Lion Raisins, Inc. v. United States

64 Fed. Cl. 536, 2005 U.S. Claims LEXIS 79, 2005 WL 659183
CourtUnited States Court of Federal Claims
DecidedMarch 17, 2005
DocketNos. 01-322C, 01-536C
StatusPublished
Cited by3 cases

This text of 64 Fed. Cl. 536 (Lion Raisins, Inc. 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
Lion Raisins, Inc. v. United States, 64 Fed. Cl. 536, 2005 U.S. Claims LEXIS 79, 2005 WL 659183 (uscfc 2005).

Opinion

ORDER IMPOSING SANCTIONS FOR VIOLATION OF PROTECTIVE ORDER ENTERED IN CONNECTION WITH APPLICATION FOR ATTORNEYS’ FEES AND EXPENSES UNDER THE EQUAL ACCESS TO JUSTICE ACT

CHRISTINE ODELL COOK MILLER, Judge.

A hearing was held on February 10, 2005, pursuant to an order entered on February 5, 2005, requiring defendant to show cause why sanctions should not enter against the United States, defendant — acting through the United States Department of Justice (“DOJ”) and the United States Department of Agriculture (the “USDA”) — for violation of the Protective Order entered by the undersigned on November 22, 2002. A copy of the protective order is attached as Appendix A hereto, and a copy of the order to show cause is attached as Appendix B.

The Protective Order required the designation as “confidential” and the filing under seal of all documents, including depositions, transcripts, and references to deposition testimony, produced by plaintiff to DOJ in the limited discovery allowed to DOJ in connection with an application filed under the Equal Access to Justice Act, 28 U.S.C. § 2412 (2002) (the “EAJA”). Protective Order ¶2. The Protective Order bound the attorneys of record2 and the USDA attorneys “directly involved in consulting for or advising the attorneys for the United States with respect to plaintiffs” EAJA application. Protective Order ¶ 4(2). The Protective Order expressly provided that the termination of the EAJA proceeding did not “relieve the parties from the obligations of maintaining the confidentiality of all documents, materials, and information deemed confidential and subject” thereto. Id. ¶8. The Protective Order required that, “[ujpon termination of this litigation [the EAJA proceeding],” all documents subject thereto were to be returned to counsel for the producing party, unless the parties agreed in writing to another manner of disposition. Id. ¶7.

In finding the relevant facts and entering this order imposing sanctions, the undersigned refers to attorneys employed by DOJ and the USDA as “DOJ # 1,” for the attorney who was attorney of record in Docket Nos. 01-322C & 01-346C before the undersigned until John H. Williamson entered his appearance on January 7, 2005; and “USDA # 2,” for the attorney in the USDA’s Office of General Counsel who both consulted with DOJ # 1 in responding to the EAJA application and (1) currently advises the USDA [538]*538deciding official in the debarment proceeding and (2) advised the USDA decisionmaker in the suspension proceeding3 referred to herein.4

On November 14, 2002, over plaintiffs strenuous objection, defendant obtained an order allowing it to engage in limited discovery to determine whether plaintiff met the jurisdictional requirements to qualify for an award of expenses under the EAJA.5 Defendant obtained from plaintiff documents and depositions that were subject to the Protective Order. Proceedings before the undersigned terminated on August 20, 2003, upon the filing of an opinion denying plaintiffs EAJA application. See Lion Raisins, Inc. v. United States, 57 Fed.Cl. 505 (2003). Defendant dismissed its appeal from this order.

Subsequently, on September 20, 2004, plaintiff filed in the United States Court of Federal Claims a complaint for injunctive relief, coupled with a motion for temporary restraining order and motion for preliminary injunction. This action was docketed as No. 04-1477C and assigned to the Hon. George W. Miller. In its 2004 action, plaintiff challenged the USDA’s November 19, 2004 decision suspending it from bidding for one year on government contracts pending resolution of an ongoing criminal investigation by the USDA and an ongoing administrative debarment proceeding conducted by a USDA administrative law judge (“ALJ”) regarding alleged violations of inspection and grading regulations.

A debarment proceeding involving plaintiff6 was pending in the USDA during 2004. It charged that plaintiff, by respondent officers, altered or forged inspection certificates. Plaintiff moved for summary judgment contending that the USDA had failed to sustain its burden of proof. In support of its argument that two of the named respondents [539]*539were not officers of plaintiff until after 2000, plaintiff and its individual respondent officers on April 2, 2004, submitted a joint reply in support of their motion for summary judgment in the debarment proceeding, In re Lion Raisins, Inc., I & G Docket No. 01-0001 (USDA) (Apr. 5, 2004). This submission included a March 30, 2004 declaration of plaintiffs Controller, attached to which were the minutes of annual meetings of plaintiffs Board of Directors dated January 4, 2000, January 4, 2001, and January 4,2002.

Thereafter, on April 23, 2004, USDA # 2, who is the prosecutor representing the USDA in the debarment proceeding before the ALJ, “orally made direct representation to [the ALJ] making direct reference to [DOJ # 1] regarding corporate meeting minutes she received from him, and deposition testimony taken in that EAJA case.” Declaration of Brian C. Leighton, Dec. 21, 2004, 113. The inference can be drawn that USDA #2 gave the ALJ the documents, because they are referred to as the first ground relied upon to sustain plaintiffs proposed suspension.

Prompted by disclosure of the minutes, the USDA issued a four-page letter dated September 13, 2004, signed by Kenneth C. Clayton, Suspending Official, Agricultural Marketing Service (“AMS”). The proposed suspension of plaintiff for one year from bidding on government contracts was based on two grounds, as follows:

AMS has reason to believe that Lion Raisins, Inc., submitted false evidence to the Secretary of Agriculture and/or to the U.S. Department of Justice.
AMS has reason to believe that Lion Raisins, Inc., has repeatedly engaged in misrepresentation or deceptive or fraudulent practices or acts in connection with the use of inspection certificates, with the use of a legend signifying that raisins had been officially inspected, and with the use of a facsimile form simulating official inspection certificates.

Decision Letter from Kenneth C. Clayton, Suspending Official to Alfred Lion, Jr., dated Sept. 13, 2004, at 1-2 (emphasis omitted). Although plaintiff relied on the minutes dated January 4, 2000, to show the USDA that two of the named respondents were not officers, Dr. Clayton states that the respondents (including plaintiff) in 2003 submitted to the DOJ the documents that “also purported to be the official corporate minutes of the annual meetings of the board of directors of Lion Raisins, Inc., which documents Lion Raisins, Inc., asserted were evidence of the identity of its corporate officers. AMS has reason to believe that one of both sets of documents provided to the Federal Government is false.” Id. at 1.

In its motion for an order to show cause, plaintiff asserts that the USDA cited to and relied expressly on documents subject to the Protective Order-in particular, corporate minutes of the annual board of directors’ meetings of plaintiff, Lion Raisins, Inc., dated January 4, 2000; January 4, 2001; and January 4, 2002, that had been produced during DOJ proceedings pursuant to the Protective Order.

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Bluebook (online)
64 Fed. Cl. 536, 2005 U.S. Claims LEXIS 79, 2005 WL 659183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lion-raisins-inc-v-united-states-uscfc-2005.