Justice v. Lyng

716 F. Supp. 1567, 1988 U.S. Dist. LEXIS 16543, 1989 WL 76899
CourtDistrict Court, D. Arizona
DecidedJune 14, 1988
DocketCIV 87-1569-PHX-WPC
StatusPublished
Cited by4 cases

This text of 716 F. Supp. 1567 (Justice v. Lyng) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Justice v. Lyng, 716 F. Supp. 1567, 1988 U.S. Dist. LEXIS 16543, 1989 WL 76899 (D. Ariz. 1988).

Opinion

MEMORANDUM AND ORDER

COPPLE, Senior District Judge.

Defendant Lyng, the Secretary of Agriculture, made a motion to dismiss this action for lack of subject matter jurisdiction, for failure to state a claim on which relief can be granted, and for lack of timely and sufficient service of process.

I. BACKGROUND

The plaintiffs are wheat, barley and cotton producers who participated in Wheat, Barley, and Cotton Price Support Programs. Included are the seven general partners of Red Mountain Farming Company, the twenty-two general partners of Red Mountain Farms Management Company and the four general partners of the Aztec Partnership.

This action is for a declaratory judgment that Defendant Lyng’s administrative determination combining all plaintiffs as “one person” under the 1986 cotton program administered through the Agricultural Stabilization and Conservation Service (“ASCS”) was arbitrary, capricious, an abuse of discretion and otherwise not in accordance with law under the judicial review provisions of the Administrative Procedure Act. The Secretary of the Department of Agriculture has ultimate responsibility for farm support programs under the Agricultural Act of 1949, as amended, 7 U.S.C. § 1421 et seq. The programs are administered by the United States Department of Agriculture (USDA), Agricultural Stabilization and Conservation Service (ASCS).

In 1986 the Deputy Administrator for State and County Operations (“DASCO”) ruled that the 33 partners involved in this action must all be combined as “one person” for ASCS purposes. The partners appealed to DASCO, and an administrative hearing was held in November, 1986. In its January 1987 decision, DASCO denied the administrative appeal. Plaintiffs requested reconsideration of the January 1987 decision, and a hearing was held. DASCO affirmed its earlier determination on June 2, 1987. Plaintiffs filed this action in October, 1987 seeking a declaratory judgment. No monetary relief is sought.

II. SUBJECT MATTER JURISDICTION

Defendant argues that this Court does not have subject matter jurisdiction because the plaintiffs ultimately want to receive money damages in excess of $10,000. The Tucker Act limited the jurisdiction of the United States District Courts to $10,000 in actions in which the plaintiff’s case, not sounding in tort, seeks money damages from the United States. See 28 U.S.C. §§ 1346(a)(2) and 1491. The Claims Court has jurisdiction if the action is not sounding in tort and is based upon the Constitution, federal statutes, regulations of an executive department, or upon any express or implied contract with the United States. 28 U.S.C. § 1491(a)(1). That jurisdiction is exclusive where the claim exceeds $10,000.

The Tucker Act only applies to claims for money damages, Northside Lumber Co. v. Block, 753 F.2d 1482 (9th Cir.) cert denied, 474 U.S. 931, 106 S.Ct. 265, 88 L.Ed.2d 271 (1985), and does not preclude review by a district court of an agency action when the relief sought is other than money damages. The Act does not limit the jurisdiction of district courts where nonmonetary relief may form the basis for a future money judgment. Laguna Hermosa Corp. v. Martin, 643 F.2d 1376, 1379 (9th Cir.1981); State of Tennessee ex rel. Leech v. Dole, 749 F.2d 331, 336 (6th Cir.1984).

The Claims Court is limited to hearing claims for “actual, presently due money damages from the United States.” King v. United States, 395 U.S. 1, 3, 89 S.Ct. 1501, 1502, 23 L.Ed.2d 52 (1969); United States v. Testan, 424 U.S. 392, 398-99, 96 S.Ct. 948, 953, 47 L.Ed.2d 114 (1976). Congress has amended 28 U.S.C. 1491 and added provisions allowing the Claims Court to grant some nonmonetary relief, but Congress did not intend to confer declaratory judgment authority on the Claims Court. *1569 Williams Intern. Corp. v. U.S., 7 Cl.Ct. 726 (1985).

The plaintiffs have filed a declaratory judgment action. While it may, in the future, serve as a basis for a monetary judgment, this action is simply a review of an administrative decision pursuant to the judicial review provisions of the Administrative Procedure Act, 5 U.S.C. § 701 et seq. (1982). The Claims Court does not have the authority to issue a declaratory judgment, and due to the administrative decision there is not an actual, presently due, amount owed. Thus, the plaintiffs néed a declaratory judgment before the Claims Court would have jurisdiction. Therefore, this Court is the appropriate forum for the plaintiffs action.

III. 15 U.S.C. § 714

Defendant argues that 15 U.S.C. § 714b(c), which bars attachment, injunction, garnishment, or other similar process against the Commodity Credit Corporation (“CCC”), prohibits the entry of a declaratory judgment against the defendant. The basis for this argument is that the relief requested runs against the CCC because the ASCS determines the number of persons for payment limitation purposes on behalf of the CCC, which is authorized to expend funds for farm programs.

The plaintiffs correctly point out that this action is against the Secretary of Agriculture, not the CCC. The CCC was not involved in the administrative conduct that led to this action. In addition, the plaintiffs prayer for relief requests a declaratory judgment, not injunctive relief. Complaint at 22-23. Declaratory judgments are within the jurisdiction of the federal courts, and are not barred by the enabling legislation for the CCC. Hall v. Lyng, 828 F.2d 428, 463 n. 10 (8th Cir.1987). If this Court were to find that this action ran against the CCC and that declaratory judgments were equivalent to injunctive relief, the Secretary would be, in essence, immune from judicial review of administrative decisions concerning the Agriculture Act. That would be a nonsensical result. This Court finds, therefore, that the action does not run against the CCC but rather runs against the named defendant. Further, the action is not an action for injunctive relief.

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Cite This Page — Counsel Stack

Bluebook (online)
716 F. Supp. 1567, 1988 U.S. Dist. LEXIS 16543, 1989 WL 76899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/justice-v-lyng-azd-1988.