This appeal requires this court to examine the family business exemption from the Migrant and Seasonal Agricultural Worker Protection Act (“AWPA”), 29 U.S.C. §§ 1801 et seq. Appellants, two Texas-based migrant farmworkers, alleged that appellee, the owner of a family farm, deliberately discouraged them from accepting employment so he could import workers under a program that requires farmers first to attempt to hire American workers before receiving visas for foreign workers. Appellants alleged that appellee’s conduct violated the AWPA and that his misrepresentations of the terms and conditions of employment at his farm constituted fraud under Texas law. The district court granted appellee’s motion for summary judgment, dismissing the AWPA claim based on the family business exemption from the statute and dismissing the state law fraud claim based on a failure to raise a fact issue as to injury. We affirm the district court’s grant of summary judgment.
I. Background
Russell Garber and his wife own and operate a farm in Ohio. Beginning in 1999, Garber recruited migrant workers from Brazil, where he also owns a farming operation. Garber applied for visas for these farmworkers under the H-2A program administered by the United States Department of Labor (“DOL”). Under
Ovidio Malacara and David Rincones, both residents of McAllen, Texas, contacted the TWC after learning about job opportunities on Garber’s farm through the Texas advertisements. Garber flew from Ohio to Texas to interview Malacara, Rin-cones, and several others who had contacted the TWC. Garber conducted the interviews in the TWC office. The TWC provided an interpreter for Malacara and others who spoke no English. Malacara and Rincones alleged that in the interviews, Garber tried to discourage them from taking a job by misrepresenting the terms and conditions of the work. Mala-cara and Rincones claimed that Garber told them the work would be done in “cold snow” and offered to fly them to Ohio “in a manner that suggested Garber hoped they were afraid of flying.” Rincones, who spoke only English, alleged that Gar-ber warned that the inability to speak Spanish could be a problem in the workplace. Despite these alleged efforts at discouragement, Malacara and Rincones both expressed interest in taking the jobs. Garber promised to contact them shortly.
Garber responded that he accurately described the work at his farm during the interviews. Garber claimed that, in response to Rincones’s inquiry about the language that would be spoken on the job and in the living quarters, he informed Rin-cones that he and his son — who spoke English — were “running the show” in the fields. Garber contended that Rincones obviously knew that Garber spoke English and should have assumed that Garber’s son did as well. Garber told Rincones that he might be the only English-speaker in the living quarters. Garber asserted that he believed he had hired Rincones and Malacara at the interview; that Rincones had accepted; and that Malacara had not firmly accepted.
Garber telephoned Rincones to arrange his transportation to Ohio. Rincones alleged that during the telephone conversation, Garber emphasized the problem Rin-cones’s inability to speak Spanish could present at the work site, as well as the safety risks of the job. Garber alleged that he answered Rincones’s prior question about the language spoken in the living quarters and notes that, during the telephone call, “there was some confusion over
Garber also telephoned Malaeara. Ma-lacara claimed that during this conversation, he understood only the words “bus ticket” and never communicated to Garber any lack of interest in coming to Ohio. Garber disputed this version of events, claiming that Malaeara said that he had decided not to take the job in Ohio. Mala-cara asserted that when he did not hear from Garber again or receive a ticket for travel to Ohio, he “ultimately believed that Garber either had not really hired [him] at the interview, or that he had decided to reject [him] after the interview.”
Malaeara and Rincones sued Garber, alleging violations of the AWPA and the Immigration and Nationalities Act (“INA”) and fraud under Texas law. After discovery, Garber moved for summary judgment on all three claims. The district court granted Garber’s motion in its entirety. The court found that Garber fell under the family business exemption from the AWPA’s requirements, available if a farmer’s solicitation, recruitment, or furnishing of farmworkers is performed solely by the farmer or by immediate family members. As to the second cause of action, the court found that the plaintiffs had no private right of action under the INA. As to the fraud claim, the court found that, in response to the summary judgment motion, Rincones had failed to present or point to evidence raising a fact issue as to whether he was damaged, an essential element of the fraud cause of action.
Malaeara and Rincones appeal the district court’s dismissal of the AWPA claims, and Rincones appeals the district court dismissal of his fraud claim.
II. Analysis
This court reviews a district court’s grant of summary judgment
de novo,
applying the same standards as the district court.
BGHA LLC v. City of Universal City, Tex.,
A. The AWPA and the Family Business Exemption
The AWPA is designed “to assure necessary protections for migrant and seasonal agricultural workers.” 29 U.S.C. § 1801. The AWPA imposes requirements on labor contractors, agricultural employers, and agricultural associations. Farmers must disclose the terms and conditions of employment at the time of recruitment, § 1821(a); must make the disclosures in a
Family farmers who meet certain criteria are exempt from the statute. The AWPA provides:
(a) The following persons are not subject to this chapter—
(1) Family business exemption. — Any individual who engages in a farm labor contracting activity on behalf of a farm ... which is owned or operated exclusively by such individual or an immediate family member of such individual, if such activities are performed only for such operation and exclusively by such individual or an immediate family member, but without regard to whether such individual has incorporated or otherwise organized for business purposes.
29 U.S.C. § 1803(a)(1). The term “farm labor contracting activity” is defined as one of six types of acts: “recruiting, soliciting, hiring, employing, furnishing, or transporting any migrant or seasonal agricultural worker.” 29 U.S.C. § 1802(6). If a non-family member performs any labor contracting activity, that “spoils” an agricultural employer’s claim to the exemption.
Flores v. Rios,
It is undisputed that Garber and his wife are the sole owners of the Ohio farm and that Garber recruited workers exclusively for the family farm. The issue is whether Garber used non-family members to “recruit” farmworkers, so as to make Garber ineligible for the family farm exemption from the AWPA. Appellants contend that Garber’s use of the state employment agencies to locate prospective employees and his use of friends and neighbors to spread information about job opportunities through word-of-mouth makes him ineligible for the family business exemption. Garber responds that neither his use of the state agencies nor of friends or neighbors makes him ineligible for the exemption, arguing that he did not delegate to others any of the farm labor contracting activities set out in the statute.
One appellate court has considered whether a farmer’s use of a state employment service to help locate prospective workers makes that farmer ineligible for the family business exemption. In
Flores,
a tomato farmer located in Ohio hired Texas farmworkers referred by the Ohio Bureau of Employment Services (“OBES”).
The
Flores
court relied on
Calderon v. Witvoet,
This definition collects a number of contractual endeavors: making a contract of employment (“hiring”), maintaining a worker in the labor force (“employing”),preparing to do these things (“recruiting” and “soliciting”), and doing them for others (“furnishing”). The final term in this sequence, “transporting”, can be understood as still another contractual activity: obtaining and paying for a ticket that brings the worker to the farm or sends him to the next one.
Flores,
Malacara and Rincones do not argue that the TWC performed services materially different from the OBES. In this case, as in Flores, the state agency told workers of job opportunities and identified interested workers to prospective employers. Neither the OBES in Flores nor the TWC in this case made job offers. Rather, Malacara and Rincones contend that Flores is incorrectly decided. They contend that under the AWPA, such a use of a state agency to look for workers forfeits the family business exemption.
Garber responds that no case has disagreed with Flores in the years since it issued. Garber emphasizes that the position appellants advocate would create a Hobson’s choice for a farmer who chooses to avail himself of the H-2A visa program and otherwise qualifies for the family business exemption from the AWPA. Under the H-2A visa program, the DOL requires farmers to use state employment agencies to locate domestic workers before allowing visas to issue to foreign workers. Mala-cara and Rincones argue that surrender of the family farm exemption should be viewed as “a price of admission into the H-2 and H-2A programs,” requiring a farmer to choose between the family business exemption under the AWPA and the opportunity to hire foreign workers under the H-2A visa program.
The definition of “farm labor contracting activities” under the AWPA adopted in
Flores
and
Calderon
is consistent with the statute’s language and structure. The approach that Malacara and Rincones advocate would “divorc[e]” the statutory term “from its context.”
Calderon,
Malacara and Rincones rely on a DOL opinion letter stating that the use of a state employment service agency to locate workers vitiates the family business exemption. They argue that the letter is entitled to deference under
Skidmore v. Swift & Co.,
Malacara and Rincones argue that the family business exemption should be construed narrowly because Congress intended the AWPA to be remedial in nature.
See
H.R.Rep. No. 885, at 12, U.S.Code Cong. AND Admin. News 1982 at 4558 (“The Committee intends that the foregoing exemptions be construed narrowly in a manner that furthers the remedial purposes of this Act.”);
see also Bracamontes v. Weyerhaeuser Co.,
The use of state employment agencies to bring workers interested in out-of-state jobs together with family farmers, including those farmers considering using foreign workers, supports, rather than frustrates, the remedial goals of the AWPA. “Mindful of AWPA’s protective goals, we see no reason to deter family farmers from using the public employment service when the challenged practice poses no threat to workers.... In fact, the government’s presence in the labor market can only serve to protect workers like [the plaintiff]. The effectiveness of the public employment service directly reduces the workers’ need to rely on potentially-abusive crew leaders to find agricultural employment.”
Flores,
Malacara and Rincones also argue that Garber lost the family business exemption by using neighbors to spread news of job opportunities through word-of-mouth. The evidence they present to substantiate this claim is Garber’s statement in his application for H-2A visas that he “advertised by word of mouth.” The record reveals that in “word-of-mouth referrals,” Garber told “neighbors, acquaintances, and so on” that “I need help.” Neither the record nor the parties’ briefs indicate a more extensive use of any non-family “recruiters.”
In
Calderon,
the laborers’ oral reports of their experiences in the defendant’s farm allegedly led other migrant workers to work for the defendant. The Seventh Circuit held that unsolicited remarks by existing workers to their friends and family that led to additional job applications would not defeat the family farm exemption.
Malacara and Rincones argue that the touchstone for deciding whether a farmer is responsible for the activities of non-family intermediaries under the AWPA should be intentionality. They cite
Calderon
for the proposition that the “focus” should be on the farmer’s “own decisions and actions — including the choice, if [he] made one, to delegate” farm labor contracting activities to a non-family member.
The record does not indicate that Gar-ber delegated recruiting or hiring authority. Garber himself extended the job offers to applicants, only after personally interviewing them. Without evidence that Gar-ber ceded any control over recruiting or hiring to friends or neighbors, or even that they referred any workers to him, the record shows no delegation of recruiting authority that would defeat the AWPA exemption. To the contrary, the record reveals that Garber took pains to maintain his AWPA exemption. After the DOL required him to use the TWC to try to locate workers in Texas, Garber traveled to Texas to meet with interested applicants, interviewed them himself, and made the job offers himself. This record defeats an inference of delegation.
Malacara and Rincones contend that Garber failed to meet the burden of proving entitlement to the family business exemption, an affirmative defense. A party asserting an affirmative defense “must establish beyond peradventure
all
of the essential elements of the ... defense to warrant judgment in his favor.”
Chaplin v. NationsCredit Corp.,
B. The Fraud Claim
Under Texas law, the elements of a fraud cause of action are: (1) a material representation; (2) it was false when made; (3) the speaker either knew it was false or asserted it without knowledge of
Rincones contends that the district court improperly entered summary judgment
“sua sponte.”
He notes that Garber’s summary judgment motion focused on whether Garber had made misrepresentations and whether Rincones had reasonably relied on them. Rincones argues that the district court should have at least notified him that it intended to consider the lack of evidence of injury as a ground for summary judgment. Citing
Nowlin v. Resolution Trust Corp.,
Garber responds that a district court has an inherent “power to enter summary judgments
‘sua sponte,’
so long as the losing party was on notice that [he] had to come forward with all of [his] evidence.”
Celotex,
Garber’s motion for summary judgment did put Rincones on notice that he needed to point to or submit evidence as to each element of the fraud cause of action. The motion listed the six elements of a fraud cause of action under Texas law and argued that Garber was entitled to summary judgment “[b]ecause Plaintiffs cannot prove any of these elements much less all of them.”
Nowlin
does not state that notice is provided only when a movant specifically identifies the absence of evidence as to an element of the cause of action, but rather holds that adequate notice exists when the losing party is aware “that [he] had to come forward with all of [his] evidence.”
Rincones further contends that the record contained sufficient evidence of injury to preclude summary dismissal of the fraud claim. He states that evidence in the record showed that Garber’s contract with Rincones would have been worth $10,193.40 in wages plus free housing, while he earned only $3,710.78, with no housing, from the job he obtained in lieu of
When evidence exists in the summary judgment record but the nonmovant fails even to refer to it in the response to the motion for summary judgment, that evidence is not properly before the district court.
See Ragas v. Tennessee Gas Pipeline Co.,
This court affirms the district court’s grant of summary judgment on the fraud claim.
III. Conclusion
The district court correctly granted summary judgment to Garber on the AWPA claims by finding that he qualified for the family farm exemption and correctly granted summary judgment against Rincones on his fraud claim. The judgment below is
AFFIRMED.
Notes
. Malacara and Rincones cite the repealed Farm Labor Contractor Registration Act ("FLCRA”), 7 U.S.C. §§ 2041
et seq.,
the AWPA's predecessor statute, and this court’s decision in
Montelongo v. Meese,
.
Skidmore
requires a court to accord deference to an administrative judgment, "depend[ing] upon the thoroughness evident in its consideration, the validity of its reasoning, its consistency with earlier and later pronouncements, and all those factors which give it power to persuade, if lacking power to control.”
. Appellants initially argued that the district court failed to credit their evidence of damages, but conceded in their reply brief that "after re-reviewing the law, [they] agree with the Appellee that, post-Celotex, a district court need review only those portions of the record called to the court’s attention by the parties, and not the entire record, before granting summary judgment.
