Lion Raisins, Inc. v. United States

416 F.3d 1356, 2005 U.S. App. LEXIS 15041, 2005 WL 1705511
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 22, 2005
Docket20-2057
StatusPublished
Cited by141 cases

This text of 416 F.3d 1356 (Lion Raisins, Inc. 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.

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Lion Raisins, Inc. v. United States, 416 F.3d 1356, 2005 U.S. App. LEXIS 15041, 2005 WL 1705511 (Fed. Cir. 2005).

Opinion

DYK, Circuit Judge.

This is a consolidated appeal from two decisions of the Court of Federal Claims, Lion Raisins, Inc. v. United States, 58 Fed.Cl. 391 (2003) (“Lion I” or “the reserve pool case”), and Lion Raisins, Inc. v. United States, 57 Fed.Cl. 435 (2003) (“Lion II” or “the bins case”). In both cases, plaintiffs Lion Raisins, Inc. and Lion Brothers allege takings arising from actions undertaken by the Raisin Administrative Committee (“RAC”), a marketing *1358 agency created pursuant to the Agricultural Marketing Agreement Act of 1937, as amended, 7 U.S.C. § 601 et ■ seq. (“AMAA” or “Act”). In each case, the Court of Federal Claims dismissed, holding that the non-appropriated fund instrumentality (“NAFI”) doctrine barred the exercise of jurisdiction. We disagree, and hold that the Court of Federal Claims has jurisdiction over takings claims against the United States based on the actions of the RAC, because the RAC is an agent of the United States.

We nonetheless affirm the dismissals. In the reserve pool case, we hold that the case must be dismissed because Lion has failed to allege a cognizable takings claim. With respect to the bins case, we hold that the takings claim may not be brought against the government because the statute provides for an administrative remedy and for judicial review in district court.

BACKGROUND

I

At the heart of this case is. the administration of the AMAA. The AMAA was originally enacted during the Depression, with the objective of helping farmers obtain a fair value for their agricultural products. Pescosolido v. Block, 765 F.2d 827, 828 (9th Cir.1985); 7 U.S.C. § 602 (2000). The Supreme Court has upheld the constitutionality of the AMAA. United States v. Rock Royal Co-Op., Inc., 307 U.S. 533, 59 S.Ct. 993, 83 L.Ed. 1446 (1939). “The Act contemplates a cooperative venture among the Secretary, handlers, and producers the principal purposes of which are to raise the price of agricultural products and to establish an orderly system for marketing them.” Block v. Cmty. Nutrition Inst., 467 U.S. 340, 346, 104 S.Ct. 2450, 81 L.Ed.2d 270 (1984); see also Kyer v. United States, 177 Ct.Cl. 747, 369 F.2d 714, 716 (1966), cert. denied, 387 U.S. 929, 87 S.Ct. 2050, 18 L.Ed.2d 990 (1967).

The Act operates through the implementation of Marketing Orders, designed “to prevent over-production of agricultural products and excessive competition in marketing them, with price stabilization as the ultimate objective.” Parker v. Brown, 317 U.S. 341, 368, 63 S.Ct. 307, 87 L.Ed. 315 (1943). The Act delegates authority to the Secretary of Agriculture (“the Secretary”) to issue marketing orders, upon request of the affected producers, regulating the sale and delivery of various commodities, including raisins, “in order to avoid unreasonable fluctuation in supplies and prices.” Kyer, 369 F.2d at 716-17; 7 U.S.C. §§ 608c, 602(4) (2000).

Marketing orders must be approved by either two-thirds of the affected producers or by producers who market at least two-thirds of the volume of the commodity. 7 U.S.C. § 608e(9)(B). The AMAA restricts the marketing orders “to the smallest regional production areas ... practicable.” 7 U.S.C. § 608c(ll). The Raisin Marketing Order, codified at Part 989 of Title 7 of the Code of Federal Regulations, was originally promulgated in 1960. Its applicable regional production area is the State of California. 7 C.F.R. § 989.4 (2005).

The statute authorizes the Secretary to delegate the responsibility of implementing marketing orders to marketing committees and to empower those committees to issue rules and regulations. 7 U.S.C. § 608c(7)(C)(i)-(iv). The RAC is the marketing committee charged with administering the Raisin Marketing Order. 7 C.F.R. § 989.35(a) & (b). The 47 members of the RAC come from the raisin production industry (with one public member and one *1359 representative of the industry’s collective bargaining association), and are appointed by the Secretary after industry nomination. Lion I, 58 Fed.Cl. at 393; 7 C.F.R. § 989.26.

The RAC employs its own staff. The RAC is funded by assessments paid by handlers; it receives no funding from Congress. Lion I, 58 Fed.Cl. at 393 (citing 7 C.F.R. § 989.79). In past cases, we have held that similar entities are non-appropriated funds instrumentalities, or NAFIs. See, e.g., Kyer, 369 F.2d at 718-19. The Raisin Marketing Order provides that members of the RAC are “subject to removal or suspension by the Secretary, in his discretion, at any time. Every decision, determination, or other act of the committee shall be subject to the continuing right of the Secretary to disapprove of the same at any time. Upon such disapproval, the disapproved action of the committee shall be deemed null and void.” 7 C.F.R. § 989.95 (2005).

The Raisin Marketing Order divides those involved in the raisin industry into two categories-handlers and producers. The Raisin Marketing Order applies directly only to handlers. Under the Act, handlers are "processors, associations of producers, and others engaged in the handling" of covered agricultural commodities. 7 U.S.C. § 608c(1). Handlers are bound by the marketing orders promulgated pursuant to the AMAA. Stark v. Wickard, 321 U.S. 288, 303, 64 S.Ct. 559, 88 L.Ed. 733 (1944). The government may obtain injunc-tive relief, civil penalties, and criminal penalties against handlers who fail to comply with the regulatory provisions of a marketing order. 7 U.S.C. §~ 608a(5), 608a(6), 608c(14); see also United States v. Ruzicka, 329 U.S. 287, 67 S.Ct. 207, 91 L.Ed. 290 (1946).

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416 F.3d 1356, 2005 U.S. App. LEXIS 15041, 2005 WL 1705511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lion-raisins-inc-v-united-states-cafc-2005.