Bolin Farms v. American Cotton Shippers Association

370 F. Supp. 1353, 18 Fed. R. Serv. 2d 1180, 1974 U.S. Dist. LEXIS 12451
CourtDistrict Court, W.D. Louisiana
DecidedJanuary 31, 1974
DocketCiv. A. 19351, 19389, 19365, 19364, 19418, 19485 and 19652
StatusPublished
Cited by12 cases

This text of 370 F. Supp. 1353 (Bolin Farms v. American Cotton Shippers Association) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bolin Farms v. American Cotton Shippers Association, 370 F. Supp. 1353, 18 Fed. R. Serv. 2d 1180, 1974 U.S. Dist. LEXIS 12451 (W.D. La. 1974).

Opinion

EDWIN F. HUNTER, Jr., Chief Judge:

As of January 3, 1974, the writer assumed jurisdiction. These cases had *1356 previously been handled by the Honorable Ben C. Dawkins, Jr. A five-page order was entered on January 3, 1974; following a lengthy conference with counsel.

The pending motions have been submitted on the transcript of hearings held before Judge Dawkins, a multitude of depositions, and various affidavits.

CIVIL ACTION 19502

The motion to dismiss, pegged on lack of diversity, has been sustained and a judgment signed. My understanding is that both sides concede dismissal to be correct.

CIVIL ACTION 19485

Defendants in this $665,000,000 anti-trust suit filed a motion to stay, insisting that judgment in the contract cases favorable to plaintiffs is an essential prerequisite to a day in court in the anti-trust suit. We intimate no opinion as to the validity of this contention. We do grant a stay of all further proceedings for the time being, with the exception of the pending motion by plaintiffs for a preliminary injunction. Judge Dawkins granted a temporary restraining order, but, by order of November 1, 1973, dissolved the TRO and cancelled the hearing on the preliminary injunction that had been scheduled for November 19, 1973. Writs of mandamus and prohibition were lodged in the Fifth Circuit Court of Appeals. That Court, on November 19, 1973, denied the writ. Plaintiffs would enjoin the defendant “cotton buyers” from:

1. Requiring any farmer to sign the so-called Confirmation of Sale statement which would reveal whether or not his cotton had been previously contracted for.
2. Using any of the catalogs prepared by American Cotton Shippers Association in determining whether to purchase cotton or not.
3. Using any kind of criterion in the purchase of cotton, except technical data that was not employed prior to 1973, and
4. Refusing to purchase cotton from farmers who signed 1973 cotton contracts on any different basis or price than that made or paid to cotton farmers or producers who did not sign contracts for 1973.

The circumstances in which a preliminary injunction may be granted are not prescribed by the federal rules. The grant or denial often remains a matter for the trial court’s discretion and must be exercised in conformity with historic equity practice. We cannot say, as a matter of equity, that a cotton buyer cannot require a statement from a prospective seller that he has not previously contracted for the sale of his cotton. We are not prepared to prohibit cotton buyers from utilizing trade catalogs to ascertain whether or not a prospective seller has sold to someone else. Plaintiffs’ motion for a preliminary injunction is denied.

This anti-trust action is severed for separate consideration. This severance is necessary to avoid possible prejudice and to expedite resolution of the contract cases.

THE CONTRACT CASES — 19,351, 19,389, 19,365, 19,364, 19,418

This litigation arises out of the attempts by eleven (11) cotton farmers to test the contracts by which they conced-edly obligated themselves to sell and deliver their cotton. In essence, defendants agreed to purchase whatever was planted by these farmers on specific acreage at a price agreed upon between January and March of 1973, irrespective of what the price might be at harvest time. Meanwhile, the price of cotton unexpectedly skyrocketed to at least double the price agreed upon. The complaints seek a declaration that the contracts are null and void, so that plaintiffs may achieve a better price than they bargained for. The fundamental question in each action involves the enforceability vel non of contracts for the *1357 advance or forward sale of cotton grown for the 1973 crop.

CLASS ACTION REQUEST

Plaintiffs seek to maintain these contracts as consolidated class litigation on behalf of “all cotton farmers in the State of Louisiana that have signed ‘forward’ or ‘future’ crop contracts with cotton brokers and/or buyers.” (Plaintiffs’ motion, page 1.) This description would, of course, encompass a highly diverse aggregation of purported class members, many of whom may be persons who never had dealings with defendants. The individual petitions make no reference to any purported class, and all allegations are asserted on behalf of individual plaintiffs. As the Court of Appeals for the Fifth Circuit made clear in Danner v. Phillips Petroleum Co., 447 F.2d 159, 164 (5th Cir. 1971), complaints such as these cannot possibly provide an adequate predicate for class action certification.

Even more significant, plaintiffs have not made the slightest factual showing that the weakening of the forward contracting system which this purported class litigation seeks would be welcomed by, or would in any way benefit, all members of the purported class. On the contrary, it is apparent that plaintiffs’ interests are antagonistic to, rather than typical of, many members of the purported class. Surely, a person who has attempted to test his contract and has incurred counterclaims thereby can in no sense be regarded as “typical” or adequately representative of a class of persons who have not attempted to repudiate their contracts. This inescapable divergence between plaintiffs’ position and class members’ positions is even more pronounced in the case of those class members who have already delivered and been paid.

In Arnesen v. Raymond Lee Organization, Inc., 59 F.R.D. 145, 148 (C.D.Cal. 1973), as in the case at bar, a plaintiff who was “seeking a rescission of his agreement” with defendants sought to represent a class composed of other persons who had entered into agreements with defendants but had not purported to rescind their agreements. The Court held that because of plaintiff’s attempted rescission, plaintiff was in a “different posture” from that of other class members, and thus:

“Plaintiff’s claim against defendants is not typical of claims of other members of the class, Rule 23(a)(3) * * 59 F.R.D. at 148.

We conclude that the maintenance of plaintiffs' class pursuant to Rule 23 would be improper, and the motion for a determination of the same is denied.

THE MOTIONS

The record is a morass of pleadings which can best be unraveled by proceeding to the very core of the case — that is, the validity and enforceability of a contract for the purchase and sale of cotton, entered into between a willing buyer and a willing seller, both adult (experienced cotton farmers on the one hand and experienced cotton buyers on the other hand) on an open and competitive market. The ease on summary judgment presents two facets: 1

(1) The prayer of plaintiffs for a declaratory judgment annulling the cotton sales contracts, and
(2) The prayer of defendants that the contracts be adjudged lawful and valid.

On these motions, we have before us:

1.

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370 F. Supp. 1353, 18 Fed. R. Serv. 2d 1180, 1974 U.S. Dist. LEXIS 12451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bolin-farms-v-american-cotton-shippers-association-lawd-1974.