§ 499g. — Reparation order.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC499g]
TITLE 7--AGRICULTURE
CHAPTER 20A--PERISHABLE AGRICULTURAL COMMODITIES
Sec. 499g. Reparation order
(a) Determination by Secretary of Agriculture of amount of damages;
order for payment
If after a hearing on a complaint made by any person under section
499f of this title, or without hearing as provided in subsections (c)
and (d) of section 499f of this title, or upon failure of the party
complained against to answer a complaint duly served within the time
prescribed, or to appear at a hearing after being duly notified, the
Secretary determines that the commission merchant, dealer, or broker has
violated any provision of section 499b of this title, he shall, unless
the offender has already made reparation to the person complaining,
determine the amount of damage, if any, to which such person is entitled
as a result of such violation and shall make an order directing the
offender to pay to such person complaining such amount on or before the
date fixed in the order. The Secretary shall order any commission
merchant, dealer, or broker who is the losing party to pay the
prevailing party, as reparation or additional reparation, reasonable
fees and expenses incurred in connection with any such hearing. If,
after the respondent has filed his answer to the complaint, it appears
therein that the respondent has admitted liability for a portion of the
amount claimed in the complaint as damages, the Secretary under such
rules and regulations as he shall prescribe, unless the respondent has
already made reparation to the person complaining, may issue an order
directing the respondent to pay to the complainant the undisputed amount
on or before the date fixed in the order, leaving the respondent's
liability for the disputed amount for subsequent determination. The
remaining disputed amount shall be determined in the same manner and
under the same procedure as it would have been determined if no order
had been issued by the Secretary with respect to the undisputed sum.
(b) Failure to comply with order of Secretary; suit to enforce
liability; order as evidence; costs and fees
If any commission merchant, dealer, or broker does not pay the
reparation award within the time specified in the Secretary's order, the
complainant, or any person for whose benefit such order was made, may
within three years of the date of the order file in the district court
of the United States for the district in which he resides or in which is
located the principal place of business of the commission merchant,
dealer, or broker, or in any State court having general jurisdiction of
the parties, a petition setting forth briefly the causes for which he
claims damages and the order of the Secretary in the premises. The
orders, writs, and processes of the district courts may in these cases
run, be served, and be returnable anywhere in the United States. Such
suit in the district court shall proceed in all respects like other
civil suits for damages, except that the findings and orders of the
Secretary shall be prima-facie evidence of the facts therein stated, and
the petitioner shall not be liable for costs in the district court, nor
for costs at any subsequent state of the proceedings, unless they accrue
upon his appeal. If the petitioner finally prevails, he shall be allowed
a reasonable attorney's fee, to be taxed and collected as a part of the
costs of the suit.
(c) Appeal from reparation order; proceedings
Either party adversely affected by the entry of a reparation order
by the Secretary may, within thirty days from and after the date of such
order, appeal therefrom to the district court of the United States for
the district in which said hearing was held: Provided, That in cases
handled without a hearing in accordance with subsections (c) and (d) of
section 499f of this title or in which a hearing has been waived by
agreement of the parties, appeal shall be to the district court of the
United States for the district in which the party complained against is
located. Such appeal shall be perfected by the filing with the clerk of
said court a notice of appeal, together with a petition in duplicate
which shall recite prior proceedings before the Secretary and shall
state the grounds upon which the petitioner relies to defeat the right
of the adverse party to recover the damages claimed, with proof of
service thereof upon the adverse party. Such appeal shall not be
effective unless within thirty days from and after the date of the
reparation order the appellant also files with the clerk a bond in
double the amount of the reparation awarded against the appellant
conditioned upon the payment of the judgment entered by the court, plus
interest and costs, including a reasonable attorney's fee for the
appellee, if the appellee shall prevail. Such bond shall be in the form
of cash, negotiable securities having a market value at least equivalent
to the amount of bond prescribed, or the undertaking of a surety company
on the approved list of sureties issued by the Treasury Department of
the United States. The clerk of court shall immediately forward a copy
thereof to the Secretary of Agriculture, who shall forthwith prepare,
certify, and file in said court a true copy of the Secretary's decision,
findings of fact, conclusions, and order in said case, together with
copies of the pleadings upon which the case was heard and submitted to
the Secretary. Such suit in the district court shall be a trial de novo
and shall proceed in all respects like other civil suits for damages,
except that the findings of fact and order or orders of the Secretary
shall be prima-facie evidence of the facts therein stated. Appellee
shall not be liable for costs in said court and if appellee prevails he
shall be allowed a reasonable attorney's fee to be taxed and collected
as a part of his costs. Such petition and pleadings certified by the
Secretary upon which decision was made by him shall upon filing in the
district court constitute the pleadings upon which said trial de novo
shall proceed subject to any amendment allowed in that court.
(d) Suspension of license for failure to obey reparation order or appeal
Unless the licensee against whom a reparation order has been issued
shows to the satisfaction of the Secretary within five days from the
expiration of the period allowed for compliance with such order that he
has either taken an appeal as herein authorized or has made payment in
full as required by such order his license shall be suspended
automatically at the expiration of such five-day period until he shows
to the satisfaction of the Secretary that he has paid the amount therein
specified with interest thereon to date of payment: Provided, That if on
appeal the appellee prevails or if the appeal is dismissed the automatic
suspension of license shall become effective at the expiration of thirty
days from the date of the judgment on the appeal, but if the judgment is
stayed by a court of competent jurisdiction the suspension shall become
effective ten days after the expiration of such stay, unless prior
thereto the judgment of the court has been satisfied.
(June 10, 1930, ch. 436, Sec. 7, 46 Stat. 534; Apr. 13, 1934, ch. 120,
Secs. 11-13, 48 Stat. 587, 588; June 19, 1936, ch. 602, Sec. 3, 49 Stat.
1534; Aug. 20, 1937, ch. 719, Sec. 10, 50 Stat. 728; June 23, 1938, ch.
599, 52 Stat. 953; May 14, 1940, ch. 196, 54 Stat. 214; Pub. L. 87-725,
Secs. 9, 10, Oct. 1, 1962, 76 Stat. 675; Pub. L. 92-231, Sec. 2, Feb.
15, 1972, 86 Stat. 38; Pub. L. 102-237, title X, Sec. 1011(5), Dec. 13,
1991, 105 Stat. 1898.)
Codification
Section was formerly classified to section 557 of this title.
Amendments
1991--Subsecs. (a) to (c). Pub. L. 102-237 substituted periods for
semicolons at end of subsecs. (a) to (c).
1972--Subsec. (a). Pub. L. 92-231 directed the Secretary to order
commission merchants, dealers, or brokers who are the losing party to
pay the prevailing party, as reparation or additional reparation,
reasonable fees and expenses incurred in connection with hearings.
1962--Subsec. (c). Pub. L. 87-725, Sec. 9, limited time for filing
the bond to within 30 days from and after the date of the reparation
order, and required such bond to be in cash, negotiable securities
having a market value of at least equivalent to the amount of bond
prescribed or the undertaking of a surety company on the approved list
of sureties issued by the Treasury Department.
Subsec. (d). Pub. L. 87-725, Sec. 10, lengthened period upon the
expiration of which the license is suspended from ten to thirty days,
and provided that if the judgment is stayed by a court of competent
jurisdiction the suspension becomes effective ten days after the
expiration of such stay.
1940--Subsec. (c). Act May 14, 1940, inserted proviso in first
sentence.
1938--Subsec. (a). Act June 23, 1938, inserted last two sentences.
1937--Subsec. (a). Act Aug. 20, 1937, among other changes, inserted
``or without hearing as provided in section 499f of this title,
paragraphs (c) and (d), or upon failure of the party complained against
to answer a complaint duly served within the time prescribed, or to
appear at a hearing after being duly notified'' after ``section 499f''.
Subsec. (b). Act Aug. 20, 1937, among other changes, substituted
``pay the reparation award'' for ``comply with an order for the payment
of money''.
Subsec. (c). Act Aug. 20, 1937, inserted ``together with a bond in
double the amount of the reparation award conditioned upon the payment
of the judgment entered by the court plus interest and costs, including
a reasonable attorney's fee for the appellee, if the appellee shall
prevail'' after ``upon adverse party'' and struck out proviso in first
sentence and ``by registered mail'' after ``adverse party''.
Subsec. (d). Act Aug. 20, 1937, inserted proviso.
1936--Subsec. (c). Act June 19, 1936, inserted proviso in first
sentence and ``by registered mail'' after ``adverse party''.
1934--Subsec. (b). Act Apr. 13, 1934, Sec. 11, inserted after first
sentence ``The orders, writs and processes of the district courts may in
these cases run, be served, and be returnable anywhere in the United
States.''
Subsecs. (c), (d). Act Apr. 13, 1934, Secs. 12, 13, added subsecs.
(c) and (d).
Section Referred to in Other Sections
This section is referred to in sections 499d, 499h, 499m of this
title; title 28 section 2342.
