Bayside Enterprises, Inc. v. Hanson

675 F. Supp. 1375, 1987 U.S. Dist. LEXIS 12308, 1987 WL 31995
CourtDistrict Court, D. Maine
DecidedDecember 17, 1987
DocketCiv. 87-0367-B
StatusPublished

This text of 675 F. Supp. 1375 (Bayside Enterprises, Inc. v. Hanson) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bayside Enterprises, Inc. v. Hanson, 675 F. Supp. 1375, 1987 U.S. Dist. LEXIS 12308, 1987 WL 31995 (D. Me. 1987).

Opinion

ORDER DENYING PRELIMINARY INJUNCTION AND DISMISSING COMPLAINT

CYR, Chief Judge.

The plaintiff, Bayside Enterprises, Inc. [Bayside], moves pursuant to rule 65 of the Federal Rules of Civil Procedure for a preliminary injunction enjoining defendants, the Maine Agricultural Bargaining Board [MABB] and its members, from enforcing the Maine Agricultural Marketing and Bargaining Act of 1973 [MAMBA], Me.Rev. Stat.Ann.tit. 13, §§ 1953-1965 (West 1981 and Supp. 1986-87), as amended, L.D. 912 (1987) [MAMBA amendments], by requiring Bayside to bargain, enter into mediation, submit to arbitration, or contract with the Pine Tree Poultry Bargaining Committee [Pine Tree].

I. BACKGROUND

Bayside is an integrated poultry processor which delivers chicks for raising by *1376 Independent growers, then reacquires the grown birds for processing and marketing. Under the MAMBA, Me.Rev.Stat.Ann.tit. 13, §§ 1953-65, Bayside is defined as a “handler,” Me.Rev.Stat.Ann.tit. 13 § 1955(3), and the independent growers which raise the chickens for Bayside are known as “producers.” Me.Rev.Stat.Ann. tit. 13, § 1955(5). Pine Tree is a “qualified association of producers,” Me.Rev.Stat. Ann.tit. 13, §§ 1955(1), 1955(6), certified to bargain with poultry handlers on behalf of its individual association members. See Me.Rev.Stat.Ann.tit. 13, § 1957. MABB is the state agency charged with administering and enforcing MAMBA.

The Maine Legislature recently enacted amendments to MAMBA which became effective on September 29, 1987. According to MABB, the purpose of these amendments was to bolster the bargaining position of producer associations, such as Pine Tree, in their dealings with handlers. Three years of unsuccessful contract negotiations between Pine Tree and Bayside served as an impetus to enactment of the amendments. See Legislative Record H-604 (May 18, 1987). MAMBA previously required bargaining between handlers and producer associations, followed by nonbinding arbitration. In order to expedite the resolution of disputed issues, the MAMBA amendments require the period of mandatory bargaining to be followed by mandatory mediation, which is to be followed by mandatory arbitration of unresolved issues. Me.Rev.Stat.Ann.tit. 13, §§ 1958(1), 1958-B. The arbitration is binding, and MAMBA purports to require that the parties sign a contract following binding arbitration. Me.Rev.Stat.Ann.tit. 13, § 1958-B(5). However, the parties agree that the statute does not require Bayside actually to place birds with Pine Tree members. Rather, it is only if Bayside opts to do business with Pine Tree members that the terms of the contract would govern.

The compulsory process of bargaining, mediation and arbitration is set in motion by MABB’s establishment of a “contract date.” The contract date is defined as follows:

The term “contract date” as used in subsection 2, shall have the following meaning.
A. Where, on the effective date of this section, there is no contract under this article in existence between the parties, the contract date shall be the date set by the board, in consultation with the parties, as the date by which a contract must be signed by both parties. After that date, as between those parties, the contract date shall be the anniversary of the date set by the board initially.
B. Where, on the effective date of this section, a contract under this article exists between the parties, the contract date shall be the anniversary of the date upon which that contract was signed by both parties.

Me.Rev.Stat.Ann.tit. 13, § 1958-B(4).

Once the contract date is set, mediation is to follow:

Any matters remaining in dispute between the handler and a qualified association 30 days prior to the contract date, as defined in subsection 4, shall be submitted by the parties to required mediation. No later than 30 days prior to the contract date, the parties shall have mutually agreed on a mediator and on sharing the costs of mediation or shall have notified the board that the services of the State’s Panel of Mediators will be needed. If services of the State’s Panel of Mediators are used, the parties shall share all costs of mediation equally. Mediation shall continue for no more than 3 days for annual crops; all other commodities shall last no more than 5 days, unless the mediator earlier declares that resolution by mediation is not possible. Mediation may be extended by mutual agreement by the bargaining parties. At the end of the mediation period or upon the mediator’s earlier declaration, the mediator shall promptly prepare a report specifying all agreements reached in mediation and recommending that the parties either resume bargaining as to all matters remaining in dispute for a period of time not to exceed 2 days or that the parties submit all matters re *1377 maining in dispute to arbitration. The parties shall proceed according to the mediator’s recommendation. If the parties are to resume bargaining, that bargaining shall commence on the day after the day on which the mediator makes his recommendation. Any matters remaining in dispute at the end of the specified bargaining period shall be submitted to arbitration.

Me.Rev.Stat.Ann.tit. 13, § 1958-B(2). Mandatory binding arbitration follows:

At the commencement of required mediation, the parties shall so notify the board and the commissioner and an arbitrator shall be selected as provided in paragraph D. One day after the mediator recommends arbitration or one day after the conclusion of the period of further bargaining, as provided in subsection 2, each party shall submit to the arbitrator its final offer, in which it shall identify all matters as to which the parties agree, with contractual language setting forth these agreements, and all matters as to which the parties do not agree, with contractual language setting forth the party’s final offer for resolution of those disagreements.
A.As to all matters submitted to arbitration, the arbitrator shall choose between the final offers of the parties.

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Bluebook (online)
675 F. Supp. 1375, 1987 U.S. Dist. LEXIS 12308, 1987 WL 31995, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bayside-enterprises-inc-v-hanson-med-1987.