Missouri v. Harris

58 F. Supp. 3d 1059, 2014 U.S. Dist. LEXIS 141337, 2014 WL 4961473
CourtDistrict Court, E.D. California
DecidedOctober 2, 2014
DocketNo. 2:14-cv-00341-KJM-KJN
StatusPublished
Cited by1 cases

This text of 58 F. Supp. 3d 1059 (Missouri v. Harris) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Missouri v. Harris, 58 F. Supp. 3d 1059, 2014 U.S. Dist. LEXIS 141337, 2014 WL 4961473 (E.D. Cal. 2014).

Opinion

ORDER

KIMBERLY J. MUELLER, District Judge.

This case raises constitutional challenges to California legislation governing the sale of shell eggs. The legislation, scheduled to take effect on January 1, 2015, bans the sale of shell eggs within California by producers or handlers if the eggs are the product of an egg-laying hen that was confined in an enclosure that fails to comply with certain animal care standards. Plaintiffs are six states who challenge the legislation as unconstitutional, saying it violates the Commerce and Supremacy Clauses of the United States Constitution.

On August 11, 2014, the court heard the separate motions to dismiss brought by defendants Kamala Harris and Karen Ross (“defendants”) and defendant-inter-venors the Association of California Egg Farmers (“ACEF”) and the Humane Society of the United States (“HSUS”). John Hirth and Peggy Whipple appeared for plaintiffs; Susan Smith appeared for defendants; Brian Boynton appeared for defendant-intervenor ACEF; and Bruce Wagman and Rebecca Cary appeared for defendant-intervenor HSUS.1

[1063]*1063After carefully considering the parties’ papers and arguments, defendants’ motions to dismiss are GRANTED for lack of standing, without leave to amend.

1. PROCEDURAL HISTORY

On February 3, 2014, the State of Missouri initiated this action asserting two alternative causes of action under the federal Commerce and Supremacy Clauses. Compl., ECF No. 2 (relying on U.S. Const. art. I, § 8, cl. 3 and U.S. Const, art. VI, cl. 2).

On March 5, 2014, a first amended complaint was filed by the State of Missouri, the State of Nebraska, the State of Oklahoma, t*he State of Alabama, the Commonwealth of Kentucky and Terry Branstad, the Governor of the State of Iowa (collectively “plaintiffs”). First Am. Compl. (“FAC”), ECF No. 13.

HSUS and ACEF filed motions to intervene on March 26, 2014 and April 8, 2014, respectively. ECF Nos. 27, 33. On June 3, 2014, 2014 WL 2506606, following the parties’ briefing on the motions to intervene, the court granted HSUS’s alternative motion for permissive intervention and ACEF’s motion to intervene as of right. ECF No. 57.

On April 9, 2014, defendants filed a motion to dismiss. ECF No. 36. HSUS moved to dismiss plaintiffs’ first amended complaint on March 26, 2014, ECF No. 27-2, and ACEF moved to dismiss or alternatively for judgment on the pleadings on April 25, 2014, ECF No. 45. Plaintiffs filed a combined opposition to all three motions to dismiss on May 16, 2014. ECF No. 54. Defendants and defendant-inter-venors HSUS and ACEF filed separate replies on June 5, 2014. ECF Nos. 58-60.

Amici I and Amici II filed motions for leave to file amicus curiae briefs on April 22, 2014 and June 10, 2014, respectively. ECF Nos. 44, 63. On July 1, 2014, 2014 WL 2987284, the court granted the motions. ECF No. 70. On July 2, 2014, both amici filed briefs in support of the outstanding motions to dismiss. ECF Nos. 71, 72. On July 15, 2014, plaintiffs responded to the amici briefs, ECF No. 75, and on July 22, 2014, ACEF and Amicis I and II filed a response thereto. ECF Nos. 76, 77.

On July 25, 2014, amicus Missouri Liberty Project filed a motion for leave to file an amicus curiae brief in opposition to defendants’ motion to dismiss, which was granted by the court on July 28, 2014. ECF Nos. 82, 84. Amicus Missouri Liberty Project filed its brief on July 29, 2014. ECF No. 88.

II. ALLEGATIONS OF THE FIRST AMENDED COMPLAINT

Plaintiffs allege as follows in their first amended complaint. The California Legislature passed AB 1437, “which requires egg farmers in other states to comply with behavior-based enclosure standards identical to those in [Proposition] 2 if they want to continue selling their eggs in California.” 2 FAC ¶ 5. As a result, “[e]gg producers in Missouri, Nebraska, Oklahoma, Alabama, Kentucky, and Iowa face a difficult choice”: “[e]ither they can incur mas[1064]*1064sive capital improvement costs to build larger habitats for some or all of their egg-laying hens, or they can walk away from the largest egg market in the country.” Id. ¶ 6. “[T]he people most directly affected by California’s extraterritorial regulation — farmers in our states who must either comply with AB 1437 or lose access to the largest market in the United States— have no representatives in California’s Legislature and no voice in determining California’s agricultural policy.” Id. ¶ 7.

Plaintiffs bring this action and assert standing under the parens patriae doctrine3 because each plaintiff state “has quasi-sovereign interests in protecting its citizens’ economic health and constitutional rights as well as preserving its own rightful status within the federal system.” Id. ¶¶ 10, 17, 22, 27, 32. All plaintiffs posit each state’s “economy and status within the federal system will be irreparably injured if the California Legislature — who were not elected by, and are not answerable to, the people of [each plaintiff state]— is allowed to regulate and increase the cost of egg production in [each plaintiff state].” Id. ¶¶ 13, 19, 24, 29, 34. With regard to the State of Missouri, “[a]lmost one third of [the] eggs” produced by Missouri’s farmers are sold in California. Id. ¶ 12. With regard to the State of Iowa, it is the “number one state in egg production” and “[approximately 9.1% of [the state’s] eggs ... are sold in California.” Id. ¶¶ 37-38, 53-54. “The cost to Iowa farmers to retrofit existing housing or build new housing that complies with [AB 1437] would be substantial.” Id. ¶ 41. The increased cost of production “will have a detrimental impact upon and cause irreparable harm to Iowa’s economy.” Id. ¶ 43. The States of Nebraska and Alabama are among the top fifteen largest egg producers in the United States. Id. ¶¶ 18, 23. The States of Kentucky and Oklahoma produced 1.037 billion and 700 million eggs in 2012, respectively. Id. ¶¶ 28, 33. “Precise figures on the number of eggs imported into California from other states are scarce, but University of California Poultry Specialist Don Bell identifies Alabama, Nebraska, and Kentucky among the states whose eggs account for another 5.6% of total California imports.” Id. ¶ 55.

In 2008, California voters approved Prop 2 “ ‘to prohibit the cruel confinement of farm animals’ within California.” Id. ¶ 56 (quoting FAC Ex. A, ECF No. 13-1). Starting in 2015, Prop 2 -will prohibit California egg producers from housing egg-laying hens in enclosures that prevent them from standing, lying down, turning around and fully extending their limbs, effectively banning the use of conventional cage-systems. Id. ¶ 57. The cost of complying with Prop 2 “would have placed California egg producers at a significant competitive disadvantage when compared to egg producers in Missouri and other states.” Id. ¶ 61. “Faced with the negative impact Prop 2 would have on California’s egg industry,” the California Legislature passed AB 1437 in 2010, which requires out-of-state egg farmers to comply with the same requirements set forth in Prop 2. Id. ¶¶ 63-64.

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Related

In re Processed Egg Products Antitrust Litigation
81 F. Supp. 3d 412 (E.D. Pennsylvania, 2015)

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Bluebook (online)
58 F. Supp. 3d 1059, 2014 U.S. Dist. LEXIS 141337, 2014 WL 4961473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/missouri-v-harris-caed-2014.