Robert E. Parchman Virgil R. (Ray) Lemons Jack E. Hamilton v. United States Department of Agriculture

852 F.2d 858
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 27, 1988
Docket87-3701
StatusPublished
Cited by19 cases

This text of 852 F.2d 858 (Robert E. Parchman Virgil R. (Ray) Lemons Jack E. Hamilton v. United States Department of Agriculture) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robert E. Parchman Virgil R. (Ray) Lemons Jack E. Hamilton v. United States Department of Agriculture, 852 F.2d 858 (6th Cir. 1988).

Opinion

BOGGS, Circuit Judge.

Robert Parchman, Virgil (Ray) Lemons and Jack Hamilton (the stockyard operators) are partners. They operate stockyards in Cumberland City, Tennessee and Paris, Tennessee. Their business is to weigh livestock and sell the animals on behalf of their owners at public auction. Although the buyers and sellers of livestock transact business on the basis of the animals’ weight, the stockyard operators receive a set commission of $7.00 a head for their services.

On May 28, 1987, the Judicial Officer for the Department of Agriculture (JO) 1 upheld the decision of an administrative law judge (AU) that the stockyard operators willfully violated statutory and regulatory provisions of the Packers and Stockyards Act, 1921, 7 U.S.C. §§ 181-229 (1982) (the Act), based on the determination that, inter alia, the stockyard operators “deliberately weighed animals at less than their true and correct weights with full knowledge that this was prohibited by the Act and the regulations.” 2 The JO adopted the AU’s findings, decision and order, including the AU’s proposed sanction with modifications that are minor and irrelevant to this proceeding. That sanction suspended the stockyard operators’ registration under the Act for 90 days and assessed a civil penalty in the amount of $10,000. 3

On petition for review of this order, the stockyard operators do not challenge the findings that they violated the Act. Rather, they contest the determination that their violations were willfully committed. They contend that the weighing errors were the result of a mechanical malfunction in their scale and, therefore, that they did not have a scienter sufficient to merit the severity of the sanctions imposed. The stockyard operators also contend that they were deprived of due process during the administrative proceedings because the ALJ refused to allow into evidence a photograph of their scale and because the JO’s well-known views favoring severe sanctions as a deterrent 4 “mean[s] that severe sanctions will issue regardless of whether there is willful conduct.”

For the reasons that follow, we reverse the findings that the stockyard operators weighed livestock “at less than their true *861 and correct weights,” and that the violations were willfully committed, on the ground that substantial evidence does not exist in the record to support these findings. However, the record does contain substantial evidence that the stockyard operators were not complying with the Act and, accordingly, we affirm the findings of the statutory and regulatory violations.

Because the stockyard operators had been given written notice that they were not operating in accordance with the Act and could be suspended if future violations were discovered, a finding of willfulness is not necessary to support the proposed suspension of their registration. 5 U.S.C. § 558(c) (1982). 5 While we are disturbed by the intemperate tone of parts of the JO’s decision and order and have given the charge of biased adjudication the attention that this most serious allegation deserves, we conclude that evidence of disqualifying bias is not present in this record.

Our review of the administrative proceedings indicates that the stockyard operators were afforded due process and that the determinations made, apart from the exceptions noted, are supported by substantial evidence. Thus, the proposed sanction is upheld.

I

On February 26, 1986, a hearing was held before an AU on the charges brought against the stockyard operators. At the hearing, an employee from the Packers and Stockyards Administration, Jimmy Thompson, testified that on August 11, 1984, he and another agency employee went to the Cumberland City Stockyard to conduct a routine “checkweighing” investigation. According to Thompson, “[cjheckweighing is a procedure that we [the Packers and Stockyards Administration] use to determine if the weighmaster is weighing accurately or not.” A check-weigh does not determine the accuracy of a scale, but only if the scale appears to be operated properly by the stockyard. Thompson further explained that

[a]t a check-weighing investigation, we will determine which market we are going to check-weigh. We will arrive at that market unannounced. In the case of an in-weigh market, or in the case where livestock is weighed before it is sold, we will go directly to the scale and announce ourselves to the weighmaster or the people that are near the scale. We will then check the balance on the scale and tell them our purpose or the reason for our visit.

Thompson added that if a scale is being operated properly, the scale, upon reweighing of an animal, “should have reweighed the same animal at the same amount or less [than it was] ... weighed [at] ... the first time.”

On August 11, 1984, Thompson checked the Cumberland City Stockyard scale while the other agency employee and Robert Parchman selected some livestock to be reweighed. Thompson testified that he did not see anything binding on the scale or any other obvious impairment, that “everything looked proper” and that he “obtained a good zero balance on the scale” before the livestock were reweighed.

The result of the August 1984 check-weigh was that 11 animals were reweighed as having weights 5 to 15 pounds higher than the weights recorded by the stockyard weighmaster on the first weighing. Thompson testified that it would be virtually impossible for the animals to have gained weight during the interval between weighings because they had been held in a pen without food or water. He also stated that a five-pound discrepancy between scale readings was not an unusual occurrence since the viewing position of the *862 weighmaster can affect how the scale is read.

Thompson also testified that the August 1984 investigation revealed that the scale tickets used at the stockyard did not comport with the Act’s regulations because they failed to indicate the address of the market or the time when the scale had been zero balanced, and the weighmaster had not initialed some of the tickets prepared that day.

On August 21, 1984, the Regional Supervisor of the Packers and Stockyards Administration wrote Robert Parchman stating,

Our investigation [on August 11, 1984] revealed that the calves were not weighed accurately. These weight discrepancies were discussed with you at that time.
As you are aware, weighing livestock inaccurately is a violation of the Packers and Stockyards Act. That Act makes you responsible for accurately weighing livestock consigned to your market for sale. We request that you review the enclosed instructions for weighing livestock with your weighmaster and take the necessary action to insure accurate weights. Please advise this office within 15 days [of] what action you have taken to improve your weighing practices.

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852 F.2d 858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robert-e-parchman-virgil-r-ray-lemons-jack-e-hamilton-v-united-states-ca6-1988.