Horne v. Department of Agriculture
133 S. Ct. 2053
| SCOTUS | 2013Background
- AMAA and California Raisin Marketing Order regulate only ‘handlers’ who process or market raisins; producers are exempt from direct regulation.
- Raisin marketers RAC may create reserve pools (reserve-tonnage) and allocate portions of crop to reserve; producers receive limited proceeds from RAC later.
- Hornes were raisin producers who arranged Lassen Vineyards to process and market raisins for a fee, avoiding traditional handler role.
- USDA enforcement alleged Hornes acted as handlers for 2002–2003 and 2003–2004 crop years, imposing fines, assessments, and reserve-requirement penalties.
- Hornes argued they were producers not handlers and raised Fifth Amendment takings defense; ALJ and district court found them handlers; Ninth Circuit affirmed jurisdictional ruling but avoided ruling on takings due to jurisdictional issue.
- Supreme Court held the AMAA's remedial scheme withdraws Tucker Act jurisdiction over a handler’s takings claim and that petitioners, as handlers, could raise takings defense in enforcement proceeding and seek review under §608c(14).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Ninth Circuit had jurisdiction to hear takings claim | Hornes were producers, not handlers, so takings claim belongs in Court of Federal Claims | Hornes were handlers; monetary penalties arise from enforcement of Marketing Order; Ninth Circuit jurisdiction appropriate | Yes; Ninth Circuit lacked jurisdiction only if petitioners were producers; court must decide where jurisdiction lies (as handlers) |
| Ripeness and Tucker Act depletion in takings claim | AMAA provides comprehensive remedy; cannot rely on Tucker Act | ripeness bar under Williamson County applies; AMAA remedial scheme withdraws Tucker Act jurisdiction | AMAA withdraws Tucker Act jurisdiction; claim not premature for handlers |
| Whether takings defense may be raised in enforcement proceeding under §608c(14) | Constitutional defense appropriate in enforcement proceeding | Required to pursue direct challenge under §608c(15); enforcement + fines not permit takings defense | Yes; handlers may raise takings defense in enforcement proceeding; no need to wait for direct challenge |
| Whether petitioners were properly classified as handlers under the Marketing Order | Petitioners operated as producers and did not engage in handling activities | Petitioners engaged in packing, processing, and other handling activities; subject to order | Petitioners were handlers; subject to the Marketing Order |
Key Cases Cited
- Williamson County Regional Planning Comm’n v. Hamilton Bank of Johnson City, 473 U.S. 172 (1985) (takings claim not ripe if no final decision or compensation process)
- Eastern Enterprises v. Apfel, 524 U.S. 498 (1998) (prematurity and compensation processes in takings claims)
- United States v. Ruzicka, 329 U.S. 287 (1946) (administrative challenges to orders must be raised in agency proceedings)
- Lucas v. South Carolina Coastal Council, 505 U.S. 1003 (1992) (ripeness/possession considerations in takings)
- Fausto v. United States, 484 U.S. 439 (1988) (statutory displacement of Tucker Act jurisdiction by remedial schemes)
- Lone v. Detroit Timber & Lumber Co., 200 U.S. 321 (1906) (establishes administrative convenience and non-delegation principles)
