Stinson Canning Co. v. United States

170 F.2d 764, 1948 U.S. App. LEXIS 2726
CourtCourt of Appeals for the Fourth Circuit
DecidedNovember 10, 1948
DocketNo. 5802
StatusPublished
Cited by2 cases

This text of 170 F.2d 764 (Stinson Canning Co. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stinson Canning Co. v. United States, 170 F.2d 764, 1948 U.S. App. LEXIS 2726 (4th Cir. 1948).

Opinion

DOBIE, Circuit Judge.

These are eight appeals from eight identical orders of the District Judge granting judgments against the appellants,' Stinson Canning ■ Company and American Surety Company, on performance bonds filed by appellants pursuant to> 21 U.S.C.A. § 334(d). The aggregate amount of the judgments is $20,020. The reasons for. granting judgments on the several bonds were identical so the appeals were consolidated.

[765]*765During April of 1947, the United States, acting through the Pure Food and Drug Administration, instituted in the District Court libel proceedings under the Federal Food, Drug, and Cosmetic Act, 21 U.S.C.A. § 301 et seq., against eight lots of canned sardines. The libels, identical in each instance, alleged that the sardines were diseased and sought their condemnation and forfeiture. The appellant, Stinson Canning Company, intervened and claimed ownership of the sardines. Thereafter, on October 11, 1947, identical consent decrees were entered reciting the claimant’s admission of the allegations of the libels and its consent to judgments that the sardines be condemned.

As is not infrequent in cases of this sort, the decrees provided that the claimant might retake possession of the condemned foodstuff upon posting a bond in an amount roughly equal to the value of the sardines. This was done to give the claimant an opportunity to segregate cans or cases containing diseased fish from those containing fish not diseased. If this segregation proved practicable, only those cans or cases containing diseased' fish were to be destroyed; otherwise the entire lot was required to be destroyed. The segregation and destruction were to be done under the supervision of the Pure Food and Drug Administration and were to be accomplished within three months following the entry of the decrees. Suitable bonds conditioned upon compliance with the terms of the decrees were given by the appellant, Stinson Canning Company, as principal, and the appellant, American Surety Company, as surety. The appellant, Stinson, then caused the sardines to be shipped to its plant in Maine, where it was intended that they be segregated under the supervision of the Boston Station of the Pure Food and Drug Administration.

On January 19, 1948, after application had been made by appellants for a sixty-day extension of time, the District Judge entered an order extending for a period of ninety days from that date the time for the performance required by the original decrees. The order expressly provided: “that the Claimant shall fully comply with the provisions of the said Decrees not later than ninety (90) days from the date hereof “and that no further extension shall be applied for by the said Claimant.” This ninety-day period expired on April 18, 19-18.

On May 25, 1948, the United States Attorney served notice that on June 7, 1948, he would move for an order for judgment on the bonds since, it was alleged, the appellants had not complied with the decrees. No written return was ever served or filed in opposition to the motion and the allegations of non-compliance were never in any way controverted. At the hearing on the motion on June 7, attorneys for the appellant, Stinson Canning Company, appeared and made an oral statement to the Court in which they admitted non-compliance with the decrees but tendered an explanation, or excuse, for their failure in this respect. During the course of this statement, counsel several times offered to repeat statements and opinions expressed by various parties, none of whom was present in court or called as a witness. The Trial Judge properly excluded these statements as hearsay and as having no place in a return. Counsel then asked for an' opportunity to present the testimony of a member of the Boston Station who presumably was at that time in Boston, where it would have been necessary to take this member’s deposition. The Judge stated that counsel might produce any witnesses then in court but refused to stay the proceedings to afford counsel the opportunity of procuring additional evidence.

After hearing counsel’s statement, the District Judge found that appellants had not complied with the decrees, that the conditions of the bonds had therefore been breached, and ordered judgment against appellants on each of the bonds in its full amount.

The substantial questions presented by the appeals are: (1) Did the District Judge have the power, in his discretion, to remit all or a part of the bonds if the breach of their conditions was not wilful or grossly neglectful; (2) If he had that power, was there an abuse of discretion on the facts-of this case; and (3) did the District Judg'e err in refusing a continuance to give the-appellants an opportunity to procure the testimony of the desired witnesses?

[766]*766We refrain from deciding the question whether the District Court had the power to remit all, or a portion, of the bonds in question, upon a finding that the breach of the conditions of the bonds was not wilful but was the result of inadvertence and was no more than a technical failure to comply with these conditions. The decision of this question is not necessary to the disposition of the instant case.

If we assume, without deciding, that the District Judge had the discretionary power to remit, we think upon the facts in this case that there was no abuse of this discretion in his decreeing a forfeiture of the bonds.

The original decrees were entered on October 11, 1947, and the period for their performance, as extended, did not expire until April 18, 1948. Appellants thus had more than six months in which to comply. Further, the Government did not move for forfeiture of the bonds for an additional •month (May 25, 1948), and' the hearing on that motion was not held until June 7, 1948. It is quite possible that the District Judge would have been more receptive to appellants’ explanation had they come into court on June 7 and stated, even at that late date, that they had complied. But appellants admit that they failed to carry out the decrees for the entire period from October 11, 1947, to June 7, 1948 — a period of almost eight months.

The record shows that the Boston Station of the Pure Food and Drug Administration cooperated in every way with appellants, ¡that it was ready at all times to supervise the segregation or destruction of the sardines and that it .so notified appellants. The appellants, however, failed to notify the Boston Station of the arrival of the sardines and even failed to maintain the identity of the separate lots in the eight seizure actions. A letter from the Chief of the Atlanta Station to the United States Attorney in charge of the cases states: “ * * * despite our efforts to cooperate with the claimant we have found that there has not been a bona fide attempt to comply with the provisions of these several decrees.” And as late as May 21, 1948, the Boston Station reported that the claimant had not destroyed the sardines or even indicated that it intended to do so, and had not paid the claim for costs of supervision.

In the face of this, at best, extremely dilatory conduct, we need examine only briefly appellants’ explanation of their failure to comply with the decrees. The proceeding in the court below was one of a dozen or more identical actions instituted in federal district courts throughout the country against other lots of canned sardines in which the appellant, Stinson Canning Company, was interested. The sardines were all subject to the same fungus disease, a disease on which the Pure Food and Drug Administration allows a tolerance of only five per cent.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

NLRB v. Constellium Rolled Products
43 F.4th 395 (Fourth Circuit, 2022)
Firato v. Tuttle
308 P.2d 333 (California Supreme Court, 1957)

Cite This Page — Counsel Stack

Bluebook (online)
170 F.2d 764, 1948 U.S. App. LEXIS 2726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stinson-canning-co-v-united-states-ca4-1948.