Justia Agriculture Law Opinion SummariesArticles Posted in US Court of Appeals for the Tenth Circuit
Kellogg, et al. v. Watts Guerra, et al.
This appeal stemmed from mass litigation between thousands of corn producers and an agricultural company (Syngenta). On one track, corn producers filed individual suits against Syngenta; on the second, other corn producers sued through class actions. The appellants were some of the corn producers who took the first track, filing individual actions. (the “Kellogg farmers.”) The Kellogg farmers alleged that their former attorneys had failed to disclose the benefits of participating as class members, resulting in excessive legal fees and exclusion from class proceedings. These allegations led the Kellogg farmers to sue the attorneys who had provided representation or otherwise assisted in these cases. The suit against the attorneys included claims of common-law fraud, violation of the Racketeer Influenced and Corrupt Practices Act (RICO) and Minnesota’s consumer-protection statutes, and breach of fiduciary duty. While this suit was pending in district court, Syngenta settled the class actions and thousands of individual suits, including those brought by the Kellogg farmers. The settlement led to the creation of two pools of payment by Syngenta: one pool for a newly created class consisting of all claimants, the other pool for those claimants’ attorneys. For this settlement, the district court allowed the Kellogg farmers to participate in the new class and to recover on an equal basis with all other claimants. The settlement eliminated any economic injury to the Kellogg farmers, so the district court dismissed the RICO and common-law fraud claims. The court not only dismissed these claims but also assessed monetary sanctions against the Kellogg farmers. The farmers appealed certain district court decisions, but finding that there was no reversible error or that it lacked jurisdiction to review certain decisions, the Tenth Circuit Court of Appeals affirmed. View "Kellogg, et al. v. Watts Guerra, et al." on Justia Law
Thornton, et al. v. Tyson Foods, et al.
Plaintiffs Robin Thornton and Michael Lucero alleged defendants Tyson Foods, Inc., Cargill Meat Solutions, Corp., JBS USA Food Company, and National Beef Packing Company, LLC, used deceptive and misleading labels on their beef products. In particular, plaintiffs contended the “Product of the U.S.A.” label on defendants’ beef products was misleading and deceptive in violation of New Mexico law because the beef products did not originate from cattle born and raised in the United States. The Tenth Circuit Court of Appeals determined the federal agency tasked with ensuring the labels were not misleading or deceptive preapproved the labels at issue here. In seeking to establish that defendants’ federally approved labels were nevertheless misleading and deceptive under state law, plaintiffs sought to impose labeling requirements that were different than or in addition to the federal requirements. The Tenth Circuit concluded plaintiffs’ deceptive-labeling claims were expressly preempted by federal law. Further, the Court agreed with the district court that plaintiffs failed to state a claim for false advertising. View "Thornton, et al. v. Tyson Foods, et al." on Justia Law
Ausmus v. Perdue
Winter wheat farmers could purchase insurance to protect against below-average harvests. The policies at issue here offered yield protection. On July 1, 2014, the Federal Crop Insurance Corporation (“FCIC”) published an interim rule to implement the 2014 Farm Bill. In that interim rule, the FCIC warned that the APH yield exclusion “may not be implemented upon publication” because “[p]roduction data availability and intensive data analysis may limit FCIC’s ability to authorize exclusions of yields for all APH crops in all counties.” Therefore, the FCIC amended the Common Crop Insurance Policy (CCIP) Basic Provisions (the actual terms of the insurance policy offered for sale) “to allow the actuarial documents to specify when insureds may elect to exclude any recorded or appraised yield.” The revised CCIP Basic Provisions stated that farmers “may elect” the APH yield exclusion “[i]f provided in the actuarial documents.” The deadline for winter wheat farmers to purchase insurance for the 2015 crop year was September 30, 2014. When Plaintiffs purchased insurance, they elected to use the APH yield exclusion. But in a letter dated October 31, 2014, the USDA notified insurance providers that the APH Yield Exclusion would not be available for winter wheat for the 2015 crop year. The letter stated that insurance providers could respond to farmers’ elections by pointing them to the USDA’s “actuarial documents,” which did not yet “reflect that such an election is available.” Plaintiffs sought review of this denial through the USDA’s administrative appeals process. An administrative judge determined that she lacked jurisdiction over Plaintiffs’ challenge because the October 2014 letter to insurance providers was not an adverse agency decision. Plaintiffs then appealed to the Director of the National Appeals Division. The Director found that the October 2014 letter was an adverse agency decision, but affirmed the FCIC’s decision not to make the APH yield exclusion available to winter wheat farmers for the 2015 crop year. Plaintiffs appealed the Director’s decision to the United States District Court for the District of Colorado. The district court reversed the Director’s decision and remanded the case to the FCIC with instructions to retroactively apply the APH yield exclusion to Plaintiffs’ 2015 crop year insurance policies, reasoning the applicable statute unambiguously made the APH yield exclusion available to all farmers on the day the 2014 Farm Bill was enacted. Finding no reversible error in the district court’s judgment, the Tenth Circuit affirmed. View "Ausmus v. Perdue" on Justia Law
United States ex rel. Barrick v. Parker-Migliorini Int’l
Brandon Barrick brought an action under the False Claims Act on behalf of the United States, alleging his former employer Parker-Migliorini International (PMI) illegally smuggled beef into Japan and China. At the time of the scheme, China banned all imports of U.S. beef, and Japan imposed heightened standards, under which certain types of U.S. beef would have been banned. Barrick alleged PMI cheated the government out of the inspection fees that would have been paid if PMI had complied with federal law. In Barrick’s view, an “obligation” to pay the government arose when the USDA was informed that meat was being exported to a country with inspection standards higher than those in the United States. Thus, the government should have been paid for the inspections that would have occurred if PMI had accurately reported the destination countries. The Tenth Circuit disagreed with Barrick's reasoning: "[a]n established duty is one owed at the time the improper conduct occurred, not a duty dependent on a future discretionary act." Here, the obligation would not have arisen absent a third-party meat supplier’s independent wrongful conduct. This was because the meat supplier supplied the destination country to the USDA, thus controlling the type of inspection performed. But PMI did not use meat suppliers who were eligible to export beef to Japan. So, for an obligation to arise, the supplier would have had to report an accurate - and illegal - destination country to the USDA, even though the supplier was not eligible to export to that country. This conduct does not create an established duty under the Act. Because the Court did not find Barrick could adequately plead the existence of such an “obligation” by PMI as the Act required, it affirmed the district court’s denial of Barrick’s motion for leave to amend. View "United States ex rel. Barrick v. Parker-Migliorini Int'l" on Justia Law