Paramount Land Co. Lp v. Cal. Pistachio Com'n., 06-55054.
| Decision Date | 08 June 2007 |
| Docket Number | No. 06-55054.,06-55054. |
| Citation | 491 F.3d 1003 |
| Parties | PARAMOUNT LAND COMPANY LP, a California limited partnership; Paramount Orchards Partners VI LLC, a Delaware limited liability company; WV Acquisition Corporation, a Delaware corporation; Paramount Farms Inc., Plaintiffs-Appellees, v. CALIFORNIA PISTACHIO COMMISSION, a California corporation, Defendant-Appellant, v. William H. Kimball, an individual; Central Green Company LP, a California limited partnership; Jack Brewer, an individual; Yosemite Retirement Cap Growth Fund; Lowe Pistachio Ranch LLC, a California limited liability company; Steve Yost, an individual; John J. Gudebski, an individual; Erich Stegelmann, an individual; James Nielsen, an individual; Robert Manlove, an individual; Haley Pistcachio Ranch; Dr. Grace Blair, an individual; Kamm South LLC, a limited liability company; Reina Properties; Samar Pistachio Ranch LP, a California limited partnership; Capri Pistachio Ranch LP, a California limited partnership; Palau Pistachio Ranch LP, a California limited partnership; Timor Pistachio Ranch LP, a California limited liability partnership; Gary Hageman, an individual; Coulthard Ranch; Floyd Harlan, an individual; Dr. Kenneth D. Hirsch, an individual; Harlan Ranch Co.; Budke Farms Inc.; Marvin R. Yost, Trustee on behalf of Marvin R. Yost Trust; Nagatani Farms LP, a limited partnership; Amin Orchards Co.; Aldo Pistachio, Trustee on behalf of Pistachio Lorraine Trust; Dr. M.W. Sulliyan, an individual; Robert A. Yost, an individual; Moffett Creek Ranch Partnership; Pendola Truckee Venture; Santa Fe Orchards Partnership; Sei-Saw Rancho; James Bullard, an individual; Catherine Bullard, an individual; McDevitt Ranch Ethel Kimball, an individual; Florence Thom, an individual; Ron Judson, an individual; Barbara Judson, an individual; Van Alsberg Spence; Beatrice Reed, an individual; Sandra Nielsen, an individual; Robert Morris, an individual; Dan Ewell, an individual; Sheila Martin, an individual; Madera Pistachio Ranch # 2A; Madera Pistachio Ranch # 2B; Madera Pistachio Ranch # 2C; Madera Pistachio Ranch # 3; MD Craig Campbell, an individual; Professional Farming Capital Pistachio Grove; Peter J. Hinton, an individual; Citrus Ranches LLP, a limited liability company; Lee Crumbley Pistachios; Frank J. Bellino, an individual; Milton Greenstein, an individual; Harriet Chan-Meyers, an individual and as Administrator on behalf of Kong Bypass Trust; Forest V. Young, an individual; Stephen Leung, an individual; RV Dairy; Manning Ave Pistachios; Jeff Dickey, an individual; Cloyd R. Chamberlain, an individual; Judy L. Mueller, an individual; Thomas L. Griggs, an individual; Murrell Ranch; KC Farms Inc., a corporation; Keith Hansen Ranch; Planada LLC, a limited liability company; Fowler/Parlier Farms; Howard Silen, an individual; Shirley Conaway, an individual; Arthur Imirian, an individual; Donald E. Bonander, an individual; Robert Lane, an individual; Prrisio Bros; Glen Kreider; an individual; Gurcharian S. Sra, an individual; Johnny Lau, an individual; Paul George Sobaje, an individual; Quist Farms; Richard C. Wyer,; Doug Carman, an individual; First Harvest Pistachio LP, a limited partnership; Golden Pistachio Groves LP, a limited partnership; Madera Ranch Company LP, a limited partnership; San Joaquin Groves; Multi Crop Partners LP, a limited partnership; Sharon Pistachio Farms II; Sharon Pistachio Partners III; Durham Growers LP, a limited partnership; Berenda Farms LP, a limited partnership; Sierra View Pistachio Farms LP, a limited partnership; Gary Bess, an individual; Main Ranch LP, a limited partnership; Earmark Enterprise Inc.; Anne M. Buck, an individual; Janet L. Smith, Trustee on behalf of the Smith Family Trust; Richard Johnson, an individual; Clyde Davis, an individual; Apache Grove Land Program 1970; Apache Grove Land Program 1971; Erik Giese, an individual; Tom Bales, an individual; J. Ellsworth Osborne, an individual; Kosareff Farms; MD Eugene F. Gulish, an individual; Herbert Singer; Apache Grove Land Program 1972; Yosemite Ranch; John M. Kong, an individual; Singer Properties; MD Robert Gwyan, an individual; Allen F. Schweich, an individual; Hai-Rou Chu, an individual; Chuu-Chyan Chu, an individual; Jay Taylor, an individual; Robert Montgomery, Trustee on behalf of Robert L. and Joan S. Montgomery Family Trust; Robert Montgomery, an individual; Concentric Enterprise Inc., a Nevada corporation; Gary Steifavter, an individual; Don Parisio, an individual; Barbara Parisio, in individual; Aggi Oschin, an individual; Dowmar Family Partnership; A. Iafrati Farms; Anthony Iafrati, an individual; Gerardo Orozco, an individual; Roberts Ranch; A. Iafrati Farms LP; Gregory Watts, an individual; Rory Watts, an individual; Paul M. Watts, an individual; Snowden Boyle Jr., an individual; Ted Bear, an individual; Wan Hsi Pan, an individual; J. Patrick Rooney, an individual; Lash Farms LLP, a limited liability company, Plaintiff-Intervenors-Appellees. |
| Court | U.S. Court of Appeals — Ninth Circuit |
Seth P. Waxman, Randolph D. Moss, Neil J. King, and Todd Zubler, Wilmer Cutler Pickering Hale and Dorr LLO, Washington, DC, and Jan L. Kahn, George Soares, Rissa A. Stuart, Kahn, Soares & Conway, LLP, Hanford, CA, for Appellant.
Rex S. Heinke, Michael C. Small, and Edward P. Lazarus, Akin Gump Strauss Hauer & Feld LLP, Los Angeles, CA, and Brian C. Leighton, Law Offices of Brian C. Leighton, Clovis, CA, for appellees Paramount Land Company and affiliated entities.
Andrew S. Clare and Scott Lidman, Loeb and Loeb, L.L.P., Los Angeles, CA, for appellees Madera Pistachio Ranch # 2 and affiliated entities.
Appeal from the United States District Court for the Central District of California; Margaret M. Morrow, District Judge, Presiding. D.C. No. CV-05-07156-MMM.
Before: CYNTHIA HOLCOMB HALL, M. MARGARET McKEOWN, and KIM McLANE WARDLAW, Circuit Judges.
In this appeal we consider whether a statutory scheme compelling California pistachio growers to fund generic advertising through the California Pistachio Commission ("Pistachio Commission") violates the First Amendment. More specifically, we address whether this generic advertising is "the Government's own speech and therefore is exempt from First Amendment scrutiny" under the Supreme Court's analysis in Johanns v. Livestock Marketing Association, 544 U.S. 550, 553, 125 S.Ct. 2055, 161 L.Ed.2d 896 (2005).
A group of pistachio growers, Paramount Land Company, L.P., Paramount Orchards Partners VI LLC, WV Acquisition Corporation, and Paramount Farms, Inc., and intervenors William Koch and Donald Quist (collectively "Paramount"), challenge the marketing and promotional activities of the Pistachio Commission. Paramount argues that the annual subsidies mandated by the California Pistachio Act of 1980 (the "Pistachio Act"), Cal. Food. & Agric. Code §§ 69001-69114, and administered by the Pistachio Commission constitute compelled speech in violation of the First Amendment.
This issue arises in the context of the Pistachio Commission's appeal of a preliminary injunction forbidding it from collecting and using the challenged assessments until the litigation is resolved on the merits. Because it is not apparent on this record that Paramount can meet its burden to establish a First Amendment violation, Paramount has not demonstrated a likelihood of success on the merits. Although Paramount has raised the specter of irreparable injury by bringing a colorable First Amendment claim, its showing with respect to the merits is insufficient to sustain an injunction. We reverse the judgment of the district court and vacate the injunction.
The California state legislature created the Pistachio Commission "to enhance and preserve the economic interests of the State of California," by, among other activities, "[i]mplement[ing] public policy through[its] expressive conduct." Cal. Food & Agric. Code § 63901. The Pistachio Commission administers the Pistachio Act and supports the pistachio industry through advertising, marketing, research, and government relations campaigns. See Pistachio Act § 69051.
The Pistachio Commission is authorized to undertake a broad range of activity: (1) research into production, food safety, marketing, crop protection and production materials, (2) promotion of the elimination of trade barriers, (3) consumer education regarding the health benefits of pistachios, (4) demand-side regulation to stabilize the market, (5) analysis of relevant foreign, federal and state regulation, (6) cooperative crisis resolution, (7) cooperation with state and federal agencies in foreign negotiations, and (8) support of industry self-regulation. See Cal. Food & Agric. Code §§ 63901-63901.3. This regulatory scheme, which applies to all councils and commissions relating to agricultural or seafood markets in California, is designed to "work subject to, and together with, the constraints placed on the agricultural industry by state and federal statutes and regulations and international restrictions." Id. § 63901.4.
The Pistachio Commission has nine members, eight selected by California pistachio growers and one selected by the Secretary of the California Department of Food and Agriculture ("CDFA"). Pistachio Act § 69031. Acting through committees chaired by the commissioners, the Commission meets three times a year and employs a full-time staff to handle daily operations. In addition to appointing one member of the committee, the Secretary of the CDFA (or a designee), may attend and participate in Pistachio Commission or committee meetings as an ex officio member. Id. Like other entities in the state government, the Commission is subject to transparency and ethics regulations designed to promote public accountability.
The Secretary retains broad statutory authority to: (1) review and approve the ...
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