Miloslavich v. Frutas Del Valle De Guadalupe, S.A.

637 F. Supp. 434, 1986 U.S. Dist. LEXIS 26308
CourtDistrict Court, S.D. California
DecidedApril 24, 1986
DocketCiv. No. 85-1979-R(CM)
StatusPublished
Cited by4 cases

This text of 637 F. Supp. 434 (Miloslavich v. Frutas Del Valle De Guadalupe, S.A.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miloslavich v. Frutas Del Valle De Guadalupe, S.A., 637 F. Supp. 434, 1986 U.S. Dist. LEXIS 26308 (S.D. Cal. 1986).

Opinion

MEMORANDUM DECISION AND ORDER

RHOADES, District Judge.

Defendants’ joint motion to dismiss Plaintiff’s Complaint for Relief From Order of the Secretary of Agriculture pursuant to the Perishable Agricultural Commodities Act (the “Act”), 7 U.S.C. §§ 499a et seq., came on regularly for hearing before Judge Rhoades on February 17, 1986. William E. Wallace III appeared pro hac vice on behalf of the movants H.J. Heinz Company (“Heinz”) and Jugos del Valle, S.A. de C.V. (“Jugos”), and Allan Reniche appeared on behalf of movant Frutas del Valle de Guadalupe, S.A. (“Frutas”). Harrison W. Hertzberg appeared on behalf of Plaintiff C.A. Miloslavich, Jr.

Upon hearing argument and considering the record and authorities cited, the court took the matter under submission. The parties submitted supplemental briefs. After reviewing these supplemental briefs, and further consideration of the record and authorities cited, and for the reasons set forth below, the Court rules that the defendants’ joint motion to dismiss plaintiff’s complaint is GRANTED.

BACKGROUND

Plaintiff Miloslavich is a broker of fresh fruits and other perishable agricultural commodities doing business primarily in California. In 1982, plaintiff sold fruit to defendant Frutas, a Mexican company. Frutas transported the fruit to its plant in Mexico for processing and resale. Jugos, a Mexican corporation and a subsidiary of Heinz, purchased some of the processed fruit from Frutas for resale in Mexico.

The sales agreement between plaintiff and Frutas required Frutas to pay plaintiff in American dollars. In September 1982, however, the Mexican government froze foreign currency transactions. No longer able to obtain dollars, Frutas borrowed 100,000 dollars from Heinz to pay plaintiff for some of the delivered fruit.

To satisfy the outstanding balance, Frutas and plaintiff agreed to an installment payment schedule to be made in Mexican pesos. Frutas paid plaintiff the agreed upon amount of pesos in three installments. After converting the pesos to dollars, plaintiff did not realize as much money as he [436]*436expected. The record below shows that plaintiff apparently was hoping to profit on the conversion through favorable exchange rates.

In February, 1983, plaintiff filed a complaint before the Secretary of the Department of Agriculture to recover the loss he sustained in converting pesos to dollars. On April 22, 1985, after discovery, prehearing motions and a full, four-day evidentiary hearing, the Judicial Officer issued a Decision and Order dismissing the complaint, and ordering plaintiff to pay attorneys’ fees, “as reparation,”1 to the defendants, Frutas, Jugos and Heinz.

On May 8,1985, plaintiff filed a “Petition for Rehearing and/or Reargument and/or Reconsideration of Order of April 22,1985.” The petition stayed the April 22 Order. On July 26, 1985, after lengthy consideration, an Acting Judicial Officer denied plaintiff’s petition to reopen the hearing and dismissed, for lack of merit, his petition for reconsideration. The Secretary reinstated his April 22 Order, with the reparation award to be paid within 30 days from July 26, 1985.

On August 23, 1985, plaintiff filed the complaint in the instant action, appealing the April 22,1985, and July 26,1985 orders. Plaintiff did not post a bond in any amount, nor did he give any reason for not doing so. On September 18, 1985, the Department of Agriculture notified the defendants of plaintiff’s appeal and pointed out plaintiff's failure to post a bond. On November 13, 1985, pursuant to General Order 325, the instant action was transferred to Judge Rhoades.

DISCUSSION

The Perishable Agricultural Commodities Act (the “Act”), 7 U.S.C. §§ 499a et seq., provides this Court with appellate jurisdiction to review, de novo, decisions of the Secretary. A party adversely affected by an Order of Reparation is allowed to appeal to the United States District Court for the district in which the administrative hearing was held. 7 U.S.C. § 499g(c). The appeal must be filed within 30 days of the date of the reparation order. To perfect the appeal, the plaintiff must file a notice of appeal with the Clerk of the Court, together with a petition in duplicate which recites the prior proceedings and states grounds for defeating the adverse party’s right of recovery, and proof of service upon the adverse party. Id. In addition, the appeal does not become effective unless:

within thirty days from and after the date of the reparation order the appellant also files with the clerk a bond in double the amount of the reparation awarded against the appellant conditioned upon the payment of the judgment entered by the court, plus interest and costs, including a reasonable attorney’s fee for the appellee, if appellee shall prevail.

7 U.S.C. § 499g(c). See also O’Day v. George Arakelian Farms, Inc., 536 F.2d 856 (9th Cir.1976).

The statute provides that the appeal shall proceed in the district court as a trial de novo like a civil suit for damages, except that the findings of fact and order or orders of the Secretary shall be prima facie evidence of those facts. Id.

Moreover, the timely filing of a bond in the appropriate amount is a jurisdictional prerequisite for judicial review of a decision of the Secretary under the Act. O’Day, supra, 536 F.2d at 862; Kessenich v. Commodity Futures Trading Comm’n, 684 F.2d 88, 91-92 (D.C.Cir.1982).

The defendants argue that although plaintiff timely filed his appeal from the Secretary’s reparation order, he failed to [437]*437post a bond in any amount, thereby failing to perfect his appeal and incurring a fatal jurisdictional defect. Consequently, they argue, plaintiffs appeal must be dismissed.

Plaintiff’s arguments in opposition to the defendant’s motion to dismiss center on the issue of Congressional intent. Plaintiff argues that Congress did not expressly consider the bond requirement when it amended the Act to allow the award of attorney’s fees to the prevailing party at an oral hearing. Therefore, absent clear Congressional intent, requiring a bond in the instant action would defeat the intent of Congress to protect farmers who are vulnerable to the sharp practices of unscrupulous brokers. Plaintiff also attempts to distinguish cases that have held the bond requirement to be a jurisdictional prerequisite by arguing that the reparation awards appealed from in those cases included an award for damages representing goods sold and delivered, as well as attorney’s fees.

Finally, plaintiff included a somewhat cryptic section in his opposition papers to the effect that he “stands in the shoes of a farmer as he directly sold to [the defendants] the produce which is the subject matter of this action.” Opposition at 5, lines 17-19.

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637 F. Supp. 434, 1986 U.S. Dist. LEXIS 26308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miloslavich-v-frutas-del-valle-de-guadalupe-sa-casd-1986.