Bennett v. Butz
| Citation | 386 F. Supp. 1059 |
| Decision Date | 11 October 1974 |
| Docket Number | No. 4-73 Civ. 284.,4-73 Civ. 284. |
| Parties | Joseph BENNETT et al., Plaintiffs, v. Earl L. BUTZ et al., Defendants. |
| Court | U.S. District Court — District of Minnesota |
COPYRIGHT MATERIAL OMITTED
Marino, Becker & Granquist by Luther Granquist, Legal Aid Society, Inc., Minneapolis, Minn., Ronald F. Pollack and Roger A. Schwartz, New York City, for plaintiffs.
Robert G. Renner by Thorwald H. Anderson, Jr., Asst. U. S. Atty., Minneapolis, Minn., for defendants.
By authority of the Food Stamp Act of 1964, 7 U.S.C. § 2011 et seq., the United States Department of Agriculture (U.S.D.A.) through state agencies, has established the Food Stamp Program whereby low income families may purchase food coupons with a face value higher than the purchase price. These coupons may then be used at their face value to buy food at approved stores. The difference between the discount price paid for the coupons and their face value varies depending upon the income of the eligible families. Federal funds make up the difference between the coupon purchase price and their face value and also pay for some of the administrative costs of the program. The two-fold purpose of the program is to increase the food purchasing power of low-income families so that they have an opportunity to obtain a nutritionally adequate diet and to strengthen the agricultural economy. 7 U.S.C. § 2011.
For fiscal year 1973, the Congress appropriated a total of $2.5 billion for the Food Stamp Program. In November or December 1972, the Secretary of Agriculture, in his 1974 budget submission, predicted that an unobligated balance of $302 million would remain in the Food Stamp Program at the end of fiscal year 1973. Subsequently, it has been established that the actual budget surplus for fiscal year 1973 was $278 million. In this action, the plaintiffs contend that this surplus arose because the Secretary of Agriculture did not administer the program in accordance with Congressional directives. They ask this Court to order the Secretary of Agriculture to submit to the Court a plan for expenditure of this money in a manner consistent with the Food Stamp Act.
On June 25, 1973, prior to the expiration of fiscal year 1973, this Court issued a preliminary injunction to prevent the disputed surplus from reverting into the general treasury fund. Subsequently, a hearing was held on cross motions for summary judgment and on defendants' motions to dismiss. Plaintiffs submitted substantial documentary and statistical evidence, none of which has been disputed factually by the defendants. Upon review of the evidence and briefs submitted by the parties, the Court finds that there are no material facts in dispute and that the plaintiffs are entitled to summary judgment on certain of their claims. The plaintiffs are two individual food stamp recipients and two welfare recipient groups — the Northwoods Welfare Committee of Anoka County and the National Welfare Rights Organization.1 Defendants are the United States Secretary of Agriculture, the Administrator of the Food and Nutrition Service of U.S.D.A. and the Director of the Food Stamp Division of the Food and Nutrition Service (F.N. S.). These officials have the responsibility for administration of the Food Stamp Act.
The plaintiffs claim that the Secretary and his subordinates failed in three respects to implement the statutory requirements of the Food Stamp Act during fiscal year 1973. First, they claim that the Secretary failed to implement the outreach requirements of the Food Stamp Act set forth in 7 U.S.C. § 2019(e)(5). This section mandates the Secretary to require, of each state participating in the Food Stamp Program, a plan for effective action to inform low-income persons of the benefits available under the program and "to insure the participation of eligible households." The plaintiffs claim that the Secretary failed to do this and refused to take remedial action after the states failed to formulate and implement appropriate outreach plans. Secondly, plaintiffs claim that the adoption by the Secretary of the Economy Food Plan as a basis for setting coupon allowance standards is inconsistent with those provisions of the Act requiring that recipients be provided with "an opportunity to obtain a nutritionally adequate diet." 7 U.S.C. §§ 2013(a), 2014(a) and 2016(a). Finally, they claim that the failure of the Secretary to revise the food stamp coupon allowance during fiscal year 1973 in light of sharp increases in food costs at that time was also inconsistent with the Act. For the reasons which are discussed in detail below, the Court concludes that the plaintiffs are entitled to relief on their first claim only.
In addition to their summary judgment motion, defendants have moved for dismissal on the grounds that this Court lacks jurisdiction to hear this dispute. Consequently, this motion must be considered before discussing the merits of the case. As was indicated in the findings of fact, conclusions of law and order granting the preliminary injunction, jurisdiction in this case may be founded upon 28 U.S.C. § 1337 (1970) because it is one which arises out of an Act of Congress regulating commerce. See Moreno v. United States Department of Agriculture, 345 F.Supp. 310, 313 (D.D.C.1972), affd. 413 U.S. 528, 93 S. Ct. 2821, 37 L.Ed.2d 782 (1973); Lidie v. State of California, 478 F.2d 552, 554 (9th Cir. 1973). In addition, the Court also finds that jurisdiction in this matter exists under 28 U.S.C. § 1361 (1970) which provides that the District Courts "shall have original jurisdiction of any action in the nature of mandamus to compel an officer or employee of the United States or any agency thereof to perform a duty owed to the plaintiff."
Defendants are clearly officers or employees of the United States within the meaning of the Act and plaintiffs contend that they are owed the duty of spending the surplus on the food stamp program. This contention is not frivolous or insubstantial. Thus, plaintiffs have alleged the prerequisites for jurisdiction under this section and it is appropriate for the Court to exercise its jurisdiction to determine the scope of the defendants' discretion and whether defendants' conduct was an abuse of this discretion. See e. g., National Ass'n of Government Workers v. White, 135 U.S. App.D.C. 290, 418 F.2d 1126, 1129 (1969); Bailey v. Romney, 359 F.Supp. 596, 599 (D.D.C.1972). Whether the conduct sought is susceptible to relief under the strict standards for the issuance of a writ in the nature of mandamus is not a jurisdictional issue but one which must be resolved on consideration of the merits of the case.
As another grounds to bar a hearing on the merits of the controversy, defendants contend that this is an unconsented suit against the government which calls for expenditures on the public treasury. For this reason, it is argued, the action is not maintainable under the doctrine of sovereign immunity. This case, however, falls within one of the well recognized exceptions to the sovereign immunity doctrine. According to Dugan v. Rank, 372 U.S. 609, 83 S.Ct. 999, 10 L.Ed.2d 15 (1963), the doctrine does not apply to "action by officers beyond their statutory powers." Id. at 621, 83 S.Ct. at 1007. See also, Larson v. Domestic and Foreign Commerce Corp., 337 U.S. 682, 689-690, 69 S.Ct. 1457, 93 L.Ed. 1628 (1949); State Highway Commission of Missouri v. Volpe, 479 F.2d 1099, 1123 (8th Cir. 1973). Moreover, the relief sought in this matter does not call for the unauthorized expenditure of sovereign funds. On the contrary, it merely seeks to have the defendants comply with what is alleged to be a Congressional directive to spend certain funds already authorized and appropriated.
The plaintiffs' claim with respect to the outreach requirements of the Act must be viewed in the context of the development of the food stamp program. Originally, the program was established in 1961 as a pilot project operated under the discretionary authority of the Secretary of Agriculture. See, H.Rep.No. 1228, 88th Cong., 2d Sess. (1964), at 2. The Congress determined that the program worked and had the effect of expanding the agricultural economy by stimulating increased food sales and of improving the nutritional status of low-income households. Id. at 5, 8-12; S. Rep. No. 1124, 88th Cong., 2d Sess. (1964), at 1, 5-8. When the Act was adopted in 1964, it was recognized that the program could have been continued without further legislation, but that it was preferable for the program to be under the specific legislative direction and control of the Congress. H.Rep. No. 1228, 88th Cong., 2d Sess. (1964), at 2.
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