United States v. Batson

782 F.2d 1307
Court of Appeals for the Fifth Circuit·Decided February 18, 1986·No. No. 84-1710·Published·Cited by 15 cases

Opinion

GOLDBERG, Circuit Judge:

Some farmers from Gaines had a plan.
It amounted to quite a big scam.
But the payments for cotton
began to smell rotten.
Twas a mugging of poor Uncle Sam.
The ASCS and its crew
uncovered this fraudulent stew.
After quite a few hearings,
the end is now nearing—
It awaits our judicial review.

The United States initiated these seven suits in 1979 to enforce administrative determinations of the Agricultural Stabilization and Conservation Service (ASCS), which ordered appellants to refund over-payments of cotton subsidies obtained in 1972 and 1973 through a scheme or device to defeat the purpose of the Upland Cotton Price Support Program, 7 U.S.C. § 1444(e), or to evade the program payment limitation. The scheme first came to the attention of the ASCS when audit reports revealed that program payments to recipients in Gaines County, Texas, were five times that of comparable cotton producing regions.

The scam involved millions of dollars, and the facts underlying the cases are set out in detail in U.S. v. Batson, 706 F.2d 657, 659-71 (5th Cir.1983). Suffice it to say here that by combining the operation of two farms whose yield and. payment rates under the program differed significantly, the appellants created a synergistic union in which the combined or “reconstituted” farm received payments several times greater than the sum of the payments that each farm would have received separately. Several appellants were not involved in the actual selection and reconstitution of the farm lands, but they nonetheless managed to undermine the program by other means. “In several cases, they (1) leased parts of such farms because of the high program payments these tracts would command; (2) were only ‘straw’ tenants, not actually farming the land but enabling the farm operator to evade the $55,000 program limitation; or (3) were not actually separate [1310] ‘persons’ entitled to payments within the regulations.”. Id. at 666.

After hearings at the county, state, and national level, the ASCS determined that appellants had knowingly engaged in a scheme or device to defeat the purpose of the Upland Cotton Program or to evade the program limitation. When appellants refused to refund the amounts for which they had been held liable, the United States filed twelve suits in 1979 to enforce the administrative determinations. The government pursued one case in advance of the others to test its theory that the determinations were final and nonreviewable under 7 U.S.C. § 1385. In that case, the district court awarded the United States summary judgment, and this court affirmed. United States v. Jones, Civil Action No. CA 5-79-56 (N.D.Tex., Memorandum May 12, 1980; Final Judgment Oct. 22, 1980), aff'd mem., 659 F.2d 1073 (5th Cir.1981).

When the government sought summary judgment in the remaining eleven cases, including the seven here, some new issues had been raised and the district court dismissed the government’s complaints on the alternative grounds that the statute of limitations had run or that the applicable regulation was unconstitutionally vague and overbroad.1 The government appealed, and this court reversed the district court on both grounds and remanded the cases. United States v. Batson, 706 F.2d 657 (5th Cir.1983). This prior appeal left open the issues that are before us now.

On remand, the United States renewed its motion for summary judgment, again asserting the finality of the ASCS determinations under 7 U.S.C. § 1385. The appellants responded that the administrative proceedings were riddled with violations of due process. Alleged violations included inordinate delay in the administrative process, bias and prejudgment on the part of hearing officers, and the lack of an opportunity to call, confront, and cross-examine witnesses. Some appellants also claimed that, as “operators,” they could not be held liable under a regulation that only required refunds from “producers.” Others claimed that they never actually received any payments. The district court, 588 F.Supp. 871, rejected each of defendants’ claims, entered summary judgment in favor of the United States, and assessed an award in the amount of the subsidy overpayments as determined by the agency, plus interest from the dates of the final agency determinations. On the basis of 7 C.F.R. § 722.-812(k) (1974), the United States moved to amend the judgments to provide interest from the dates the payments were issued. That motion was denied without explanation.

Both parties appealed. The defendants appeal the district court’s grant of summary judgment, and the government seeks an award of interest in accord with its reading of the regulation. We affirm the judgment of the district court, but we reverse as to its award of interest.

I. SCOPE OF REVIEW

Our review of the ASCS’s determination is restricted by 7 U.S.C. § 1385, which provides in relevant part:

The facts constituting the basis for any ... payments under the cotton set-aside program ... when officially determined in conformity with the applicable regulations ... shall be final and conclusive and shall not be reviewable by any other officer or agency of the Government.

As appellants do not contend that the ASCS violated its own regulations, this provision precludes this court from reviewing the ASCS’s findings of fact. United States v. Jones, supra; see also United States v. Blackwell, 467 F.2d 1377 (5th Cir.1972) (holding that 7 U.S.C. § 1785, which contains identical language, precludes review of agency findings of fact).

Several of the appellants argue that they cannot be held liable for refunds under 7 C.F.R. § 722.817 because they are not “producers” and did not “receive” program pay[1311] ments. 7 C.F.R. § 722.817, as amended, provides:

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

United States v. Batson, 782 F.2d 1307 (5th Cir. 1986).

782 F.2d 1307 (United States v. Batson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Cook v. Ivins City
2025 UT App 85 (Court of Appeals of Utah, 2025)
Thomas v. Texas Department of Criminal Justice
297 F.3d 361 (Fifth Circuit, 2002)
Vandervelde v. Espy
908 F. Supp. 11 (District of Columbia, 1995)
Hanson v. Madigan
788 F. Supp. 403 (W.D. Wisconsin, 1992)
Simons v. United States
25 Cl. Ct. 685 (Court of Claims, 1992)
Knaub v. United States
22 Cl. Ct. 268 (Court of Claims, 1991)
Abbott v. Louisiana Insurance Guaranty Ass'n
889 F.2d 626 (Fifth Circuit, 1989)
Frank's Livestock & Poultry Farm, Inc. v. United States
17 Cl. Ct. 601 (Court of Claims, 1989)
Willson v. United States
14 Cl. Ct. 300 (Court of Claims, 1988)
Farms v. United States
13 Cl. Ct. 48 (Court of Claims, 1987)
Raines v. United States
12 Cl. Ct. 530 (Court of Claims, 1987)
United States v. Batson
782 F.2d 1307 (Fifth Circuit, 1986)