State, Department of Agriculture Ex Rel. Commodity Indemnity Fund v. Curry Bean Co.

86 P.3d 503, 139 Idaho 789, 2004 Ida. LEXIS 30
CourtIdaho Supreme Court
DecidedFebruary 27, 2004
Docket28908
StatusPublished
Cited by10 cases

This text of 86 P.3d 503 (State, Department of Agriculture Ex Rel. Commodity Indemnity Fund v. Curry Bean Co.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State, Department of Agriculture Ex Rel. Commodity Indemnity Fund v. Curry Bean Co., 86 P.3d 503, 139 Idaho 789, 2004 Ida. LEXIS 30 (Idaho 2004).

Opinion

TROUT, Chief Justice.

Appellant Curry Bean Company (“CBC”) appeals the district court’s grant of summary judgment for the State of Idaho, Department of Agriculture, on behalf of the Commodity Indemnity Fund (“the Department”), finding that CBC failed to exhaust administrative remedies after the Department declared CBC failed and subsequently brought suit against CBC for indemnification for funds paid to claimants in accordance with Section 69-262 of the Idaho Code. We affirm.

I.

FACTUAL AND PROCEDURAL BACKGROUND

CBC was a licensed and bonded bean warehouse pursuant to the provisions of Title 69, Chapter 2 of the Idaho Code. On April 11, 2002, the Director of the Idaho Department of Agriculture declared CBC failed for its inability to financially compensate parties who had stored commodities in its warehouse. The Department then notified parties unpaid by CBC that they should file claims with the Department for the amount they were owed. These claims were subsequently paid to claimants in the total amount of $419,116.33 by the Department according to the claims process outlined in Title 69, Chapter 2 of the Idaho Code. The Department then maintains it submitted notice of these claims and payments made to CBC as required by I.C. § 69-262(2) for comment and/or objection. As part of this notice, the Department asserts the communication included a notification to CBC that it had twenty (20) days to request a hearing contesting these claims and their valuations. CBC did not respond to the notice within the 20-day period.

When CBC subsequently failed to reimburse the Department for the claims paid, the Department brought this action in district court for recovery, to which CBC responded, arguing it was not responsible for the amounts paid because the Department improperly paid claims based upon a jury verdict that was then on appeal. Specifically, CBC argued that the Department determined the claim paid by the Department to *791 Griff, Inc. (“Griff’), should be in the same amount awarded to Griff by a jury, whose verdict was then on appeal at the time the Department made its valuation. CBC asserts the Department did not abide by I.C. § 69-262(2), which requires that the Department make its valuation of each claim against CBC at the time CBC was declared failed, not three months prior when the jury rendered its verdict for Griff.

The Department subsequently moved for summary judgment, which was granted on the basis that CBC was precluded from asserting its defense because it had failed to exhaust administrative remedies and had waived any right to contest the amount paid by the Department. CBC now appeals that determination.

II.

STANDARD OF REVIEW

Summary judgment must be entered when “the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” I.R.C.P. 56(c). This Court’s review of a district court’s ruling on a motion for summaiy judgment is the same as that required of the district court when ruling on the motion. On review, as when the judgment is initially considered by the trial court, this Court liberally construes the record in the light most favorable to the party opposing the motion, drawing all reasonable inferences and conclusions in that party’s favor.

Friel v. Boise City Housing Authotity, 126 Idaho 484, 485, 887 P.2d 29, 30 (1994).

III.

PROOF OF NOTICE ON SUMMARY JUDGMENT

An underlying issue in this case to be addressed prior to any consideration of whether the Griff claim was properly valued, is whether the Department established for purposes of summary judgment that it sent a valid and proper notice to CBC of the claims made against CBC pursuant to I.C. § 69-262(2). The Department argued on sum-maiy judgment — and the district court agreed- — that because CBC did not respond to the notice of claims paid sent by the Department to CBC, CBC is precluded from arguing about the Griff claim, because it never requested a hearing as provided by the statute. CBC argued at the summaiy judgment hearing and now on appeal, that it never received proper notice from the Department of the claims made against it, asserting that the form the Department sent regarding claims did not contain the names of any claimants or the amounts of their claims.

Idaho Code § 69-262(2) states in part:

The department shall investigate each claim and shall notify each claimant, the warehouseman or dealer, and the advisory committee of the department’s determination as to the validity and amount of each claimant’s claim. A claimant or warehouseman or dealer may request a hearing on the department’s determination within twenty (20) days of receipt of written notification and a hearing shall be held by the department pursuant to chapter 52, title 67, Idaho Code.

As proof that it sent the required notice of claimants and amounts to CBC, the Department submitted the affidavit of Dennis Do-shier, Manager of the Bonded Warehouse Program of the Department, who stated that the claims that were submitted by claimants were reviewed by the Deputy Director of the Department of Agriculture and that, after these claims were approved, they were “communicated to Curry Bean Co., Inc. by letter on August 4, 2000.... Pursuant to law, the claims were submitted to Curry Bean Co., Inc. for comment and/or objection.”

CBC argues on appeal, however, that the letter it received from the Department had blanks in the portions of the letter where the claimants and claim amounts were supposed to be listed. As such, it maintains it never received proper notice from the Department pursuant to the statute and accordingly, was not required to respond to the notice.

*792 On review of a grant of summary judgment, this Court “liberally construes the record in the light most favorable to the party opposing the motion, drawing all inferences and conclusions in that party’s favor, and if reasonable people could reach different conclusions or draw conflicting inferences then an order granting summary judgment must be reversed.” Zimmerman v. Volkswagen of America, Inc., 128 Idaho 851, 854, 920 P.2d 67, 70 (1996). However, “[i]t is axiomatic that upon a motion for summary judgment the non-moving party may not rely upon its pleadings, but must come forward with evidence by way of affidavit or otherwise which contradicts the evidence submitted by the moving party, and which establishes the existence of a material issue of disputed fact.” Zehm v. Associated Logging Contractors, Inc., 116 Idaho 349, 350, 775 P.2d 1191, 1192 (1988).

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Bluebook (online)
86 P.3d 503, 139 Idaho 789, 2004 Ida. LEXIS 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-department-of-agriculture-ex-rel-commodity-indemnity-fund-v-curry-idaho-2004.