Algohaim v. United States

Background

The plaintiffs seek review of a decision by the United States Department of Agriculture’s Food and Nutrition Service (FNS) disqualifying Villa Deli Grocery Inc. from participating in the Supplemental Nutrition Assistance Program (SNAP) for one year. The plaintiffs moved under 7 U.S.C. § 2023(a) for a preliminary injunction, meaning a temporary court order preserving or changing the parties’ positions while judicial review proceeds.

The Court’s Analysis

The court explained that obtaining a preliminary injunction required the plaintiffs to show both a likelihood of prevailing on the merits and irreparable injury. The plaintiffs asserted that SNAP redemptions represented 30% of the store’s gross sales, or $10,000 per month, and that the store would be forced out of business. The court found that assertion unsupported because it rested only on an attorney’s declaration. It also reasoned that, based on the plaintiffs’ stated monthly sales of approximately $30,000 and monthly expenses of $7,420, losing 30% of sales would leave approximately $20,000 to cover those expenses. The court likewise found no competent evidence supporting the claim that the store would suffer irreparable harm from losing customers who used SNAP benefits and also bought nonfood items.

The court also found that the plaintiffs had not shown a likelihood of prevailing in the agency review. It stated that the plaintiffs would have to prove by a preponderance of the evidence that the agency’s action was invalid, including that the violations supporting the disqualification did not occur. On-site investigative reports described four occasions on which the plaintiffs’ employees accepted SNAP benefits in exchange for ineligible nonfood items, in violation of 7 C.F.R. § 278.2(a). The court found that the plaintiffs offered no persuasive reason to question those reports and no reason to believe that the one-year disqualification was arbitrary and capricious in light of the plaintiffs’ prior record of selling ineligible items.

Disposition and Next Steps

Judge Furman denied the plaintiffs’ motion for a preliminary injunction. The court adopted the parties’ proposal requiring the government to serve and file the certified administrative record by March 7, 2025, and requiring the parties to file a joint status update by March 21, 2025. The court adjourned the March 5, 2025 initial pretrial conference without setting a new date and directed the clerk to terminate ECF No. 7, the motion.