Irobe v. US Dept. of Agriculture , 890 F.3d 371 ( 2018 )


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  •           United States Court of Appeals
    For the First Circuit
    No. 17-1943
    MAHDI IROBE and SUUQA BAKARO GROCERY,
    Plaintiffs, Appellants,
    v.
    UNITED STATES DEPARTMENT OF AGRICULTURE,
    Defendant, Appellee.
    APPEAL FROM THE UNITED STATES DISTRICT COURT
    FOR THE DISTRICT OF MAINE
    [Hon. D. Brock Hornby, U.S. District Judge]
    Before
    Torruella, Selya and Kayatta,
    Circuit Judges.
    Sarah A. Churchill, with whom Nichols & Churchill, P.A. was
    on brief, for appellants.
    John G. Osborn, Assistant United States Attorney, with whom
    Halsey B. Frank, United States Attorney, and Sheila W. Sawyer,
    Assistant United States Attorney, were on brief, for appellee.
    May 21, 2018
    SELYA, Circuit Judge.       This appeal challenges a finding
    by the United States Department of Agriculture (USDA), echoed on
    de    novo    review   by    the   district   court,   that   a   grocery   store
    unlawfully trafficked in Supplemental Nutrition Assistance Program
    (SNAP) benefits.            See 
    7 U.S.C. § 2023
    (a)(13), (15).          Our task
    requires us to decide, among other things, the allocation of the
    burden of proof in a civil action brought pursuant to 
    7 U.S.C. § 2023
    (a)(13) — a question of first impression in this circuit.
    After careful consideration, we hold that the district court
    properly placed the burden of proof on the grocer.                    See Suuqa
    Bakaro Grocery v. Dep't of Agric., No. 2:16-cv-254, 
    2017 WL 3141919
    , at *5 (D. Me. July 24, 2017).             We further hold that the
    court,       acting    at    the   summary    judgment   stage,     supportably
    determined that the grocer had failed to carry this burden.                  See
    
    id.
        Consequently, we affirm the judgment below.
    I. BACKGROUND
    The plaintiffs are Mahdi Irobe and Suuqa Bakaro Grocery
    (a grocery store in Lewiston, Maine, catering principally to that
    community's sizeable Somali immigrant population).                  For ease in
    exposition, we refer to the plaintiffs, collectively, as the
    "Store."
    Since we are tasked with reviewing the district court's
    entry of summary judgment, we take the facts in the light most
    congenial to the nonmovant (the Store).            See McKenney v. Mangino,
    - 2 -
    
    873 F.3d 75
    , 78 (1st Cir. 2017), cert. denied, 
    138 S. Ct. 1311
    (2018).   The Store is diminutive:          it is only about 800 square
    feet in size, lacks shopping baskets or carts, and contains a
    single 2.5-by-1.5-foot-long checkout counter.              It carries minimal
    amounts of fresh produce and frozen foods and does not offer many
    of the staples commonly found in markets (such as baby food, eggs,
    and fresh bread). In lieu of such staples, the Store offers Somali
    delicacies     like    goat   and   camel   meat,        along   with    certain
    nonperishables like sugar, flour, rice, pasta, and cooking oil.
    The Store operates in what might be called a "no frills" fashion:
    it does not have any optical scanning equipment, and it does not
    use a cash register in processing SNAP transactions.                    Instead,
    Irobe — the Store's owner and lone full-time employee — ordinarily
    computes each customer's purchases using a calculator.              When Irobe
    cannot be at the Store, his brother-in-law pinch-hits for him.
    On June 20, 2015, the USDA authorized the Store to deal
    in SNAP benefits (commonly known as "food stamps").               Because this
    authorization proved to be the first step down the road that led
    to this litigation, we pause to acquaint the reader with the SNAP
    framework.
    Congress established SNAP "to safeguard the health and
    well-being    of   the   Nation's   population      by    raising   levels    of
    nutrition among low-income households."          
    7 U.S.C. § 2011
    ; see 
    7 C.F.R. § 271.1
    .       Authorized merchants may accept SNAP benefits in
    - 3 -
    payment for certain food items.       See 
    7 U.S.C. § 2013
    (a).         The USDA
    then redeems those benefits (as described below).           See 
    id.
    SNAP-qualified    households     receive   electronic    benefit
    transfer cards (EBT cards), which are similar to debit cards and
    may be used to purchase eligible foodstuffs at authorized stores.
    In a typical SNAP transaction, a cashier rings up the total food
    purchases, a household member pays using her EBT card through a
    point-of-sale device, and the funds in the household's SNAP account
    are electronically transferred to the store's bank account.
    Households may use their monthly SNAP allotments to
    procure food items that are suitable for "home consumption."                
    7 U.S.C. § 2012
    (k).      They may not use their allotments to procure
    cash, hot foods, or non-food items, even though such items may
    frequently    be   available   at   grocery   stores.     See   
    id.
         These
    proscribed items include, for example, lottery tickets, alcoholic
    beverages, tobacco, vitamins, toothpaste, and cosmetics.                See 
    7 C.F.R. §§ 271.2
    , 278.2(a).
    Trafficking in SNAP benefits is unlawful, see 
    7 C.F.R. § 278.2
    (a); see also 
    7 U.S.C. § 2021
    (a)(1), (b)(3)(B), and a store
    engages in trafficking by accepting SNAP benefits in exchange for
    cash or other proscribed items, see 
    7 C.F.R. § 271.2
    .                     For
    instance, a store trafficks when it "accept[s] food stamps for
    sales that never took place," allowing its customers to receive
    - 4 -
    "cash rather than merchandise."                Idias v. United States, 
    359 F.3d 695
    , 698-99 (4th Cir. 2004).
    The Food and Nutrition Service (FNS) is the bureau within
    the USDA charged with administering the SNAP regime.                       This bureau
    maintains a searchable database containing the household, store,
    date, time, and amount involved in each and every SNAP transaction.
    If   the       FNS    detects   a   statistically       unusual    pattern     of   SNAP
    transactions at a SNAP-authorized store, it typically refers the
    matter to a program specialist who arranges for a contractor to
    visit the store and conduct an on-site investigation.                               After
    completing her review of the relevant EBT data and whatever reports
    emerge from the on-site investigation, the program specialist
    makes      a    recommendation      to   the    FNS    section    chief.       If   this
    recommendation is for further action, the section chief sends a
    charge letter detailing the allegations to the store and affords
    the store an opportunity to respond.                    See 
    7 C.F.R. § 278.6
    (b).
    Thereafter, the FNS issues its determination.                    See 
    id.
     § 278.6(c).
    Once the FNS has issued its determination, an aggrieved
    store may prosecute an appeal to an administrative review officer.
    See 
    7 U.S.C. § 2023
    (a)(3); 
    7 C.F.R. §§ 279.1
    (a)(2), 279.5.                          Upon
    completion of his work, the review officer issues the final agency
    decision.            See 
    7 U.S.C. § 2023
    (a)(5); 
    7 C.F.R. § 279.5
    .                    The
    governing        statute    empowers      the    USDA    to   impose       a   lifetime
    program-participation ban on "the first occasion or any subsequent
    - 5 -
    occasion" of trafficking, but such a ban is not an automatic
    response to a program violation; rather, the USDA has discretion,
    in lieu of such a ban, to levy civil monetary penalties under
    certain circumstances.       
    7 U.S.C. § 2021
    (b)(3)(B); see 
    7 C.F.R. § 278.6
    .
    With this backdrop in place, we return to the case at
    hand.       As of June 2015 (when the Store was first authorized to
    participate in SNAP), there were approximately forty-five other
    shops within a one-mile radius of the Store that accepted SNAP
    benefits,      including   several   larger   ethnic   Somali   markets,   a
    Walmart Supercenter, and two chain supermarkets.          In short order,
    the FNS detected a suspicious pattern of transactions in the
    Store's EBT database.       This red flag sparked an investigation by
    a program specialist, which included two on-site visits in the
    fall of 2015.        On December 17, the FNS sent a charge letter
    detailing hundreds of sets of suspicious transactions that, in its
    view, evinced trafficking.1      After receiving the Store's response,
    the FNS made a determination, dated January 12, 2016, in which it
    concluded that the Store had engaged in trafficking and permanently
    disqualified the Store from SNAP participation.
    1
    We say "sets" because many (indeed, most) of the challenged
    transactions comprise several items ostensibly purchased with SNAP
    benefits.
    - 6 -
    The Store seasonably requested an administrative review
    of the FNS's determination.     On April 22, 2016, an administrative
    review officer upheld both the FNS's finding that the Store had
    violated   the    SNAP   guidelines   and     the    order    for     permanent
    disqualification.
    The matter did not end there.            The Store commenced an
    action in Maine's federal district court, challenging the agency's
    final decision.    Following the close of discovery, the USDA moved
    for summary judgment.     The Store opposed the motion.            The district
    court heard oral argument, took the matter under advisement, and
    subsequently wrote a thoughtful rescript explaining why it would
    grant the motion for summary judgment.         See Suuqa Bakaro, 
    2017 WL 3141919
    , at *5.    This timely appeal ensued.
    II. ANALYSIS
    A party aggrieved by the USDA's final determination may
    seek judicial review through "a trial de novo . . . in which the
    court   shall     determine    the    validity       of      the     questioned
    administrative action in issue."        
    7 U.S.C. § 2023
    (a)(13), (15);
    see 
    7 C.F.R. § 279.7
    .     This de novo review is wider in scope than
    that available under the Administrative Procedure Act.                See Affum
    v. United States, 
    566 F.3d 1150
    , 1160 (D.C. Cir. 2009); Ibrahim v.
    United States, 
    834 F.2d 52
    , 53 (2d Cir. 1987).                     When a court
    carries out such a review, it must reexamine "the entire matter"
    instead of simply determining "whether the administrative findings
    - 7 -
    are supported by substantial evidence."            Ibrahim, 
    834 F.2d at 53
    (quoting Saunders v. United States, 
    507 F.2d 33
    , 36 (6th Cir.
    1974)).    The section 2023 inquiry is not restricted to the record
    compiled before the agency but, rather, extends to the augmented
    record compiled before the district court.             See Affum, 
    566 F.3d at 1160
    ; McGlory v. United States, 
    763 F.2d 309
    , 311 (7th Cir. 1985)
    (per curiam).
    The de novo review standard applies only to the agency's
    liability determination, not to its choice of a sanction.                   See
    Mass. Dep't of Pub. Welfare v. Sec'y of Agric., 
    984 F.2d 514
    , 520
    (1st Cir. 1993). A reviewing court may disturb the agency's choice
    of a sanction only if it finds that choice to be "arbitrary,
    capricious, or contrary to law."          Id.; see Estremera v. United
    States, 
    442 F.3d 580
    , 585 (7th Cir. 2006).
    When it commenced its civil action, the Store included
    in its complaint a boilerplate allegation that the USDA's chosen
    sanction (a lifetime program-participation ban) was arbitrary and
    capricious.      In proceedings before the district court, however,
    the   Store    abandoned    this   allegation    and    challenged   only   the
    agency's      liability    finding.     The     administrative   record     was
    submitted to the district court, and the parties engaged in a
    modicum of pretrial discovery.        After the close of discovery, the
    USDA moved for summary judgment.         See Fed. R. Civ. P. 56(a).         As
    said, the district court granted that motion.
    - 8 -
    We review an order granting summary judgment de novo.
    See DePoutot v. Raffaelly, 
    424 F.3d 112
    , 117 (1st Cir. 2005).               A
    court may grant summary judgment only if the record, construed in
    the light most amiable to the nonmovant, presents no "genuine issue
    as to any material fact and reflects the movant's entitlement to
    judgment as a matter of law."       McKenney, 873 F.3d at 80; see Fed.
    R. Civ. P. 56(a).    A fact is "material" if it "has the capacity to
    change the outcome of the [factfinder's] determination."          Perez v.
    Lorraine Enters., 
    769 F.3d 23
    , 29 (1st Cir. 2014).             An issue is
    "genuine" if the evidence would enable a reasonable factfinder to
    decide the issue in favor of either party.      See 
    id.
    A party seeking summary judgment must, at the outset,
    inform the court "of the basis for [its] motion and identif[y] the
    portions    of      the     pleadings,    depositions,        answers      to
    interrogatories,     admissions,    and   affidavits,    if     any,     that
    demonstrate the absence of any genuine issue of material fact."
    Borges ex rel. S.M.B.W. v. Serrano-Isern, 
    605 F.3d 1
    , 5 (1st Cir.
    2010) (citing Celotex Corp. v. Catrett, 
    477 U.S. 317
    , 323 (1986)).
    So long as the movant crosses this modest threshold, the nonmoving
    party "must, with respect to each issue on which [it] would bear
    the burden of proof at trial, demonstrate that a trier of fact
    could reasonably resolve that issue in [its] favor."            
    Id.
         "Such
    a showing 'requires more than the frenzied brandishing of a
    cardboard sword.'"        Geshke v. Crocs, Inc., 
    740 F.3d 74
    , 77 (1st
    - 9 -
    Cir. 2014) (quoting Calvi v. Knox Cty., 
    470 F.3d 422
    , 426 (1st
    Cir. 2006)).     The nonmovant must point to materials of evidentiary
    quality, see Garside v. Osco Drug, Inc., 
    895 F.2d 46
    , 49-50 (1st
    Cir. 1990), and such materials must frame an issue of fact that is
    "more than 'merely colorable,'" Flovac, Inc. v. Airvac, Inc., 
    817 F.3d 849
    , 853 (1st Cir. 2016) (quoting Anderson v. Liberty Lobby,
    Inc., 
    477 U.S. 242
    , 249 (1986)). Put another way, summary judgment
    is warranted if a nonmovant who bears the burden on a dispositive
    issue    fails    to    identify     "significantly     probative"    evidence
    favoring his position.        Anderson, 
    477 U.S. at 249-50
    .
    Of   course,     the   summary   judgment    standard    cannot   be
    applied in a vacuum.         The resolution of such a motion may depend
    on which party bears the burden of proof on a particular issue.
    See,    e.g.,    EEOC   v.   Unión   Independiente      de   la   Autoridad   de
    Acueductos y Alcantarillados, 
    279 F.3d 49
    , 55 (1st Cir. 2002);
    Torres Vargas v. Santiago Cummings, 
    149 F.3d 29
    , 35-36 (1st Cir.
    1998).    Section 2023 does not indicate which party is to bear the
    burden of proof.         Thus, we must allocate this burden before
    endeavoring to apply the summary judgment standard.
    Faced with a statute that is silent about the burden of
    proof, we start by recognizing that Congress legislates "against
    a background of common-law adjudicatory principles."               Astoria Fed.
    Sav. & Loan Ass'n v. Solimino, 
    501 U.S. 104
    , 108 (1991).                  With
    this in mind, we presume — unless a contrary statutory purpose is
    - 10 -
    apparent — that Congress has crafted a statute with the expectation
    that settled common-law principles will apply.       See 
    id.
    In the American legal system, it is a settled principle
    that the risk of failing to prove a claim ordinarily falls on the
    claimant.    See Schaffer ex rel. Schaffer v. Weast, 
    546 U.S. 49
    , 56
    (2005).   It follows that when Congress authorizes a private right
    of action without specifying which party bears the burden of proof,
    the plaintiff bears that burden unless a statutory purpose to the
    contrary is apparent.      See Gross v. FBL Fin. Servs., 
    557 U.S. 167
    ,
    177 (2009).      Thus, we must impose the burden of proof on the
    claimant (here, the Store), unless there is sufficient evidence of
    a contrary legislative intent.
    We   discern   congressional   intent   by   examining    "the
    language, structure, purpose, and history of the statute."           United
    States v. Gordon, 
    875 F.3d 26
    , 33 (1st Cir. 2017) (quoting McKenna
    v. First Horizon Home Loan Corp., 
    475 F.3d 418
    , 423 (1st Cir.
    2007)).     That task is simplified in this instance, as the Store
    has failed to muster even a sliver of persuasive evidence that
    Congress intended to depart from the traditional rule.                This
    failure is unsurprising:        Congress has deployed an elaborate
    remedial regime to ensure that SNAP benefits "are used only to
    purchase eligible food items, and are not exchanged for cash or
    other things of value."       Idias, 
    359 F.3d at 697
    .     A store is in
    the best position to show what actually happens on its premises.
    - 11 -
    Allocating the burden of proof to the store tacitly recognizes
    this reality and, in the bargain, incentivizes shopkeepers to
    maintain accurate records of all SNAP transactions.                A contrary
    rule would have the perverse effect of rewarding businesses for
    shoddy record-keeping.      See generally Anderson v. Mt. Clements
    Pottery Co., 
    328 U.S. 680
    , 687 (1946) (explaining, in analogous
    context, that holding otherwise would "place a premium on an
    employer's failure to keep records"); Crooker v. Sexton Motors,
    Inc., 
    469 F.2d 206
    , 211 (1st Cir. 1972) (explaining, in labor-law
    context, advantage of imposing evidentiary burden on party in the
    "best position to maintain records").
    Precedent bears out this intuition.           All of the courts
    of appeals that have addressed the burden-of-proof issue under
    Section   2023   have   placed   the    burden   of   proof   on   the   party
    challenging the USDA's finding of liability.           See Fells v. United
    States, 
    627 F.3d 1250
    , 1253 (7th Cir. 2010); Kim v. United States,
    
    121 F.3d 1269
    , 1272 (9th Cir. 1997); Warren v. United States, 
    932 F.2d 582
    , 586 (6th Cir. 1991); Redmond v. United States, 
    507 F.2d 1007
    , 1011-12 (5th Cir. 1975).         We join those courts and hold that
    when a store challenges the USDA's determination that the store
    trafficked in SNAP benefits, the store bears the burden of proving
    by a preponderance of the evidence that its conduct was lawful.
    In this case, the USDA submits that no genuine issue of
    material fact exists with respect to the Store's liability for
    - 12 -
    trafficking.       In support, it relies primarily on transaction
    reports derived from the EBT database, which analyzed all available
    statistical information concerning the Store's handling of SNAP
    benefits during the four-month period from July through October of
    2015.
    On de novo review, we give no weight to the agency's
    finding that trafficking occurred.        See Estrema, 
    442 F.3d at 585
    .
    Even so, Congress has expressly authorized consideration of both
    transaction information gleaned from EBT databases and reports of
    on-site investigations as tools in the USDA's efforts to detect
    fraud.      See 
    7 U.S.C. § 2021
    (a)(2); see also 
    7 C.F.R. § 278.6
    (a).
    As a general matter, such information and reports may be probative
    of trafficking:       in appropriate cases, they may be sources of
    circumstantial evidence of fraud, sufficient to prove that a store
    is trafficking in SNAP benefits.        See Idias, 
    359 F.3d at 698
    .
    Of course, common-sense inferences will almost always
    play a major role in such cases.        For instance, the factfinder may
    reasonably infer trafficking when the redemption data shows that
    a   store    regularly   processes   purported   SNAP   transactions   for
    significantly higher per-transaction amounts than nearby stores
    offering similar wares.       See Fells, 
    627 F.3d at 1254
    .      So, too,
    the     factfinder   may   reasonably    infer   trafficking   when    the
    redemption data shows that a small store with a selective inventory
    and limited staffing regularly processes purported high-dollar
    - 13 -
    SNAP transactions in rapid succession.                      See Idias, 
    359 F.3d at 698
    .
    In the case at hand, the EBT database discloses more
    than       400   sets       of    suspicious    transactions       at   the   Store.     A
    representative sampling suffices to illustrate the point:
            On 51 separate occasions, households used up
    at least 90 percent of their monthly SNAP benefits
    in       fewer   than   nine     hours.2        Historical     data
    indicates that it is markedly inconsistent with the
    normal       shopping      behavior        of     SNAP-qualified
    households to deplete all or most of a household's
    allotment in one fell swoop.                    According to an
    unchallenged government analysis of SNAP-related
    shopping patterns, it usually takes a minimum of
    two weeks for a SNAP-qualified household to deplete
    80 percent of its monthly allotment and three weeks
    to deplete 90 percent of that allotment.
            During the relevant period, the Store engaged
    in 205 high-dollar SNAP transactions, that is,
    transactions ranging from $174 to $1,050.                      Yet,
    2
    Common sense suggests it is especially unlikely that
    SNAP-qualified households would exhaust their allotments so
    quickly at the Store, given the Store's limited inventory, the
    lack of either shopping carts or baskets, the absence of optical
    scanning equipment, and the tiny checkout counter.
    - 14 -
    historical data indicates that, during 2015, the
    average SNAP transaction in the Lewiston area was
    about $45.
        With respect to multiple purchases in quick
    succession, 103 pairs of SNAP transactions were
    made on the Store's point-of-sale device during the
    relevant    period    in     under    nine   minutes.        These
    paired      transactions       included         21   pairs     of
    transactions completed in 60 seconds or less and
    four pairs of transactions completed in under 39
    seconds.      Given    normal        shopping    behavior,    the
    practical realities of shopping at the Store, see,
    e.g., supra note 2, and the availability of only a
    single     clerk,    these    paired     transactions    raise
    obvious concerns.
    To be sure, all of this evidence is circumstantial, but
    its cumulative effect is powerful.        Irregular patterns may emerge
    in virtually any retail operation, but a drumbeat of irregularities
    can be highly probative of unlawful conduct.            See Idias, 
    359 F.3d at 698
    ; cf. Atieh v. Riordan, 
    797 F.3d 135
    , 140 n.4 (1st Cir. 2015)
    (noting, in different context, that pattern of irregularities may
    support inference of fraud).        The large number of aberrational
    transactions reflected in the Store's EBT database are adequate to
    ground a strong inference of trafficking, especially given the
    - 15 -
    Store's characteristics.       While that inference is rebuttable, the
    allocation of the burden of proof dictates that the Store must
    point to some significantly probative evidence to rebut it (and,
    thus, fend off summary judgment).3            See Anderson, 
    477 U.S. at 249-50
    .
    The   Store   has    failed   to   carry    this   burden.    In
    particular, it has failed to challenge in any meaningful way the
    agency's   data-compilation      methodology,    the    accuracy   of   the
    compiled EBT data concerning SNAP transactions at the Store, and
    the reliability of the agency's historical data.4              Nor has the
    3 The district court cited with approval an unpublished Sixth
    Circuit opinion stating that to thwart summary judgment, a store
    "must raise material issues of fact as to each alleged violation."
    Suuqa Bakaro, 
    2017 WL 3141919
    , at *3 (quoting Ganesh v. United
    States, 
    658 F. App'x 217
    , 219 (6th Cir. 2016) (emphasis in
    original)).    We are skeptical of any interpretation of this
    statement that would always require a transaction-specific
    rebuttal of every transaction.      One can easily imagine, for
    example, that a series of transactions labeled as suspicious for
    a certain reason (say, no other similar stores have transactions
    that are as large) could each and all be rebutted by proof that
    the reason for suspecting them is wrong (say, there are other
    stores that charge as much). In either case, though, the accused
    store would have to proffer competent evidence, not merely
    conclusory generalizations.    Here, the Store's evidence is so
    unfocused and so weak that we need not delve more deeply into the
    Sixth Circuit's statement.
    4 This is not to say that the Store goes down without a fight:
    it does argue in its appellate brief that the EBT transaction data
    is "suspect."    But this argument is wholly conclusory, and the
    Store fails to identify any evidence supporting its conclusion.
    Where, as here, the nonmoving party bears the burden of proof on
    a material issue, that party cannot forestall summary judgment
    simply by relying on its lawyer's unsupported arguments.        See
    Mesnick v. Gen. Elec. Co., 
    950 F.2d 816
    , 822 (1st Cir. 1991).
    - 16 -
    Store attempted to establish the bona fides of so much as a single
    transaction pinpointed by the agency (even though each of those
    transactions is clearly linked to a specific household).
    Indeed, the Store relies almost entirely on Irobe's
    deposition         testimony,    in     which     he   offered     generalized,
    non-specific observations about his customers' shopping habits.
    He testified, for example, that his customers sometimes would
    purchase expensive items (such as goat or camel meat) or buy rice
    in bulk.       This testimony, the Store argues, creates a genuine
    dispute about whether the 205 EBT transactions exceeding $174 were
    for SNAP-eligible foodstuffs.             Similarly, Irobe testified that
    customers sometimes arrived in large groups, due to limited means
    of transportation. This testimony, the Store argues, is sufficient
    to   create    a    genuine   dispute   about     whether   the   103   pairs   of
    rapid-succession transactions were legitimate.
    These arguments lack force in the face of the ample
    transactional data. It is common ground that "[t]he mere existence
    of a scintilla of evidence in support of the plaintiff's position"
    is not enough to ward off summary judgment.             Anderson, 
    477 U.S. at 252
    .   Where the plaintiff has the burden of proof, "there must be
    evidence on which the [factfinder] could reasonably find for the
    plaintiff."        
    Id.
       There is no such evidence here — and generalized
    conclusions, such as Irobe has proffered, cannot fill the void.
    See DePoutot, 
    424 F.3d at 117
     (requiring "[f]actual specificity"
    - 17 -
    because "a conglomeration of 'conclusory allegations, improbable
    inferences, and unsupported speculation' is insufficient" to ward
    off   summary    judgment    (quoting     Medina-Munoz      v.    R.J.   Reynolds
    Tobacco Co., 
    896 F.2d 5
    , 8 (1st Cir. 1990))).
    Struggling     to    gain   some   traction,    the    Store   cites
    another passage from Irobe's deposition.            There, he suggested that
    "most" nearby ethnic Somali stores did not carry expensive goat or
    camel meat.     In the Store's view, this testimony explains why it
    processed so many high-dollar transactions (each of which exceeded
    the average SNAP transaction in the Lewiston area by over $125).
    This explanation does not hold water.            After all, Irobe
    offered no foundation upon which his surmise might plausibly rest.
    Nor is this gap bridged by other evidence:                the record is barren
    of any competent proof reflecting what inventory was carried by
    these other emporia.         A court need not "take at face value" a
    party's "subjective beliefs," even if offered in the form of
    testimony,      if   those       subjective     beliefs     are    "conclusory,"
    "self-serving,"      and     lack    factual      support    in    the    record.
    Torrech-Hernández v. Gen. Elec. Co., 
    519 F.3d 41
    , 47 n.1 (1st Cir.
    2008).   This is such an instance:              Irobe's unsupported opinion
    about the limited availability of particular merchandise in the
    Lewiston area is simply not a game-changer in the summary judgment
    calculus.
    - 18 -
    Finally,     the   Store    trumpets    a     series    of   receipts
    documenting its purchase of foodstuffs from vendors between May of
    2015 and December of 2015.          The Store asserts that these receipts
    establish a factual dispute about whether it "was legitimately
    selling groceries to its customers."               This assertion misses the
    mark:     the Store has made no showing as to how the amount of
    inventory reflected by the receipts relates to the total volume of
    the Store's sales during the relevant period.                 What is more, the
    mere fact that the Store bought some SNAP-eligible foodstuffs and
    sold them to SNAP-qualified households does not insulate it from
    a   finding    of   trafficking.         Merchants    may    conduct    legitimate
    business side-by-side with unlawful trafficking.                     Nothing about
    the purchases evidenced by the receipts impugns the agency's
    finding that, on many occasions, the Store trafficked in SNAP
    benefits.
    We recognize that SNAP is an important part of the safety
    net woven by Congress for persons in need. The program's efficacy,
    though,   depends     in    large   measure   on     the    good   faith   of   both
    SNAP-authorized merchants and SNAP-qualified households.                   The USDA
    is charged with ensuring that merchants and food-stamp recipients
    alike color between the lines.             When the evidence suggests that
    program rules are being flouted, agency action is appropriate.
    So it is here:     the USDA identified hundreds of sets of
    suspicious transactions, strongly indicative of trafficking.                     By
    - 19 -
    means   of     this    showing,    it    marshalled     a   robust    (though
    circumstantial)       case   of   trafficking.        The   Store    has   not
    meaningfully rebutted the compelling inferences suggested by the
    agency's mass of circumstantial evidence.             Even when drawing all
    reasonable inferences in favor of the Store, no rational factfinder
    could conclude that the Store had demonstrated by a preponderance
    of the evidence that the finding of trafficking was improvident.
    It follows inexorably, as night follows day, that the district
    court did not err in granting summary judgment in favor of the
    USDA.
    III. CONCLUSION
    We need go no further. For the reasons elucidated above,
    the entry of summary judgment is
    Affirmed.
    - 20 -
    

Document Info

Docket Number: 17-1943P

Citation Numbers: 890 F.3d 371

Filed Date: 5/21/2018

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (27)

52 Fair empl.prac.cas. 253, 52 Empl. Prac. Dec. P 39,659 ... , 896 F.2d 5 ( 1990 )

Torrech-Hernandez v. General Elec. Co. , 519 F.3d 41 ( 2008 )

Calvi v. Knox County , 470 F.3d 422 ( 2006 )

Milissa Garside v. Osco Drug, Inc. , 895 F.2d 46 ( 1990 )

Equal Employment Opportunity Commission v. Unión ... , 279 F.3d 49 ( 2002 )

Commonwealth of Massachusetts, Department of Public Welfare ... , 984 F.2d 514 ( 1993 )

DePoutot v. Raffaelly , 424 F.3d 112 ( 2005 )

McKenna v. First Horizon Home Loan Corp. , 475 F.3d 418 ( 2007 )

saber-a-idias-dba-nashville-supermarket-v-united-states-of-america , 359 F.3d 695 ( 2004 )

Ines Torres Vargas v. Dr. Manuel Santiago Cummings , 149 F.3d 29 ( 1998 )

Samuel Mesnick v. General Electric Company , 950 F.2d 816 ( 1991 )

In the Matter of Farouk Ibrahim, D/B/A Onondaga Circle ... , 834 F.2d 52 ( 1987 )

Borges Ex Rel. SMBW v. Serrano-Isern , 605 F.3d 1 ( 2010 )

Roger W. Crooker v. Sexton Motors, Inc. , 469 F.2d 206 ( 1972 )

H. T. Saunders, D/B/A Saunders Dispensary v. United States , 507 F.2d 33 ( 1974 )

Willie McGlory D/B/A Park View Foods v. United States , 763 F.2d 309 ( 1985 )

Liduina Estremera v. United States , 442 F.3d 580 ( 2006 )

E. R. Redmond D/B/A Arcola Food Market v. United States of ... , 507 F.2d 1007 ( 1975 )

Maria A. Warren D/B/A Warren's Grocery v. United States , 932 F.2d 582 ( 1991 )

Fells v. United States , 627 F.3d 1250 ( 2010 )

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