Case 44

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Rule of Law The United States Department of Agriculture (USDA) is the United States federal executive department responsible

for developing and executing U.S federal government policy on farming, agriculture, and food. It aims to meet the needs of farmers and ranchers, promote agricultural trade and production, work to assure food safety, protect natural resources, foster rural communities and end hunger in the U.S and abroad.

Facts of the Case LaGrous cold storage warehouse at 2101 Pershing Road in Chicago was enough to turn even the most enthusiastic meat-loving carnivore into a vegetarian. The warehouse was a cold storage facility that stored raw, fresh, and frozen meat, poultry, and other food products. The warehouse did not own most of the products that it stored at the facility. Rather, LaGrou's business consisted of storing products owned by its customers. As much as 2 million pounds of food went in and out on a daily basis. The warehouse had a rat problem for a considerable period of time. LaGrou workers consistently found rodent droppings and rodent-gnawed products, and they caught rats in traps throughout the warehouse on a daily basis. The manager of the warehouse and the president of LaGrou were aware of this problem and discussed it weekly. The problem became so bad that workers were assigned to rat patrols to search for rats and to put out traps to catch rats. At one point, the rat patrols were trapping as many as 50 rats per day. LaGrou did not inform its customers of the rodent infestation. LaGrou would throw out product that had been gnawed by rats but tell the customer that the product was thrown out because of warehouse damage such as torn boxes and forklift mishaps. LaGrou employees, as a joke, would write MM for Mickey Mouse on product that was infested. A food inspector for the United States Department of Agriculture (USDA) went to the LaGrou warehouse and discovered the rat problem. The following morning, 14 USDA inspectors and representatives of the federal Food and Drug Administration (FDA) arrived at the warehouse to begin an extensive investigation. The inspectors found the extensive rat infestation and the contaminated meat. The contaminated meat could transmit bacterial, viral, parasitic, and fungal pathogens, including E. coli and Salmonella, which could cause severe illness in human beings. The USDA ordered the warehouse shut down. Of the 22 million pounds of meat, poultry, and other food products stored at the warehouse, 8 million pounds were found to be adulterated and were destroyed. The remaining product had to be treated with strict decontamination procedures. The U.S. government brought charges against LaGrou for violating federal food safety laws. The U.S. District Court ordered LaGrou to pay restitution of $8.2 million to customers who lost product and to pay a $2 million fine, and it sentenced LaGrou to a five-year term of probation. LaGrou appealed. Plaintiffs Position

Defendants Position LaGrou wasthe knowing improper storage of poultry, meat products, and food products. When the word knowingly is used in these instructions, it means that the defendant realized what the warehouse was doing and was aware of the nature of conduct, and did not act through ignorance, mistake, or accident. Knowledge may be proved by the defendant's conduct, and by all the

facts and circumstances surrounding the case.

Brief Review of Court Ruling The U.S. Court of Appeals held that LaGrou had knowingly engaged in the improper storage of meat, poultry, and other food products, in violation of federal food safety laws. The Court of Appeals affirmed the judgment of the District Court, except that it reduced the fine from $2 million to $1.5 million.

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