Bowles v. C. S. Smith Metropolitan Market Co.

59 F. Supp. 895, 1945 U.S. Dist. LEXIS 2476
CourtDistrict Court, S.D. California
DecidedMarch 24, 1945
DocketNo. 3429-H Civil
StatusPublished

This text of 59 F. Supp. 895 (Bowles v. C. S. Smith Metropolitan Market Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowles v. C. S. Smith Metropolitan Market Co., 59 F. Supp. 895, 1945 U.S. Dist. LEXIS 2476 (S.D. Cal. 1945).

Opinion

HOLLZER, District Judge.

This is a suit instituted by the Administrator of the Office of Price Administration for injunctive relief to enjoin defendant from violating certain regulations issued pursuant to the provisions of the Emergency Price Control Act of 1942, 50 U.S.C.A.Appendix § 901 et seq., also to enjoin defendant from violating certain orders issued pursuant to said Act and to direct it to comply with certain provisions of such regulations and such orders.

The complaint consists of fourteen counts, each charging defendant with a violation of one of these regulations or orders or with a failure to comply therewith.

Defendant owns and operates a chain of retail food markets, eleven in number. In each of ten of these markets defendant operates a meat department, a grocery department and a produce department, while in the remaining market only liquors are sold. Most of these markets are located in the City of Los Angeles, while the re[896]*896mainder are situate in adjoining communities.

It is admitted that investigators from the Office of Price Administration, hereinafter called O. P. A., made spot-check investigations in certain of defendant’s markets on the dates mentioned in the complaint and that these investigations disclosed violations of the kind described in the complaint.

Shortly after this suit became at issue, counsel for the respective parties stipulated, in substance, that the setting of the cause be deferred for several months, and indicated further that if defendant’s markets continued to show improvement with respect to compliance with O. P. A. regulations, etc., corresponding to the degree of compliance then prevailing therein, this suit probably would be dismissed. Accordingly, the trial was postponed. A subsequent investigation having convinced O. P. A. that in several of defendant’s markets the percentage of violations had increased, as compared with the conditions prevailing at the time the aforementioned stipulation was made, plaintiff concluded that the suit should be tried. Thereupon a pre-trial was ordered.

At such pre-trial the issues of fact and of law were defined, and counsel for the respective parties outlined the evidence they expected to produce and the contentions they proposed to advance. In addition, defendant demanded that plaintiff participate with it in a joint investigation of prices and O. P. A. compliance in markets competitive with and comparable to the markets of defendant and located in the same areas. Plaintiff having objected thereto, the court ruled that O. P. A. was not required to comply with such demand.

Likewise at the pre-trial, counsel for plaintiff disclosed that it was the latter’s practice in cases similar to the present suit to have a further investigation of the markets in question made prior to trial. Such further investigation was accordingly conducted early in January of this year.

To establish its case plaintiff produced .as witnesses the several investigators who had inspected certain of defendant’s markets during one or more of the periods involved herein. Four investigations in all had been made. The first of these was in November, 1943, the second in March, 1944, the third in June of the same year, and the last during the first week of the present year.

At the close of the evidence, defense counsel stated, in substance, that defendant would concede the correctness of the testimony of plaintiff’s investigators relative to the items they checked in the markets inspected, also as to what items they found on their respective investigations and concerning which they had testified. Again, during the oral argument, defense counsel pointed out that while he had produced as witnesses all of defendant’s employees whose names had been mentioned in the testimony of plaintiff’s witnesses and who were still in defendant’s employ, his purpose in calling those witnesses was not to dispute the testimony of the O. P. A. investigators. Rather, stated counsel, his purpose was, firstly, to enable defendant’s employees to give such explanations as they had to offer respecting the violations reported and to describe the circumstances under which they worked, and secondly, to enable the court to observe, first-hand, the type of personality and the nature of the ability of the employees upon whom defendant had to rely to effect compliance with O. P. A. regulations.

In view of this state of the record, no-useful purpose would be served by any detailed, extended discussion of the evidence introduced on behalf of O. P. A. Instead, we deem it preferable to adopt the summaries, as outlined by plaintiff’s counsel during the oral argument, respecting the nature and extent of the violations reported by the O. P. A. investigators based upon the aforementioned investigations.

As thus reported, the November, 1943, investigation disclosed, among other matters, that out of a total of 120 items checked in the grocery departments of all the markets visited, 34 — about 28% of the items inspected — were found to be priced over ceiling. However, it should be noted that the range of these particular violations varied from a minimum of about 10% in one market to a maximum of about 60% in one of the others. Again, the ration violations for the same period ranged from approximately 4% in one market to about 28.5% in another.

With respect to the meat departments inspected during the same period, the range of price violations varied from none in three of the markets and 8% in the next lowest to a maximum of 28.57% in still [897]*897another market. Furthermore, the violations based on failure to tag meat ranged from none in four of the markets to 12.5% in the market having the next lowest number and to a maximum of 89.28% in one of the other markets.

As to violations of meat rationing, three of the markets showed no offering of rationed meat without the proper point value, while the other markets showed violations ranging from a minimum of 3% to a maximum of about 15%. In two of the markets the reports showed no violations involving failure to post ration point value, while in other markets such violations ranged from 5% to about 89%.

The reports covering the March, 1944, investigation showed a decided improvement with respect to compliance with O. P. A. regulations. Seven markets were inspected. Out of a total of 1,280 items then checked in the several grocery departments, only 46 or about 3%% were found to involve a price violation. The lowest percentage of violation in any single market was 1.28, while the highest was about 7%.

In the meat departments of some of the markets no meats were being offered in excess of ceiling price, while in the remainder the investigator rarely found more than two or three items involving a violation.

Referring to the June, 1944, investigation, counsel for O. P. A. pointed out that the grocery departments were not in very bad shape, although the percentages of price violations had increased as compared with the preceding investigation. Five . markets were inspected. Out of a total of 1145 items checked, 56 or about 5% involved a price violation. The percentage of such violations varied from 2% in one market to a maximum of about 10%. Here it should be noted that the range of these percentages was much lower both in March and June, 1944, than in the preceding November.

However, in the meat departments of these same markets the reports showed a marked increase in the percentage of violations, as compared with the preceding inspection.

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Bluebook (online)
59 F. Supp. 895, 1945 U.S. Dist. LEXIS 2476, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowles-v-c-s-smith-metropolitan-market-co-casd-1945.