Durkin v. Pet Milk Co.

14 F.R.D. 374, 1953 U.S. Dist. LEXIS 3861
District Court, W.D. Arkansas·Decided June 27, 1953·No. No. 1054·Published·Cited by 11 cases

Opinion

JOHN E. MILLER, District Judge.

On October 30, 1952, Maurice J. Tobin, Secretary of Labor, United States Department of Labor, filed his complaint seeking to enjoin defendant from violating the minimum wage, record keeping, and shipping provisions of the Fair Labor Standards Act of 1938, as amended, 29 U.S.C.A. § 201 et seq. Jurisdiction is granted by 29 U.S. C.A. § 217, and plaintiff alleged that defendant had violated Sections 15(a) (1), 15(a) (2) and 15(a) (5) of the Fair Labor Standards Act in that it was engaged in the production of evaporated milk for shipment in interstate commerce, and (1) defendant had paid many employees, for their employment in the production of goods for interstate commerce, wages at rates less than 75 cents per hour, (2) had failed to keep proper records as required by the regulations issued pursuant to Section 11(c) of the Act, and (3) had shipped and sold in interstate commerce goods in the production of which many of its employees were employed in violation of Section 6 of the Act.

On December 29, 1952, defendant filed its answer in which it admitted that it was a Delaware corporation but denied all other allegations of the complaint.

On February 18, 1953, Martin P. Durkin, as Secretary of Labor, United States Department of Labor, filed a motion requesting that he be substituted as plaintiff for the reason that the original plaintiff, Maurice J. Tobin, had resigned his position and had been replaced by the said Martin P. Durkin, and on the same date the Court entered an order granting the motion and substituting Martin ■ P. Durkin as plaintiff.

[376]*376The issues having been joined by tihe complaint and the answer, both parties utilized the discovery provisions of the Federal Rules of Civil Procedure, 28 U.S.C.A., in an effort to ascertain all the pertinent facts. The latest of such efforts was a motion for production of documents filed by defendant on May 19, 1953. In disposing of that motion the Court, D.C., 14 F.R.D. 385, stated:

“Subsequent to the filing by the defendant of the motion for production of documents, the plaintiff filed a request for admission of facts by the defendant and also certain interrogatories, and defendant has answered both the request for admissions and tihe interrogatories fully and promptly. Defendant’s response to plaintiff’s request for admission of facts discloses that defendant ‘normally employs from approximately 81 to approximately 102 persons, being the employees within the plant, supervisory personnel, and field-men headquartering at said plant’; that defendant regularly each workweek ' produces evaporated milk, a substantial portion of which is regularly sold and delivered to customers in one or more of the States of Texas, Louisiana and Oklahoma; that the ‘raw milk used in the operations of the Pet Milk Company plant near Siloam Springs, Arkansas, is transported in trucks from the farms and dairies at which it is produced to defendant’s said plant by milk haulers. Each of these milk haulers follows a designated route along which the raw milk is received from the various individual producers who have agreed to sell their milk to defendant’; and that ‘defendant does not make or keep any record of the number of hours worked per day or per week by the milk haulers delivering milk to its plant in Siloam Springs, Arkansas.’
“In view of the pleadings, the request for admission of facts and tihe response thereto, it is' clear that ultimately the sole question in the instant case is whether the milk haulers are employees of the defendant or are independent contractors.”

On June 5, 1953, W. J. Stewart, Sr., et al. filed their motion to intervene as defendants in this case, and that motion is now before the Court for disposition. In their motion movants allege:

“Applicants make this motion on behalf of themselves and all other owners of milk routes in the area involved who are similarly engaged in the business of soliciting and collecting raw milk from farmers living in that area and hauling such milk in their own trucks to the receiving stations operated by Pet Milk Company at Paris and Huntsville, Arkansas, and to the plant operated by Pet Milk Company at Siloam Springs, Arkansas. There are common questions of law and fact involved herein and common relief for the entire class is sought. Applicants fairly insure the adequate representation of the entire class of said persons.” Movants further allege:
“that they have individually conducted said milk-hauling businesses as independent contractors in particular locations known as milk routes and each of the applicants owns his particular route and has acquired a valuable property interest in the route and in the good will of the farmers for whom milk is hauled on said routes; that the individual ownership of said routes and the good will of the customers thereon have been acquired and developed by each of said applicants over a period of years through the expenditure of money by each of said applicants, by their efforts and work in relation thereto and through the investment of each one of their funds in individually-owned trucks and other equipment by which they carry on, said operations. At all times referred to in the complaint, applicants were independent contractors owning their in-, dividual milk-hauling businesses which, had,'-and have-,- a substantial market [377]*377value for sale or transfer to third persons.
“The complaint in this action and the relief sought by the Secretary of Labor necessarily involve a determination by this Court of the nature of this relationship between applicants and defendant, Pet Milk Company, under the Fair Labor Standards Act. Plaintiff asks to have this Court find that applicants are employees of defendant, Pet Milk Company, under said Act, when in law and in fact these applicants are independent contractors with milk producers and are not employees of said defendant. Applicants aver that their each individual business relationship as independent contractor with the milk producers and their valuable property rights in said relationship and in their future conduct or disposition of each individual property rights,. investments and businesses will necessarily be adversely affected and prejudiced if this action proceeds to judgment in accordanee with the relief sought by the complaint. A determination by this Court that applicants are employees of Pet Milk Company, and not independent contractors owning their separate businesses, will impair applicants’ titles to these businesses and routes and will destroy the market values thereof.”

Movants also allege that their defense to plaintiff’s claim presents both questions of law and of fact in common with the main action,

With their motion movants tendered their proposed answer in which they repeated, in substance, the allegations contained in their motion, and prayed judgment declaring them to be independent contractors and not employees of defendant within the meaning of the Fair Labor Standards Act.

The attorney for the movants and the attorneys for the plaintiff have filed briefs in support of their respective contentions.

Movants contend that they have valuable property rights that will be affected by the Court’s decision, and that the Fair Labor Standards Act contemplates intervention by employees or alleged employees who have a vital interest in the proper determination of their status under the law.

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Durkin v. Pet Milk Co., 14 F.R.D. 374, 1953 U.S. Dist. LEXIS 3861 (W.D. Ark. 1953).

14 F.R.D. 374 (Durkin v. Pet Milk Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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