Justia Agriculture Law Opinion Summaries

Articles Posted in US Court of Appeals for the Ninth Circuit
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The Ninth Circuit affirmed the district court's dismissal of an appeal by Growers against members of the California Agricultural Labor Relations Board who promulgated a regulation allowing union organizers access to agricultural employees at employer worksites under specific circumstances. Growers sought declaratory and injunctive relief, alleging that the access regulation, as applied to them, was unconstitutional. The panel held that the access regulation as applied to the Growers did not amount to a per se physical taking of their property in violation of the Fifth Amendment. In this case, the Growers did not suffer a permanent physical invasion that would constitute a per se taking. The panel also held that the Growers have not plausibly alleged that the access regulation effects a seizure within the meaning of the Fourth Amendment. View "Cedar Point Nursery v. Shiroma" on Justia Law

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The en banc court vacated the district court's summary judgment for AgriCap in an action brought by produce growers under the Perishable Agricultural Commodities Act (PACA). The en banc court joined other circuits and adopted a "true sale" test to determine whether assets transferred in transactions that are labeled "sales" remained assets of a PACA trust. The court held that a court must conduct a two-step inquiry when determining whether the questioned transaction is a sale or creates a security interest, i.e., a loan. First, a court must apply a threshold true sale test of which the transfer-of-risk is a key, but not the sole, factor. If a court concludes that there was a true sale, it must then determine if the transaction was commercially reasonable. The court held that a district court should look to the substance of the transaction to determine whether the transaction is a true sale or a secured loan. In doing so, the transfer of risk should be a primary factor to which a court looks. View "G.W. Palmer & Co. v. Agricap Financial" on Justia Law