even though he still owned approximately 22 percent of Fruit Jobbers’ stock.

The Director of the Fruit and Vegetable Division of the Agricultural Marketing Service (AMS) of the USDA filed an administrative complaint against Fruit Jobbers on August 31, 1990, alleging that during the period from July 1989 through February 1990, Fruit Jobbers purchased, received, and accepted'— in interstate commerce — 117 lots of perishable agricultural commodities but failed to make full payment promptly of the agreed purchase prices, which totaled $324,246.87. Thus, Fruit Jobbers was alleged to have violated 7 U.S.C. § 499b(i).1

Shortly thereafter, the AMS notified Hawkins that because he owned approximately 22 percent of Fruit Jobbers’ stock when the corporation allegedly violated PACA provisions, he was determined to be “responsibly connected” with the corporation pursuant to 7 U.S.C. § 499a(b)(9). Hawkins then filed a petition for review of the AMS decision. On December 20, 1990, the AMS referred Hawkins’ petition to the presiding officer.

An administrative law judge issued a default order against Fruit Jobbers on January 11,1991, finding that Fruit Jobbers had committed willful, flagrant, and repeated violations- of 7 U.S.C. § 499b and that therefore Fruit Jobbers’ license would be revoked pursuant to 7 U.S.C. § 499h. That order became final on February 27, 1991.

A hearing concerning Hawkins’ “responsible connection” to Fruit Jobbers was held in Jackson, Mississippi, on July 16, 1991, before the presiding officer. The presiding officer issued his decision on May 11, 1992, in which he found Hawkins “responsibly connected” with Fruit Jobbers when Fruit Jobbers committed PACA violations because Hawkins was a holder of more than ten percent of Fruit Jobbers’ stock during that time. Hawkins thus became subject to the PACA’s employment restrictions,2 which mandate that Hawkins is barred from employment by any PACA licensee for a minimum period of one year. The administrator of the AMS affirmed the presiding officer’s decision on November 9, 1992. Hawkins now seeks review of the administrator’s final order.

II. STANDARD OF REVIEW

This court upholds an agency’s decision unless we determine it to be arbitrary, capricious, or an abuse of discretion. 5 U.S.C. § 706(2)(A). We uphold an agency’s factual findings if they are supported by substantial evidence. Faour v. United States Dep’t of Agric., 985 F.2d 217 (5th Cir.1993) (citing Federal Trade Comm’n v. Indiana Fed’n of Dentists, 476 U.S. 447, 454, 106 [1129]*1129S.Ct. 2009, 2015, 90 L.Ed.2d 445 (1986)). The substantial evidence standard requires only that an agency decision be supported by “ ‘such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.’ ” Universal Camera Corp. v. NLRB, 340 U.S. 474, 477, 71 S.Ct. 456, 458, 95 L.Ed. 456 (1951) (quoting Consolidated Edison Co. v. NLRB, 305 U.S. 197, 229, 59 S.Ct. 206, 216, 83 L.Ed. 126 (1938)).

Legal issues, however, are “ ‘for the courts to resolve, although even in considering such issues the courts are to give some deference to the [agency’s] informed judgment.’” Faour, 985 F.2d at 219 (quoting Federal Trade Comm’n, 476 U.S. at 454, 106 S.Ct. at 2015). Our review of an agency’s construction of a statute must give effect to the unambiguously expressed intent of Congress. Chevron U.S.A. Inc. v. Natural Resources Defense Council, Inc.,

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10 F.3d 1125, 1993 U.S. App. LEXIS 33099, 1993 WL 525899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hawkins-v-agricultural-marketing-service-department-of-agriculture-ca5-1993.