Rutherford v. United States

438 F. Supp. 1287, 1977 U.S. Dist. LEXIS 12577
District Court, W.D. Oklahoma·Decided December 5, 1977·No. CIV-75-0218-B·Published·Cited by 24 cases

Opinion

OPINION

BOHANON, District Judge.

The plaintiffs seek judicial review of the Food and Drug Administration’s (FDA’s) determination that the substance commonly called Laetrile is a “new drug” within, the meaning of the Federal Food, Drug, and Cosmetic Act, (the Act); (21 U.S.C. § 301 et seq.), and excludable from interstate commerce due to the absence of an approved new drug application on its behalf. (21 U.S.C. § 355).

On July 29, 1977, the Commissioner of Food and Drugs announced that: (1) Laetrile is not generally recognized by qualified experts as a safe and effective cancer drug and (2) Laetrile is not exempt from the pre-market approval requirement for new drugs by virtue of the “grandfather” provisions of the Act. Distribution of Laetrile in interstate commerce, the Commissioner concluded, is thus illegal and subject to regulatory activity by the Food and Drug Admin *1290 istration. Commissioner’s Decision (R 523 at l). 1

Plaintiffs challenge such administrative decision and urge that Laetrile is not a “drug,” that in any event it is not a “new drug,” and that FDA’s enforcement procedures against the interstate transportation and use of the substance violate plaintiffs’ constitutional rights.

I

STANDARD OF REVIEW

FDA possesses jurisdiction to initially determine whether a substance is a “new drug” within the Act’s meaning, Weinberger v. Hynson, Westcott & Dunning, 412 U.S. 609, 627, 93 S.Ct. 2469, 37 L.Ed.2d 207 (1973), but such determination is reviewable by the district court under the Administrative Procedure Act, 5 U.S.C. § 701 et seq., Weinberger, supra. To be affirmed, the administrative decision must not be arbitrary, capricious or abusive of agency discretion. 2 Citizens to Preserve Overton Park v. Volpe, 401 U.S. 402, 416, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971). The court in its review must consider whether the decision was based upon a consideration of the relevant factors and whether there has been a clear error of judgment. 3 Citizens to Preserve Overton Park v. Volpe, supra.

While the standard of review is narrow, and the court is not empowered to substitute its judgment for that of the agency, nonetheless, the reviewing court possesses a responsibility “to engage in a substantial inquiry,” and “his inquiry into the facts is to be searching and careful ..” 4 Citizens to Preserve Overton Park v. Volpe, supra at 415-16, 91 S.Ct. at 824. Although the agency’s decision is entitledl'to a presumption of regularity, this does not preclude a thorough, probing, in-depth review. Citizens to Preserve Overton Park v. Volpe, supra at 415, 91 S.Ct. 814.

Meaningful judicial review requires determining that an agency’s course of action flowed from a proper interpretation of the relevant law and a proper application of that law to facts sufficiently well developed by agency inquiry as to reflect the truth of the matter in controversy. The court should intervene where it appears from a combination of danger signals, that the agency really has not taken a “hard look” at the salient problems, and has not genuinely engaged in reasoned decision-making. 5 *1291 Greater Boston Television Corporation v. F.C.C., 143 U.S.App.D.C. 383, 393, 444 F.2d 841, 851 (1970).

The exercise of discretionary authority requires a decision based upon adequate information; to act without collecting necessary facts is abusive of discretion. Xytex Corporation v. Schliemann, 382 F.Supp. 50, 53 (D.Colo.1974).

After collecting the facts, the appropriate legal standards must be applied. 6 If administrative construction of a statute is clearly wrong, it is the ,court’s duty to correct. 7 R. V. McGinnis Theatres and Pay T.V. v. Video Independent Theaters, 386 F.2d 592, 594 (10th Cir. 1967), cert. denied, 390 U.S. 1014, 88 S.Ct. 1265, 20 L.Ed.2d 163 (1968). Administrative regulations must be consistent with the statute’s purposes and reasonably adapted to carry out those purposes. Greyhound Corporation v. United States, 221 F.Supp. 440, 444 (N.D.Ill.1963).

Having reviewed the Decision of the Commissioner of Food and Drugs on Laetrile, dated July 29, 1977, (42 Fed.Reg. 39768-39806 (1977)), and the entire administrative record upon which that decision was based, and the pleadings and briefs, the court concludes that such decision is arbitrary, capricious, that it represents an abuse of discretion and is not in accordance with law. Consequently, it must be set aside and vacated. 5 U.S.C. § 706(2).

ISSUES

The following issues are presented:

1. Is Laetrile a drug?
2. Is Laetrile a “new drug” within the meaning of § 201(p) of the Federal *1292 Food, Drug and Cosmetic Act (21 U.S.C. § 321(p) in that it is not generally recognized, among experts qualified by scientific training and experience to evaluate the safety and effectiveness of drugs, as safe and effective for use in the cure, mitigation, treatment, or prevention of cancer in ■man, and in that it is not “grandfathered” by one of the Act’s provisions applicable to those drugs marketed before the current “new drug” statutory provision became effective?
3. Is the agency action in question violative of plaintiffs’ constitutional rights?

II

NEW DRUG ISSUE

FDA asserts authority to preclude Laetrile’s importation or interstate transportation on the basis that it is a “new drug” within the Act’s meaning. “No person shall introduce or deliver for introduction into interstate commerce any new drug,” unless an application on its behalf has been approved. 21 U.S.C. § 355(a).

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Rutherford v. United States, 438 F. Supp. 1287, 1977 U.S. Dist. LEXIS 12577 (W.D. Okla. 1977).

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