Country Belle v. Milk Control Commission

19 Pa. D. & C.2d 420, 1959 Pa. Dist. & Cnty. Dec. LEXIS 150
Pennsylvania Court of Common Pleas, Alleghany County·Decided March 16, 1959·No. no. 2989·Published

Opinion

Brown, J.,

This matter is before the court en banc upon an appeal by Country Belle Cooperative Farmers, hereinafter called appellant, from a special order of the Milk Control Commission of the Commonwealth of Pennsylvania, hereinafter designated as appellee, dated November 24, 1958, in which [421] order appellant’s license as a milk dealer was suspended for one day, with permission to ask appellee for a fine of $50 for each day of suspension in lieu of suspension, for violating the law, to wit, having offered to sell milk and cream below the minimum prices established by appellee contrary to the provisions of the Milk Control Law of April 28, 1937, P. L. 417, as amended, 31 PS §700j-807, the relevant parts of section 807 being as follows:

“After the commission shall have fixed prices to be charged or paid for milk, whether by class, grade, use or otherwise, it shall be unlawful for a milk dealer or handler or producer, knowingly or unknowingly, . . . to sell or deliver ... or offer to sell or deliver . . . or hold one’s self out as willing to sell . . . milk at any price below the minimum price or above the maximum price applicable to the particular transaction.”

At the argument before this court it was admitted that the evidence presented no controversy of facts.

The official transcript of the hearing before the appellee reveals that appellee’s counsel offered in evidence: (1) The citation and the letter containing its transmittal; (2) appellee’s special order showing milk prices that had been set for September through March, and another group of prices for months of April through August. The April through August prices were lower than the September through March prices; (3) appellant’s bid which will hereinafter be fully described, as it contains the substance and core of this appeal.

The bid discloses that on or about July 22, 1958, appellant submitted a written bid to Mayview State Hospital, offering to sell quantities of milk and cream to the hospital for the months of September, October and November 1958. These bid form proposals captioned “Commonwealth of Pennsylvania, Public Welfare Department” were submitted to appellant by Mayview [422] State Hospital and had been prepared by the Department of Property and Supplies of our Commonwealth. The forms contained the caption, and designated “Instructions to bidders” as follows: *

(1) Bidder shall insert check mark here □ if bidder is submitting bid for all milk and other products covered by this proposal at the minimum prices established by the Pennsylvania Milk Control Commission. Such a bidder agrees that his contract prices shall be revised downward or upward in accordance with any revision in minimum prices made by the commission during the period covered by this proposal.

(2) If bidder wishes to bid prices higher than the minimum established by the commission or if he does not wish his bids to be subject to downward revision, he shall check here. □

(3) In any case the bidder shall fill in the item prices and total prices for all products covered by this proposal.

Then followed vertical columns wherein the Commonwealth under each specification of milk, provides the description of the commodity, the quantity for each delivery, the total quantity, and appellant provided the unit price and total price for each item. Appellant inserted a check mark in item “1” above, and the question before the court is as follows:

Is appellee’s order or decree reasonable and in conformity with law?

On appeal from an order of the Pennsylvania Milk Control Commission, the court has the province to determine generally whether the order is reasonable and in conformity with the law and is not limited to determining whether there is sufficient evidence to support the board’s findings, and whether the law has been correctly applied: Pennsylvania Milk Control [423] Commission v. Nicoson, 57 D. & C. 166. See also section 906 of the Milk Control Law, 31 PS §700j-906.

Appellant submits that the decree is unreasonable and without sanction of law, for the reason that having placed the check mark in the block of the bid, as above stated, indicating that it was submitting the bid for all milk and other products covered by the proposal, at the minimum prices established by the appellee, and having thereby agreed that its contract prices shall be revised downward or upward in accordance with any revision in minimum prices made by appellee during the period “covered by the transaction”, the part of the bid specification and itemization of commodity, etc., where it placed minimum prices prevailing at the time of submission of the bid, does not make the bid illegal by offering to sell milk products below minimum prices established by appellee.

Appellee in its brief argues basically that the escalator clause applies only in the event it should revise the prices before delivery, that the prices itemized in the schedule at the time the bid proposal is signed and offered by the milk dealer constitutes a violation of the act if the inserted minimum prices are found to be lower than the prices fixed by the appellee at date of delivery.

The constitutionality of the appellee’s power to fix prices and to make reasonable rules and regulations for the enforcement of the same, is definitely settled in this State (Colteryahn Sanitary Dairy v. Milk Control Commission of Pennsylvania, 332 Pa. 15), and this court cannot act as a super milk control commission so as to interfere with appellee’s duty of regulating and controlling the milk industry in this Commonwealth, “for the protection of the public health and welfare and for the prevention of fraud”, the legislative purpose. See 31 PS §700j-101. Nevertheless, the judiciary is the tribunal to review orders and decrees [424] of this commission on appeal, and its act will be declared null and void where a penalty is inflicted, a forfeiture declared or an act restrained or restricted unless such orders or decrees are in accord with the following :

“ ‘All orders and decrees of legal tribunals, including those of administrative boards and commissions, must be supported by evidence sufficient to convince a reasonable mind to a fair degree of certainty; otherwise our vaunted system of justice would rest upon nothing higher than arbitrary edicts of its administrators. “Substantial evidence is more than a mere scintilla. It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.” . . . “Substantial evidence is more than a scintilla, and must do more than create a suspicion of the existence of the fact to be established.” . . . “The rule of substantial evidence is one of fundamental importance and is the dividing line between law and arbitrary power” ’ ”: Pennsylvania State Board of Medical Education and Licensure v. Schireson, 360 Pa. 129, 133.

The above is not to be watered down, notwithstanding the rule that administrative agencies are not bound by technical rules of evidence: Pennsylvania State Board of Medical Education and Licensure v. Schireson, supra, p. 132.

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Country Belle v. Milk Control Commission, 19 Pa. D. & C.2d 420, 1959 Pa. Dist. & Cnty. Dec. LEXIS 150 (Pa. Super. Ct. 1959).

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