SUSAN WEBBER WRIGHT, District Judge.
Plaintiff Lott Johnson ("Johnson") brings this action against Thomas J. Vilsack, Secretary, U.S. Department of Agriculture ("USDA") and five USDA Farm Service Agency ("FSA") employees, identified as Mark Petty ("Petty"); Linda Newkirk ("Newkirk"), James G. Culpepper, III ("Culpepper"); Hendra Woodfork ("Woodfork"); and Chana Thompson ("Thompson"). Before the Court are Defendants' motions to dismiss [ECF Nos. 17, 18, 22, 23], Johnson's responses in opposition [ECF Nos. 27, 32], and the USDA's reply [ECF No. 35]. After careful consideration, and for reasons that follow, the motions are granted and this action is dismissed with prejudice.
When ruling on a Rule 12(b)(6) motion to dismiss for failure to state a claim, the Court must take as true the alleged facts and determine whether they are sufficient to raise more than a speculative right to relief. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555-56 (2007). The Court does not, however, accept as true any allegation that is a legal conclusion. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). The complaint must set forth "enough facts to state a claim to relief that is plausible on its face." Twombly, 550 U.S. at 570.
Johnson, a black male who farms land in Lonoke County, claims that Secretary Vilsack and the FSA employees conspired, discriminated, and retaliated against him in connection with the administration of his FSA loans and related applications. This action is a refiling of a previous lawsuit commenced in this Court, see Johnson v. Vilsack, No. 4:12CV00371 JLH (E.D. Ark.), hereinafter "Johnson I." In Johnson I, United States District Judge J. Leon Holmes granted summary judgment in the defendants' favor but dismissed the action without prejudice. Johnson's specific allegations in this case, which are nearly identical to those asserted in Johnson I are as follows:
Johnson's allegations in this case and Johnson I differ in only a few respects. First, in Johnson I, he alleged that the FSA employees' final wrongful act occurred on August 2, 2010, but in this case, he alleges that the final wrong occurred on July 1, 2011. Second, in this case, Johnson alleges that Defendants conspired though correspondence and false statements to improperly accelerate his debt and withdraw his loan application on July 1, 2011, and he adds that the defendants acted in concert and "developed a system wide policy to deviate from FSA's Handbook" when they withdrew his loan application on July 1, 2011.
Based on the foregoing allegations, Johnson claims, as he did in Johnson I, that Defendants (1) discriminated against him based on race, in violation of Title VI of the Civil Rights Act of 1964
Johnson's allegations indicate that Defendants acted under the color of federal law when they transgressed his due process and equal protection rights and retaliated against him for his participation in Pigford v. Glickman.
Johnson claims the benefit of the Arkansas saving statute, which provides that if an action is timely filed and the plaintiff suffers a nonsuit, he or she may commence a new action within one year after the nonsuit. See Ark. Code Ann. § 16-56-126(a)(1); see also Miller v. Norris, 247 F.3d 736, 739 (8th Cir. 2001). Application of the savings statute is proper only if Johnson I was timely filed, and it is far from clear that such is the case.
Johnson did not initially name the FSA employees as defendants in Johnson I. Instead, he joined his claims against them by way of an amended complaint filed on September 18, 2013, and the FSA employees moved to dismiss the claims as time-barred. In a recommended disposition adopted by Judge Holmes, United States Magistrate Judge Jerome T. Kearney found that Johnson's claims against the FSA employees did not relate back to the filing of is original complaint. However, Judge Kearney did not determine when the statute of limitations period had commenced, and he recommended dismissal of Johnson's Bivens claims on alternative grounds. Like Judge Kearney, this Court finds that even if a portion of Johnson's Bivens claims were timely filed, those claims must be dismissed on other grounds.
The Court agrees that Johnson's Bivens claims are precluded by a comprehensive remedial scheme, including a right to request administrative review of collection by administrative offset, see 7 C.F.R. § 3.63, and debt settlement decisions, see 7 C.F.R. § 792.12; the right to appeal to the National Appeals Division ("NAD"), see 7 C.F.R. §11.1 through 11.15, and the right to judicial review of a final NAD determination. See 7 C.F.R. § 11.13. Additionally, the Assistant Secretary for Civil Rights ("ASCR") has the authority to make final determinations regarding discrimination claims related to the administration of the FSA's farm loan program and to award compensatory damages pursuant to the ECOA. See 7 C.F.R. 2.25(a)(18).
As a participant in the FSA's farm loan program, Johnson filed a complaint with the ASCR, alleging that FSA employees discriminated against him on the basis of race and retaliated against him based on the same facts alleged in this action. On February 29, 2012, the ASCR entered a final agency decision in Johnson's favor, which awarded money damages, debt relief, and required the FSA to take various remedial actions.
The USDA argues that Johnson's discrimination and retaliation claims pursuant to the ECOA are barred by the doctrine of res judicata because they were resolved by a final order issued by the ASCR. In Johnson I, the USDA made the same argument, and Judge Holmes found that the requirements for res judicata
In addition to reasserting the argument that Johnson's claims are res judicata, the USDA asserts that Judge Holmes's decision on that issue has a preclusive or collateral estoppel effect in this case. The preclusive effect of a federal-court judgment is determined by federal common law. See Taylor v. Sturgell, 553 U.S. 880, 891, 128 S.Ct. 2161 (2008)(citing Semtek Int'l Inc. v. Lockheed Martin Corp., 531 U.S. 497, 507-508, 121 S.Ct. 1021 (2001)). Issue preclusion, which differs from claim preclusion, "bars `successive litigation of an issue of fact or law actually litigated and resolved in a valid court determination essential to the prior judgment,' even if the issue recurs in the context of a different claim." Taylor, 553 U.S. at 892, 128 S.Ct. at 2171(quoting Montana v. United States, 440 U.S. 147, 153-154, 99 S.Ct. 970 (1979)). "By `preclud[ing] parties from contesting matters that they have had a full and fair opportunity to litigate,' these two doctrines protect against `the expense and vexation attending multiple lawsuits, conserv[e] judicial resources, and foste[r] reliance on judicial action by minimizing the possibility of inconsistent decisions.'" Id.
Issue preclusion has five elements: (1) the party sought to be precluded in the second suit must have been a party, or in privity with a party, to the original lawsuit; (2) the issue sought to be precluded must be the same as the issue involved in the prior action; (3) the issue sought to be precluded must have been actually litigated in the prior action; (4) the issue sought to be precluded must have been determined by a valid and final judgment; and (5) the determination in the prior action must have been essential to the prior judgment. See Ginters v. Frazier, 614 F.3d 822, 826 (8th Cir. 2010)(citing Robinette v. Jones, 476 F.3d 585, 589 (8th Cir. 2007)). Here, each of the foregoing requirements is met. Johnson argues that because Judge Holmes dismissed Johnson without prejudice, the doctrine of issue preclusion does not apply. The Court finds that Judge Holmes's dismissal without prejudice was "sufficiently firm to be accorded conclusive effect[,] Germain Real Estate Co., LLC v. HCH Toyota, LLC, 778 F.3d 692, 696 (8th Cir. 2015), and the Court finds that the judgment entered in Johnson I was final for purposes of issue preclusion.
Even assuming that the application of issue preclusion is not applicable, the Court would find, for the same reasons stated in Judge Kearney's recommended disposition issued in Johnson I, that Johnson's ECOA claims are barred by the doctrine of res judicata.
Defendants assert, and the Court agrees, that Johnson fails to allege facts sufficient to state a conspiracy claim under 42 U.S.C. § 1985(3). To state a claim under the equal protection provisions of the first part of § 1985(3), a plaintiff must allege that the defendants had an agreement to violate his civil rights and that the conspiracy was fueled by some class-based, invidiously discriminatory animus. See Andrews v. Fowler, 98 F.3d 1069, 1079 (8
Title VI of the Civil Rights Act of 1964 provides that "[n]o person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance." 42 U.S.C. § 2000d. However, Title VI is applicable only where federal funding is given to a local, state, or other non-federal entity-it does not cover programs administered by the federal government. See Soberal-Perez v. Heckler, 717 F.2d 36, 38 (2d Cir. 1983), certiorari denied, 104 S.Ct. 1713, 466 U.S. 929 (1984). Accordingly, to the extent that Johnson attempts to bring a claim under Title VI,
For the reasons stated, Defendants' motions to dismiss [ECF Nos. 17, 22] are GRANTED. Pursuant to the judgment entered together with this order, this action is DISMISSED WITH PREJUDICE.
IT IS SO ORDERED.