Resolution Trust Corp. v. California

851 F. Supp. 1453
CourtDistrict Court, C.D. California
DecidedMay 4, 1994
DocketNo. CV 92-6230 RG
StatusPublished
Cited by3 cases

This text of 851 F. Supp. 1453 (Resolution Trust Corp. v. California) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Resolution Trust Corp. v. California, 851 F. Supp. 1453 (C.D. Cal. 1994).

Opinion

MEMORANDUM OF DECISION AND ORDER

LEVI, District Judge.

Subdivision 26661 of the California Food and Agricultural Code (the “California Act” or the “Act”) restricts the use by wholesalers of the term “fresh” on poultry product labels to poultry that has been stored at tempera­tures above 25 degrees.1 The Act became effective on January 1, 1994.

Plaintiffs are three poultry and meat trade associations. Some of plaintiffs’ members process poultry for wholesale distribution in California from outside of the State. In an action filed December 2,1993, plaintiffs claim that the California Act is pre-empted by the Poultry Products Inspection Act (the “PPIA”), 21 U.S.C. §§ 451-470, a federal statute which also governs the labeling of poultry products, and further that the Act places an undue burden on, and discriminates against, interstate commerce.2 After hearing [1463]*1463on December 22, 1993, the court issued a preliminary injunction prohibiting defendant Henry J. Voss, Director of the California Department of Food and Agriculture, from enforcing the labeling provision of the Act when it became effective.

Plaintiffs presently move for summary judgment only on their pre-emption claim, and seek declaratory as well as permanent injunctive relief. Plaintiffs are supported in their motion by the United States Depart­ment of Agriculture (the “USDA”), which submitted an amicus curiae brief at the re­quest of the court. The motion is opposed by the Director of the California Department of Food and Agriculture and by intervenor, the California Poultry Industry Federation.3

For the reasons discussed below, plaintiffs’ motion for summary judgment on the pre­emption cause of action is granted. Because the pre-empted provision of § 26661 is not severable from the statute’s remaining provi­sions, the injunction barring enforcement of the labeling provision must also bar enforce­ment of the remainder of the statute.

I

Congress enacted the PPIA in 1957 “to provide for the inspection of poultry and poultry products and otherwise regulate the processing and distribution of such articles ... to prevent the movement or sale in inter­state or foreign commerce of, or the burden­ing of such commerce by, poultry products which are adulterated or misbranded.” 21 U.S.C. § 452.

The PPIA contains an express pre-emption provision in a section entitled “Non-Federal jurisdiction of Federally regulated mat­ters-” 21 U.S.C. § 467e. Section 467e expressly preempts labeling requirements that are “in addition to, or different than” those made under the PPIA:

[mjarking, labeling,4 packaging, or ingredi­ent requirements ... in addition to, or different than, those made under this chap­ter may not be imposed by any State ... with respect to articles prepared at any official establishment5 in accordance with the requirements under this chapter....

Id. The question on this motion is whether the California Act establishes a “labeling re­quirement” that is “in addition to” or “differ­ent than” “those [labeling requirements] made under” the PPIA. If the answer is yes, then § 26661 is pre-empted by federal law.

A

Plaintiffs and the USDA argue that the California Act imposes a “labeling re­quirement” within the meaning of 21 U.S.C. § 467e because it limits the use of the word “fresh” on poultry product labels. Drawing a distinction between “requirements” and “prohibitions,” defendant argues that the California Act does not establish a “labeling requirement” because it does not require poultry producers affirmatively to include specified language on the label, but merely prohibits them from labeling poultry as “fresh” unless it complies with the Act.

Defendant’s interpretation of “labeling re­quirements” is hypertechnical and inconsis­tent with the language and purpose of the PPIA.6 First, the term “requirements” ordi­narily includes prohibitory obligations.7 One can be, and often is, required not to do [1464]*1464something, and there is no practical differ­ence between a command that requires that the opposite of an action be taken—“you are required to be quiet”—as opposed to one that prohibits the very action—“talking is prohib­ited.” Either form of expression fairly is described as a requirement, requiring action or inaction. Here in mandatory language the California Act requires that the term “fresh” only may be placed on the label in certain circumstances.

Second, the language of several provisions of the PPIA indicates that Congress did not intend a distinction between “requirements” and “prohibitions.” For example, 21 U.S.C. § 459, entitled “Compliance by all establish­ments,” provides that “[n]o establishment ... shall process any poultry or poultry product except in compliance with the re­quirements of this chapter.” Similarly, § 467e gives the states concurrent jurisdic­tion with the USDA to prevent the distribu­tion of adulterated or misbranded articles “consistent with the requirements under this chapter.” Surely Congress did not intend to allow official establishments and states, in performing the tasks delegated to them un­der the PPIA, to heed only the affirmative, but not the prohibitory, portions of the stat­ute. Given this use of the term “require­ments” elsewhere in the PPIA (including an­other clause of § 467e), the word “require­ments,” as used in the pre-emption clause, should be construed to include prohibitory enactments. See Ardestani v. INS, — U.S. -, -, 112 S.Ct. 515, 519, 116 L.Ed.2d 496 (1991); Mississippi Poultry Ass’n, Inc. v. Madigan, 992 F.2d 1359, 1363 (5th Cir.), reh’g en banc granted, 9 F.3d 1116 (5th Cir.­1993).8

Third, a construction of the term “require­ments” to exclude prohibitory enactments would nullify the PPIA’s pre-emption clause. Under defendant’s interpretation, so long as a state used prohibitory phrasing, state label­ing regulations would not be pre-empted even if in direct conflict with affirmative fed­eral requirements under the PPIA.9 A nar­row interpretation of “requirements,” to ex­clude prohibitions, entirely defeats the pre­emption clause and would leave labeling reg­ulation within the power of the states. Yet according to the legislative history of the pre-emption clause, one of its key purposes was to ensure national uniformity in labeling:

States would be precluded from impos­ing additional or different labeling ... re­quirements for federally inspected prod­ucts.
Both industry and consumers would ben­efit from ... greater uniformity of labeling requirements....

H.R.Rep. No. 1333, 90th Cong., 2d Sess. (1968), reprinted in

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851 F. Supp. 1453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/resolution-trust-corp-v-california-cacd-1994.