Labatte v. United States

CourtUnited States Court of Federal Claims
DecidedJuly 28, 2017
Docket16-798
StatusUnpublished

This text of Labatte v. United States (Labatte v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Labatte v. United States, (uscfc 2017).

Opinion

In the Um'ted States Court of Federal Claims

No. 16-798C (Filed: luly 28, 2017)

TIMOTHY LABATTE, Plaintiff,

v.

THE UNITED STATES,

Defendant.

\.../\._/\_/\_._/\_/\._/\_/\..,/\._,/\._/\_/\_/

Erl`ck Gregg Kaardal, Minneapolis, MN, for plaintiff Malrhew Paul Roche, U.S. Department of Justice - Civil Division, Washington DC, Counsel for defendant

OPINION

FUTEY, Sr. .ludge.

This case is before the Court on defendant’s motion to dismiss, filed on November 7, 2016, for lack of subject matter jurisdiction and failure to state a claim. On December 8, 2016 plaintiff filed a response and a cross motion for summary judgment Subsequently, on Decernber 14, 2016, defendant filed a motion to stay briefing on plaintiffs motion for summary judgment ln its Order on December 20, 2016, this Court agreed it must first resolve jurisdictional issues. Plaintiff, in his complaint filed on July 5, 2016, is seeking to recover over $200,000.00 in

monetary damages, contending the United States Department of Agriculture (“USDA”) breached

the Settlement Agreement and its duty of good faith and fair dealing, by preventing a witness

from testifying and further destroying the evidence of the claims process

Oral Argument Was held at the Court on .lune 19, 2017. This matter is now ripe for

disposition

FACTUAL BACKGROUND In 1999, a putative class of Native-American farmers filed a lawsuit against the Secretary of Agriculture, alleging that the USDA discriminated against them in the administration of farm ioans and other benefits programs and failed to investigate their administrative discrimination complaintsJ violating the Equal Credit Oppoitunity Act, 15 U.S.C. § 1691. The alleged discriminatory acts occurred between January 1, 1981 and November 24, 1999. The U.S. District Court for the District of Colurnbia certified a class and ultimateiy, the case Settied With a court approved Settlement Agreement, dismissing the action on April 29, 2011. The Settlement Agreement, inter alia, established several criteria for ciass membership: a, Must be a Native Arnerican as defined in the Agreement under Section II.BB. b. Must have farmed, ranched, or attempted to farm or ranch between January l, 1981 and Novernber 24, 1999. e. Must have applied to USDA in that time period for participation in a farm program. d. A ciass member must have filed a discrimination complaint with USDA either

individually or through a representative

The Settlement Agreement also established a Non-Judicial Process of review for the

farmers’ claims. The terms of the Settlement Agreement provided for finality of the process:

The Claim Determinations, and any other determinations made under this Non- Judicial Claims Process are final and are not reviewable by the Claims Administrator, the Track A Neutral, the Track B Neutral, the {d]istrict {c]ouit, or any other party or body, judicial or otherwise The Class Representatives and the Class agree to forever and finally waive any right to seek review of the Claim Determinations, and any other determinations made under this Non-Judicial Claims Process (Revised Settlement Agreement (“SA”) at § IX.A.9, Keepseagle v. Vilsack, No. l:99~cv-03119~EGS, (D.D.C. July 31, 2012), ECF No. 621-2.).

Also, the Settlement Agreement provided no role for the United States in the Non- Judicial Claims process (SA § IX.A. l 0). The United States is defined as individually and collectively, the Executive Branch of the United States, its agencies, instrumentalities agents, officers, and employees (SA § lI.BBB).

Timothy LaBatte, a member of the Sisseton-Wahpeton Tribe, satisfied the criteria as a plaintiff and became a party to a class action lawsuit which commenced in 2000. As a class action piaintiff in Keepseagfe v. Vilsack, l\/Ir. LaBatte engaged in a Non-J udicial Claims Process established through the subsequent Keepseagle Settlement Agreernent to recover monetary damages pursuant to the Track B Neutral. Keepseagle v. Vilsack, No. l:99-cv-03119-EGS (D.D.C. Apr. 29, 20l1).

The parties were required to submit their claims packages by Deeember 27, 2011. T hese packages were then evaluated by the Claims Administrator for timeliness and completeness All timely and complete claims packages Were forwarded to the Track A or Track B Neutral in accordance with the claimant’s election. Track A Neutral determined the elements of a claim by substantial evidence (SA § IX.C. l). The Track B Neutral determined the elements of a claim by preponderance of the evidence and through documentary evidence admissible under the Federal Rules of Evidence. (SA § IX.D. 1). if either the Track A or B Neutral determined that the

claimant had not proven his or her claim, the Neutral denied the claim. The Settlement

Agreement provided that third party claims adjudication companies suggested by class counsel

and approved by the district court would serve as the “Track A Neutral,” and the “Track B Neutral” and would make the determinations of whether the claimants had proven the elements of their claims

Mr. LaBatte submitted his claim on Deeember 23, 201l, and choose the Track B Neutral process Plaintiff submitted his information including a declaration from his attorney, Mr. Kaardal, which recounted his attempts to obtain the information needed to prove l\/lr. LaBatte’s claims, including a credible sworn statement based on personal knowledge by an individual who is not a member of the Claimant’s family: (l) the identity of a similarly situated white farmer; and (2) that the Claimant filed a discrimination complaint with the USDA. (SA § IX.D.2.a).

On April 27, 2012, the Claims Administrator sent Mr. LaBatte’s attorney, l\/Ir. Kaardal, the notice required by Paragraph IX.B.6 of the Settlement Agreement. On May 23, 2012, Mr. LaBatte submitted additional information, including a declaration from l\/lr. Kaardal which recounted his attempts to obtain the information needed to prove Mr. LaBatte’s claims Mr. LaBatte asserted that he “did an exhaustive search for witnesses to support his claim” and found that many of those who could support his claim were deceased Ultimately, he located two individuals who could testify through declarations, Tim Lake and Russel Hawkins. Mr. LaBatte’s witnesses were his former Tribal Chair Russell Hawkins and another tribal member Tim Lake. At the tirne l\/lr. LaBatte sought to obtain signed declarations from these individuals, both were employees of the Bureau of indian Affairs (“BIA”), an agency of the United States Department of the lnterior. Subsequently, allegedly both l\/Ir. Hawkins and l\/Ir. Lake informed Mr. LaBatte that they would not sign draft declarations Mr. LaBatte attached the unsigned

declarations of l\/lr. Lake and l\/lr. Hawkins as an offer of proof when he submitted his claim.

(Compl. Ex. F, ECF No. 1-3). ln his own declaration, Mr. LaBatte identified white farmers similarly situated who obtained loans from the government where LaBatte could not.

On October 30, 2012, the Claims Administrator informed Mr. LaBatte that a rfrack B Neutral rendered a final determination that his claim was denied. 'l`he denial letter outlined two reasons:

[R]uns afoul of the Settlement Agreement’s requirement that evidence on this issue, and on the issue of whether you had filed a complaint of discrimination with USDA, has been established, by a credible sworn statement based on personal knowledge by an individual who is not a member of the Claimant’s family.’ . .. Since Mr.

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