Ryder Farms, Inc. v. United States

24 Cl. Ct. 278, 1991 U.S. Claims LEXIS 450, 1991 WL 193296
CourtUnited States Court of Claims
DecidedSeptember 27, 1991
DocketNo. 495-89C
StatusPublished
Cited by1 cases

This text of 24 Cl. Ct. 278 (Ryder Farms, 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
Ryder Farms, Inc. v. United States, 24 Cl. Ct. 278, 1991 U.S. Claims LEXIS 450, 1991 WL 193296 (cc 1991).

Opinion

MARGOLIS, Judge.

This contract case is before the court on defendant’s motion for summary judgment. Plaintiff Alfred Ryder (“Ryder”) signed a contract with defendant to grow crops and in return receive payments under a price support program. Defendant determined that Ryder filed an erroneous acreage report, declared plaintiffs ineligible for price support payments, and assessed liquidated damages. Ryder and Ryder Farms, Inc. (“Ryder Farms”) challenge defendant's determinations as not rationally based on the administrative record and seek to recover the payments. Defendant counterclaims to collect the liquidated damages, and to recover crop insurance premiums allegedly owed by plaintiffs to defendant. Ryder counterclaims seeking payment for an alleged insured loss under defendant’s insurance program. After careful review of the record, and after hearing oral argument, this court grants defendant’s motion for summary judgment.

FACTS1

On April 25, 1986, Ryder signed a contract (Form CCC-477) to participate in the 1986 Wheat and Feed Grain Programs in Mercer County, Missouri. The Secretary of the United States Department of Agriculture (“USDA”) is directed by the Agricultural Adjustment Act of 1938, as amended, 7 U.S.C. § 1281 et seq. (1982), to carry out price support and production adjustment programs through the Commodity Credit Corporation (“CCC”). Operation of [280]*280these programs is administered through the USDA’s Agricultural Stabilization and Conservation Service (“ASCS”). Raines v. United States, 12 Cl.Ct. 530, 532 n. 1 (1987). Three levels of authority exist under the ASCS. Id. On the local and state levels, programs are administered by county and state ASCS committees. 7 C.F.R. § 713.2 (1986). On the federal level, the Deputy Administrator, State and County Operations (“DASCO”) supervises the state committees. Id. The contract was not signed on behalf of the government until September 19, 1986.

The contract required the contracting producer to file a Farm Operating Plan for Payment Limitation Review. Only Ryder Farms filed an operating plan, even though Ryder, not Ryder Farms, signed the contract to participate in the program.2 This created confusion among members of the Mercer County ASCS Committee as to who was farming plaintiffs’ property and delayed action on plaintiffs’ request for advance deficiency payments.3 Action on advanced deficiency payments was further delayed by Ryder’s request that the county committee defer issuing any advance deficiency payments until after he resolved a dispute with the Federal Crop Insurance Corporation.

The contract also required Ryder to certify the number of acres he would cultivate for each crop and the number of acres he would set aside for conservation. CCC-477 IT 2; 7 C.F.R. § 718(a). The contract and applicable regulations provide that a producer who violates the contract with the CCC by making misrepresentations in an acreage report is ineligible to receive payments and is subject to liquidated damages. Form CCC-477 1120; 7 C.F.R. § 713.112(a). “A producer who is determined to have erroneously represented any fact affecting a program determination with respect to this contract shall not be entitled to payments or other benefits made in accordance with the crop program for which the representation was made ... and [shall] be subject to liquidated damages.” Form CCC-477 1120; 7 C.F.R. § 713.112(a).

On July 15, 1986, Ryder filed an acreage report certifying that he would cultivate 244.1 acres of grain sorghum.4 On July 30, 1986, the farm was spot checked at the request of the Mercer County ASCS Committee. An ASCS Field Assistant, Gerald Goodin, inspected the farm. Goodin reported that no grain sorghum had been planted and that tall weeds had been disced up.

Subsequently, the county committee held a hearing at which Ryder presented evidence that he had planted grain sorghum. Specifically, Ryder contended that he had planted the sorghum, but he disced it up because his advance payments were not authorized, and he did not have money to fertilize and spray for weeds and grass. Plaintiffs also offered documentary evidence that they purchased fertilizer and milo seed.

On September 22, 1986, the county committee, relying on Goodin’s report, determined that plaintiffs had never planted milo and that the July 15, 1986 certification demonstrated a lack of good faith. The plaintiffs were declared ineligible for all program benefits and were assessed liquidated damages of $4,880.39.

Ryder met with the county committee on October 6, 1986 and argued that plaintiffs informed the county ASCS committee, by letter dated July 21, 1986, that they had destroyed their milo. Such a letter was found in the county committee’s files. The county committee determined that the plaintiffs gave no notice of the destruction [281]*281of their milo prior to the time that Goodin checked the fields. The committee found that the letter dated July 21, 1986 was not placed in the file on or about that date. Rather, the committee held that Ryder placed the letter in the file on October 1, 1986. The committee reached this conclusion on the grounds that Ryder had unsupervised access to the file on October 1, 1986, that committee employees familiar with the file stated that the letter had not been there prior to September 19,1986, and that the letter had no date-received stamp on it.

Ryder appealed to the Missouri State ASCS Committee. After a de novo hearing, the state committee sustained the decision of the county committee. The state committee informed Ryder of its decision by letter dated November 7, 1986. Ryder then appealed to DASCO, and argued again that he disced up the sorghum because the county executive director refused to authorize advance payments. Ryder presented copies of checks, invoices, and other documents purporting to show that Ryder purchased seed, chemicals, and other supplies for the grain sorghum crop. Ryder also submitted statements from his neighbors, who stated that they recalled seeing Ryder spread fertilizer on the fields reported as being planted with grain sorghum.

DASCO conducted a de novo telephone hearing on January 15,1987. After stating the facts of the appeal, DASCO held that:

[t]he evidence that you furnished does not positively establish that you did plant grain sorghum on the fields in question. Some of it is contradictory and other representations appear flawed. You were notified of the findings of fact of the field reporter by letter dated August 1 but it was not until September that you appeared to respond to them. Thus, the only acceptable evidence in the case record is the report of an experienced field reporter that there had been no milo planted.

The plaintiffs then filed the instant lawsuit seeking review of DASCO’s determinations and damages of $40,598.23 equal to the amount of the price support payments that the plaintiffs allege they are due.

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24 Cl. Ct. 278, 1991 U.S. Claims LEXIS 450, 1991 WL 193296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ryder-farms-inc-v-united-states-cc-1991.