Morris & Dickson Co. v. Whitaker

360 F. Supp. 3d 434
CourtDistrict Court, W.D. Louisiana
DecidedDecember 28, 2018
DocketCIVIL ACTION NO.: 18-1406
StatusPublished
Cited by3 cases

This text of 360 F. Supp. 3d 434 (Morris & Dickson Co. v. Whitaker) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morris & Dickson Co. v. Whitaker, 360 F. Supp. 3d 434 (W.D. La. 2018).

Opinion

ELIZABETH ERNY FOOTE, UNITED STATES DISTRICT JUDGE

*437Morris & Dickson Co. ("Morris & Dickson") is a full-line pharmaceutical wholesaler, part of whose business consists of distributing controlled substances. [Record Document 1 at 6]. Concerned that Morris & Dickson had an insufficient program in place to prevent diversion of hydrocodone and oxycodone, the Drug Enforcement Administration ("DEA") began proceedings to revoke Morris & Dickson's authorization to distribute controlled substances. [Id. at 8]. Morris & Dickson filed the instant action, seeking to enjoin further proceedings before the DEA's Administrative Law Judge ("ALJ") on the grounds that he was unconstitutionally appointed and is unconstitutionally shielded from removal at will. [Id. at 13-16]. Because this Court lacks jurisdiction over Morris & Dickson's challenge to the ongoing administrative adjudication, this case is DISMISSED WITHOUT PREJUDICE .

I. Background

Morris & Dickson holds two DEA registrations that allow it to distribute controlled substances. [Id. at 5]. On May 2, 2018, the Acting Administrator of the DEA began the process of revoking these registrations by issuing an Order to Show Cause and an Immediate Suspension of Registration ("ISO"), which asserted that Morris & Dickson maintained an inadequate anti-diversion program. [Id. at 8]. In response, Morris & Dickson filed suit to enjoin enforcement of the ISO. [Id. ]. Following a hearing before the undersigned, this Court temporarily restrained enforcement of the ISO, but allowed the revocation proceeding to go forward. [Id. at 9]. Before a hearing could be held on the motion for a preliminary injunction against the ISO, the DEA rescinded that order. [Id. ]. This Court then dismissed the case. Morris & Dickson Co. v. Sessions , No. 5:18-cv-605 (W.D. La. May 22, 2018).

The DEA ALJ, Charles Dorman, set the show-cause hearing on the DEA's allegations for November 13, 2018. [Record Document 1 at 11]. In order to prevent the hearing from going forward, Morris & Dickson filed this suit, which seeks an injunction and a declaratory judgment that further proceedings before Judge Dorman would violate the Constitution. [Record Documents 1 at 18 and 2 at 2-3].

Under the Appointments Clause of Article II, inferior officers of the United States must be appointed by the President, the courts, or the heads of executive departments. Lucia v. SEC , --- U.S. ----, 138 S.Ct. 2044, 2051, 201 L.Ed.2d 464 (2018) (citing U.S. Const. art. II, § 2, cl. 2 ). Morris & Dickson argues that DEA ALJs are inferior officers. [Record Document 1 at 11-13]. If they are, then they must be appointed by one of the three authorities listed in the Appointments Clause. See Lucia , 138 S.Ct. at 2051. The Controlled Substances Act ("CSA") incorporates by reference provisions of the Administrative Procedure Act ("APA") controlling ALJs' appointments and their employment protections. See 21 U.S.C. 824 (citing 5 U.S.C. 551 - 559 ).1 In accordance *438with these provisions, Judge Dorman was appointed by the DEA Administrator. [Record Document 1 at 14]. Morris & Dickson contends the DEA is not an executive department for purposes of the Appointments Clause because the DEA resides within the Department of Justice ("DOJ"). [Id. at 14-15]. If that is true, then the department head with the appointing power is the Attorney General, not the DEA Administrator. See 28 U.S.C. § 503. From this, Morris & Dickson concludes that Judge Dorman was unconstitutionally appointed. [Record Document 1 at 15].2

Morris & Dickson also alleges that the removal procedures for the DEA ALJs are unconstitutional. [Id. at 15-16]. The Constitution vests the President with the executive power, U.S. Const. art. II, § 1, cl. 1, and obligates him to "take Care that the Laws be faithfully executed," id. art. II, § 3. These provisions are violated when officers have more than one layer of protection against removal at will. Free Enter. Fund v. Public Co. Accounting Oversight Bd. , 561 U.S. 477, 496, 130 S.Ct. 3138, 177 L.Ed.2d 706 (2010). DEA ALJs, such as Judge Dorman, may be removed by the agency "only for good cause established and determined by the Merit Systems Protection Board." 5 U.S.C. § 7521(a). Members of that board, in turn, "may be removed by the President only for inefficiency, neglect of duty, or malfeasance in office." 5 U.S.C. § 1202(d). Morris & Dickson argues that this double layer of for-cause protection unconstitutionally interferes with the President's obligation to take care that the laws are faithfully executed. [Record Document 1 at 16].

After reviewing Morris & Dickson's complaint, this Court ordered briefing on the question of jurisdiction. [Record Document 15]. Two days later, Judge Dorman cancelled the show-cause hearing, thereby mooting Morris & Dickson's request for an interim order enjoining it. [Record Documents 22 at 3 and 23 at 1]. After this Court set a schedule for ruling on jurisdiction and, if necessary, on the merits, Judge Dorman stayed the enforcement proceeding pending this Court's resolution of Morris & Dickson's constitutional case. [Record Documents 27, 28, and 30].

Defendants Matthew G.

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360 F. Supp. 3d 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morris-dickson-co-v-whitaker-lawd-2018.