On May 22, 2015,
the United States Supreme Court struck down that the federal raisin marketing
order's reserve requirement clause as an unconstitutional taking of property.
Prior to the
Court’s ruling, in order to be permitted to sell raisin, all raisin growers were
required to participate in the federal raisin marketing order program. Importantly, as part of the federal raisin
marketing order program, all raisin growers were required to surrender (or
“reserve”) a portion of their crop to the federal government without any
compensation.
In an eight to
one ruling, the Court determined that the federal raisin marketing order’s reserve
requirement violated the Constitution’s Fifth Amendment forbidding the
government from taking property without just compensation. According to the Court, raisins are property
and the federal government does not have the right to force a business owner to
surrender a portion of that property simply for the privilege of participating
in commerce.
To read the full Court opinion, please click here.
Written by M. Sean High - Staff Attorney
June 24, 2015
