Alabama Independent Service Stations Ass'n v. Hunter

31 So. 2d 571, 249 Ala. 403, 1947 Ala. LEXIS 378
CourtSupreme Court of Alabama
DecidedJuly 31, 1947
Docket6 Div. 542.
StatusPublished
Cited by9 cases

This text of 31 So. 2d 571 (Alabama Independent Service Stations Ass'n v. Hunter) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alabama Independent Service Stations Ass'n v. Hunter, 31 So. 2d 571, 249 Ala. 403, 1947 Ala. LEXIS 378 (Ala. 1947).

Opinion

LAWSON, Justice.

This is an- appeal from a decree of the circuit court of Jefferson County, in equity, denying an injunction. The sworn bill was filed by the appellant, Alabama Independent Service Stations Association, Inc., against appellees, A. M. Hunter and Alabama Motorists Association, a corporation.

It appears from the bill that the complainant is a corporation organized under the laws of this state and is composed of approximately 300 operators of service stations located in Jefferson County. The respondent, A. M. Hunter, a resident of Jefferson County, is, according to the bill, engaged in operating a service station in the city of Birmingham, where he sells or offers for sale at retail, gasoline and lubricating oil for use or consumption in motor vehicles. Respondent Alabama Motorists Association is a corporation organized. under the laws of Alabama and is engaged in business in Jefferson County.

- The case made by the bill is in substance that the respondent A. M. Hunter has a contract, agreement, arrangement or understanding with the respondent Alabama Motorists Association, whereby he sells to the members of that association gasoline at a price two cents per gallon less than the posted price thereof and lubricating oil at a price five cents a quart less than its posted price; that such conduct is in violation of Sections 425(1) and 425(2) of Title 2, Code of 1940; that the said violations are numerous and constitute unfair competition with the other service stations operating in Jefferson County; that the Alabama Motorists Association is aiding and abetting in the said violations by encouraging its members to purchase gasoline and lubricating oil from the said A. M. Hunter at prices less than posted.

The prayer of the bill is that the respondent A. M. Hunter be forbidden from selling gasoline and oil at any price or prices except the exact price contained on the sign or placard required by Section 425(1) of Title 2 of the Code of 1940. As to the respondent Alabama Motorists Association the bill prays that such corporation, its servants, agents, and employees be enjoined from aiding and abetting the said A. M. Hunter in selling gasoline and oil at prices other than those posted. The bill also prays fqr general relief.

The cause was submitted for decree on application for temporary injunction on the verified bill of complaint. Such application was denied and the complainant has prosecuted this appeal.

•Sections 425(1) and 425(2) of Title 2, Code.1940 (1945 Cumulative Pocket Part), read as follows:

*405 § 425(1). Unlawful to sell motor fuel or lubricant from pump without posted prices. — It shall be unlawful for any person, firm or corporation to sell or offer for sale at retail, for. use or consumption in any motor vehicle or to deliver into any motor vehicle for actual or apparent use therein, any product whatsoever for use in supplying, creating or generating motive power to such motor vehicle, or lubricating oil for such motor vehicle, unless such person, firm or corporation shall conspicuously and plainly post on the pump or stand from which delivery is made a sign or placard, stating the price or prices of each such product, amount of tax to be stated separately, and so that such prices can be read and easily distinguished by brand or other designation in legible words, letters and figures of uniform size and dimensions, not less than one inch in height, which said sign or placard shall be so located and placed that it may easily be seen and read by purchasers or prospective purchasers of such product or oil.
“§ 425(2). Unlawful to sell motor fuel at other than posted price, or to offer discounts, premiums, etc. — It shall be unlawful for any person, firm or corporation to sell or offer for sale at retail, for use or consumption in any motor vehicle, or to deliver into any motor vehicle, for actual or apparent use therein, any product whatsoever for use in supplying, creating or generating motive power to such motor vehicle, or lubricating oil for such motor vehicle, at any price or prices, except the exact price or prices contained on the sign or placard required by this subdivision, or to offer, deliver, grant, allow, give or promise, any actual prospective, contingent, immediate or future benefits, concessions, discounts, refunds, premiums, or gratuities of any kind or nature whatsoever, which in any degree, manner or extent, shall be calculated or intended to effect or accomplish a sale of such product for other than said posted price or prices.”

We are in accord with the action of the trial court. The bill of complaint does not charge that respondent Hunter has not posted prices in accordance with the requirements of § 425(1), Title 2, supra, but on the contrary shows that the prices have been posted. Said § 425(1), Title 2, supra, merely requires that prices be posted in the manner therein provided. It does not purport to make unlawful sale of gasoline or oil at a price lower than that posted.

But § 425(2), Title 2, supra, does purport to make such a sale unlawful and it is that section which the bill charges respondent Hiinter with violating and it is conduct which that section attempts to make unlawful that complainant sought to Have the court forbid.

Section 425(2), Title 2, supra, is in the exact language of § 2 of Act 607, approved July 2, 1940, General Acts 1939, p. 972.

In the' case of Alabama Independent Service Stations Ass’n et al. v. McDowell, Sheriff, et al., 242 Ala. 424, 6 So.2d 502, 507, the circuit court of Jefferson County held that said Act 607, supra, was unconstitutional and invalid in its entirety. On appeal to this court the judgment of the circuit court of Jefferson County was corrected “so as to limit the declaration of unconstitutionality to Section 2 of said Act 607, which prohibits the advertising of motor fuels by giving premiums or rebates.” Alabama Independent Service Stations Ass’n v. McDowell, supra.

The complainant in this cause contends that the language just above quoted shows that this court not only did not consider that the entire act was invalid but also was of the opinion that only those portions of Section 2 of the act which made it unlawful to give premiums or rebates was unconstitutional, thereby upholding the provision of Section 2 of the act which made it unlawful to sell gasoline or oil at a price different from that posted.

We cannot agree with this construction of the language quoted above from the opinion in Alabama Independent Service Stations Ass’n v. McDowell, supra. The words, “which prohibits the advertising of motor fuels by giving premiums or rebates,” were merely descriptive of the section which this court held to be unconstitutional, namely, Section 2. Such words were not intended to infer that parts of that section were constitutional and other parts unconstitutional. A reference to the judgment *406 entered by this court is clear to that conclusion (Vol. 93, p. 189, Minutes, Supreme Court of Alabama, October Term, 1941). In pertinent part the judgment reads:

“6 Div. 901 Alabama Independent Service Station, Association, et al., etc. - Jefferson Circuit vs. Court Holt A. McDowell, as Sheriff of Jefferson County, et als._

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