Shelley v. United States of America

CourtDistrict Court, M.D. Alabama
DecidedMay 20, 2022
Docket1:20-cv-00505
StatusUnknown

This text of Shelley v. United States of America (Shelley v. United States of America) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shelley v. United States of America, (M.D. Ala. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF ALABAMA SOUTHERN DIVISION

MICHAEL W. SHELLEY, et al., ) ) Appellants, ) ) v. ) CASE NO. 1:20-cv-505-RAH-KFP ) [WO] UNITED STATES OF ) AMERICA, et al., ) ) Appellees. )

MEMORANDUM OPINION AND ORDER Michael W. Shelley and Hudson T. Shelley have appealed from the final determinations of the Director of the United States Department of Agriculture’s (USDA or the Agency) National Appeals Division that upheld administrative hearing officers’ decisions to deny their respective claims for crop disaster payments under the Noninsured Crop Disaster Assistance Program (NAP). The issues have been fully briefed, and each party1 has moved for summary judgment. (Docs. 23, 0F 26.) For the reasons below, the Shelleys’ motion is DENIED, the USDA’s motion is GRANTED, and the Director’s decisions are affirmed. I. BACKGROUND The Shelley family has operated a farm for over 100 years. The current

1 The Shelleys filed a Memorandum Brief in Support of the Petition for Judicial Review. (Doc. 23.) The Court will treat the brief as a motion for summary judgment. generation of farmers includes Michael, Todd, and Hudson Shelley. On January 31, 2018, Michael and Hudson, through Todd as power of

attorney, separately enrolled certain vegetable crops in NAP for the 2018 growing season at the Jackson County, Florida, FSA office. NAP provides financial assistance to farmers of non-insurable crops to protect against natural disasters that

result in lower yields or crop losses or prevent crop planting. NAP is administered under the general supervision of the Commodity Credit Corporation and is carried out by the local state and county committees of the FSA. See Mahon v. United States Dep’t of Agric., 485 F.3d 1247, 1253 (11th Cir. 2007); 7 C.F.R § 718.2. To avail

themselves of program benefits, farmers (called producers in NAP) must submit an application (form CCC-471) and pay a service fee and a premium. As pertinent to Michael and Hudson, Todd met with Sarita Bryant, the county

FSA technician, to enroll their crops. Todd has no recollection of meeting with Bryant or speaking with her about the crop-types he wished to enroll in NAP on behalf of Michael and Hudson. Although he believes he would have orally instructed Bryant to enroll crookneck squash because the Shelley family had grown that crop-

type for years and because his normal course of practice would have been to tell the technician to enroll all crops, including crookneck squash, Todd acknowledges that it was “possible” that he failed to tell Bryant to enroll crookneck squash. According to Bryant, she inputted all crop-types2 that Todd verbally identified 1F for her, as was her customary practice. Among the crop-types that she inputted into the system, and therefore on the NAP applications for Michael and Hudson, were two types of squash (summer and zucchini) and two types of watermelon, and as to Michael, two types of greens (collards and turnip).

Crop-types are given unique identifiers in the system and on the NAP application. For example, there are multiple types of squash, each with its own crop- type identifier: summer squash as SUM, zucchini squash as ZUC, and crookneck squash as CRK.3 2F Under the eleventh column of their NAP applications, summer squash and zucchini squash were separately identified for both Michael and Hudson. Crookneck squash was not. If it had been, it would have been identified on a separate line with

a “CRK” designation under column eleven, like the summer squash and zucchini squash designations. On both applications, Todd signed as power of attorney for Michael and Hudson and further verified that “all information entered on this Application for

2 The NAP handbook (HB-1-NAP, Par. 301(A)) states that the “CCC-471 must be filed by the producer in the administrative county by pay crop, pay type, and coverage options.” (Doc. 21-1 at 185; see also Doc. 21-1 at 56.)

3 A Growers Receipt contained in the record shows that there are multiple types of squash that can be grown: zucchini, summer, crookneck, butternut, acorn, spaghetti, and buttercup. (See Doc. 21- 1 at 127.) Thus, while these all are squash (a crop), each is a different crop-type or squash-type. Coverage (CCC-471), whether or not personally entered by me, is true and correct.” (Doc. 21-1 at 181; Doc. 22-1 at 143.) In signing the applications, he also

acknowledged the following: “I acknowledge all of the following . . . the election or buy-up coverage is as shown on this application”; “As provided in statute or regulation, failure to provide true and correct information may result in the

invalidation of this application, a determination of noncompliance or ineligibility, or other remedies or sanctions”; “the information will be used to determine eligibility for program benefits in response to an application for coverage”; and that the “producer signing this application applies for coverage on the producer’s share of

noninsured crop(s) by pay crop/pay type.” (Doc. 21-1 at 181–82; Doc. 22-1 at 143– 45.) On July 5, 2018, Michael and Hudson submitted notices of loss (form CCC-

576) to the USDA for disaster events associated with their respective crookneck squash crops. The Jackson County, Florida, FSA office denied their claims via letters dated June 27, 2019, on the ground that, according to their NAP applications, NAP

coverage for the crookneck squash had not been purchased by the application closing date of February 28, 2018. Michael and Hudson jointly appealed to the National Appeals Division

through an administrative appeal procedure afforded to them under NAP. A hearing officer was appointed and held a joint hearing on October 16, 2019, and November 5, 2019. The hearing officer issued appeal determinations on December 19, 2019,

in which he concluded that the county FSA office’s decisions to deny the crop claims were not erroneous. The Shelleys appealed again, asking for director review. In his decision, the

Director addressed the sole issue of whether the Shelleys were entitled to equitable relief. In finding that they were not entitled to such relief, he noted that crookneck squash was not listed on the NAP applications, that Todd had testified that it was possible that he had failed to tell the FSA technician to include crookneck squash on

the NAP applications, and that the Shelleys had the responsibility of reviewing their NAP applications and ensuring their accuracy before signing and submitting them for NAP coverage. This decision constituted the USDA’s final decision under 7

U.S.C. § 6999. II . STANDARD OF REVIEW Summary Judgment is particularly appropriate in cases in which a district court is asked to review a decision rendered by a federal administrative agency.

Mahon v. United States Dep’t of Agric., 485 F.3d 1247, 1253 (11th Cir. 2007). However, even in the context of summary judgment, an agency action is entitled to great deference. Id. Judicial review of a final agency determination is governed by the Administrative Procedure Act, which provides in part that a court may set aside an

agency’s “action, findings, and conclusions” if they are arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law or unsupported by substantial evidence. Id. (citing 5 U.S.C. § 706). See also 7 U.S.C.

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