# Opposition Brief — Rose Acre Farms, Inc. v. Madigan

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1992
- **Citation:** 506 U.S. 820

## Text

Suprente Copry

a Pe Pike dD
, 1 JUL 27 1992
No. 91-1879
— _ tition {1F CLERK

|

Iu the Supreme Court of the Wuited States

OCTOBER TERM, 1992

ROSE ACRE FARMS, INC., PETITIONER

EDWARD MADIGAN, SECRETARY OF AGRICULTURE,
ET AL.

ON PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT

BRIEF FOR THE RESPONDENTS
IN OPPOSITION

KENNETH W. STARR
Solicitor General

STUART M. GERSON
Assistant Attorney General
DOUGLAS N. LETTER

JEFFREY CLAIR
Attorneys

Department of Justice
Washington, D.C. 20530
(202) 514-2217

QUESTIONS PRESENTED

1. Whether the court of appeals correctly held that
the Claims Court is the appropriate forum to resolve
petitioner’s claim for compensation assertedly due un-
der the Takings Clause of the Fifth Amendment and
21 U.S.C. 114a and 134a(d).

2. Whether, under the Fifth Amendment and 21
U.S.C. 114a and 134a(d), petitioner must be com-
pensated for losses allegedly incurred under regula-
tions restricting the interstate movement of eggs and
chickens linked to salmonella poisoning of humans.

(1)

TABLE OF CONTENTS

Page
Nee cccatassireastamiainines aevaeees 1
1. a cnnnebuannanisiowssassansuantanawebovia 1
i cs cnenedine UR lathe a es 2
asc bcea nace netbeans sansabubianienion 10
a somiabeubistdndecanaasanansananad 18
TABLE OF AUTHORITIES
Cases:

Abboit Laboratories v. Gardner, 387 U.S. 1386
a 20a A TREO RO 12
Bowen V. Massachusetts, 487 U.S. 879 (1988)........ 12, 13,
14, 15

Esch v. Yeutter, 876 F.2d 976 (D.C. Cir. 1989) .... 15
First Lutheran Church v. Los Angeles County, 482

Teen no ci ceancandanpnseannntonion 11
Julius Goldman’s Egg City v. United States, 697
er A RR OD oc cneccnnsamnannsmnacionn 13

K Mart Corp. Vv. Cartier, Inc., 486 U.S. 281 (1988)... 11
Loftin v. United States, 6 Cl. Ct. 596 (1984),

aff’d, 765 F.2d 1117 (Fed. Cir. 1985) .....0000022.... 13
Preseault v. ICC, 494 U.S. 1 (1990) ............00000022.... 14
Ruckelshaus Vv. Monsanto, 467 U.S. 986 (1984)... 14
Zellous V. Broadhead Associates, 906 F.2d 94 (3d

ag aio cs bi pntenhicciisisindicnisndatedantind 15
Constitution, statutes, and regulations:
Ne on sscmaneansnesumnsamesonninse 8,17
eee 8,9, 10, 13, 14, 17
Administrative Procedure Act, 5 U.S.C. 701 et seq.:
shh hammannnns 12, 15
I 12, 13, 15
I Bi Be AF tits BI ccc cnececnnccnccnnecessevcesscnaceessee 12,14
no clseante 9
Sh soa ca aahisleguawtaninpkeamnaunnibioes 3, 16
I a ancien 3, 5, 8, 16, 17
(111)

IV

TABLE OF AUTHORITIES—Continued

Statutes and regulations—Continued: Page
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Be i cies nal ceeactnalimenctend 5, 138, 16, 17
ee a SIN AI x2.2 Ucvsnccexcasieoaeaccneiobianni aaasneaarooonevenanniaat 4

Miscellaneous:

Black’s Law Dictionary (6th ed. 1990) ......00000.0..... 17
55 Fed. Reg. (1990) :
Net Re RED PM PP OT PT a A 3
5 aa het I eee ON A ERR EER eens AHORA 4
56 Fed. Reg. (1991)
ENA eee UPTON LSE eet aS a 4
RSIS Siperreneepc en Comenne ene ane Carn 6, 7,17
I che tcecehahae aas et asa cachet neesegeanaaieN 4
I adele eens 5
57 Fed. Reg. (1992)
IE Aaa sees eanticas pin asdan cnc aladcemaicabiok vetolaadmamas 5
Tg , na LOR OR RES OEE NUN Nee EEO TEAS 5
Webster’s Third New International Dictionary
PIII E vas tasGussaaciocsisdaceseadechamndstaodaeanannacain banca obeheniae 17

Iu the Suprenw Court of the United States

OCTOBER TERM, 1992

No. 91-1879

RosE ACRE FARMS, INC., PETITIONER
Vv.

EDWARD MADIGAN, SECRETARY OF AGRICULTURE,
ET AL.

ON PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE SEVENTH CIRCUIT

BRIEF FOR THE RESPONDENTS
IN OPPOSITION

OPINIONS BELOW

The opinion of the court of appeals, Pet. App. la-
14a, is reported at 956 F.2d 670. The opinion of the
district court, Pet. App. 15a-46a, is unreported.

JURISDICTION

The court of appeals entered judgment on Febru-
ary 10, 1992. Pet. App. la. The court of appeals
denied a petition for rehearing on February 26, 1992.

(1)

2

Pet. App. 50a. The petition for a writ of certiorari
was filed on May 22, 1992. This Court’s jurisdiction
is invoked pursuant to 28 U.S.C. 1254(1).

STATEMENT

Petitioner Rose Acre Farms, Ine. challenges fed-
eral regulations restricting interstate movement of
table eggs and chickens linked to salmonella poison-
ing in humans.

1. Salmonella enteritidis (salmonella) is a com-
municable disease that poses a serious threat to pub-
lic health. In healthy adults, salmonella can produce
violent illness requiring hospitalization for severe
fever, diarrhea, and vomiting. Pet. App. la. In
elderly people, children, and persons with immune
systems weakened from other diseases, it can be
fatal. Ibid.

Contaminated eggs pose a particularly significant
risk of causing salmonella in people. In theory, proper
handling and cooking of eggs can prevent disease.
In practice, that does not always happen. Some peo-
ple continue to use raw eggs in caesar salads, hol-
landaise sauce, and other dishes that are prepared in
ways that will not kill the bacteria. In other in-
stances, the eggs are simply mishandled, improperly
stored, or inadequately cooked. Pet. App. 2a.

The health risks are compounded in nursing homes,
cafeterias, hotel kitchens, -restaurants, and other
places where food is prepared in large quantities. In
these institutional settings, many eggs may be pooled
together. As salmonella multiplies rapidly, the bac-
teria from a single infected egg can contaminate the
entire dish. Pet. App. 2a. Thus, in a very literal
sense, it takes only one bad egg to make hundreds of
people seriously ill.

3

In recent years, there has been a sharp increase in
the incidence of salmonella food poisoning. Scientific
studies indicate that the increase may be linked to
the development of an unusually invasive strain of
salmonella that may be causing chickens to lay eggs
that are contaminated with salmonella before the
eggs shell is even formed. Pet. App. 2a. Such infec-
tions pose substantial risks for public health and the
poultry industry. If chickens are laying eggs that
are contaminated with salmonella before the shell is
even formed, more contaminated eggs will enter the
marketplace and more people will be placed at risk of
contracting salmonella. And if a more invasive strain
of salmonella is responsible for the upswing in sal-
monella outbreaks, then the spread of the bacteria
from one poultry flock to another would multiply
economic losses for the entire poultry industry.

2. Several overlapping statutory provisions vest
the Secretary of Agriculture with broad authority to
combat communicable diseases of livestock and poul-
try. The Secretary has the authority to ‘make such
regulations and take such measures as he may deem
proper to prevent the introduction or dissemination
of the contagion of any contagious, infectious, or
communicable disease of animals and/or live poultry.”
21 U.S.C. 111. He is similarly authorized to “control
and eradicate any communicable diseases of livestock
or poultry.” 21 U.S.C. 114a; see also 21 U.S.C. 120,
123, 134a.

On February 16, 1990, the Secretary invoked these
remedial powers and determined that emergency reg-
ulatory measures were necessary to identify chicken
flocks infected with salmonella and to control the
spread of the disease. 55 Fed. Reg. 5576 (1990). The
Secretary noted that salmonella infection was preva-

lent among northeastern and mid-Atlantic flocks, and
spreading to other flocks in midwestern and north-
western states. 55 Fed. Reg. 5580 (1990). Citing
public concerns about egg safety and the growing
number of salmonella outbreaks in people, the Secre-
tary stated that immediate regulatory action was
necessary to prevent harm to the poultry industry
and the public. /bid. He accordingly published in-
terim regulations, effective immediately and in ad-
vance of public comment, to identify infected flocks
and to control the spread of the disease to poultry
and people.’

The regulations establish a three-step process for
determining whether chicken flocks pose a risk of
spreading salmonella infection. State and federal in-
vestigators first determine whether eggs are the prob-
able cause of a reported outbreak of salmonella in
humans. If eggs are implicated in the outbreak, they
are then traced back through the chain of distribu-
tion to the laying flock. That flock is designated a
“study flock.”” 56 Fed. Reg. 3740 (1991).

Investigators then test for salmonella in the study
flock’s environment by analyzing samples from the
manure and egg transport machinery of each poul-
try house within the flock. If salmonella are recovered
from the samples, the flock is designated a “test”
flock and subjected to additional testing. Eggs, chick-
ens, and articles associated with the production proc-
ess (such as feed and chicken coops) may not be
freely shipped in interstate commerce while this addi-
tional testing takes place. However, eggs subject to
these restrictions may move in interstate commerce

1 After a subsequent notice and comment period, the Secre-
tary promulgated final regulations on January 30, 1991. See
56 Fed. Reg. 3730 (1991), codified at 9 C.F.R. 82.30-82.38.

<4
)

if destined for pasteurization, hard boiling, or for-
eign export. 56 Fed. Reg. 5740-3741 (1991).

In the final stage of the testing process, blood and
internal organs are taken from a sample of chickens
within the “test” flock and analyzed for the presence
vf salmonella. If the saimonella analysis of blood
and internal organ samples is negative on two suc-
cessive occasions, the affected flock or poultry house
is released from further restrictions. If the tests are
positive for salmonella, however, then the flock or
house is designated as “infected.” The restrictions on
interstate commerce will then remain in effect until
the houses have been depopulated, cleaned, washed,
and disinfected in accordance with federal guidelines
or until further testing indicates salmonella are not
present in organ samples. To guard against reinfec-
tion, a house or flock that is released from infected
status remains subject to further testing for a period
of 18 months, unless the egg producer is participat-
ing in a voluntary program of salmonella control that
has been approved by the Secretary. 57 Fed. Reg.
776, 779 (1992).

3. The Secretary has statutory authority to pro-
vide monetary compensation to livestock and poultry
producers who incur economic losses as a result of
regulatory actions undertaken to prevent the spread
of communicable diseases. Section 114a of Title 21
provides that the Secretary’s power to control and
eradicate communicable diseases of poultry includes
authority for “the payment of claims growing out
of destruction of animals (including poultry), and
of materials, affected by or exposed to any such
disease, in accordance with such regulations as the
Secretary may prescribe.” Similarly, Section 134a(d)

of Title 21 provides that, with exceptions not rele-
vant here:

6

the Secretary shall compensate the owner of any
animal, carcass, product, or article destroyed
pursuant to the provisions of this section [7.e.
21 U.S.C. 134a]. Such compensation shall be
based upon the fair market value as determined
by the Secretary, of any such animal, carcass,
product, or article at the time of the destruction
thereof.

The Secretary concluded that neither provision
warranted payment of compensation to producers
whose eggs and chickens were subject to restrictions
under the salmonella regulations. 56 Fed. Reg. 3731
(1991). The Secretary noted that the applicable
statutes require payment of compensation if the
government orders des/ruction of animals or animal
products. Jbid. He also noted that the statutes and
regulations in some cases permit compensation if
owners voluntarily destroy animals or animal prod-
ucts to further a regulatory program aimed at limit-
ing communicable diseases. /bid. The Secretary de-
termined, however, that destruction of chickens was
not necessary to further the goals of the salmonella
program, /bid. He explained that salmonella bacteria
could not be eradicated by destroying affected chicken
populations, principally because the bacterial agent
is not host specific, but is, instead, found in many
other species throughout the environment. /bid.
Accordingly, the salmonella program did not seek to
eradicate the disease, but was instead intended only
to control the spread of salmonella in egg-type breed-
ing and production flocks—a goal that in the Secre-
tary’s judgment could be furthered through actions
short of ordering destruction of the affected flocks.

In addition, the Secretary explained that indemnity
payments were reserved for instances in which the
nature of the disease or the federal regulatory action

7

causes severe and widespread economic impact on the
affected agricultural industry. 56 Fed. Reg. 3731
(1991). The Secretary determined that such cireum-
stances were not present here because: (1) the dis-
ease does not cause severe mortality or reductions in
productivity in affected flocks; and (2) the regulatory
scheme mitigated the economic impact on producers
by permitting restricted eggs to be sold in other
markets and by limiting the restrictions to separate,
individual poultry houses within the larger flock.
Ibid.

4. Enforcement of these regulations linked peti-
titioner’s chicken farms to three outbreaks of salmo-
nella poisoning. In Chicago, 400 otherwise healthy
adults contracted salmonella while attending a con-
vention. More than 100 required hospitalization.
State and local health investigators concluded that
eggs from petitioner’s White County farm were the
probable source of the illness. Pet. App. 19a. Peti-
tioner’s eggs were also linked to a salmonella outbreak
that felled 42 wedding guests in Kentucky, and to a
third salmonella outbreak among two Tennessee
families. 7d. at 19a-20a. Poultry houses at three of
petitioner’s farms were eventually found infected
with salmonella, and a portion of petitioner’s pro-
duction was barred from the interstate table egg
market. /d. at 18a-20a.

On December 28, 1990, petitioner filed a complaint
in district court for a preliminary injunction and
for a declaratory judgment invalidating the regula-
tory scheme. The district court, after consolidating
the preliminary injunction hearing with a trial on
the merits, held that the regulations are legally de-
fective because they deny egg producers compensa-
tion for economic losses. Pet. App. 48a. The court

8

first rejected respondents’ contentions that the Claims
Court has exclusive jurisdiction over petitioner’s
claims that the statute and the Fifth Amendment
require monetary compensation for economic losses
caused by the regulatory scheme. /d. at 38a-39a. The
court acknowledged that petitioner provided evidence
of losses of $50,000 per day and that claims for such
compensation could be brought only in the Claims
Court. Jd. at 38a, The court reasoned, however, that
the complaint did not in fact seek money damages but
only demanded a declaratory judgment to the effect
that compensation would be required under the ap-
plicable statutes and the Takings Clause of the Fifth
Amendment. /d. at 38a-39a. The court therefore
assumed equitable jurisdiction.

On the merits, the district court held that 21 U.S.C.
114a and 134a both require payment of compensation.
The court reasoned that the regulations effect a con-
demnation of restricted eggs and chickens by destroy-
ing their economic value—a result that, in the district
court’s view, was tantamount to the destruction of
the chickens and eggs, and that therefore triggers
a statutory obligation to provide compensation for
government-ordered destruction of animals and ani-
mal products. Pet. App. 44a-46a. In addition, the
court reasoned that the administrative record and
trial testimony indicate that the salmonella regula-
tions could have a severe effect upon the poultry
industry, and that the Secretary’s decision not to
provide compensation in light of such economic in-
juries was arbitrary and capricious. /bid. The court
concluded that, in the absence of a provision for
indemnification, the regulations violate applicable
statutes and the Fifth Amendment. 7d. at 46a. It
also found that that the Secretary might not have

9

established the entire regulatory scheme if obligated
to provide compensation. Jd. at 45a. Consequently,
the court found that a defect in the indemnification
provisions of the regulation would be fatal to the
entire regulatory scheme. On that basis, the district
court declared the entire regulatory scheme invalid
and barred the Secretary from imposing any restric-
tions on Rose Acre’s shipment of eggs from flocks
that have previously been linked to salmonella poison-
ing of humans. /d. at 46a, 48a-49a.

5. The court of appeals reversed. Pet. App. la-
14a. It held that the district court, in invalidating
the regulatory scheme for failure to provide com-
pensation, had imposed a remedy that did not fit the
alleged violation. The court reasoned that, if perti-
nent statutes or the Constitution in fact require com-
pensation, then the appropriate remedy is to order
compensation paid—relief that in this case could only
be afforded by the Claims Court. /d. at 5a-8a.° The
court thus held that petitioner had brought its claims
concerning an asserted right to compensation in the
wrong forum. /d. at 8a. The court therefore did not
reach the merits of petitioner’s claims that the perti-
nent statutes and the Takings Clause required pay-
ment of compensation for damages caused by the
salmonella regulations. Jd. at 6a, 14a.*

“The court of appeals recognized that, under 28 U.S.C.
1346(a), district courts do have jurisdiction to award less
than $10,000 against the United States. Pet. App. 5a. It
indicated, however, that petitioner’s claims would exceed that
amount and thus could be entertained only by the Claims
Court. Jbid.

3The court of appeals also held that the Secretary has
authority to regulate animal diseases that pose a greater
health risk to humans than to the animals themselves; that

10

ARGUMENT

1. Petitioner principally argues that the court of
appeals erred by usurping the Secretary’s discretion
to evaluate the costs and benefits of the regulatory
scheme, Pet. 12-16, and by misapplying the law on
whether an invalid regulatory provision may be
severed from other provisions of the challenged regu-
latory scheme, Pet. 16-20. Petitioner thus asserts
that, since the current regulatory scheme was adopted
on the assumption that compensation would not be
paid to regulated producers, a reviewing court, on
determining that compensation should be paid, must
set aside the entire regulatory scheme in order to
ensure that the Secretary retains the authority to
make congressionally delegated policy and regulatory
determinations.

Those arguments rest on a fundamental misunder-
standing of the holding below and focus on issues that
are neither ripe for review nor fairly implicated by
the court of appeals’ decision. The court of appeals
ruled that petitioner’s claimed entitlement to mone-
tary compensation could be entertained only by the
Claims Court. Pet. App. 8a. The court of appeals
therefore explicitly declined to decide whether the
pertinent laws or the Takings Clause require com-
pensation. Jd. at 6a, 14a. It is therefore odd for
petitioner to claim that the decision below improperly
divests the Secretary of authority to determine
whether the salmonella regulations should remain in
force if the government must pay compensation, since

the Secretary’s regulations set forth a rational means of
addressing the health risks posed by eggs contaminated with
salmonella; and that the regulations requiring environmental
monitoring of poultry houses located on the same premises
as an infected house are lawful. Pet. App. 8a-13a. Petitioner
has not challenged those rulings in this Court.

(eee

11

the court of appeals did not rule that compensation
is necessary, and its holding precludes the district
court from even entertaining the question in the cir-
cumstances of this case.

The court of appeals did state in a brief dictum
that if compensation were deemed required it would
be “inappropriate to halt the regulatory program.”
Pet. App. 7a. But as no court has in fact made such
a determination, issues concerning whether the court
must invalidate the entire regulatory scheme or in-
stead sever the “no compensation” administrative
determination are not ripe for review. Consequently,
the principal issues raised by the petition for a writ
of certiorari are not implicated by the holding below
and do not merit review by this Court.‘

* While the issue is not presented by the holding below, we
note that the court of appeals was correct in stating that it
would be inappropriate to invalidate the entire regulatory
scheme if the statutes or the Constitution were found to
require compensation. This Court has held that “[o]nce a
court determines that a taking has occurred, the government
retains the whole range of options already available—amend-
ment of the regulation, withdrawal of the invalidated regula-
tion, or exercise of eminent domain.” First Lutheran Church
v. Los Angeles County, 482 U.S. 304, 321 (1987). Thus, the
court of appeals was correct in suggesting that a determina-
tion that the Constitution requires compensation would not
afford any basis for invalidating the entire regulatory scheme.

Principles governing the severability of regulatory provi-
sions direct the same result with respect to petitioner’s claim
that the salmonella regulations misconstrue statutory provi-
sions governing compensation. Regulations should ordinarily
be treated as severable unless: (1) there are affirmative indi-
cations of a contrary intent; or (2) severing the defective
provision would impair the functioning of the underlying
statute. K Mart Corp. v. Cartier Inc., 486 U.S. 281, 294
(1988). Contrary to petiticner’s contentions, the administra-
tive record does not demonstrate that the Secretary would not

12
a

2. The ruling below that petitioner’s compensation
elaims may be entertained only by the Claims Court
is consistent with Bowen v. Ilassachusetts, 487 U.S.
879 (1988). In Bowen, the Court made clear that,
under 5 U.S.C. 704, the existence of a Tucker Act
monetary remedy would, for certain claims, oust the
district courts of the equitable review powers that are
otherwise conferred by the Administrative Procedure
Aet (APA). The APA generally provides for review
of ageney action made reviewable by statute and for
review of final ageney action for which there is no
adequate remedy at law. See Abbott Laboratories vy.
Gardver, 387 US. 136, 140 (1967). To that end, the
APA specifically waives the United States’ sovereign
immunity from suits for equitable relief by providing
that:

An action in a court of the United States seek-
ing relief other than money damages and stating
a claim that an agency or an officer or employee
thereof acted or failed to act in an official capacity
or under color of legal authority shall not be
dismissed * * * on the ground that it is against
the United States [5 U.S.C. 702].

The APA, however, by its terms applies only where
“there is no other adequate remedy in a court.” 5
U.S.C. 704.

In Power, the Court held that 5 U.S.C. 704 excludes
from APA review claims based on money mandating

have undertaken this regulatory program if the government
were required to compensate egg producers for economic loss.
And even if a reviewing court were to conclude that compen-
sation is required, the “no compensation” provision could be
severed from the regulation without intruding upon the Sec-
retary’s discretion to determine, for subsequent cases, whether
the regulations should remain in force.

13

provisions that: (1) fall within the Claims Court’s
Tucker Act jurisdiction; (2) “provide compensation
for specific instances of past injuries or labors’: and
(3) establish rights that can be fully redressed with-
out resort to the type of injunctive and declaratory
powers that have been withheld from the Claims
Court, but that are generally vested in a district
court. 487 U.S. at 900-901 n.31. The Court concluded
that for such claims, “suits under the Tucker Act in
the Claims Court offer precisely the sort of ‘special
and adequate review procedures’ that [APA] § 704
requires to direct litigation away from the district
courts.” [hid, .

The compensation claims pressed by petitioner fall
squarely within this category, for several reasons.
First, the Tucker Act confers jurisdiction over peti-
tioner’s statutory and constitutional claims for com-
pensation. Similar claims have been routinely ad-
judicated by the Claims Court and its predecessor, the
Court of Claims. See, e.g., Julius Goldman’s Eqg City
v. United States, 697 F.2d 1051 (Fed. Cir. 19&3) ;
Loftin y. United States, 6 Cl. Ct. 596 (1984), aff'd,
765 F.2d 1117 (Fed. Cir. 1985). Second, the provi-
sions of law on which petitioner relies—the Takings
Clause and 21 U.S.C. 134a(d)—provide a right to
indemnification for a specific past injury: monetary
loss resulting from the destruction of animals or re-
lated products pursuant to an order issued under the
Secretary’s regulatory authority to control eommuni-
cable diseases. They are money-mandating provisions
that authorize compensatory relief for past injuries—
precisely the type of laws identified in Bowen as fall-
ing within 5 U.S.C. 704. See 487 U.S. at 900-901
n.31, 905-906 n.42.

Third, a monetary remedy in the Claims Court is
sufficient to afford complete redress for the compensa-

14

tion rights conferred by the Constitution and the laws.
Bowen suggests that, in some circumstances, the need
for prospective relief governing the relationship be-
tween the federal government and other parties would
render the Claims Court remedy inadequate. 487
U.S. at 905. But the Claims Court could provide an
adequate remedy for all petitioner’s claims for com-
pensation. The Claims Court, for example, can supply
a fully adequate remedy for petitioner’s Takings
Clause claim. In faet, this Court has held that equita-
ble relief is not available where a suit for compensa-
tion ean be brought against the government, Ruckels-
haus v. Monsanto, 467 U.S. 986 (1984), and a eom-
pensation remedy under the Tucker Act for a taking
is presumed to be available unless there are unambigu-
ous indieations to the contrary, Preseault v. ICC, 494
U.S. 1 (1990). Accordingly, an award of compensa-
tion by the Claims Court for petitioner’s takings
claim is not just an “tadequate”’ remedy, it is the onlv
remedy made available by Congress.

The Claims Court could also provide a fully ade-
quate remedy for petitioner’s statutory compensation
claims. In many respects a money judgment from the
Claims Court affords a superior remedy to the declar-
atory relief sought by petitioner. The Claims Court
has long experience and special expertise in valuing
money claims against the government, and it can
enter a money judgment disposing of the entire case.
A declaratory judgment, in contrast, leaves the criti-
cal question of the amount of compensation actually
due unresolved, thereby raising the possibility that
complete resolution of petitioner’s claims would not be
achieved until it exhausts a second, duplicative round
of judicial review.°

5 Petitioner has in fact filed a complaint in the Claims Court
seeking an award of compensation for losses allegedly in-

ee

15

3. The decision below does not conflict. with the
cases cited by petitioner. Neither case involved the
laws or programs at issue here; nor do they reflect
any disagreement about the proper application of the
jurisdictional principles set forth in Bowen v. Mas-
sachusetts,

Mesch vy. Yeutter, 876 F.2d 976 (D.C. Cir. 1989),
involved the Secretary of Agriculture’s decision par-
tially to suspend a farmer’s participation in a. farm
subsidy program. The court held that suit challenging
the suspension could be brought in district court. The
court found that plaintiff’s claim was not predicated
on a statute mandating monetary compensation for
past injuries and also did not clearly fall within the
Claims Court’s jurisdiction. Jd. at 984-985. Thus,
unlike this case, Esch involved claims that could not
be adequately redressed under the Tucker Act. Zellous
v. Broadhead Associates, 906 F.2d 94 (3d Cir. 1990),
is distinguishable for similar reasons. There, the court
of appeals held that a claim for money assertedly
due under a federal housing assistance program could
not be characterized as a claim for monetary damages,
Id. at 96-100. The court held that, although the claim
sought an order directing the United States to pay out
money, district court review under 5 U.S.C. 702 was
not foreclosed by the requirement of 5 U.S.C. 704 that
there be ‘no other adequate remedy in a court.” 906
F.2d at 99.

4. Petitioner repeatedly asserts, without explana-
tion or supporting argument, that the regulatory de-
cision against paying compensation is erroneous and
unlawful and renders the regulations invalid in their

curred under the salmonella regulations. Rose Acre Farms,
Inc. Vv. United States, No. 92-335 C (Cl. Ct.) (filed May 8,
1992).

aceite ae

16

entirety. Pet. i, 10, 13, 16. As explained above, the
court of appeals correctly determined that this claim
must be raised in the Claims Court and accordingly
did not reach the issue. In any event, petitioner’s
claim lacks merit.

Petitioner’s assertion, Pet. 11-12, 15, that the See-
retary has a statutory duty to compensate producers
who are adversely affected by the salmonella control
program is flawed at every turn. First, petitioner
errs in asserting that 21 U.S.C. 134a affords the only
statutory authority for imposing restrictions on the
shipment of eggs or chickens that carry an infectious
disease. Congress, in 21 U.S.C. 111, 114a, and 120,
has provided the Secretary independent authority to
control and eradicate communicable diseases of poul-
try without regard to the adequacy of state disease
control measures and without ordering the physical
destruction of animals and animal products.

Second, the administrative record shows that the
Secretary had ample basis for imposing regulatory re-
strictions that stopped short of ordering the actual
physical destruction of infected eggs and chickens.
Petitioner implies that the Secretary irrationally de-
clined to direct the destruction of infected chickens
in order to avoid the mandatory compensation pro-
visions of 21 U.S.C. 134a(d). The Secretary, how-
ever, expressly determined that: (1) restrictions on
interstate shipments of potentially infected eggs and
chickens were adequate to prevent the spread of dis-
ease; (2) a program of mandatory destruction would
not provide significant additional protection in light
of the prevalence of salmonella in the environment
and the mode of disease transmission; and (3) the
economic impact on the industry would be ameliorated
by the availability of alternative markets, the rela-

Re

17

tively limited scope of the regulatory restrictions, and
increased consumer confidence. 56 Fed. Reg, 373]
(1991). The salmonella regulations thus reflect a
reasoned choicetot regulatory alternatives that is well
within the Secretary’s discretion.

Finally, regulatory restrictions that permit egg
production to be sold for pasteurization, hard-boiling,
or foreign export do not “destroy” chickens and eggs
or otherwise give rise to a right to compensation un-
der the pertinent statutes. The indemnification pro-
visions at issue, 21 U.S.C. 1148 and 134a(d), ex-
plicitly make indemnification contingent on the actual
“destruction” of animals or animal products. The
ordinary meaning of the term generally is “to ruin
completely” or “[t]o ruin the structure, organic ex-
istence or condition of a thing: to demolish; to in-
jure or mutilate beyond possibility of use.” Black’s
Law Dictionary 449 (6th ed. 1990): see also Weh-
ster’s Third New International Dictionary 615
(1986). If, as petitioner implies, Congress had in-
tended to make producers whole for any economic loss
incurred in a disease control program, Congress would
have said so expressly. The plain text of the statutes.
however, authorizes compensation in far narrower
circumstances that do not apply to this case.’

°In passing, petitioner claims that the regulations violate
the Fifth Amendment. Pet. i, 13 n.10. That claim does not
warrant reivew by this Court. As an initial matter, peti-
tioner has not adequately preserved that claim. The Ques-
tions Presented do not ask the Court to review such a claim;
the petition does not discuss or even make reference to any
of this Court’s Takings Clause cases; and the assertion that
the Constitution requires compensation is unsupported by
argument or legal explanation. The court of appeals also did
not address that claim, and this Court should not do so in the
first instance.

18

CONCLUSION

The petition for a writ of certiorari should be
denied.

Respectfully submitted.

KENNETH W. STARR
Solicitor General

STUART M. GERSON
Assistant Attorney General

DOUGLAS N. LETTER
JEFFREY CLAIR
Attorneys

JULY 1992

W U.S. GOVERNMENT PRINTING OFFICE; 1992 312324 45525

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386011_0703%3A2. Public record. Not legal advice.
