United States v. Odessa Union Warehouse Co-Op Cecil A. Schell Edward Sewall Marvin Kleyn

INTRODUCTION

The United States brought this action to enjoin the sale and movement of wheat by appellee Odessa Union Warehouse Co-op (“Odessa”). The complaint alleged repeated violations of the Food, Drug, and Cosmetic Act (“FDCA”), 21 U.S.C. §§ 331 (a), 342(a)(3) & (4). The district court denied the government’s motion for a preliminary injunction and the government appeals. Because we conclude that the district court applied an erroneous legal standard in denying the injunction, we reverse the decision and remand the case to the district court to exercise its discretion in light of the correct standard.

BACKGROUND

In April 1986, the government conducted extensive inspections of thirteen grain elevators operated by Odessa in eastern and central Washington. The inspections revealed violations of the food contamination and adulteration standards of the FDCA. The condition of Odessa’s wheat at the time of the FDA inspection is uncontested. The wheat in the Odessa-operated elevators was moldy and contaminated with live and dead insects, insect larvae and rodent excreta. Various structural defects allowed for entry of rodents and birds at six of the storage stations.

Prior FDA…