Reed Smith and Valoy Smith, Husband and Wife v. John Block, in His Capacity as Secretary of the United States Department of Agriculture

The Smiths appeal the district court decision granting the Farmers Home Administration’s (FmHA) motion for summary judgment and dismissing their action to enjoin the FmHA from further action regarding their property. Because the Smiths do not have standing to complain of the FmHA’s failure to give notice of moratorium rights, we affirm the district court’s dismissal of the case.

I. FACTS

The Equitable Life Assurance Society (Equitable) held a first mortgage on the Smiths’ farm. On December 30, 1977, the FmHA loaned the Smiths $320,000, securing it by a second mortgage on the same property. The FmHA served notice of acceleration to the Smiths in April 1980, but did not commence foreclosure proceedings or give notice of the provisions of 7 U.S.C. § 1981a (1982).

Equitable, however, foreclosed on the farm in June 1981. At a public Sheriff's sale, the FmHA purchased the farm to protect its security interest. After the Smiths failed to exercise their redemption rights under Idaho law and under a nine month extension, the Sheriff conveyed title to the FmHA.

On October 13, 1983, the Smiths filed an action for injunctive relief, asserting that the FmHA failed to give them notice of…