Blackfoot Livestock Commission, Co. v. Department of Agriculture, Packers and Stockyards Administration

Blackfoot Livestock Commission Company appeals the decision of the Department of Agriculture, finding a violation of the Packers and Stockyards Act, 7 U.S.C. §§ 181-229 . We hold that substantial evidence in the record supports the agency’s decision. We further hold that the finding of check-kiting was not precluded by a pri- or court decision, the agency had the authority to increase the sanction, and the Jencks Act was not violated. BACKGROUND

Blackfoot operates a stockyard and livestock auction registered with the Secretary of Agriculture and regulated under the Packers and Stockyards Act, 7 U.S.C. §§ 181-229 (“the Act”). The Act requires registered livestock auctions to act as fiduciaries, assuring livestock sellers of receiving fair market value for their livestock. Auctions must keep separate accounts and records for consignors, and may not use unfair or deceptive trade practices in conducting their sales.

In 1983, the Secretary filed a complaint alleging that Blackfoot had operated while insolvent, misapplied funds in its trust accounts, engaged in speculative livestock purchases, paid consignors with drafts instead of checks, and engaged in a check-kiting scheme, all in…