Wise v. United States

128 F. Supp. 3d 311, 2015 WL 533208, 2015 U.S. Dist. LEXIS 121173
CourtDistrict Court, District of Columbia
DecidedSeptember 11, 2015
DocketCivil Action No. 2015-1331
StatusPublished
Cited by2 cases

This text of 128 F. Supp. 3d 311 (Wise v. United States) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wise v. United States, 128 F. Supp. 3d 311, 2015 WL 533208, 2015 U.S. Dist. LEXIS 121173 (D.D.C. 2015).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, United States District Judge

Plaintiffs filed suit on August 14, 2015 against the United States Department of Agriculture (“USDA”) and several individuals in their official and individual capacities 1 , alleging various state and federal claims, arising out of the circumstances surrounding the denial of a farm operating loan. Presently before the Court is Plaintiffs’ [3] Emergency Motion for Temporary *314 Restraining Order and Emergency Motion to Set Hearing for Preliminary Injunction (“Motion for Preliminary Injunctive Relief’). Also pending before the Court is the Defendants’ [4] Motion to Dismiss 2 , which was filed subsequent to the filing of Plaintiffs’ Motion for Preliminary Injunc-tive Relief.

Upon consideration of the pleadings, 3 the relevant legal authorities, and the record as a whole, the Court DENIES Plaintiffs’ Motion for Preliminary Injunctive Relief. The Court is mindful that Plaintiffs have not yet been afforded an opportunity to respond to Defendants’ [4] Motion to Dismiss. Accordingly, although the Court harbors considerable doubt that Plaintiffs will ultimately be able to demonstrate to this Court’s satisfaction that it can exercise jurisdiction over Plaintiffs’ case under the first-to-file rule, it declines to dismiss the case at this time.

I. BACKGROUND

As stated in the complaint, pro se Plaintiffs, Eddie and Dorothy Wise, are the operators of a livestock farm in Nash County, North Carolina. Compl. ¶ 2. Plaintiffs have previously received farm operating loans under the USDA-FSA Farm Loan Program. Id. ¶ 7-9. In September 1997, the Farm Service Agency Loan Manager assigned to Plaintiffs was relocated, and Plaintiffs were assigned a new Loan Manager. Id. ¶ 7-8. In January 2011, this Loan Manager retired, and Plaintiffs were subsequently assigned their current Loan Manager. Id. 1018. Plaintiffs allege that despite a request for assistance, their new Loan Manager did not provide any help in developing Plaintiffs’ 2012 farm operating plan. Id. ¶ 14. Plaintiffs instead secured the assistance of their former, now retired Loan Manager, and submitted the required documents in January 2012. Id. ¶ 14.

On March 27, 2012, Plaintiffs’ Loan Manager prepared a farm operating plan based on the information provided by Plaintiffs that “projected negative net operating inflows and negative net cash available from the projected livestock and poultry sales” from their farm. Id. ¶ 16. Based on this projection, Plaintiffs’ Loan Manager informed them that they did not qualify for any FSA Primary Loan Servicing programs. Id. ¶ 17. Plaintiffs subsequently submitted a Farm Business Plan Worksheet that projected their cash flow for 2012 using their own historical sales *315 data rather than a national average. Id. ¶ 18-19. Plaintiffs’ Loan Manager prepared a second farm operating plan in May 2012, this time showing “positive net operating inflows and positive net cash available for operations.” Id. ¶20. Plaintiffs were instructed to meet with their Loan Manager to finalize approval of this plan, but at this meeting, the Loan Manager notified Plaintiffs that she had decided not to use this second plan. Id. ¶ 21-22. Plaintiffs were then informed that “because they did not qualify for any FSA Primary Loan Servicing program, they would be required to make monthly debt payments of $3,100.00 to the USDA to avoid foreclosure on the deed of trust held by the USDA-FSA for the plaintiffs’ farm and home in Nash County, North Carolina.” Id. ¶ 22.

In June 2012, a third farm operating plan was prepared by the Loan Manager, further reducing the anticipated sales of livestock and repeating the projection of negative cash flow. Id. ¶23. Because Plaintiffs’ farm does not generate sufficient income to pay $3,100.00 per month, they have defaulted on their obligations due under the promissory note. Id. ¶ 26. Plaintiffs allege that qualification for the USDA-FSA Primary Loan Servicing Program would have allowed them to make payments that are “substantially less” than the Plaintiffs’ annual non-farm income, thereby enabling Plaintiffs to meet their payment obligations under the promissory note to the USDA-FSA. Id. ¶ 27-28. Plaintiffs allege that their Loan Manager approved farm operating plans of “similarly situated white Caucasian livestock farmers,” and that the “rejection of [their] application to participate in a USDA-FSA Primary Loan Servicing Program [was] based upon [their] race.” Id. ¶ 27-31. Although Plaintiffs met multiple times with the State Director of the USDA-FSA to seek reversal of the USDA-FSA’s decision, these meetings were unsuccessful. Id. ¶ 33.

Plaintiffs allege that the decisions taken by their Loan Manager were “willful and taken in known and reckless disregard[] of the Plaintiff[s’] rights under the Equal Credit Opportunity Act” and that as a “direct and proximate result of the discriminatory actions and omissions” of the USDA, Plaintiffs have “suffered actual damages and several emotional distress.” Id. ¶ 37. Plaintiffs further allege that the Government “violated the Pigford Consent Decree by attempting to foreclose on the subject property [and] by failing to provide a hearing on the merits by [the] Office of the Monitor and a hearing on the merits by the Administrative Law Judge for continuous discriminatory acts because the Plaintiffs are black and members of a protective class[,] in accordance to 14012 of the Consent Decree and the 2008 Food Energy Conservation Act.” Id. ¶ 52. Plaintiffs seek damages of $5,000,000 and bring claims under several state and federal statutes, inter alia, the Equal Credit Opportunity Act (“ECOA”), the Administrative Procedure Act (“APA”), N.C. General Statute § 1-52(9), and 42 U.S.C. §§ 1983,1985,1986. Id. ¶ 38-50.

II. PROCEDURAL POSTURE

Plaintiffs filed this action on August 14, 2015. Id. Plaintiffs filed their Motion for Preliminary Injunctive Relief on August 31, 2015, seeking to enjoin a foreclosure action brought by the United States in the Eastern District of North Carolina, United States v. Wise, No. 5:14-CV-844-FL (E.D.N.C. Nov. 19, 2014) (“the Foreclosure Action”). Pis.’ Mot. at 1. Plaintiffs’ Motion for Preliminary Injunctive Relief seeks to enjoin the Foreclosure Action until a separate case brought by Plaintiffs in the Court of Federal Claims “has commenced and/or the case has been re *316 solved.” Pis.’ Mot. at 1.

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

Related

United States v. Al-Nashiri
374 F. Supp. 3d 1190 (Special Court under the Regional Rail Reorganization Act, 2018)
Pigford v. Veneman
District of Columbia, 2016

Cite This Page — Counsel Stack

Bluebook (online)
128 F. Supp. 3d 311, 2015 WL 533208, 2015 U.S. Dist. LEXIS 121173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wise-v-united-states-dcd-2015.