Leonard O'day, Dba Leonard O'Day Company v. George Arakelian Farms, Inc., a California Corporation, United States of America, Intervenor

Appellant challenges the constitutionality of the provision of the Perishable Agricultural Commodities Act of 1930, 7 U.S.C. § 499g(c), requiring a double bond to effectuate an appeal to a district court from a reparations award entered by the Secretary of Agriculture. The district court upheld the requirement. We reverse.

The principal purpose of the Perishable Agricultural Commodities Act is “to provide a practical remedy to small farmers and growers who were vulnerable to the sharp practices of financially irresponsible and unscrupulous brokers in perishable commodities.” Chidsey v. Guerin, 443 F.2d 584, 587 (6th Cir. 1971). Accordingly, certain conduct by commission merchants, dealers, or brokers is declared to be unlawful. 7 U.S.C. § 499b. All commission merchants, dealers, and brokers are required to be licensed. Id. § 499c. Any person may complain to the Secretary of Agriculture of an alleged violation of the statutory code of conduct. Id. § 499f. If after notice and hearing or default the Secretary determines that the licensee has violated the statutory code, he may order the offender to make reparations to the complainant. Id. § 499g(a). The licensee may appeal to a…