Opinion ID: 776504
Heading Depth: 2
Heading Rank: 2

Heading: Appellants' Capacity

Text: 11 We first address Appellants' argument that under Dairylea Coop. Inc. v. Butz, 504 F.2d 80 (2d Cir.1974), a cooperative that is both a producer and a handler will be treated as either a producer or a handler depending on the interests [the cooperative] represent[s] in the action then pending. Id. at 83. In Dairylea the Second Circuit held that Dairylea was acting as a producer because the aspect of the milk order the cooperative was challenging affected the interests of its producers. Id. (The concern of Dairylea in this action is not the money which it paid [as a handler] into the Producer-Settlement Fund ... but with the money collected on behalf of its producer-members as authorized by 7 U.S.C. § 610(b)(1) (1970) which will increase if the action succeeds.). 12 UDA is a cooperative that acts as a handler as well as a producer. UDA owns and operates a milk processing plant in Tempe, Arizona. In this action UDA is challenging the producer-handler exemption because it reduces the uniform blend price paid to producers and gives producer-handlers a competitive advantage over other handlers. Unlike in Dairylea, UDA is not only representing its producers' interests but also its handlers' interests. Therefore, UDA may be deemed a handler in suing in its representative capacity. 13 Shamrock Farms sells its raw milk to Shamrock Foods. While the two companies are related, the record shows that the two companies are separate businesses. Although the companies appear to be separate, we note that in his declaration Norman McClelland, the president of Shamrock Farms as well as the chairman of Shamrock Food, states in paragraph three of his declaration: 14 The exemption of fluid milk sales of a producer-handler from the pooling requirements of the Order reduces the monthly value of the producer-settlement fund, and, therefore, reduces the monthly uniform blend price paid to the Order's producers, including Shamrock. It also gives producer-handlers, such as Sara Farms, a competitive advantage over other handlers, including Shamrock Foods Company. 15 As a producer Shamrock Farms does not have to exhaust its administrative remedies. Even if we assume arguendo that UDA is acting as a producer in bringing this suit, Shamrock Farms and UDA may still be precluded from seeking judicial review under the AMAA.