Greater New York Metropolitan Food Council & Sloan's Supermarkets Inc. v. McGuire

815 F. Supp. 706, 1993 U.S. Dist. LEXIS 2776, 1993 WL 70542
CourtDistrict Court, S.D. New York
DecidedMarch 8, 1993
DocketNo. 92 Civ. 3889 (MBM)
StatusPublished
Cited by3 cases

This text of 815 F. Supp. 706 (Greater New York Metropolitan Food Council & Sloan's Supermarkets Inc. v. McGuire) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greater New York Metropolitan Food Council & Sloan's Supermarkets Inc. v. McGuire, 815 F. Supp. 706, 1993 U.S. Dist. LEXIS 2776, 1993 WL 70542 (S.D.N.Y. 1993).

Opinion

OPINION AND ORDER

MUKASEY, District Judge.

Plaintiffs seek a declaratory judgment that the New York State milk pricing law, N.Y.Gen.Bus.Law § 396-rr (McKinney 1992), is so vague as to violate the Due Process Clause of the United States Constitution. Defendant moves to dismiss plaintiffs’ complaint for failure to state a claim upon which relief can be granted, pursuant to Fed.R.Civ.P. 12(b)(6). Alternatively, defendant requests that this Court abstain from ruling on the validity of the milk pricing law. For the reasons stated below, defendant’s request for abstention is granted.

I.

Plaintiff The Greater New York Metropolitan Food Council is a New York trade organization whose members include numerous retailers who sell milk, among other products, in New York. (Compl. ¶3) Plaintiff Sloan’s Supermarkets Inc. is one such retailer. (Compl. ¶ 4) Defendant Richard' T. McGuire is the Commissioner of the New York State Department of Agriculture and Markets, the administrative agency charged with regulating the milk industry in New York. (Compl. ¶ 5)

Plaintiffs challenge Section 396-rr of the New York General Business Law (the “milk pricing law”), under which a retailer who sells milk for an amount greater than an unspecified price incurs a risk of examination, prosecution, and civil penalties. N.Y.Gen.Bus.Law § 396-rr (McKinney 1992) (“G.B.L. § 396-rr”). Section 396-rr is a tiny portion of the vast 100-page-plus statutory scheme which regulates the sale of milk in New York. See, e.g., N.Y.Gen.Bus.Law § 396-r; N.Y.Agrie. & Mkts.Law § 256 (entry, inspection and investigation), §§ 256-a, 256-b (audits and accounting), § 257 (licensing), § 258-Z (bargaining agencies), § 258-m (fixing prices), §§ 258-o, 258-q (sanitation and inspection), § 258-r (advertising). Several courts have upheld portions of this scheme. See Nebbia v. New York, 291 U.S. 502, 54 S.Ct. 505, 78 L.Ed. 940 (1934) (upholding regulation of milk prices); Noyes v. Landel, 18 N.Y.S.2d 676, aff'd, 259 A.D. 1108, 21 N.Y.S.2d 616 (1940) (holding that milk control law protects all producers from hazards, distributes burdens equally, and does not violate due process); cf. People v. Two Wheel Corp., 128 A.D.2d 507, 512 N.Y.S.2d 439 (2d Dep’t 1987), aff'd, 71 N.Y.2d 693, 530 N.Y.S.2d 46, 525 N.E.2d 692 (1988) (upholding prohibition of “unconscionably excessive” prices during certain market disruptions). The milk pricing law took effect on May 2, 1991.

Plaintiffs filed their complaint on May 29, 1992. Plaintiffs seek a declaratory judgment, pursuant to 28 U.S.C. § 2201, that Section 396-rr is impermissibly vague and, therefore, violates the Due Process Clause. (Compl. ¶ 39) Plaintiffs seek also an injunction to prevent defendant from enforcing Section 396-rr and regulations thereunder, (Compl. ¶¶ 41-42) and damages for an alleged deprivation of their rights, pursuant to 42-U.S.C. § 1983. (Compl. ¶¶ 43-44)

Plaintiffs claim that the milk pricing law is unconstitutionally vague because it fails to. “give fair warning or fair notice to milk retailers of whether the prices they charge for milk constitute violations of the statute.” (Compl. ¶ 36) In more basic terms, plaintiffs allege that retailers such as Sloan’s do not know how much they may lawfully charge their customers for milk. (Compl. ¶35)

The milk pricing law contains two paragraphs that purport to define the conduct the law forbids, and therefore are relevant to the issue at hand:

3. No person shall sell or offer for sale fluid milk for an amount which represents an unconscionably excessive price.
4. Whether a price is unconscionably excessive is a question of law for the court. Evidence that:
(a) the price charged at retail for fluid milk represents a gross disparity be[708]*708tween the raw milk price paid to producers plus a reasonable handler’s processing and distribution charge and the price at retail; or
(b) the price charged at retail for fluid milk increased a greater amount than the price increased for an equivalent volume paid to producers under an order or interim price of the commissioner pursuant to section two hundred flftyeight-m of the agriculture and markets law; and
(c) in addition to paragraphs (a) and (b) of this subdivision, the increased price charged by the person was not attributable to additional charges imposed by its suppliers, or other charges beyond the control of the person, including the cost of labor, shall constitute prima facie proof of a violation of this section in any proceeding commenced by the attorney general pursuant to subdivision five of this section.

G.B.L. § 396-rr.

In addition, subdivision 2 and 5 of the law describe the administrative procedure to be followed by those charged with enforcing the law. Subdivision 2 charges the New York State Commissioner of Agriculture and Markets (the “commissioner”) — now defendant McGuire — with the responsibility to examine the retail prices of fluid milk around the state tó determine whether they exceed 200 percent of the price paid to producers1 and, if so, “if the prices ... in the state or in any area thereof appear to the commissioner unconscionably excessive.” G.B.L. § 396-rr(2). If the commissioner finds a price that appears unconscionably excessive, he “shall, by written notice, provide any person found to be selling or offering for sale fluid milk at such price, an opportunity to discontinue such price levels or to demonstrate that it is not unconscionably excessive.” Id. Within three days after receiving notice, such a person may submit a written reply in an effort to satisfy the commissioner “that the price level which resulted in the issuance of the notice is justifiable or has been terminated.” Id. Subdivision 2 requires that the commissioner forward his findings to the Attorney General, who is empowered by subdivision 5 to apply in state Supreme Court for injunctive relief and the imposition of a civil penalty ranging from a maximum of $1000 to a maximum of $5000, depending on the weekly volume of milk sold, as well as an order of restitution to the consumers involved. G.B.L. § 396-rr(5).

II.

Defendant asks that this Court decline jurisdiction in deference to New York State. (Def.Mem. at 15-22) I agree with defendant that abstention is warranted in this case under what is commonly termed the Pullman abstention doctrine. Railroad Comm’n v. Pullman Co., 312 U.S. 496, 61 S.Ct. 643, 85 L.Ed. 971 (1941).

This opinion addresses only the constitutional issues relating to abstention; the substantive issues relating to the milk pricing law are separate matters entirely.

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

Related

United States v. Salim
287 F. Supp. 2d 250 (S.D. New York, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
815 F. Supp. 706, 1993 U.S. Dist. LEXIS 2776, 1993 WL 70542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greater-new-york-metropolitan-food-council-sloans-supermarkets-inc-v-nysd-1993.