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