Breeding or Puppy Mills

Summary: In this Pennsylvania case, James Burkholder, d/b/a Whispering Spring Kennel (Burkholder), petitioned for review of an adjudication of the Secretary of Agriculture (Secretary) that imposed a $19,500 civil penalty on Burkholder for transferring two dogs in excess of the annual limit under his Class IV kennel license in December of 2017. Burkholder raises two arguments: first, the Dog Law does not specify that transfers of more than 60 dogs by a private kennel constitute violations; and two, the penalty imposed is excessive and unreasonable. This court first noted that a Kennel Class IV license clearly does not allow him to transfer more than 60 dogs and thus any transfers in excess violate the Dog Law. As to the excessive penalty argument, the court first examined the distinction between separate and ongoing violations of the Dog Law because it raised a question of first impression under the Dog Law. Relying on the distinction in other contexts, particularly regarding penalties imposed by the Pennsylvania Public Utility Commission (PUC), the court found that a kennel owner holding too many dogs could remedy the violation simply by transferring the excess dogs. The problem here is that, where an owner has transferred more dogs than his license allows, there is no way to correct the violation. Thus, said the court, a per-day fine is improper. "Each unauthorized transfer of a single dog is a single violation of the Dog Law, not a continuing violation, because it is not ongoing in nature and such transfers can be feasibly segregated into discrete violations so as to impose separate penalties." The court concluded that the Department erred as a matter of law by imposing ongoing penalties for two discrete unauthorized transfers. The order of the Department as to the excess transfers of dogs was affirmed, but the portion as to the amount of the penalty was vacated. The matter was remanded for further proceedings.

Summary: This Article fills this gap by addressing the problems of unregulated, small-volume dog breeding. Part I provides an overview of the regulatory regimes that govern dog breeding in the United States; an Appendix provides citations to and summaries of the relevant provisions of each state's laws. Part II steps back and describes backyard breeding operations and their harms, including, at times, their role in larger criminal enterprises. Part III reviews literature on the regulation of “low risk” activities and develops a practical, three-step approach to regulating backyard breeding, to efficiently resolve much nuisance-level backyard breeding and illuminate the pernicious breeding. Part IV concludes the Article.

Summary: Plaintiff Cisneros purchased a Shih Tzu puppy named "Giant" from Petland Kennesaw, a Kennesaw, Georgia franchise of Petland, Inc. She received a certificate of "veterinary inspection" and a limited health guarantee at the time of purchase. Several days later, problems arose with the puppy and she brought the dog back to the Petland affiliated veterinarian who prescribed antibiotics without making a diagnosis. Shortly thereafter, an emergency pet visit revealed the dog suffered from parvovirus. Cisneros called Petland who told her to take the dog back to the Petland vet if she wanted a refund. She did so and the dog died several days later. Because the State of Georgia requires reporting of parvovirus, Cisneros received a report after the dog died, but she learned the dog's organs had been removed (an uncommon post mortem practice). As a result, plaintiff alleged that actions were the intended result of a nationwide conspiracy involving Petland and its affiliates to sell unhealthy puppies from "puppy mills" where health conditions are rubber stamped by a network of "preferred veterinarians" and buyers are deceived by sales documents that distract from the fraud. Plaintiff broadly asserted three claims: (1) a violation of the federal RICO statute, 18 U.S.C. § 1962(c); (2) a conspiracy to violate the federal RICO statute, 18 U.S.C. § 1962(d); and (3) with respect to a Georgia subclass of persons who purchased a cat or dog from a Petland franchise in Georgia from July 2013 to the present, a violation of Georgia's state RICO statute, O.C.G.A. § 16-14-4. The district court dismissed Cisneros's federal causes of action for failure to state a claim, pursuant to Federal Rule of Civil Procedure 12(b)(6), and declined to exercise supplemental jurisdiction over her remaining state-law claim, pursuant to 28 U.S.C. § 1367(c). After applying the six-fold test for a private plaintiff suing under the civil provisions of RICO, this Court found chiefly that Cisneros has alleged no facts that plausibly support the inference that the defendants were collectively trying to make money in pet sales by fraud, which is a common purpose sufficient to find a RICO enterprise. Cisneros was required to allege not just that Petland Kennesaw had a fraudulent purpose, but that it was a common purpose, formed in collaboration with Petland, PAWSitive, and the preferred veterinarians. In the end, Cisneros has alleged only that Petland operates a franchise business like any other franchisor. Even assuming that Cisneros has adequately pled fraud on the part of Petland Kennesaw, she has not alleged that its predicate acts constituted a pattern of racketeering activity. The action was affirmed in part, and vacated and remanded in part.

Summary: PetConnect Rescue, Inc., Lucky Pup Dog Rescue.com and Sarah Gonzalez (“Plaintiffs”) alleged that the Defendants fraudulently represented dogs that the Defendants sold as rescue animals in order to circumvent California law prohibiting the sale of non-rescue dogs in pet stores. On April 6, 2020, Plaintiffs filed an amended complaint against the Defendants alleging trademark infringement and dilution under the Lanham Act, unfair business practices under California’s Unfair Competition Law (“UCL”) and violations of California’s Consumer Legal Remedies Act (“CLRA”), fraud, and accounting. Several Defendant filed motions to dismiss and to strike sections of the amended complaint. The United States District Court for the Southern District of California found that Plaintiff PetConnect alleged a cognizable injury in fact in that the Defendants’ use of an infringing mark harmed Plaintiff PetConnect Rescue’s reputation and caused consumer confusion. The Defendants’ Pet Connect Rescue, Inc. brokered the sale of dogs from puppy mills rather than rescue dogs which affected Plaintiff PetConnect’s reputation. The Court also found that Plaintiff PetConnect Rescue raised a claim within the Lanham Act’s zone of interests because the Lanham Act’s protections extended to non-profit organizations’ use of marks, even when those marks do not accompany a sale. The Court refused to dismiss Plaintiffs claims regarding trademark infringement. The Court also refused to dismiss the Plaintiff’s claims under the Lanham Act because the matter of whether Plaintiff’s mark was distinct and had acquired a secondary meaning was a matter more appropriate when the evidentiary record becomes further developed. As for the Unfair Competition claim, the Court found that the Plaintiffs had alleged sufficient facts to state a UCL violation. The Court subsequently rejected the Defendants’ motions to strike thirty-four lines or phrases from the amended complaint because Plaintiff’s use of the terms “puppy mill,” and the allegations that Defendants operate “fake” entities that “induce” purchases, reflected Plaintiff’s allegations of fraud and misrepresentation. The Court found that the Plaintiffs’ references were pertinent to the Plaintiff’s allegations. The Court ultimately denied each of the Defendant’s motions to dismiss and strike.

Summary: These regulations describe standards for pet breeders including sufficient food and water, regular exercise, veterinary care, adequate grooming, natural or artificial light during daylight hours, adequate space in living quarters, protection from the elements and extreme temperatures, and adequate resting time between breeding cycles, that ensures the general health and well-being of all pets the commercial pet breeder owns.“Commercial pet breeder” means any person that possesses or has possessed at any time in the last twelve months eleven or more adult intact female animals for use in breeding or dealing in animals for direct or indirect sale or for exchange in return for consideration. Household pets kept by breeders which the breeder has registered with the Board as not being used in breeding or dealing shall not be counted under this definition. Mandated record-keeping is outlined in Subchapter 7, which includes a required pet health history provided to purchasers.

Summary: The State of Maryland passed a “No More Puppy-Mill Pups Act” which went into effect January 1, 2020. The Act prohibits retail pet stores in Maryland from offering for sale or otherwise transferring or disposing of cats or dogs. Four pet stores, a dog breeder, and a dog broker filed suit against Brian Frosh, the Attorney General of Maryland, the Consumer Protection Division of the Office of the Maryland Attorney General (CPD), the Maryland House Economic Matters Committee, and the Maryland State Senate Finance Committee seeking an injunction prohibiting enforcement of the Act as well as a declaration that it is unconstitutional under the Commerce Clause and the Equal Protection Clause of the United States Constitution. The Defendants were all entitled to sovereign immunity under the Eleventh Amendment, unless an exception were to apply. Under the Ex parte Young exception “private citizens may sue state officials in their official capacities in federal court to obtain prospective relief from ongoing violations of federal law.” The CPD and Committee Defendants were not State officials and, therefore, they did not fall within the Ex parte Young exception. The Ex parte Young exception, however, applied to Mr. Frosh as he was the Attorney General of Maryland since he had some connection with the enforcement of the Act. In Counts I, II, and III, the Plaintiffs alleged that the Puppy-Mill Act violated the Constitution's Commerce Clause. The Court found that the Plaintiffs failed to plausibly allege that the Act discriminated against out-of-state breeders and brokers in its text, in its effect, or in its purpose. Count IV alleged that the Puppy-Mill Act was preempted by the AWA. The Court found that prohibiting Maryland pet stores from selling dogs or cats had no effect on the operation of the AWA. The Puppy-Mill Act's impact on pet stores did not clash with the AWA, because pet stores were explicitly exempt from the AWA. Count V alleged that the Puppy-Mill Act deprived Plaintiffs of their constitutional right to the equal protection of law, in violation of the Fourteenth Amendment to the Constitution. The Court found no merit in this argument. Count VI asserted that the Act created a monopoly prohibited by Article 41 of the Maryland Declaration of Rights. The Court found that the Puppy-Mill Act did not constitute an exclusive right to sell cats and dog in Maryland. Although the Act prohibited brick and mortar stores from participating in the sale of cats and dogs, consumers still had a plethora of choices when seeking to obtain a pet, including rescue shelters, animal control units, USDA licensed breeders and brokers, and unregulated hobby breeders. The Court ultimately dismissed all claims against the CPD and the Committee Defendants and allowed the claims against Brian Frosh to proceed.

Summary: These New Hampshire regulations address minimum standards at commercial animal facilities. The regulations cover general aspects (i.e., housing must be structurally sound and maintained in good repair) as well as more specific aspects related to indoor heating/cooling and ventilation requirements. The sizing and construction of primary enclosures and minimal feeding requirements are described.

Summary: Comes into force 6 April 2020: Known as 'Lucy's Law.' These amendments to the licensing Regulations prevent the sale of puppies and kittens by third party sellers - such as a pet shop or commercial dealer - unless they have bred the animal themselves. Anyone looking to buy or adopt a puppy or kitten under 6 months old must deal directly with the breeder or animal re homing center.

Summary: Cathie Iris Warren was convicted of three felony counts of aggravated animal cruelty, five felony counts of aggravated cruelty, and a misdemeanor cruelty to animals count. Warren appealed contending that the district court erred by denying Warren’s motion to suppress evidence obtained in a warrantless search of her commercial kennel property, denying Warren’s Baston challenge, and in imposing costs to be reimbursed by Warren under Montana law. Cathie Iris Warren operated a kennel on her residential property in Libby, Montana. Warren obtained her initial license to operate her business in 2013. In 2016 it was discovered that Warren was operating her kennel despite the fact that her business license had expired in October of 2015. In order to obtain a new license, Warren needed to have an inspection of her property. Warren ended up having three separate inspections of her property. After each inspection, Warren had failed to meet the requirements. The members of the Health Department who were involved in the inspections became concerned that the animals were not being adequately cared for and were not of good health. Warren could not provide appropriate vaccination records for all of her animals. A search warrant was executed on Warren’s property on August 2, 2016. Warren’s animals were seized the same day. Warren moved to suppress the evidence that was obtained arguing that a warrant was required for each inspection that had been conducted on her property. The court concluded that there was no search because Warren did not have an expectation of privacy in her commercial kennel operation that society would consider objectively reasonable. The trial court convicted Warren and found that Warren owed statutorily-imposed costs, including veterinary care, food and supplies, excess hours worked by county employees, and travel costs as well as the shelter’s lost revenue. Warren appealed her conviction and sentence. The Supreme Court of Montana found that Warren treated parts of her home as part of her kennel, therefore, those areas of her home that were searched were considered commercial property which is subject to a less significant expectation of privacy. The Court concluded that the administrative inspection fell within the applicable warrant exception, was reasonable, and did not require a search warrant. Warren also challenged the State’s peremptory challenge of a minority juror (Baston Challenge). The Court concluded that the District Court reached the right conclusion on the Baston challenge but for the wrong reason. Warren’s third challenge was whether the District Court erred in calculating the statutory costs owed by Warren. The Court found that the costs approved by the District Court were reasonably supported by the evidence. The Court ultimately affirmed the judgment of the District Court.

Summary: The Animal and Plant Health Inspection Service (APHIS), United States Department of Agriculture instituted a disciplinary proceeding alleging that Jerome Schmidt, a veterinarian, willfully violated the regulations and standards promulgated under the Animal Welfare Act. The alleged violations were based upon ten inspections conducted by a USDA inspector of Schmidt’s Top of the Ozark Auction facility where he conducted dog auctions. The 36 alleged violations centered on housing standards, structural soundness, soundness and security of the enclosures, house keeping and sanitation, trash on the premises, sufficiency of the lighting, the adequacy of the Schmidt’s insect and rodent control program, and interference and refusal of access to a USDA inspector. The Court found that the frequent inspections of Schmidt’s auction facility were inconsistent with and not based upon an objective risk-based assessment. None of the inspections, with the potential exception of one, conformed to the requirements of established Agency guidelines or policy. The inspector’s findings were exaggerated, biased, and unsupported by sufficient credible objective evidence of non-compliance. The egregious behavior of the inspector tainted the inspection results and, therefore, were precluded from being used for the purposes of an enforcement action. The Court ultimately dismissed the complaint against Schmidt and directed the Administrator of APHIS to take appropriate action to insure that the published polices and procedures of the Department are followed by APHIS personnel in future inspections.