Brown-Forman Distillers Corp. v. McHenry

566 S.W.2d 194, 1978 Mo. LEXIS 295
CourtSupreme Court of Missouri
DecidedApril 24, 1978
Docket60052
StatusPublished
Cited by13 cases

This text of 566 S.W.2d 194 (Brown-Forman Distillers Corp. v. McHenry) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown-Forman Distillers Corp. v. McHenry, 566 S.W.2d 194, 1978 Mo. LEXIS 295 (Mo. 1978).

Opinion

HENLEY, Judge.

This is an appeal from a judgment and decree declaring unconstitutional parts of House Bill No. 810 enacted by the 78th General Assembly, First Regular Session, 1975, 1 and enjoining permanently the enforcement thereof.

By their petition, Brown-Forman Distillers Corporation, et al. 2 (plaintiffs) sought (1) a judgment declaring House Bill 810 unconstitutional and void because it violated Mo.Const. Art. Ill, §§ 21 and 23, in that (a) contrary to § 21, the bill was “so amended in its passage * * * as to change its original purposes”; 3 and (b) contrary to § 23, the bill did not contain “one subject * * * clearly expressed in its title * * * ”; 4 and (2) a decree enjoining James F. McHenry, as prosecuting attorney of Cole county, et al. 5 (defendants) from enforcing provisions of § 2 6 of House Bill 810, the violation of which is declared by *195 § 6 7 to be a felony punishable by a fine or imprisonment or both. Missouri Wine and Spirits Association, Inc. (intervenor), with leave, intervened as a party defendant, filed answer, and has filed a separate brief on appeal. As indicated, the trial court granted the relief sought by plaintiffs. More specifically, the parts of House Bill 810 declared unconstitutional are a part of § 1(6) 8 and all of § 4, 9 both of which were added to the bill by an amendment 10 in the Senate. These parts, declared to be severa-ble from the remainder of the law passed by the bill, were severed and the remainder of the law left intact.

Plaintiffs are foreign corporations licensed as distillers or suppliers authorized to solicit orders for intoxicating liquor from licensed spirituous liquor and wine wholesalers in Missouri, and each does solicit orders from wholesalers in Missouri and ships such liquor from outside to wholesalers in this state. They have contracts or agreements with liquor wholesalers that are terminable at will. These agreements provide for their termination by either party without cause or notice, or without cause but with notice of termination, or without right of renewal and early termination for cause. None of the liquor wholesalers are made parties-defendant, but intervenor, a trade association of such wholesalers, represents the interests of those who are members of the association. Under the law (§§ 407.400 to 407.420, supra), as passed by the general assembly in the form of House Bill 810, franchise agreements in the liquor industry may not be terminated at will.

Chapter 407, RSMo, relating to certain merchandising practices, was enacted in 1967. Laws of Mo., 1967, p. 607; §§407.010 to 407.130, RSMo 1969. In 1974, the 77th General Assembly, Second Regular Session, adopted House Bill No. 1132, containing five sections relating to certain merchandising practices. Laws of Mo., 1974, p. 896. The law enacted by this bill defined “pyramid sales scheme” and “franchise.” It also forbade pyramid sales schemes and prohibited the cancellation or termination of franchise agreements without ninety days notice except for specified cause. Section 5 of the bill (§ 407.420, RSMo Supp. 1975) made it a felony to violate § 2 of the bill (§ 407.405, RSMo Supp. 1975) pertaining to pyramid sales schemes and cancellation of franchise agreements.

House Bill No. 810, the constitutionality of which is attacked in this case, had as its title when introduced the following:

“An Act to repeal Section 1 of House Bill 1132, Second Regular Session, 77th General Assembly, relating to certain merchandising practices, with penalty provisions, and to enact in lieu thereof one new section to be known as Section 1.”

When finally adopted as law, the title of House Bill 810 had been amended by adding the portion italicized so that it reads as follows: “An Act to repeal Section 1 of House Bill 1132, Second Regular Session, 77th General Assembly, relating to certain merchandising practices, with penalty provisions, and to enact in lieu thereof one new section to be known as Section 1, to enact a new Section 4 and renumbering Sections 4 and 5.”

The new § 1 changed the definition of “franchise” so as to explicitly include wholesalers and suppliers or distillers of spirituous liquors. New § 4 prohibited the cancellation of liquor franchises at will. These changes were made by Senate amendment No. 1. The full text of House Bill 810, as adopted by the legislature, with the part added by Senate amendment No. 1 italicized, is set out in the attached appendix.

The parts of House Bill 810 regulating franchise agreements in the liquor industry were similar to provisions of House Bill No. 569 (also introduced in the 78th General Assembly, First Regular Session) which sought to amend chapter 311, relating to *196 alcoholic beverages, by adding two new sections pertaining to franchise agreements. This bill was not adopted.

Defendants and intervenor contend that the trial court erred in enjoining enforcement of §§ 1(6) and 4 of House Bill 810 and in declaring them unconstitutional, because, they say, those sections do not violate Mo. Const. Art. Ill, §§ 21 or 23 in that (1) the bill was not so amended in its passage through the legislature as to change its original purpose, and (2) its title contains one subject clearly expressed therein.

In response, plaintiffs contend and argue that the court correctly held (1) the title of the bill, as passed, did not contain one subject clearly expressed, that the title contained “matters which are incongruous, unconnected and deceptive,” and did not refer to penalty provisions contained in the bill; and (2) that an amendment of the bill made during its passage changed its original purpose; that when chapter 407 was enacted in 1967 it dealt with “consumer protection” and the liquor industry was not covered by its terms; that, as finally passed, the bill amended the comprehensive code of liquor control (chapter 311) by amendment of the consumer protection statutes although the bill specifically designed to accomplish this result (House Bill 569) was not adopted.

Defendants also contend that contracts or agreements between the distiller or supplier of intoxicating liquor and the wholesaler are not “franchises” within the meaning of the law adopted by passage of House Bill 810. Intervenor, unlike its codefendants but agreeable to the position of plaintiffs, contends that the agreements are such franchises. The trial court concluded that the agreements these plaintiffs have with various wholesalers are franchises within the meaning of these statutes. We concur in that holding. See: Carlo C. Gelardi Corp. v. Miller Brewing Co., 421 F.Supp. 233, 236 (D.N.J.1976); Globe Liquor Co. v. Four Roses Distillers Co., 281 A.2d 19

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Bluebook (online)
566 S.W.2d 194, 1978 Mo. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-forman-distillers-corp-v-mchenry-mo-1978.