Timothy Pigford v. Thomas Vilsack

777 F.3d 509, 414 U.S. App. D.C. 142, 2015 WL 485386
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 6, 2015
Docket13-5303
StatusPublished
Cited by9 cases

This text of 777 F.3d 509 (Timothy Pigford v. Thomas Vilsack) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Timothy Pigford v. Thomas Vilsack, 777 F.3d 509, 414 U.S. App. D.C. 142, 2015 WL 485386 (D.C. Cir. 2015).

Opinion

Opinion for the Court filed by Circuit Judge WILKINS.

WILKINS, Circuit Judge:

Appellee Maurice McGinnis farmed cotton and soybeans in the Mississippi River Delta near Yazoo City, Mississippi. Like millions of other small family farmers, he sought a loan through federal farm credit programs administered by the United States Department of Agriculture. And he alleges that, like tens of thousands of other African-American farmers, he was denied access to those programs by the Department because of his race.

McGinnis participated in a claims process established by a class action settlement agreement to resolve his and other farmers’ discrimination claims. There is no question that, under this scheme, many claimants’ rights were vindicated. Yet in McGinnis’ case the process failed dramatically. Repeatedly, the persons tasked under the Consent Decree with processing his claim ignored or misinterpreted his clearly expressed wishes about how his claim should proceed. Finally, over a decade after McGinnis first filed his claim, he turned to the courts to vindicate his rights. Recognizing the Kafkaesque ordeal he had endured, the District Court awarded McGinnis the relief he sought: not an award on the merits of his claim, but merely the opportunity to make his case in the arbitration forum provided for under the settlement agreement. We affirm.

I.

The underlying class action settlement in this case is not new to our Court. In 1997, four hundred and one African-American farmers from the South and Midwest brought suit against the United States Department of Agriculture (the “Department”) — now headed by Appellant Secretary Thomas Vilsack — under the Equal *511 Credit Opportunity Act, 15 U.S.C. § 1691 et seq., alleging that the Department discriminated against them in denying applications for credit and benefit programs. See generally Pigford v. Glickman, 185 F.R.D. 82 (D.D.C.1999). The District Court certified a class for the purpose of determining the Department’s liability in October 1998, Pigford v. Glickman, 182 F.R.D. 341 (D.D.C.1998), and-certified a slightly modified class for all purposes in early 1999. The class included all African-American farmers who (i) farmed between 1981 and 1996, (ii) applied to the Department for a federal farm credit or benefit program during that period and believed the Department discriminated against their application on the basis of race, and (iii) filed a discrimination complaint before mid-1997. Pigford v. Glickman, 185 F.R.D. at 92.

After several months of negotiations, the parties reached a settlement of their claims and filed a proposed consent decree (the “Consent Decree”) with the District Court, which it approved. Id. at 85-86. We upheld the settlement as “an indisputably fair and reasonable resolution of the class complaint.” Pigford v. Glickman, 206 F.3d 1212, 1219 (D.C.Cir.2000). Eventually, 21,546 claimants were accepted as class members for review under the settlement agreement. Pigford v. Veneman, 292 F.3d 918, 921 (D.C.Cir.2002).

The Consent Decree establishes, a two-track claim-resolution process to determine the validity of claims and appoints (or empowers the District Court to appoint) several third-party neutrals to administer the scheme. Depending on which track a claimant chooses, his claim is resolved by either an “adjudicator” (Track A) or an “arbitrator” (Track B). Under Track A, a claimant’s allegations are reviewed under the forgiving “substantial evidence” standard. A prevailing claimant is entitled to a one-time payment of $50,000 and forgiveness of any debt he owes the USDA. J.A. 11 (Consent Decree ¶ l(i)), 20-22 (Id. ¶ 9). Those who select Track B must establish their claim by a preponderance of the evidence — a higher burden of proof — but may seek an unlimited amount in monetary damages if they prevail after a day-long live hearing. J.A. 23-26 (Consent Decree ¶ 10). The Consent Decree also appoints a “facilitator” to publicize the settlement, mail claim packages to claimants, receive and process completed claim packages, determine whether those who submit a claim package are class members, and transmit the claim packages of class members to the adjudicator or arbitrator for determination. See J.A. 11 (Consent Decree ¶ l(i)) (defining “facilitator” as third-party tasked with “assigning] claims to adjudicators and arbitrators for final resolution”). Finally, the Consent Decree provides for the court to select a monitor, who must, among other duties, direct the facilitator, adjudicator, or arbitrator to reexamine any claim in which it finds “clear and manifest error has occurred in the screening, adjudication, or arbitration of the claim and has resulted in ... a fundamental miscarriage of justice.” J.A. 28 (Consent Decree ¶ 12(b)(iii)).

Under Paragraph 13 of the Consent Decree, the District Court retains jurisdiction to issue orders “concerning the alleged violation of any provision.” See J.A. 29 (Consent Decree ¶ 13); see also J.A. 34 (Consent Decree ¶21) (District Court retains authority to enforce the Consent Decree on a party’s motion for contempt). However, the Consent Decree also includes a “finality provision” that specifies that decisions of the adjudicator and arbitrator are “final,” subject to review only by the monitor, and the parties consent “to forever waive their right to seek review in any court” of “any claim that is, or could have been[,] decided by” the adjudicator or *512 arbitrator. J.A. 22 (Consent Decree ¶ 9(a)(v)); 26 (Id. ¶ 10(i)).

On August 6, 1999, Appellee Maurice McGinnis filed a claim sheet and election form alleging the Department discriminatorily denied him operating loans between 1991 and 1996 and emergency loans in 1994 and 1996, purportedly because he had an unpaid prior loan balance and insufficient cash flow. J.A. 39-40. He alleged that the Department had granted loans to similarly situated white farmers during the same period. On his claim sheet, McGinnis appears to have initially written an “X” in the box corresponding to Track B, but later crossed that out and initialed beside it and wrote an “X” in the box corresponding to Track A. J.A. 38. McGinnis then completed in some detail an addendum to the claim sheet entitled “TRACK A — ADJUDICATION CLAIM AFFIDAVIT” that instructed claimants to “[o]nly complete this affidavit if you have elected to settle your claim under the Track A— Adjudication option.” J.A. 39; see id. at 38-41. The District Court therefore concluded that, although he “may have initially selected Track B before changing his mind,” McGinnis’ claim sheet “unambiguously selected Track A.” Pigford v. Vilsack, 961 F.Supp.2d 82, 84 n. 2 (D.D.C.2013).

Soon thereafter, however, McGinnis called the facilitator — then the PoormanDouglas Corporation, subsequently acquired by Epiq Systems (“Epiq”) — and asked to switch his choice to Track B, and sent the facilitator a letter “confirm[ing] that ... I have indeed filed my claim and/or petition under ‘Plan B’ instead of Plan A as originally thought.” J.A. 42.

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Cite This Page — Counsel Stack

Bluebook (online)
777 F.3d 509, 414 U.S. App. D.C. 142, 2015 WL 485386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/timothy-pigford-v-thomas-vilsack-cadc-2015.