Dunakin v. Southwestern Consumers Co-Op. Ass'n

157 P.2d 243, 49 N.M. 69
New Mexico Supreme Court·Decided March 12, 1945·No. No. 4867.·Published·Cited by 4 cases

Opinion

BICKLEY, Justice.

This is a suit for $50 plus a reasonable attorney’s fee on account of an overcharge for a can of tomato juice, brought under the provisions of Sec. 205(e) of the Emergency Price Control Act of 1942, 50 U.S. C.A.Appendix § 925(e). After trial, -but before judgment, the Administrator of the Office of Price Administration intervened. From a judgment dismissing the complaint, the plaintiff and intervenor appeal.

The portion of Sec. 205(e) of the 1942 Act material to our consideration 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 the court.” 56 Stat. 33.

The district court made the following findings of fact and conclusions of law:

“I. That on or about November 26, 1943, the plaintiff purchased from the defendant at its store located at 2406 North Fourth Street in the City of Albuquerque, New Mexico, a 47 ounce can of Del Monte tomato juice.

“II. That at the time of the purchase the maximum price for said can of tomato juice, as established by the Office of Price Administration, was 28^; that the price 57‡ was innocently marked by mistake by an employee of the defendant on the can itself, and at the time of the purchase the defendant charged and collected from the plaintiff innocently and through mistake, the said sum of 57‡.

“HI. That a correct price list of articles was posted on the wall of the defendant’s store in a conspicuous place, as required by the law, and it contained the correct ceiling price of this particular kind and size of tomato juice as 28^.

“IV. That the plaintiff, at the time he purchased the said can of tomato juice, knew that the said price of 57(4 was over and above the maximum price for said can allowed by the Office of Price Administration, and that the plaintiff at said time, and with such knowledge, purchased the said can of tomato juice in bad faith, with the intent and for the purpose of laying a basis for this suit, in order to collect from the defendant the sum of $50.00, together with costs and attorney fees; that the said plaintiff did not purchase the said can of tomato juice in good faith for his use or consumption, but for the purpose of inducing the defendant to violate the law and regulations of the Office of Price Administration, so that he might benefit by suing the defendant for the $50.00 penalty provided -by law.”

“Conclusions of Daw

“The Court concludes as a matter of law:

“I. The mistake or error of the defendant in selling the can of tomato juice at a price in excess of the ceiling price would not defeat a recovery by the plaintiff herein, but the mistake and innocence of the defendant in making the overcharge, coupled with the bad faith of the plaintiff, who knowingly purchased the article at an excessive price, and who intentionally induced and assisted the defendant to violate the law so that the plaintiff might enrich himself to the detriment of the defendant, does defeat a recovery herein, and plaintiff’s complaint should be dismissed at plaintiff’s cost.

"II. The section of the Act under which this suit was filed was passed by Congress as a matter of public policy and for the benefit of the public welfare; and, inci-dently, it does penalize a violator and enrich the informer or prosecutor. That neither the public policy nor the public welfare would be protected nor promoted, nor the intention of Congress carried out by the rendering of judgment in favor of the plaintiff upon the facts of this case.”

At the conclusion of the trial the court made the following statement which serves to illumine its formal findings and conclusions :

“The Court: There is no question in this case but what the can of tomato juice in question was sold by the Defendant to the Plaintiff for 57‡, and at the time the ceiling price under the OPA rulings, was 280. In the opinion of the Court, undoubtedly this price charge was entirely an innocent mistake, and there is nothing upon which the Court could find any wilfull violation. It appears, however, from authorities, that it is not necessary, under subsection E of Section 925 of this Emergency Price Control Act, as given in U.S.C.A.Appendix Vol. 50, that an intent is necessary; that is, that an intent to violate is necessary, or that the violation should be wilful-However, this fact that it was apparently a mistake, I think, can be taken into consideration by the Court in connection with some other matters in the case. I take it, that in order to recover, the Plaintiff is required to prove by a preponderance of the evidence the essentials to show a violation. One of those essentials is that the purchaser who brings the action to recover the penalty of $50.00, bought the commodity for his use and consumption. All the evidence and the circumstances introduced in this case do not convince the Court that it was purchased for that purpose, and the Court is in considerable doubt as to whether that was the purpose. The very prompt and aggressive way that the plaintiff made his purchase and checked on it, and went to the OPA office, and hired a lawyer, all within a couple of hours or so, throws a great deal of doubt upon the good faith of the Plaintiff in this case, as to whether he bought it for the purpose of his own use and consumption, or whether he bought it for the purpose of bringing suit and collecting the penalty. The Court believes that the Plaintiff in this case, at the time he bought this merchandise, knew it was not properly priced. It was not a case where there was a cent or two, or a small fraction off, but it was double its ordinary price. It is shown that this Plaintiff had bought tomato juice many times before, and I believe at least a couple of months before this, had bought it, when he stated the price was about half what was charged him at this time. He stated he thought it was a little out of line, but when he asked for the price and was told it was 57‡ he was satisfied that it was all right, but immediately it appears from the evidence, he went to a grocery store two blocks away, not for the purpose of buying, but for checking the price there, and then went on to the OPA office, and got his lawyer. The Court will dismiss the action on the ground that the Plaintiff hasn’t proved the essentials to constitute a cause of action.”

Thereafter occurred a colloquy between the court and counsel concerning several matters touching the case, during which the following appears:

“Mr. Anderson: (of counsel for Inter-venor) It is simply our position that the sale of the commodity to the plaintiff, which as I understood has been established by the evidence, at a price above the Maximum price at the time of sale, if that sale was not in the course of trade or business, is a violation of the Emergency Price Control Act as amended, and the regulations thereunder.

“The Court: Any purchase is made in the course of business.

“Mr.

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Dunakin v. Southwestern Consumers Co-Op. Ass'n, 157 P.2d 243, 49 N.M. 69 (N.M. 1945).

157 P.2d 243 (Dunakin v. Southwestern Consumers Co-Op. Ass'n) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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