Elmore v. Maryland & Virginia Milk Producers Ass'n

134 S.E. 472, 145 Va. 42, 1926 Va. LEXIS 372
CourtSupreme Court of Virginia
DecidedMarch 18, 1926
StatusPublished
Cited by7 cases

This text of 134 S.E. 472 (Elmore v. Maryland & Virginia Milk Producers Ass'n) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elmore v. Maryland & Virginia Milk Producers Ass'n, 134 S.E. 472, 145 Va. 42, 1926 Va. LEXIS 372 (Va. 1926).

Opinion

Chichester, J.,

delivered the opinion of the court.

The Maryland and Virginia Milk Producers Association, Inc. (hereafter referred to as complainant), is a corporation organized and existing under the law of the State of Maryland, known as the “co-operative association law” of that State, a law similar in all essential respects to the act of the General Assembly of Virginia, approved February 18, 1922, known as the “co-operative marketing act,” and which provides for the incorporation of marketing associations or exchanges and the licensing to do business in Virginia of similar corporations created in other States under similar laws. Complainant has been licensed to do business in Virginia under that act, and has complied with all the provisions thereof.

On July 19, 1924, complainant filed its bill in chancery against W. EL Elmore (hereafter referred to as respondent), and Henry M. Brawner, Jr., trading as Chestnut Farms Dairy, in which it is alleged, in addition to the foregoing facts, that complainant is without capital stock; that it is composed of from 900 to 1000 [45]*45dairy farmers in Maryland and Virginia; that it is engaged in the production and eor operative marketing of milk and other dairy products; that it is operated for the mutual benefit of its membérs under its constitution and by-laws, and under uniform contracts signed by each of it's members constituting complainant the sdle sales agent of its members for the purpose of marketing all of the dairy products of each ■ upon a co-operative basis for a period of three years from October 1, 1923, and thereafter until the contract is terminated by certain notices thereby required.

That the respondent resides on a farm near Herndon, Va., is engaged in farming, and is the owner of a herd of twenty-two cows; that he became a member of the association by signing and delivering the uniform contract to the association on March 25, 1922. A copy of the contract is filed as an exhibit with the bill.

Prom this contract it appears that respondent employed and appointed the complainant as his sole sales agent during the life of the contract and granted it full power of selling all the milk and cream in the fluid state, produced by him from his cows, and by one of the provisions of the contract covenanted and agreed that if the respondent should at any time refuse or neglect to deliver his milk or cream to the association, or upon its order at such time and place as the association might direct, that in that event he would pay the association, by way of liquidated damages for such refusal or default, the sum of five dollars per cow for each of his cows for the first month, or any part thereof, and that if such default or refusal should continue for more than one month, an additional sum at the rate of ten cents (lCM) per cow for the same number of cows for each day after the first month, so long as such default or refusal should continue; and the contract [46]*46further provided that such payments should not be construed to be a penalty or forfeiture, but should be considered as stipulated and liquidated damages, and that in addition to the right to demand and receive such stipulated damages for such defaults, the association should have the right to sue for and enforce the specific performance of the contract, and that the demand should in no way destroy or limit the right of the association to ask for and enforce such specific performance; and respondent further covenanted that such milk, cream or dairy products should be delivered by him to such shipping stations or other plants as the association might from time to time direct. The contract further provided that it should become operative when the board of directors of the association should determine that a sufficient supply of milk had been secured to justify the operations thereunder, and when notice of that fact should have been mailed to respondent, Elmore, at his post office address, specified thereon; and the plaintiff further alleges that its board of directors did determine that a sufficient supply of milk had been secured to justify operations thereunder, and on the 21st day of August, 1923, directed notice of that. fact, and that operations thereunder would be commenced and that the contract would become operative on and after the first day of October, 1923, and this letter was mailed to the respondent, Elmore, at his post office address specified on- the contract on or about the 25th day of August, 1923.

It is then alleged that, pursuant to the 16th clause of the contract, respondent agreed to execute an order directing anyone to whom his milk was delivered to pay the proceeds thereof to the association; that respondent did execute such an order on Henry M. Brawner, Jr., trading as Chestnut Farms Dairy. After-[47]*47wards in order to facilitate business, complainant agreed to allow Chestnut Farms Dairy to pay the purchase price of respondent’s milk directly to respondent, upon condition that he would give complainant an order on the Chestnut Farms Dairy for brokerage and other expenses to be deducted from the gross proceeds of the milk delivered by him to Chestnut Farms Dairy, as complainant from time to time should ascertain to be properly deductable from all its members under the provisions of the contract; that the respondent failed to avail himself of the privilege or to sign the order, and both he and Chestnut Farms Dairy, pursuant to a purpose to repudiate the contract, each refused and failed to pay complainant for the milk received by Chestnut Farms Dairy from respondent or for the brokerage.

That complainant, on June 16, 1924, directed respondent to cease making further shipments of milk to Chestnut Farms Dairy and to ship all of his milk direct to complainant’s plant in Washington, D. C.; that respondent ignored the direction and continued to ship all of his milk to Chestnut Farms Dairy and to collect all the purchase price therefor.

An injunction was prayed for to enjoin and restrain respondent from selling or delivering or shipping any milk produced on his farm otherwise than to the complainant or to some consignee designated by complainant, and that he, respondent, be enjoined from failing to ship when so requested, pending the hearing and final determination of this cause; and that Chestnut Farms Dairy be enjoined from receiving the respondent’s milk except with the assent of the complainant and pursuant to its orders.

Respondent filed his answer, by which, while he admitted that he had signed the contract exhibited with [48]*48the bill, he alleged that his signature thereto was secured by Dallas Berry, at that time president of the association, and Robert L. Harrison, a director thereof, after he had repeatedly refused to sign it, upon representation by them that if he, respondent, would sign the contract they would at once place it in the National Bank of Herndon, at Herndon, Va., and that it should remain there until he, respondent, would give his consent to have it withdrawn and become effective. Respondent further alleged that they assured him that no one would have the right to take the paper from the bank without his authority. After respondent signed the contract he delivered it to Berry and Harrison, as he alleges, to be placed in the bank as aforesaid.

Respondent denies that he has ever given his consent to the withdrawal of the contract from the bank, or to its delivery to complainant.

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Cite This Page — Counsel Stack

Bluebook (online)
134 S.E. 472, 145 Va. 42, 1926 Va. LEXIS 372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elmore-v-maryland-virginia-milk-producers-assn-va-1926.