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March 12, 2008

CA1: Farmers’ due process claims fail

Perez-Acevedo v. Rivero-Cubano, No. 06-2633.  This is a corporate 1983 action by some Puerto Rican poultry farmer.  In Puerto Rico, the commonwealth allowed farmers to join a “nucleus” which allowed them to use a trademark.  Nucleus membership conferred other benefits such as loan guarantees and tax credits.  But, some farmers didn’t want to join, thinking they could do their own promotion.  The case was dismissed on a judgment on the pleadings. 

Regarding the procedural due process argument (that the District Court strangely did not address), the First says that 1) one property right doesn’t actually involve farmers; and 2) the other one (dealing with financial assistance) wasn’t property briefed, and even if it was they didn’t really claim that Peurto Rico failed to follow its own APA.

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