Utica Packing Co. v. Bergland

511 F. Supp. 655, 1981 U.S. Dist. LEXIS 11559
CourtDistrict Court, E.D. Michigan
DecidedApril 14, 1981
DocketCiv. A. 80-72742
StatusPublished
Cited by4 cases

This text of 511 F. Supp. 655 (Utica Packing Co. v. Bergland) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Utica Packing Co. v. Bergland, 511 F. Supp. 655, 1981 U.S. Dist. LEXIS 11559 (E.D. Mich. 1981).

Opinion

MEMORANDUM OPINION AND ORDER

ANNA DIGGS TAYLOR, District Judge.

This matter is before the court on cross-motions for summary judgment, on undisputed facts. Plaintiffs’ complaint was filed July 25, 1980, for review of the final decision of the United States Department of Agriculture of June 25, 1980, that federal meat inspection services would be withdrawn from plaintiff Utica Packing Company pursuant to 21 U.S.C. § 671, unless its president, plaintiff David Fenster, disassociates himself from the firm. The Federal Meat Inspection Act, 21 U.S.C. § 601 et seq., requires that all persons engaged in the meat processing industry in interstate commerce participate in- the meat inspection program. By the terms of the Order of the Department’s Judicial Officer, Utica was given 90 days during which Fenster was to disassociate himself from management of Utica’s business, and the period of one year within which Fenster was to divest himself of his 50% ownership of Utica stock. Otherwise, Utica will be suspended from the program.

This court has jurisdiction of plaintiffs’ appeal from the administrative decision under 21 U.S.C. § 674, 28 U.S.C. § 1331 and § 2201, and 5 U.S.C. § 702.

On April 18, 1978, plaintiff Fenster was found guilty after a bench trial on four counts of violation of 18 U.S.C. § 201(b), a federal felony statute which provides, in pertinent part, that:

[wjhoever, directly or indirectly, corruptly gives, offers, or promises anything of value to any public official * * * with intent—
(1) to influence any official act; or
(2) to influence such public official * * to commit or aid in committing, or collude in or allow, any fraud, or make opportunity for the commission of any fraud, on the United States; or
(3) to induce such public official * * * to do or omit to do any act in violation of his lawful duty, .. .
Shall be fined not more than $20,000 or three times the monetary equivalent of the thing of value, whichever is greater, or imprisoned for not more than fifteen years, or both, and may be disqualified from holding any office of honor, trust, or profit under the United States.

The Memorandum Opinion and Order of the Honorable Philip Pratt filed in United States of America v. David Fenster, 449 F.Supp. 435 (E.D.Michigan, 1978) includes specific findings that the government met its burden of proof beyond reasonable doubt of plaintiff’s commission, on four occasions, of every element of the statutory felony; Of course, the guilty verdict of a jury would also constitute such a finding. Plaintiff Fenster had paid $200.00 on each occasion to the Veterinarian supervisor of the five or six lay Inspectors who were assigned by the United States Department of Agriculture during 1976 to inspection of all meat processed at the Utica plant:-

In September, 1976, the Utica Plant had been rated by the Regional Office of the United States Department of Agriculture (hereafter USDA), after a plant inspection, as a “one” on a scale of one through four: or at the worst rating assignable. Judge Pratt found as fact that, when the veterinarian (Dr. Reed) advised Fenster of this rating, Fenster made his initial proposition of payments to Reed of $100 to $200 per week. The payments made thereafter resulted in Fenster’s conviction; largely because Reed met with Fenster wearing a recording device on each occasion and transcripts of the conversations held were introduced at trial (as they were at the ensuing administrative hearing, and by plaintiffs here). The court found the evidence “over- . whelming,” largely from the transcripts, that Fenster made the payments to Reed with the corrupt purpose required by 18 U.S.C. § 201(b), rather than as illegal gratuities which are prohibited by the lesser included offense of 18 U.S.C. § 201(f). Judge Pratt wrote, specifically:

It was Dr. Reed’s understanding that in return for the money he was to alleviate *658 Fenster’s problems, specifically by reducing the number of line stoppages and by giving the company the benefit of the doubt with regard to hogs of questionable soundness. This understanding is borne out by the transcripts of the recorded conversations between Reed and Fenster. They reveal that while Fenster expected Reed to maintain an appearance of conscientious enforcement (Exhibit IB, pp. 11 and 14), he also expected that more hogs would be passed (Exhibit IB, pp. 9, 13-14; 2B, pp. 21 and 23; 3B, p. 29), that the production line would be shut down less frequently (Exhibit IB, pp. 14, 15-18 [falsify time sheets so that inspectors would have less inducement to stop the line for the purpose of earning overtime pay]; 2B, p. 21; 3B, pp. 30-31), and that Reed would attempt to control an overzealous inspector (Exhibit 3B, pp. 29-31, 35).

On October 18,1978, the Administrator of the USDA Meat and Poultry Program filed a complaint before the Secretary of Agriculture alleging reason to believe that Utica Packing Company is unfit to engage in any business requiring inspection under Title I of the Federal Meat Inspection Act (21 U.S.C. § 601 et seq.) because David Fenster (President and Stockholder) had been convicted in the above-described criminal proceedings:

... of four felonies for corruptly having directly and indirectly given things of value to a public official, to wit, a Veterinarian Inspector of the USDA, with intent to influence said person concerning decisions and actions on questions in matters pending before him in his official capacity in respect to the quality of meat inspection within the respondent’s plant

The complaint further alleged that, on the basis of the stated facts, respondent Utica was unfit to engage in any business requiring inspection, within the meaning of 21 U.S.C. § 671. It further notified Utica of its right to file a response within 20 days; requested oral hearing in conformity with the cited Act, and requested that an order withdrawing inspection services from respondent be issued by the Secretary.

The statute pursuant to which that complaint was filed and pursuant to which the administrative decision was made which is here under review, 21 U.S.C. § 671, provides as follows:

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Bluebook (online)
511 F. Supp. 655, 1981 U.S. Dist. LEXIS 11559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utica-packing-co-v-bergland-mied-1981.