O'Connell v. United States

14 Cl. Ct. 309, 1988 U.S. Claims LEXIS 20, 1988 WL 11017
CourtUnited States Court of Claims
DecidedFebruary 17, 1988
DocketNo. 517-86C
StatusPublished
Cited by2 cases

This text of 14 Cl. Ct. 309 (O'Connell v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Connell v. United States, 14 Cl. Ct. 309, 1988 U.S. Claims LEXIS 20, 1988 WL 11017 (cc 1988).

Opinion

OPINION

NETTESHEIM, Judge.

The backdrop for this case before the court after argument on cross-motions for summary judgment is an administrative process that would have invited Franz Kafka to take notes. Plaintiff applied to participate in a program to reduce milk production, and her contract was accepted. After she reduced her herd substantially in reliance on forthcoming contract payments, the first payment was disapproved. The local governmental office responsible recommended leniency or special consideration, because whatever deficiency in plaintiff’s eligibility for payment, all the facts of her proposed operation were made known before she embarked on the program. Relief was denied on appeal, and plaintiff was invited to submit a tort claim, which was denied. Plaintiff was advised that she could appeal again, but after a hearing, it was disclosed that the appellate body had no authority to consider her appeal. A subsequent appeal to the correct appellate authority was denied, and plaintiff was advised that she could file suit under the Federal Tort Claims Act. She filed a tort suit, but her action was dismissed when the Government took the position that her suit could only be brought in the United States Claims Court.

FACTS

The following facts are undisputed. Plaintiff Margaret O’Connell (“plaintiff”) is a milk producer. The Milk Diversion Program was a price support program intended to reduce the total amount of milk produced in the United States in an attempt to stabilize market prices. See 7 U.S.C. § 1446(d)(2) (Supp. 1 1983). Under the Milk Diversion Program, the Commodity Credit Corporation (the “CCC”) entered into contracts with eligible milk producers to pay them to reduce milk production. 7 U.S.C. § 1446(d)(3)(A)(ii). The United States Department of Agriculture, Agricultural Stabilization and Conservation Service (the “ASCS”), Emergency Operations and Livestock Programs Division, performed the administrative functions of the CCC with respect to the Milk Diversion Program. The contracts with the CCC were administered by the ASCS at a local level by a county committee composed of elected farmers. These contracts required that over a 15-month period from January 1, 1984, through March 31, 1985, a participating milk producer reduce production of between 5 and 30 percent of the 1981-82 base production for the producer’s "unit.” 7 C.F.R. § 1430.403(a) (1985).1

[311]*311The Milk Diversion Program was announced in December 1983. On January 31, 1984, plaintiff submitted a proposal to the County ASCS Committee for Albany County, New York (the “county committee”), and the county committee on behalf of the CCC signed a contract with plaintiff for the 15-month term. All pertinent information was disclosed to the county committee, and there is no question that plaintiff or her husband misrepresented the nature or relationship of their respective farming operations, although he failed to sign the contract as a joint producer with an interest in the jointly-owned farm. The pertinent information was that in March 1983 Mr. O’Connell purchased a separate farm and that in October 1983 he moved his herd onto the farm jointly owned by plaintiff and Mr. O’Connell and housed his cows in the jointly-owned facility that was used for plaintiff’s herd. The production of Mr. O’Connell’s operation did not qualify under the Milk Diversion Program because it was purchased after the base period had concluded. Milk sales for Mr. O’Connell’s herd were billed for and paid to him separately, and most sales from plaintiff’s herd were billed for and paid to her separately; Mr. O’Connell did not enter into a Milk Diversion Program contract for his herd; plaintiff’s Milk Diversion Program contract applied only to her herd and had nothing to do with Mr. O’Connell’s herd or its milk production. Mr. O’Connell’s herd and plaintiff’s herd occupied the same farm, but the milk from each herd was produced separately, stored in separate bulk tanks, and sold separately, thereby making it readily identifiable. Although Mr. O’Connell could not participate in the Milk Diversion Program, he agreed voluntarily to reduce his milk production and did so. It has not been determined, however, whether his voluntary reduction was sufficient so that the commercial milk production for the farm was within plaintiff’s reduction proposed for her contract.

By letter dated February 17, 1984, plaintiff was advised by the county committee, per Thomas Della Rocco, Executive Director for the Albany County ASCS Committee, that her contract had been accepted by the CCC as of January 31, 1984. Plaintiff thereafter substantially reduced her milk production, sold 40 cows from the herd for slaughter, and certified the transfers in accordance with the terms of the Milk Diversion Program contract. Sometime before April 17, 1984, someone, it appears at a higher level than the county committee, questioned the arrangement whereby Mr. O’Connell housed his dairy cows in the jointly-owned facility used by plaintiff’s cows that were subject to the Milk Diversion Program. The county committee, through Mr. Della Rocco, on April 17, 1984, requested approval to pay plaintiff her first Milk Diversion Program payment. On April 27, 1984, the ASCS State Executive Director for New York denied approval because plaintiff’s and Mr. O’Con-nell’s dairy cows were housed together. Mr. Della Rocco notified plaintiff of this decision by memorandum dated May 4, 1984. On May 16, 1984, the New York State ASCS Committee advised the county committee that it concurred with the State Executive Director’s decision.

The county committee met with the O’Connells and forwarded to the New York State ASCS Committee its unanimous recommendation by memorandum of May 8, 1984, stating, in pertinent part: “The events leading up to the ... MDP sign-up make this an exceptional case; a case in which the strict execution of rules works against the intent of the ... [MDP] and the participant.” The county committee, according to the memorandum, deemed the two units readily identifiable, in that there were two farms, two milking facilities operated up to October 1983, and two separate farms used for the production of feed for each operation. In its view the county committee could allow plaintiff to participate either by forcing her husband to remove his diary cows to the newly purchased operation or by allowing both to continue milking in one barn and to continue to keep separate production records. The county committee decided against the former option, because removing his herd would force Mr. O’Connell to increase his milk production to early 1983 levels in or[312]*312der to meet the cost of operating out of another bam, which would be in direct conflict with the purpose of the Milk Diversion Program.

On June 4, 1984, the District Director reviewed that “Milk Diversion Program discrepancy” with Mr. Della Rocco and noted: “I feel that if Mr. or Mrs. O’Connell had been informed of their not meeting the unit requirement, when they enrolled, they would have withdrawn their enrollment....”

As noted, the New York State ASCS Committee agreed with the State Executive Director’s decision denying approval of payments. By letter of June 6, 1984, the county committee advised plaintiff that she could appeal to the New York State ASCS Committee.

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Related

Associated Milk Producers, Inc. v. United States
22 Cl. Ct. 682 (Court of Claims, 1991)
Halbert v. United States
17 Cl. Ct. 596 (Court of Claims, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
14 Cl. Ct. 309, 1988 U.S. Claims LEXIS 20, 1988 WL 11017, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oconnell-v-united-states-cc-1988.