‘Basic fairness’: Farm family fighting heavy-handed agency wins in court

A federal appeals court has handed a victory to the owners of a family farm – now shut down – that was attacked, prosecuted and convicted by a federal agency that claimed the authority to act as both prosecutor and judge.

According to the Institute for Justice, the victory for Sun Valley Orchards’ owners comes from a panel of the 3rd U.S. Circuit Court of Appeals.

That unanimous ruling was that the actions of the Department of Labor violated the Constitution and the charges against the farm had to be brought to a neutral court.

The federal agency had imposed some $500,000 in penalties, mostly for paperwork mistakes, in the case. Then the agency went to its own court, prosecuted and convicted the owners.

“The Department of Labor (DOL) first targeted Sun Valley Orchards for penalties in 2016, beginning a years-long legal odyssey through the DOL’s administrative courts. Sun Valley’s owners, Joe and Russell Marino, teamed up with the Institute for Justice (IJ) to file a federal lawsuit challenging DOL’s system of in-house courts in 2021,” the IJ said.

“The upshot of the Third Circuit’s decision is that the days of the Department of Labor imposing liability through its own in-house courts are over,” explained IJ lawyer Rob Johnson. “Employers will have the right to defend themselves before a real judge, not an agency employee. That’s a win for basic fairness and for small businesses across the country.”

The IJ reported the victory followed the Supreme Court’s precedent in Jarkesy, v. SEC, a case that similarly challenged an administrative court system at the Securities and Exchange Commission.

That ruling said the SEC was required to press its case in a federal court in front of a jury.

“This is a huge relief for my family, after years spent fighting for a fair chance to clear our name,” said Joe. “We’ve been dragged through the mud, and it seemed impossible to fight back.”

Because of the years-long and costly fight against the agency’s warfare, the family shut down their farm several years ago.

“Today’s decision vindicates a right of enormous importance to everyone in America.” said IJ Attorney Bob Belden. “When a federal agency wants to take your money as punishment, it must prove its case against you in a real court, not in agency courts where the government plays investigator, prosecutor, judge, and jury.”

The IJ said it also is representing a Maryland landscaping company that also is challenging the DOL in-house adjudication agenda.