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7 U.S.C. § 499gReparation order

submitted 96 years ago by ch. 436 to r/title-7-AGRICULTURE · 1,197 words · no verdicts yet

in plain englishAI-generated · not legal advice

If the Secretary finds a violation, they order the offender to pay damages to the injured person. Either side can appeal the order to federal court within thirty days. An offender who doesn't pay or appeal has their license automatically suspended.

(a) Determination by Secretary of Agriculture of amount of damages; order for payment. If — after a hearing on a complaint under section 499f of this title, or without a hearing as allowed under section 499f(c) and (d), or because the person complained against failed to answer or appear — the Secretary finds that a commission merchant, dealer, or broker violated section 499b of this title, the Secretary must (unless the offender already made things right) figure out the damages owed and order the offender to pay the complainant by a set date. The Secretary must also order the losing party to pay the winning party's reasonable fees and expenses from the hearing, as part of the reparation. If the respondent's answer admits liability for part of the claimed damages, the Secretary may order payment of that undisputed amount by a set date, leaving the disputed part to be decided later the same way it would have been decided if no order had been issued yet. (b) Failure to comply with order of Secretary; suit to enforce liability; order as evidence; costs and fees. If the merchant, dealer, or broker doesn't pay the reparation award in time, the person it was meant to benefit can, within three years of the order, sue in the U.S. district court where they live or where the offender's main business is, or in a state court with general jurisdiction. The court's papers can be served and returned anywhere in the U.S. The suit proceeds like any other civil damages suit, except the Secretary's findings and order count as prima-facie evidence of the facts, and the person suing doesn't have to pay court costs unless they lose on appeal. If they win, they get a reasonable attorney's fee added to the costs. (c) Appeal from reparation order; proceedings. Either side unhappy with a reparation order can appeal to the U.S. district court within thirty days — normally the district where the hearing was held, but for cases decided without a hearing (or where a hearing was waived), the district where the party complained against is located. To appeal, the person files a notice of appeal and a petition (in duplicate) describing the prior proceedings and the grounds for appeal, with proof it was served on the other side. The appeal doesn't count unless the appellant also files, within those same thirty days, a bond for double the reparation amount, to cover the judgment plus interest, costs, and the other side's attorney's fee if they win. The bond can be cash, marketable securities worth at least that much, or a bond from an approved surety company. The court clerk sends a copy to the Secretary, who must promptly certify and file a true copy of the decision, findings, conclusions, order, and case pleadings. The district court case is a full new trial (a "trial de novo"), proceeding like any other civil damages suit, except the Secretary's findings and order still count as prima-facie evidence. The winning appellee doesn't pay costs and, if they win, gets a reasonable attorney's fee added to their costs. The petition and pleadings the Secretary certifies become the pleadings for the trial, though the court can allow amendments. (d) Suspension of license for failure to obey reparation order or appeal. If a licensee with a reparation order against them doesn't show the Secretary, within five days after the compliance deadline, that they either appealed or paid in full, their license is automatically suspended at the end of that five-day period. It stays suspended until they show they've paid the amount plus interest. If the appellee wins on appeal, or the appeal is dismissed, the automatic suspension starts thirty days after the appeal judgment. But if a court stays that judgment, the suspension instead starts ten days after the stay ends — unless the judgment gets paid before then.
the actual law source: uscode.house.gov ↗public domain
(a) Determination by Secretary of Agriculture of amount of damages; order for payment

If after a hearing on a complaint made by any person under section 499f of this title, or without hearing as provided in subsections (c) and (d) of section 499f of this title, or upon failure of the party complained against to answer a complaint duly served within the time prescribed, or to appear at a hearing after being duly notified, the Secretary determines that the commission merchant, dealer, or broker has violated any provision of section 499b of this title, he shall, unless the offender has already made reparation to the person complaining, determine the amount of damage, if any, to which such person is entitled as a result of such violation and shall make an order directing the offender to pay to such person complaining such amount on or before the date fixed in the order. The Secretary shall order any commission merchant, dealer, or broker who is the losing party to pay the prevailing party, as reparation or additional reparation, reasonable fees and expenses incurred in connection with any such hearing. If, after the respondent has filed his answer to the complaint, it appears therein that the respondent has admitted liability for a portion of the amount claimed in the complaint as damages, the Secretary under such rules and regulations as he shall prescribe, unless the respondent has already made reparation to the person complaining, may issue an order directing the respondent to pay to the complainant the undisputed amount on or before the date fixed in the order, leaving the respondent’s liability for the disputed amount for subsequent determination. The remaining disputed amount shall be determined in the same manner and under the same procedure as it would have been determined if no order had been issued by the Secretary with respect to the undisputed sum.

(b) Failure to comply with order of Secretary; suit to enforce liability; order as evidence; costs and fees

If any commission merchant, dealer, or broker does not pay the reparation award within the time specified in the Secretary’s order, the complainant, or any person for whose benefit such order was made, may within three years of the date of the order file in the district court of the United States for the district in which he resides or in which is located the principal place of business of the commission merchant, dealer, or broker, or in any State court having general jurisdiction of the parties, a petition setting forth briefly the causes for which he claims damages and the order of the Secretary in the premises. The orders, writs, and processes of the district courts may in these cases run, be served, and be returnable anywhere in the United States. Such suit in the district court shall proceed in all respects like other civil suits for damages, except that the findings and orders of the Secretary shall be prima-facie evidence of the facts therein stated, and the petitioner shall not be liable for costs in the district court, nor for costs at any subsequent state of the proceedings, unless they accrue upon his appeal. If the petitioner finally prevails, he shall be allowed a reasonable attorney’s fee, to be taxed and collected as a part of the costs of the suit.

(c) Appeal from reparation order; proceedings

Either party adversely affected by the entry of a reparation order by the Secretary may, within thirty days from and after the date of such order, appeal therefrom to the district court of the United States for the district in which said hearing was held: Provided, That in cases handled without a hearing in accordance with subsections (c) and (d) of section 499f of this title or in which a hearing has been waived by agreement of the parties, appeal shall be to the district court of the United States for the district in which the party complained against is located. Such appeal shall be perfected by the filing with the clerk of said court a notice of appeal, together with a petition in duplicate which shall recite prior proceedings before the Secretary and shall state the grounds upon which the petitioner relies to defeat the right of the adverse party to recover the damages claimed, with proof of service thereof upon the adverse party. Such appeal shall not be effective unless within thirty days from and after the date of the reparation order the appellant also files with the clerk a bond in double the amount of the reparation awarded against the appellant conditioned upon the payment of the judgment entered by the court, plus interest and costs, including a reasonable attorney’s fee for the appellee, if the appellee shall prevail. Such bond shall be in the form of cash, negotiable securities having a market value at least equivalent to the amount of bond prescribed, or the undertaking of a surety company on the approved list of sureties issued by the Treasury Department of the United States. The clerk of court shall immediately forward a copy thereof to the Secretary of Agriculture, who shall forthwith prepare, certify, and file in said court a true copy of the Secretary’s decision, findings of fact, conclusions, and order in said case, together with copies of the pleadings upon which the case was heard and submitted to the Secretary. Such suit in the district court shall be a trial de novo and shall proceed in all respects like other civil suits for damages, except that the findings of fact and order or orders of the Secretary shall be prima-facie evidence of the facts therein stated. Appellee shall not be liable for costs in said court and if appellee prevails he shall be allowed a reasonable attorney’s fee to be taxed and collected as a part of his costs. Such petition and pleadings certified by the Secretary upon which decision was made by him shall upon filing in the district court constitute the pleadings upon which said trial de novo shall proceed subject to any amendment allowed in that court.

(d) Suspension of license for failure to obey reparation order or appeal

Unless the licensee against whom a reparation order has been issued shows to the satisfaction of the Secretary within five days from the expiration of the period allowed for compliance with such order that he has either taken an appeal as herein authorized or has made payment in full as required by such order his license shall be suspended automatically at the expiration of such five-day period until he shows to the satisfaction of the Secretary that he has paid the amount therein specified with interest thereon to date of payment: Provided, That if on appeal the appellee prevails or if the appeal is dismissed the automatic suspension of license shall become effective at the expiration of thirty days from the date of the judgment on the appeal, but if the judgment is stayed by a court of competent jurisdiction the suspension shall become effective ten days after the expiration of such stay, unless prior thereto the judgment of the court has been satisfied.

Source credit: (June 10, 1930, ch. 436, § 7, 46 Stat. 534; Apr. 13, 1934, ch. 120, §§ 11–13, 48 Stat. 587, 588; June 19, 1936, ch. 602, § 3, 49 Stat. 1534; Aug. 20, 1937, ch. 719, § 10, 50 Stat. 728; June 23, 1938, ch. 599, 52 Stat. 953; May 14, 1940, ch. 196, 54 Stat. 214; Pub. L. 87–725, §§ 9, 10, Oct. 1, 1962, 76 Stat. 675; Pub. L. 92–231, § 2, Feb. 15, 1972, 86 Stat. 38; Pub. L. 102–237, title X, § 1011(5), Dec. 13, 1991, 105 Stat. 1898.)

history & why it existsrecord from the source credit
  • 1930Enacted · Act of June 10, 1930, ch. 436 · 46 Stat. 534
  • 1934Amended · Act of Apr. 13, 1934, ch. 120 · 48 Stat. 587, 588
  • 1936Amended · Act of June 19, 1936, ch. 602 · 49 Stat. 1534
  • 1937Amended · Act of Aug. 20, 1937, ch. 719 · 50 Stat. 728
  • 1938Amended · Act of June 23, 1938, ch. 599 · 52 Stat. 953
  • 1940Amended · Act of May 14, 1940, ch. 196 · 54 Stat. 214
  • 1962Amended · Pub. L. 87-725 · 76 Stat. 675
  • 1972Amended · Pub. L. 92-231 · 86 Stat. 38
  • 1991Amended · Pub. L. 102-237 · 105 Stat. 1898

A history note hasn’t been published yet. The record shows enactment by ch. 436 on 1930-06-10.

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