Central West Texas Cooperative Marketing Ass'n v. Banner Dairies

252 S.W.2d 483, 1952 Tex. App. LEXIS 1768
CourtCourt of Appeals of Texas
DecidedOctober 24, 1952
Docket2961
StatusPublished
Cited by3 cases

This text of 252 S.W.2d 483 (Central West Texas Cooperative Marketing Ass'n v. Banner Dairies) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central West Texas Cooperative Marketing Ass'n v. Banner Dairies, 252 S.W.2d 483, 1952 Tex. App. LEXIS 1768 (Tex. Ct. App. 1952).

Opinion

COLLINGS, Justice.

This suit was brought Iby the Central West Texas Cooperative Marketing Association, Inc., against Banner Dairies, for a temporary injunction and upon final hearing, a permanent injunction, enjoining Banner Dairies from paying certain monies alleged to have been assigned by third party producers of milk to the Association. The Association asked for an accounting of sums alleged to have been wrongfully paid by Banner Dairies to such producers, and for damages. After hearing, an order was entered denying the temporary injunction and Central West Texas Cooperative Marketing Association, Inc., has brought this appeal.

The facts as found by the trial court were: .

“(1) That plaintiff, a cooperative marketing association, without capital stock and incorporated under the laws of the State of Texas, entered into agreements with various producers of milk, said agreements being identical in form with the copy of agreement attached to plaintiffs original petition, whereby said producers, respectively, agreed to deliver to the Association (as plaintiff will hereinafter be designated), for marketing when called upon to do so, all milk produced or acquired by them and that said Association might require such milk to be delivered to the plant of said Association, or to any plant designated by the Association, or that such producers might deliver their milk directly to the plant of distributors of pasteurized milk who purchased milk from or through the Association and who selected from among such producers, with their consent *484 and subject to the approval of the Board of Directors of the Association, such producers whose milk they desired to purchase through the Association.

“Each producer who- .entered into such contract agreed to the assessment of , liquidated damages against him for breach of the agreement or violation of any rules or regulations of the Association and to injunction to prevent further breach and for decree of specific performance in any proceeding instituted against him 'by the Association.

“Each of such agreements provided that the Association might establish selling agencies, contract with selling agencies, and might acquire and construct plants under certain conditions.’

“Each of such agreements provided that both parties should give notice to third parties with whom they were dealing of the obligations of the contract:

“Each of such agreements provided, 'that the Association shall have the right to deduct or cause to be deducted from the amounts that may become due to the producer for milk and other dairy products delivered to any plant or station designated by the Association, the expenses of such selling agency as it may have established, including cost of testing milk for butter fat and similar services, and such sums as may be necessary to repay money borrowed and/or to' pay for plants constructed or acquired and equipment purchased-and to set up such reserves as may be deemed necessary by the Board of Directors * * *; provided, however, there shall not be collected or deducted by the Association more than 5‡ per 100 pounds of milk delivered to or marketed through the Association for the purpose of defraying cost of services .rendered by the Association and for the purpose of providing a sinking fund to pay the cost of its plant, or any additions thereto or any additional plant.’

“(2) The plaintiff association entered into such agreements with 273 producers, who thereby became members of such Association.

“(3) Defendant, Banner Dairies, was not a party to any of such agreements between plaintiff and such producers.

“(4) No plants for marketing of milk were constructed or acquired, or equipment purchased, or reserves set up by the Association.

“(5) There was no- proof, or in any event the proof was insufficient, to establish that the Association ever designated defendant, Banner Dairies, or any of its plants, as a plant or station to which producers were required to deliver their daily production of milk or dairy products sold by them.

“(6) There was no- selection by Banner Dairies of any of such producers or members of the Association, with their consent and with the approval of the Board of Directors of the Association, with the desire of purchasing their milk through the Association. .

■ “(7) The Court finds, as a fact, that no milk or dairy products of any of such producers' were purchased by the defendant, Banner Dairies, either from or through the plaintiff Association.

“The Court finds, as a fact, however, that some of the producers, members of such Association, delivered and sold their milk direct to Banner Dairies and Banner Dairies purchased such milk direct from some of such producers, and paid said producers, respectively, the full market price for the milk sold by them to Banner Dairies.

“There were offered in evidence 79 of such agreements between plaintiff and producers who 'were selling and delivering their milk,' on their own initiative, direct to Banner Dairies at its plants located in Abilene, Brownwood, Midland, San Angelo and Big Spring, Texas.

“(8) The Court finds that between 40 and 50% of the total membership (producers) of the Association sold their milk to handlers of milk other than defendant, Banner Dairies.

“That the 'Association had employed two or three men who were at each of the plants óf Banner Dairies on two or three occasions for the purpose of testing and *485 weighing milk sold by producers to Banner Dairies, but that no such testers or checkers were kept regularly at any of such plants and there was no testimony as to the value or the costs of such services to plaintiff.

“(9) The Court finds that neither the plaintiff, nor any of the producers who executed such agreements, gave sufficient notice, if in fact any notice, to the defendant, Banner Dairies, of thé obligations of the contract, none of such contracts having ever been delivered to Banner Dairies for inspection. However, some 79 of such contracts were offered in evidence upon the hearing of plaintiff’s application for temporary injunction. The Court finds that on or about March 14, 19S2 plaintiff wrote letters to the plant managers of defendant at San Angelo, Abilene, Midland, Big Spring and Brownwood, in part, as follows: ‘In order that we may operate our program, it will be necessary that you furnish us with a complete list of your producers and their can numbers. We will need this information so that we may know which of your producers are members of our Association and which ones we are eligible to weigh and test. As you probably know, our contract calls for the dues payment of 5ft per cwt for weighing and testing members’ milk. We naturally expect that you will check off the 5ft per cwt dues of the Association members and pay that directly to us.’

“On or about March 28, 1952, plaintiff sent the various plant managers a letter as follows: ‘There seems to be some doubt in your mind as to whether or not you can deduct the 5ft per cwt dues from the Association membérs.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Ashford
73 B.R. 37 (N.D. Texas, 1987)
Reid v. Uhlhorn
359 S.W.2d 278 (Court of Appeals of Texas, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
252 S.W.2d 483, 1952 Tex. App. LEXIS 1768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-west-texas-cooperative-marketing-assn-v-banner-dairies-texapp-1952.