Biazzo Dairy Products, Inc. v. Commonwealth of Pennsylvania and The Pennsylvania Milk Marketing Board

CourtDistrict Court, M.D. Pennsylvania
DecidedNovember 19, 2025
Docket1:25-cv-00506
StatusUnknown

This text of Biazzo Dairy Products, Inc. v. Commonwealth of Pennsylvania and The Pennsylvania Milk Marketing Board (Biazzo Dairy Products, Inc. v. Commonwealth of Pennsylvania and The Pennsylvania Milk Marketing Board) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Biazzo Dairy Products, Inc. v. Commonwealth of Pennsylvania and The Pennsylvania Milk Marketing Board, (M.D. Pa. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA BIAZZO DAIRY PRODUCTS, INC., : Civil No. 1:25-CV-00506 : Plaintiff, : : v. : : COMMONWEALTH OF : PENNSYLVANIA and THE : PENNSYLVANIA MILK : MARKETING BOARD, : : Defendants. : Judge Jennifer P. Wilson MEMORANDUM Before the court is a motion to dismiss filed by Defendants the Commonwealth of Pennsylvania (“the Commonwealth”) and the Pennsylvania Milk Marketing Board1 (“Milk Board”) (collectively, “Defendants”). (Doc. 16.) Defendants allege that Plaintiff Biazzo Dairy Products, Inc. (“Biazzo”) fails to state a claim upon which relief can be granted in its amended complaint. (Id.; Doc. 17.) Pennsylvania law requires that Biazzo post a bond to purchase milk from Pennsylvania milk producers. (Doc. 13, pp. 6–7.)2 Biazzo claims the bond requirement violates the dormant Interstate Commerce Clause of the United States

1 The Pennsylvania Milk Marketing Board is now the Pennsylvania Milk Board. 31 P.S. § 700j- 103. However, because the parties refer to this Defendant as the Pennsylvania Milk Marketing Board, the court does as well for consistency.

2 For ease of reference, the court uses the page numbers from the CM/ECF header. Constitution. (Id. at 6–8.) For the reasons that follow, Defendants’ motion to dismiss will be granted.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY Biazzo is a New Jersey corporation that makes cheese products. (Doc. 13, p. 2.) Biazzo buys milk from Pennsylvania farmers and has that milk delivered to

New Jersey. (Id. at 3.) Biazzo has no physical presence in Pennsylvania; none of its officers, employees, or shareholders live in Pennsylvania, and it neither owns the tanker trucks used to deliver the milk it buys nor employs the drivers of those

trucks. (Id.) New management assumed control of Biazzo in 2024. (Id.) Soon after, the Milk Board contacted Biazzo and informed the company that it qualified as a “milk dealer” under Pennsylvania law and, accordingly, had to post an annual bond with

the Milk Board to continue buying milk from Pennsylvania milk producers. (Id.) The Pennsylvania General Assembly passed the Milk Producers’ Security Act (“Milk Security Act”), 31 P.S. §§ 626.1–626.15, which implements this bond

requirement, to protect Pennsylvania milk producers from nonpayment on milk sales. Id. § 626.2. The Milk Security Act defines the term “milk dealer,” in relevant part, as “[a]ny person who purchases or receives or handles on

consignment or otherwise milk within the Commonwealth, for sale, shipment, storage, processing or manufacture, within or without the Commonwealth, whether on behalf of the person or others, or both.” Id. § 626.4; see also 31 P.S. § 700j-103 (providing the same definition for the terms “milk dealer” and “milk handler”).

Pennsylvania law requires that each milk dealer “file with the [Milk Board] a corporate surety bond or collateral bond.” Id. § 626.7(a). The amount of the bond each milk dealer is required to pay is calculated using the “highest aggregate amount owed by the milk dealer to all producers3 for a 40-day period during the

preceding 12 months.” Id. § 626.7(c)(1)–(2). Milk Board regulations define “amount owed,” in relevant part, as “the actual amount the milk dealer lawfully paid the producer.” 7 Pa. Code § 151.9(b)(2).4 The court refers to these statutes

and the Milk Board regulation as “the bond requirement,” collectively. Biazzo posted the bond. (Doc. 13, p. 4.) Then, in September 2024, it filed a petition before the Milk Board challenging the bond requirement. (Id.) After

Biazzo filed its petition, the Milk Board informed it that, instead of posting a second annual bond, Biazzo could participate in the “Pennsylvania Security Fund”

3 A milk producer is a “person producing milk.” 31 P.S. § 626.4.

4 For purchases subject to a minimum price fixed by the milk board, “‘amount owed’ means the amount the milk dealer was required to pay the producer under the applicable [Milk Board] order, even though the actual amount paid exceeded the [Milk Board]-established minimum price.” 7 Pa. Code § 151.9(b)(1). When a purchase is not subject to a minimum price, “‘amount owed’ means the actual amount the milk dealer lawfully paid the producer.” Id. §151.9(b)(2). Biazzo cites § 151.9(b)(2) in its amended complaint, so the court assumes that its milk purchases are not subject to a minimum price set by the Milk Board. (Doc. 13, p. 7.) (“security fund”)5 if it posted a $500,000 security and paid an additional $1,100 per month into the fund. (Id. at 5.) Biazzo decided to participate in the security fund,

and the Milk Board treated its petition as a request to participate in the security fund. (Id.) The Milk Board held a hearing on Biazzo’s petition on May 7, 2025, but the agreement allowing Biazzo’s participation in the security fund awaited

ratification by the Milk Board when Biazzo filed its amended complaint. (Id.) Biazzo filed its amended complaint in this court on June 6, 2025, after “realizing [that], as an administrative agency, the Milk Board lacks the authority to declare [a] statute passed by the Commonwealth legislature to be unconstitutional.”

(Id. at 4–5.) Therein, it raises two constitutional claims and one claim for declaratory judgment. (Id. at 6–9.) First, it alleges that the bond requirement is “unconstitutional per se and unconstitutional as applied” because it violates the

dormant Interstate Commerce Clause of the United States Constitution by placing “an impermissible burden on [Biazzo] and a detriment to the public in terms of higher prices to offset the costs of the bonds.” (Id. at 6–7.) Second, it alleges that Milk Board regulation 7 Pa. Code § 151.9(b)(2), which defines the term “owed” as

5 Milk dealers who participate in in the security fund created by the Milk Security Act, 31 P.S. § 626.9, are “vested milk dealers” and must pay a bond “equal to a minimum of 30% of the highest aggregate amount owed by the vested milk dealer to all producers for a 40-day period during the preceding 12 months.” 31 P.S. § 626.7(c)(2). Non-vested milk dealers must file a bond “equal to a minimum of 75% of the highest aggregate amount owed by the milk dealer to all producers for a 40-day period during the preceding 12 months.” Id. § 626.7(c)(1). used in the Milk Security Act as “amount paid,” is “unconstitutional per se and unconstitutional as applied” because it violates the dormant Commerce Clause.

(Id. at 8.) Third, Biazzo claims that it is entitled to a declaratory judgment on the following premises: 1) the bond requirement violates the dormant Commerce Clause; 2) if Biazzo continues to pay milk producers for their products upon

delivery or shortly thereafter, it will owe those milk producers nothing and will not qualify as a milk dealer; 3) Biazzo is not a milk dealer because “it has never had a physical presence within the Commonwealth, does not sell milk in the state or anywhere within the United States”; and 4) the bond requirement violates the

Equal Protection Clause of the Fourteenth Amendment to the United States Constitution. (Id. at 8–9.) Biazzo attaches the affidavit of Joel Zweig, the company’s chief operating officer, to the amended complaint. (Doc. 13-1, ¶¶ 1–2.)6 The affidavit sets forth

allegations similar to those contained in the amended complaint. (Id. ¶¶ 1–10.) However, it provides additional relevant information. (Id. ¶ 10.) It states that milk dealers who purchase milk from Pennsylvania producers have “an increased

6 The court normally may not consider “matters extraneous to the pleadings” when ruling on a motion to dismiss for failure to state a claim. In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir.

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