Provimi, Inc. v. United States

680 F.2d 111, 230 Ct. Cl. 621, 1982 U.S. Ct. Cl. LEXIS 267
CourtUnited States Court of Claims
DecidedMay 19, 1982
DocketNo. 524-80C
StatusPublished
Cited by3 cases

This text of 680 F.2d 111 (Provimi, Inc. 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
Provimi, Inc. v. United States, 680 F.2d 111, 230 Ct. Cl. 621, 1982 U.S. Ct. Cl. LEXIS 267 (cc 1982).

Opinion

BENNETT, Judge,

delivered the opinion of the court:

This case presents a novel question in food and drug law, whether the erstwhile owner of adulterated products that have been condemned under the Federal Food, Drug, and Cosmetic Act retains any interest in those products, com-pensable in this court, between the time of their condemnation and the time that the erstwhile owner obtains their release for reconditioning. Plaintiff complains with respect [622]*622to certain of its products that had been so condemned that defendant engaged in meritless and dilatory opposition to its efforts to obtain release and that release was delayed so long that the products spoiled. Plaintiff seeks recovery therefor in the sum of $113,958.03. Upon consideration of the briefs, without oral argument, we hold as a matter of law that there can be no recovery.

Plaintiff is a Wisconsin corporation engaged in the manufacture and sale of pre-mixed and finished animal feeds. As part of its operations, plaintiff maintains a manufacturing facility and a warehouse in Flanders, New Jersey.

The present action concerns various unmedicated animal feeds, medicated animal feeds and animal drugs that were seized at the Flanders warehouse by a United States marshal, on May 12, 1976, pursuant to a warrant of arrest. This warrant had issued from the United States District Court for the District of New Jersey in an in rem action by the United States, United States v. Articles * * * Provimi, etc., Civ. No. 76-871 (filed May 12, 1976), alleging that the materials were adulterated with rodent filth and held under insanitary conditions in violation of 21 U.S.C. § 342(a)(3) and (4) (1976) (for the unmedicated feed) and 21 U.S.C. § 351(a)(1) and (2) (1976) (for the medicated feed and the drugs). This complaint also was broadened, first by understanding of the United States and Provimi and later by formal amendment, to include allegations under 21 U.S.C. § 351(a)(5) and (6) that the medicated feeds and the drugs were adulterated with "new animal drugs” within the meaning of 21 U.S.C. § 321(w)(3) (1976). These drugs had been obtained from a foreign supplier unapproved by the Food and Drug Administration (FDA).

On June 4, 1976, plaintiff intervened in the condemnation proceedings and claimed ownership of the seized products. On October 22, 1976, plaintiff and defendant entered into a partial consent decree, covering only the unmedicated feed. Under this agreement, Provimi admitted that the feed was adulterated, consented to its condemnation and received release of the feed for reconditioning. As we shall explain more fully, releasing condemned products for reconditioning is one of the condemning court’s options [623]*623for disposing of condemned materials, 21 U.S.C. § 334(d) (1976), and the privilege of the erstwhile owner to have reconditioning is at the court’s discretion and is conditioned on the posting of a bond and upon supervision by the FDA. Id. Provimi followed these procedures with respect to the unmedicated feed and eventually was able to market most of it.

The seizure of the materials not covered by the consent decree came up for hearing on December 3, 1976. The only significant issue was whether the remaining materials also could be released for reconditioning.1 Plaintiffs principal proposal was to mix the adulterated products with large quantities of unadulterated products and thereby dilute the adulterants, the "new animal drugs,” to safe levels.2 Defendant vigorously opposed this plan, asserting that there are no safe levels for unapproved drugs and that mixing only would result in a larger quantity of adulterated material. Noting the "de minimis” doctrine in food and drug law, that de minimis quantities of certain impurities may be permitted, defendant contended that the doctrine only applies to adulterants that are unavoidable, e.g., as byproducts of manufacture, and that the doctrine should not be extended to avoidable adulterants. See 338 Cartons, More or Less, of Butter v. United States, 165 F.2d 728 (4th Cir. 1947) (more than that which is natural and unavoidable is not de minimis); United States v. 900 Cases of Peaches, 390 F.Supp. 1006 (E.D.N.Y. 1975) (more than that which is natural and unavoidable is not de minimis); United States v. Capital City Foods, Inc., 345 F.Supp. 277 (D.N.D. 1972) (adulterants allowed because de minimis and unavoidable); United States v. 233 Tins, More or Less * * * Strawberries, 175 F.Supp. 694 (W.D. Ark. 1959) (more than that which is natural and unavoidable is not de minimis); United States v. 133 Cases of Tomato Paste, 22 F.Supp. 515 (E.D. Pa. 1938) (more than that which is natural and unavoidable is not de [624]*624minimis). The district judge called for experts to evaluate plaintiffs plan, United States v. Articles * * * Provimi, etc., 425 F.Supp. 228 (1977), and finally allowed it, under the de minimis doctrine, by memorandum of December 13, 1978. By that time, however, the products under dispute had spoiled and Provimi determined that they had to be destroyed. This determination was adopted by the district court by memorandum of August 1,1979.

On September 25, 1980, plaintiff filed its suit in this court. Its basic complaint is that the government’s opposition to its reconditioning plan was meritless and dilatory and that plaintiff was thus deprived of the further use of the condemned products. Specifically, plaintiff claims: (1) under 21 U.S.C. § 334, the seizure and condemnation provision of the Federal Food, Drug, and Cosmetic Act, that the government’s opposition constituted an illegal exaction of the amount it lost, and (2) under the Constitution that the government’s opposition constituted a taking. The case is now before us on defendant’s motion for summary judgment and on plaintiffs opposition thereto.

Plaintiffs claims are ones of first impression in this court. To analyze them we turn to the familiar formulation of this court’s jurisdiction in Eastport S.S. Corp. v. United States, 178 Ct. Cl. 599, 372 F.2d 1002 (1967):

[T]he non-contractual claims we consider * * * can be divided into two somewhat overlapping classes — those in which the plaintiff has paid money over to the Government, directly or in effect, and seeks return of all or part of that sum; and those demands in which money has not been paid but the plaintiff asserts that he is nevertheless entitled to a payment from the treasury. In the first group * * * the claim must assert that the value sued for was improperly paid, exacted, or taken from the claimant in contravention of the Constitution, a statute, or a regulation.

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Hope v. United States
23 Cl. Ct. 776 (Court of Claims, 1991)
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626 F. Supp. 278 (D. Massachusetts, 1986)

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Bluebook (online)
680 F.2d 111, 230 Ct. Cl. 621, 1982 U.S. Ct. Cl. LEXIS 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/provimi-inc-v-united-states-cc-1982.