Pax Co. v. United States

324 F. Supp. 1335, 1 Envtl. L. Rep. (Envtl. Law Inst.) 20, 1970 U.S. Dist. LEXIS 10231
CourtDistrict Court, D. Utah
DecidedSeptember 16, 1970
DocketCiv. No. 207-7
StatusPublished
Cited by4 cases

This text of 324 F. Supp. 1335 (Pax Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pax Co. v. United States, 324 F. Supp. 1335, 1 Envtl. L. Rep. (Envtl. Law Inst.) 20, 1970 U.S. Dist. LEXIS 10231 (D. Utah 1970).

Opinion

ORDER DENYING MOTIONS TO DISMISS AND GRANTING PRELIMINARY INJUNCTION AND FINDINGS OF FACT AND CONCLUSIONS OF LAW

RITTER, Chief Judge.

This matter came before this court on a hearing on the plaintiff’s application for a preliminary injunction and upon defendants’ motion to dismiss for lack of jurisdiction and failure to state a claim. Due notice of the hearing on the preliminary injunction was given defendants by stipulation entered into August 20, 1970. Defendants filed their motion to dismiss on September 1, 1970, three days prior to the date set for the hearing on the preliminary injunction. The court received documentary evidence and heard testimony that was admitted without objection in open court, and examined the verified complaint. Plaintiff filed a memorandum in support of its application for a preliminary injunction and in opposition to the Government’s motion to dismiss. The Government filed a memorandum directed solely to its motion to dismiss. After having heard oral arguments of counsel for the respective parties, the court finds and holds as follows:

FINDINGS OF FACT AND CONCLUSIONS OF LAW

(1) This court has jurisdiction over the parties and this cause and may grant the relief hereinafter provided pursuant to the provisions of 28 U.S.C. §§ 1331, 1337, 2201, 2202, and Section 10 of the Administrative Procedure Act, 5 U.S.C. Sections 701-706 and the general equity powers of this court.

(2) Unless preliminary injunctive relief is granted, plaintiff will suffer ir[1338]*1338reparable injury as appears more fully below.

(3) The plaintiff has no adequate administrative remedy or remedy at law and has established that it is likely to prevail on the merits.

(4) The granting of preliminary relief is consistent with the public interest.

(5) USDA’s notice of cancellation of plaintiff’s registrations under the Federal Insecticide, Fungicide and Rodenticide Act, Interpretation 25, and the “Rules Governing the Appointment, Compensation and Proceedings of an Advisory Committee,” are final orders which are ripe for review.

(6) The PAX Company has sold its arsenical-based products for over 18 years across the country to approximately 2,000,000 customers.

(7) On July 10, 1967, the plaintiff submitted an application for the renewal of its USDA registrations on two products, PAX Crabgrass Control (USDA Registration No. 3234-9) and PAX Crabgrass and Soil Pest Control (USDA Registration No. 3234-3).

(8) These products and the PAX products hereafter referred to are used on home lawns as fertilizers and herbicides and contain between 25% and 47% arsenic trioxide compounded in a patented formula that makes them unique in the trade and enables PAX Company to compete with giant competitors in the field such as Ortho Division of Standard Oil of California.

(9) USDA informed plaintiff on August 24, 1967 that the registrations would not be renewed without a label “prohibiting use in or around the home.” This label would destroy the marketability of the most important products in PAX’s limited line of products and would cause PAX to cease business altogether. The stated basis of this action was an appended “Notice to Manufacturers” dated August 1, 1967 applying to products containing more than 2% sodium arsenite or 1.5% arsenic trioxide. The “Notice” stated that “products containing sodium arsenite and arsenic trioxide” had been involved in numerous “accidents” involving children and domestic animals.

(10) On November 25, 1967, USDA published in the Federal Register a “Notice of Proposed Interpretation Under the Federal Insecticide, Fungicide and Rodenticide Act,” which incorporated the precise language used in the “Notice to Manufacturers.” The basis of the proposed interpretation was exactly the same as the “Notice to Manufacturers”:

Products containing sodium arsenite and arsenic trioxide have been involved in numerous accidents involving children and domestic animals.

(11) On December 28, 1967, plaintiff requested a public hearing on Proposed Interpretation No. 25 and an opportunity to examine all written materials on file with the Department concerning the Notice of Proposed Interpretation, the data and facts upon which Proposed Interpretation was based, and a conference with USDA so that plaintiff could examine whatever the Department had in presenting its own evidence.

(12) The Department did not provide any evidence to support application of the Proposed Interpretation to PAX’s .products.

(13) On July 25, 1968, USDA published in the Federal Register an “Interpretation with Respect to Labeling of Sodium Arsenite or Arsenic Trioxide Products” which was to become effective 90 days after its publication (hereafter “Interpretation 25”). Interpretation 25 incorporated the precise operative language of the earlier “Notice to Manufacturers” and “Proposed Interpretation.” It cited no factual basis for its promulgation, but stated “thirty days were permitted for interested persons to submit written data, views or arguments in connection with this matter. After thorough consideration of all relevant matters, Interpretation 25 is issued * * *.” This “interpretation” prohibits use of products containing more than [1339]*13392% sodium arsenite or more than 1.5% arsenic trioxide “in or around the home.”

(14) The Department agreed to postpone the effective date of Interpretation 25 pending completion of scientific laboratory studies by Dr. Alan K. Done, an eminent toxicologist; Director of the University of Utah Medical School, Poison Information and Therapy Center; professor of pediatries, of pharmacology and clinical toxicology with some 90-odd publications. The studies were to investigate the toxieities of arsenic trioxide, sodium arsenite and PAX’s arsenical products and, in addition, to determine whether PAX products had been responsible for any injuries or death to human beings.

(15) Just before Dr. Done’s research was completed, USDA informed the plaintiff by letter dated March 18, 1969, that Interpretation No. 25 would become operative “in the near future. Notices of intent to cancel registration will be mailed to each registrant with products affected by this rule.” The letter further stated:

Our action to restrict these uses was based on the record of accidents involving such products. The products manufactured by the PAX Company were involved in a number of accidental ingestions. Although none of those reported resulted in fatalities, we cannot disregard them as being insignificant.
In its report on ‘The Use of Pesticides,’ the President’s Science Advisory Committee stated that, ‘As a corollary to cautious registration of new pesticides, more hazardous compounds might well be removed from the market when equally effective and less hazardous substitutes are found. The Panel believes that it is necessary to modify the use of some especially hazardous and persistent materials now registered.’ In keeping with this report and after a thorough evaluation of all the material submitted, we must conclude that the interpretation as published in the Federal Register on July 25, 1968, should be put into effect.

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324 F. Supp. 1335, 1 Envtl. L. Rep. (Envtl. Law Inst.) 20, 1970 U.S. Dist. LEXIS 10231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pax-co-v-united-states-utd-1970.