Farley and Calfee, Inc. v. U.S. Department of Agriculture

Farley and Calfee, Inc. (F & C), petitions this court for review of the Department of Agriculture’s decision and order finding that it violated the Perishable Agricultural Commodities Act. Specifically, the petitioner disputes the Judicial Officer’s reversal of the Administrative Law Judge’s decision to backdate its disciplinary order. Backdating the order had the effect of insulating Roy Farley, 100% stockholder and president of Farley and Calfee, Inc., from the Act’s sanctions against “responsibly connected” persons. We affirm the Department’s decision.

I.

The parties stipulated to all relevant facts in the agency proceedings. F & C was a fruit and vegetable brokerage located in Oregon. It was licensed under the Perishable Agricultural Commodities Act (“PACA” or “the Act”), 7 U.S.C. § 499a et seq., from 1977 until 1986, when its license expired due to failure to pay the renewal fee. During all relevant times, the corporation was owned entirely by Roy E. Farley, Jr., who was a PACA licensee for 41 years.

This case arose out of a series of transactions which occurred between August 1985 and November 1985, in which F & C failed to pay promptly for perishable agricultural…