The opinion of the court was delivered by: John E. Miller, Chief Judge.
This is a civil action by the United States to recover payments
made by the Department of Agriculture to the defendant
partnership for livestock feed under the 1954 Emergency Feed
Program. The defendant has filed, under Rule 12(c), Federal Rules
of Civil Procedure, 28 U.S.C.A., a motion for judgment on the
pleadings to which is attached the affidavit of two Committeemen.
The motion is erroneously designated as a "Motion to Dismiss,"
but will be considered by the court as a motion for summary
judgment pursuant to Rule 56.
The facts as shown by the pleadings and affidavit are not in
dispute, and are as follows:
The defendant, Wiley's Cove Ranch, is a partnership composed of
Mrs. Drucilla Mays, Ed Behnken and Virginia Behnken, his wife,
and Mrs. Edna Lee Seeger. The principal place of business and
headquarters of the partnership is at Leslie, Searcy County,
within the Western District of Arkansas. In 1954 the manager of
the ranch, W.J. Seeger, now deceased, applied for federal
assistance under the provisions of the 1954 Emergency Feed
Program. The first application was dated September 9, 1954, and
the second December 13, 1954. Both applications were approved by
the local County Committee appointed pursuant to the
Bankhead-Jones Farm Tenant Act, 7 U.S.C.A. § 1000 et seq.
Following the original approval, the County Committee was
requested to reexamine the question of the defendant
partnership's eligibility under the terms of the program. The
defendant's status was again investigated by the County Committee
and was subsequently recertified as to eligibility. The
Department of Agriculture then issued 13 purchase orders for feed
to the defendant partnership, thereby allowing it to receive
341,000 pounds of surplus grain at a total cost to the Government
of $3,410.
In the complaint the Government merely alleges that the
defendant partnership was not eligible for assistance under the
program. In answer to an interrogatory, the Government spelled
this allegation out with more particularity in saying:
"4. The financial condition and net worth of the
partnership was not such that it required assistance
under this program to maintain its foundation herd of
livestock and to continue its livestock operations."
It should be noted that the Government does not allege fraud on
the part of the defendant partnership or on the part of the
County Committee.
In the affidavit executed by the two members of the Searcy
County Committee still residing within the State, inter alia, it
is stated:
"That during the year of 1954 the said William J.
Seeger was manager of the said Wiley's Cove Ranch and
authorized to act for and in behalf of the Mays
family in the operation of the said Wiley's Cove
Ranch; that the said William J. Seeger is now
deceased. Affiants further state that the said
William J. Seeger made proper application for feed
under said Emergency Feed Program and that said
County Committee made proper and due investigation of
said application and determined that the said Wiley's
Cove Ranch was fully eligible to receive feed under
said program.
"That following the original certification of
eligibility of said Wiley's Cove Ranch said County
Committee was requested to re-examine the question of
the eligibility of said Wiley's Cove Ranch to receive
said emergency relief, and this reexamination was
requested and done by reason of the fact that some
question had arisen as to the eligibility of the
Ranch to receive the aid aforesaid.
"That said Committee accordingly made a thorough
investigation of the condition existing at the
Wiley's Cove Ranch in reference to the eligibility
aforesaid, and said Committee again found and
determined that the said Wiley's Cove Ranch was fully
and completely eligible to receive said help, and
said County Committee again re-certified said fact to
be true, and that the records of the Farmer's Home
Administration will reflect the above facts to be
true; that affiants are not related by blood or
marriage to any member of the Mays family and that
they have no personal interest, one way or another in
the matter under discussion herein, and that they and
each of them feel that they performed their duties as
prescribed by law, * *."
Therefore the question before the court is whether the
defendant partnership is entitled to a judgment as a matter of
law. To determine this, it must be decided whether the findings
of the County Committee can now be set aside and the question of
eligibility be determined by this court In order to do this it is
necessary to examine the law that created the Emergency Feed
Program of 1954, and the regulations under which the program was
administered.
The basic statutory authority is found in 12 U.S.C.A. §
1148a-2(d):
"The Secretary is authorized in connection with any
major disaster determined by the President to warrant
assistance by the Federal Government under sections
1855-1855g of Title 42, to furnish to established
farmers, ranchers, or stockmen feed for livestock or
seeds for planting for such period or periods of time
and under such terms and conditions as the Secretary
may determine to be required by the nature and effect
of the disaster. The Secretary may utilize the
personnel, facilities, property, and funds of any
agency of the United States Department of
Agriculture, including Commodity Credit Corporation,
for carrying out these functions and shall reimburse
the agencies so utilized for the value of any
commodities furnished which are not paid for by the
farmers or ranchmen, and for costs and administrative
expenses necessary in performing such functions."
Acting pursuant to this statute, the Secretary of Agriculture
delegated to the Farmers Home Administration the duty of
administering the program. This regulation is found in 19 Federal
Register 4674, and provides:
"Transfer of Certain Functions With Respect to the
Feed and Hay Programs to the Farmers Home
Administration
"Pursuant to the authority contained in section
42(d) of the Bankhead-Jones Farm Tenant Act, as
amended (7 U.S.C. § 1016(d)), Reorganization Plan No. 2
of 1953 [5 U.S.C.A. following section 133z-15], and
the delegation from the Administrator, Civil Defense
Administration, as amended (18 F.R. 4609, 19 F.R.
2148), section 1400 of the Secretary's Order of
December 24, 1953
(19 F.R. 74), is further amended so as to transfer
to the Farmers Home Administration the function and
responsibility of providing eligibility rules and
certifications for applicants for assistance in
obtaining livestock feed, including hay, and to
assign to the county ...