The federal government and a convenience store in Erie's impoverished Little Italy neighborhood have ended a dispute that threatened food stamp eligibility.
The settlement has ended a lawsuit filed in U.S. District Court in Erie by the QuikStop at West 18th Street and Chestnut Street to block a U.S. Department of Agriculture ruling that it could receive benefits through the Supplemental Nutrition Assistance Program, known as SNAP.
The USDA wanted to suspend Quick Stop food stamp acceptance for six months.
The lawsuit said the department made the ruling after an investigation found that she had received food stamps to pay for items that couldn't be purchased through the SNAP program, including garbage bags, dish soap, plastic spoons and paper plates.
The ban never took effect because Quick tried to block it by filing a lawsuit on May 31. The U.S. Attorney's Office, which represents the Department of Agriculture, had not yet responded to the lawsuit in court before the two sides reached a settlement, according to court records.
QuickStop, federal government working on written agreement to close case
Notice of the settlement was filed June 13. Terms of the settlement were not disclosed in the notice.
“The parties have reached a settlement in principle and are working to execute a written agreement and will file an agreement to dismiss the lawsuit once the agreement is effective,” lawyers for QuickStop and the government said in a joint notice.
QuickStop's lawyer, Andrew Z. Tapp of Florida, did not immediately respond to a request for comment.
Filing a lawsuit at the end of the administrative process
If the lawsuit had proceeded, it would have brought into public view the type of administrative dispute rarely heard in Erie courtrooms.
According to the lawsuit, QuickStop decided to sue after the USDA denied its final administrative appeal on May 14. The fight has been going on for years.
Quick Stop, at 408 W. 18th St., said in its lawsuit that the USDA's Food and Nutrition Service issued a “charge letter” on Nov. 28, 2022, alleging the store sold items that were not covered by SNAP. According to the charge letter, USDA is seeking to ban Quick Stop from accepting food stamps for six months.
QuickStop disputed the findings, saying being suspended from the SNAP program for six months would eliminate a large portion of the company's revenue stream during that time.
The company argued in its lawsuit that the USDA had not presented evidence that the stores' “owners or management were careless or negligent in supervising or operating the stores.” Quick Stop adequately supervised its employees and provided them with SNAP training, the lawsuit argued.
The lawsuit also argued that the USDA was unreasonable in failing to consider civil penalties rather than a six-month suspension.
Ed Palattella epalattella@timesnews.com or 814-870-1813. Follow him at X. translation:.
