Justia U.S. 8th Circuit Court of Appeals Opinion Summaries

Dawson Farms challenged the RMA's denial of its crop-insurance claim alleging loss due to "tuber rot" in stored potatoes. A final agency review affirmed the RMA's denial of Dawson Farms' claim, finding that the insurance adjuster's sampling of the stored potatoes followed adequate sample procedures. Dawson Farms appealed the final agency decision to the district court, which affirmed. The court believed that, in light of the nature of the hearing officer's finding under review, the deputy director's statements made it reasonably discernable that the deputy director applied the correct legal standard and considered the record for the proper purpose of reviewing the hearing officer's decision for substantial evidence. The hearing officer based his conclusion largely on the testimony of an expert in potato pathology. The court also believed that, to the extent the deputy director's determination was a rejection of the hearing officer's finding that the adjuster had a duty to resample, the issue under review was a question of law. Consequently, the court found no abuse of discretion or arbitrary and capricious action by the deputy director. Further, the agency determination was supported by substantial evidence. View "Dawson Farms v. Risk Management Agency" on Justia Law

Plaintiffs, cattle producers, appealed the district court's dismissal of their Federal Tort Claims Act (FTCA), 28 U.S.C. 1346(b)(1), complaint, alleging that a government employee negligently caused illness and death within their cattle herd by mandating a toxic plant mixture on pasture land enrolled in a conservation program. The district court held that the allegations of negligence involved the employee's exercise of protected discretion and therefore fell within the discretionary function exception to the FTCA's waiver of sovereign immunity. The court held that the employee's selection of a seeding plan was discretionary but that it was not the type of discretionary action Congress intended to shield from suit. View "Herden, et al. v. United States" on Justia Law

This declaratory judgment action concerned a controversy over the limits of an insurance policy issued by Insurer to Insured. A livestock company (Company) brought suit in Minnesota state court against Insured after Company's cattle in Insured's care died in unusually high numbers. Insured submitted the complaint in the underlying action to Insurer. Insurer refused to defend or indemnify Insured in the case brought by Company, basing its denial of coverage on an exclusion in the liability insurance policy for damage to property in the "care, custody, or control" of the insured. The Minnesota district court entered judgment against Insured. Insurer then commenced this action against Company and Insured in federal district court, seeking a declaratory judgment that the claims alleged in the underlying action were not covered under Insured's policy with Insurer and that Insurer therefore had no obligation to defend or indemnify Insured. The district court concluded that the claims were covered by the policy and granted Company and Insured's motion for summary judgment. The Eighth Circuit Court of Appeals reversed, holding that because Company's cattle were under Insured's care, custody, and control when they were damaged, the policy did not provide coverage for Company's claimed loss. Remanded.

Wescott Agri-Products, Inc., a Perishable Agricultural Commodities Act (PACA)-licensed wholesale supplier of perishable agricultural commodities, sold produce to a company that later ceased business operations after Sterling State Bank seized the company's assets because it failed to make scheduled loan payments. Wescott demanded payment from the bank, claiming the bank had seized assets subject to trust under the PACA, but the bank refused. Wescott sued the bank, asserting various claims, including violations of the PACA and a conversion claim. The district court granted the bank summary judgment on Wescott's conversion claim and summary judgment in favor of Wescott on its PACA claim. Wescott then appealed the district court's denial of attorney fees on costs. The Eighth Circuit Court of Appeals affirmed, holding that the district court did not abuse its discretion by refusing to award Wescott attorney fees and costs, as the fees were excessive and unreasonable, and Wescott's unprofessional conduct in the case did not warrant an award of fees.

Plaintiffs, groups of investors who purchased the securities of KV, brought this class action lawsuit alleging that KV and some of its individual officers committed securities fraud. Plaintiffs alleged that KV made false or misleading statements about its compliance with Food and Drug Administration (FDA) regulations governing the manufacture of pharmaceutical products, and made false or misleading statements about earnings resulting from pharmaceutical products allegedly manufactured in violation of FDA regulations. The court concluded plaintiffs' complaint adequately set forth the reasons why KV's statements about is compliance were false, or at least misleading, at the time they were made; the district court did not err when it determined the investors' complaint did not sufficiently plead that KV made false or misleading statements about earnings tied to the manufacture of generic Metoprolol; the district court correctly dismissed the scheme liability claims against the two individual KV officers; but the district court erred in denying the motion to amend the complaint. Accordingly the court affirmed in part, reversed in part, and remanded for further proceedings.

This case stemmed from FNS's permanent denial of an application from J&K to participate in the government's food stamp program, SNAP. The court held that the imposition of permanent ineligibility to participate in SNAP, as oppose to assessing a monetary penalty, was not arbitrary and capricious where J&K's ineligibility to participate in SNAP was based on its owner's involvement in a prior food stamp trafficking violation. Accordingly, the court affirmed the judgment.

A client complained to the Grain Inspection, Packers and Stockyard Administration about the broker purchasing his own stock for customers. Following a remand, the USDA imposed a 16-month suspension on his registration under the Packers and Stockyards Act, 7 U.S.C. 181-229. The Eighth Circuit affirmed. The judicial officer adequately considered the nature of the violations in relation to the remedial purposes of the PSA. The suspension was not too harsh, given the circumstances of the violation.

Lakeside appealed from the district court's grant of summary judgment in favor of Producers on Lakeside's state-law claim for fraudulent misrepresentation, negligent misrepresentation, and unjust enrichment involving payment for the feed and care of the hogs at issue. The court affirmed the district court's grant of summary judgment in favor of Producers on Lakeside's fraudulent misrepresentation claim where Lakeside was unable to establish that Producers made any false representations; affirmed the district court's grant of summary judgment on the fraudulent nondisclosure claim where Producers was under no legal obligation to disclose information to Lakeside; held that the district court did not abuse its discretion in excluding Lakeside's expert testimony where such testimony was not needed to inform the district court on the legal issues; affirmed the district court's grant of summary judgment in favor of Producers on the issue of negligent misrepresentation where Producers was not in the business or profession of supplying information or guidance to Lakeside but rather the two conducted themselves at arm's length; and held that it was not unjust to allow Producers to retain the benefit of these particular happenings when a shortfall existed, as it was not inequitable to allow a contracting party the right to fulfillment of contractual obligations, which in this case included the payment of fees contemplated by the Hog Program.

Several Nebraska farmers filed suit under 42 U.S.C. 1983, alleging their due process rights were violated when Nebraska officials ordered the farmers to cease drawing water from the Niobrara Watershed without providing a predeprivation hearing. The court agreed with the district court that the farmers have not suffered a deprivation of their property rights where the property right held by the farmers was expressly conditioned on the Nebraska Department of Natural Resources' (DNR) determination of watershed capacity. Therefore, the farmers had no legitimate claim to the water when the DNR determined that there was a scarcity and the issuance of Closing Notices was necessary to satisfy the needs of senior appropriators. The court also held that the district court was permitted to dismiss without prejudice the pendent state-law ultra vires claim in light of its grant of summary judgment on the section 1983 claim.

Debtors, owners and operators of a farm and ranch, appealed from the judgment of the bankruptcy court denying their discharge pursuant to 11 U.S.C. 727(a)(5). The court held that the bankruptcy court did not clearly err in finding that debtors failed to adequately explain the loss of cattle. Accordingly, the judgment denying debtors' discharge was affirmed.