Bowles v. Whayne

152 F.2d 375, 1945 U.S. App. LEXIS 2291
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 17, 1945
DocketNo. 9992
StatusPublished
Cited by6 cases

This text of 152 F.2d 375 (Bowles v. Whayne) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowles v. Whayne, 152 F.2d 375, 1945 U.S. App. LEXIS 2291 (6th Cir. 1945).

Opinion

MARTIN, Circuit Judge.

The District Court dismissed a complaint filed by the O. P. A. Price Administrator against the appellees, doing business in Louisville, Kentucky, as the Roy C. Whay-ne Supply Company. The Administrator sought to recover $20,475, being treble the amount of the excess in consideration over the maximum price established by regulation of the Office of Price Administration for a drag line equipped with an oil engine, sold by appellees in October, 1943, to the Mulzer Construction Company of Chrisney, Indiana.

The facts of- the case were succinctly stipulated, as quoted below.1

It is conceded that the purchaser, Mulzer Construction Company, has never engaged in the business of buying machinery for resale, and that it bought the drag line machine in question, not for resale, but for use in its business of mining coal.

The issue presented requires the interpretation of Section 205(e)-of the Emergency Price Control Act of 1942, 56 Stat. 33, 50 U.S.C.A.Appendix § 925(e), which provides: “If any person selling a commodity violates a regulation, order, or price schedule prescribing a maximum price or maximum prices, the person who buys such commodity for use or consumption other than in the course of trade or business may bring an action either for $50 or for treble the amount by which the consideration exceeded the applicable maximum price, whichever is the greater, plus reasonable attorney’s fees and costs as determined by [377]*377the court. * * * If any person selling a commodity violates a regulation, order, or price schedule prescribing a maximum price or maximum prices, and the buyer is not entitled to bring suit or action under this subsection, the Administrator may bring such action under this subsection on behalf of the United States. * * * ”

The District Court upheld the contention of the appellees that, in the statute, the phrase “other than in the course of trade or business” qualifies the words “the person who buys such commodity,” with the result that, if the purchase of a commodity is made other than in the course of trade or business of the purchaser, the exclusive right of action is in the purchaser. It was held that the purchase of the drag line machine “was not in the course of trade or business but was for the use of the purchaser.”

The trial court announced adherence to its earlier expression in construing the statutory provision in Bowles, Administrator, O. P. A. v. Joseph Denunzio Fruit Co., D.C., 55 F.Supp. 9, 13: “Where a retailer sells to a purchaser for use or consumption the purchaser can sue for, the damages authorized by the Act; but where a wholesaler sells to a retailer who buys for resale in the course of trade or business and not for use or consumption, such retailer has no authority to institute the suit, but the right of action in such cases is vested in the Administrator.”

In rejecting the construction of the statute for which the Administrator contended, that the purchaser has the right of action only in those cases where the use of the purchased article is not in his trade or business, the District Court pointed to what were considered very unreasonable results necessarily attendant upon such interpretation. Reference was made to the example given in Bowles v. Googins (State District Court of Utah), 1 Price Control Cases, Par. 51.176: “A farmer buys himself a pair of overshoes for general use, and he wears them to irrigate his crops. If he paid over the ceiling price for them, is there any conceivable reason why the OPA should have the cause of action for the overcharge?” Further illustration was offered: “A carpenter buying a saw and hammer to use in his business would not have the right to sue for the price violation, but if he bought them to use for repairs at his residence, or if they were bought by a doctor, both the carpenter and the doctor would have the right to bring the action.”

In his memorandum opinion, the District Judge stated that the question had been presented to several District Courts, with different results. Bowles v. Chew, D.C. N.D.Cal., 53 F.Supp. 787, was the first case cited as “well” setting out the viewpoint of the trial court. In that case, however, the motion to dismiss the O. P. A. Administrator’s action for treble damages was denied; and, despite the general commentary in his opinion, what seemed uppermost in the mind of the judge who wrote the opinion was that, the legislative purpose being to prevent inflation, it was not intended that the Administrator be limited to suits against “bootleggers” and “black market operators.”

The second authority cited by the trial court was Bowles v. Seminole Rock & Sand Co. (S. D. Fla.), 1 Price Control Cases, Par. 51,112. But, on appeal of that case, it was held by the Fifth Circuit Court of Appeals that a railroad’s purchases of crushed stone for use in maintaining road beds were of a commodity consumed in course of business; and, hence, if the prices charged exceeded the maximum provided by an O. P. A. regulation, the cause of action arising from such unlawful acts was vested by the Emergency Price Control Act in the Price Administrator alone. Bowles v. Seminole Rock & Sand Co., 5 Cir., 145 F.2d 482.

In the particulars in which the third case cited by the District Judge, Bowles v. Googins (State District Court of Utah), 1 Price Control Cases, Par. 51,176, supports his conclusion, the decision seems to conflict with that df the Eighth Circuit Court of Appeals in Speten v. Bowles, 146 F.2d 602, 604, where it was held that the purchase of harvesting and threshing machinery for carrying on the purchaser’s general farming operations is for “use in the course of a trade or business” within the Emergency Price Control Act; and consequently the Price Administrator may sue the seller for treble the amount by which the sale prices exceeded the ceiling prices fixed by the maximum price regulations. The same interpretation of the statute should be applied to the purchase of a drag line machine by a mine operator as is applicable to the purchase of a harvesting and threshing machine by a farmer.

The fourth and last case cited as supporting authority by the District Judge [378]*378was Lightbody v. Russell, Sup., 45 N.Y.S. 2d 15. This case was reversed on final appeal to the Court of Appeals of New York, 293 N.Y. 492, 58 N.E.2d 508, 510. The Price Administrator, and not the purchaser of a tractor, was deemed to be the authorized party to sue for treble damages under the statute. The highest New York court pointed put that the statute divides purchasers of commodities into two classes: those who purchase for use in the course of their trade or business, that is for a commercial use; and those who purchase for use ,or consumption other than in the course of their trade or business, that is for a non-commercial use — each being an ultimate consumer. The court declared: “But it will be noted that the statute confers a cause of action upon the purchaser from a violator of the price regulation only in the event that he is in the latter class.

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Bluebook (online)
152 F.2d 375, 1945 U.S. App. LEXIS 2291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowles-v-whayne-ca6-1945.