H. R. Gibson, Sr., D/B/A Gibson Products Company v. Clinton E. Jeffers, Commissioner of Agriculture, State of Colorado

478 F.2d 216, 17 Fed. R. Serv. 2d 804, 1973 U.S. App. LEXIS 10138
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 3, 1973
Docket72-1405
StatusPublished
Cited by39 cases

This text of 478 F.2d 216 (H. R. Gibson, Sr., D/B/A Gibson Products Company v. Clinton E. Jeffers, Commissioner of Agriculture, State of Colorado) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H. R. Gibson, Sr., D/B/A Gibson Products Company v. Clinton E. Jeffers, Commissioner of Agriculture, State of Colorado, 478 F.2d 216, 17 Fed. R. Serv. 2d 804, 1973 U.S. App. LEXIS 10138 (10th Cir. 1973).

Opinion

HILL, Circuit Judge.

Plaintiff-milk distributor appeals dismissal of his declaratory judgment 1 complaint by the federal district court of Colorado for lack of jurisdiction. The complaint was instituted to determine plaintiff’s rights under the Colorado Milk Marketing Order issued by ap-pellee Commissioner of Agriculture.

Since 1966 appellant, a Texas citizen, has been engaged in the business of buying milk and milk products in the State of Oklahoma for resale to retail outlets located in Colorado. In the latter part of January, 1971, the Commissioner of Agriculture advised appellant that his business of selling milk and milk products was subject to regulation by Docket A-20, State of Colorado, Department of Agriculture, Marketing Order to Pro *218 mote and Regulate the Marketing of Milk and Milk Products in the State of Colorado, as amended January 15, 1971. This order required in part that distributors file a schedule of prices, discounts and rebates with the Commissioner of Agriculture at least thirty days before offering these commodities for sale in Colorado.

Appellant shortly thereafter filed with the Commissioner a schedule of prices, discounts and rebates; but nevertheless on March 9, 1971, appellant was served with a temporary restraining order prohibiting him from selling any milk or milk products in Colorado until thirty days after the filing of a “legal” schedule of prices, discounts and rebates. Three days later a second temporary restraining order was served on appellant restraining him from selling milk or milk products until he had followed the Colorado Milk Marketing Order or until further order of the court. On the same date as issuance of the second temporary restraining order, appellant received a letter from the manager of the Colorado Milk Marketing Board acknowledging receipt of the schedule of prices, discounts and rebates, but refusing to approve the schedule for the normal 30-day waiting period. On March 19, 1971, a Colorado district judge issued a temporary injunction at appellee’s request prohibiting and enjoining appellant from selling or offering for sale milk products in the State of Colorado until April 7, 1971, or until further order of the court. After finding that appellant was not selling below cost, appellee advised the court of such fact and the temporary injunction was terminated on April 5, 1971.

Appellant’s problems with the Commissioner of Agriculture were not over. Although his schedule had been approved, the approval was limited to marketing areas I, II, III, VII and IX. On July 14, 1971, appellee informed appellant that no schedule of prices was on file or approved for distribution of milk and milk products in marketing area VI. Appellant filed a second schedule of prices with applicability to area VI even though his first schedule filed was intended for use throughout the State of Colorado. Appellee thereafter changed his course of attack and obtained a preliminary injunction on August 26, 1971, prohibiting appellant from selling and distributing milk until appellant’s handler in the State of Oklahoma filed a schedule of prices, discounts and rebates which was approved by the Commissioner of Agriculture. 2

As a result of appellee’s exertion of authority under Docket A-20, appellant was prevented from selling milk to retail outlets in Colorado from March 9, 1971, to April 5, 1971, and was prohibited from selling milk in area VI from August 23, 1971, to October 11, 1971. Needless to say, appellant feels the Commissioner’s interpretation of his authority under Docket A-20 is strained and in violation of the law.

During the time appellant was enjoined by a state court from selling milk in Colorado, he filed suit in the United States district court seeking monetary damages against the Colorado Commissioner of Agriculture, and a temporary restraining order, a preliminary injunction and a permanent injunction prohibiting the Commissioner from enforcing Docket A-20. Appellant claimed he was damaged in the amount of $36,000. This figure was arrived at by taking his gross revenue lost for every week he was prohibited from doing business as a result of appellee’s unlawful interpretation of Docket A — 20. The weekly gross *219 revenue was $9,000 and from this amount appellee earned gross profits of approximately $2,500. During the four weeks he was enjoined from selling milk in Colorado, appellant allegedly suffered a loss of over $10,000 in gross profits.

On the merits of the case appellant ai’gued that Docket A-20 as interpreted by appellee unconstitutionally burdened interstate commerce in violation of Article 1, Section 8, Clause 3, along with being an impost or duty on imports in violation of Article 1, Section 10, Clause 2. Appellant further charged that Docket A-20 as applied by appellee deprived him of his property without due process of law and therefore violated the Fourteenth Amendment to the United States Constitution. Finally, appellant alleged that as Congress has preempted the field of interstate commerce, appellee’s enforcement of Docket A-20 violated the Interstate Commerce Act, Title 49 U.S. C.

The United States district court held that jurisdiction might properly be invoked under 28 U.S.C. §§ 1331 and 1332. 3 It was the court’s opinion, however, that because the state injunction had expired before appellant’s ease was heard, it was moot within the principles of Hall v. Beals, 396 U.S. 45, 90 S.Ct. 200, 24 L.Ed.2d 214 (1969), and Huse-man v. Finch, 424 F.2d 1237 (10th Cir. 1970).

Appellant amended his complaint and asked for a declaratory judgment as provided in 28 U.S.C. § 2201 4 His first amended complaint leveled several new charges on the constitutionality of Docket A-20, but nowhere were his jurisdictional arguments buttressed. The appel-lee vigorously challenged appellant’s right to sue in federal court. Appellee charged there could be no recovery against the Commissioner of Agriculture individually as he was acting under color of state authority when he prohibited appellant from selling milk commodities in Colorado, and therefore cloaked with sovereign immunity. Appellee further argued that appellant in his pleadings had offered no facts showing damage in the requisite $10,000 jurisdictional amount. Appellant’s original complaint alleged approximately $10,000 in lost gross profits but as gross profits are not a measure of damages, appellant had failed to surmount the jurisdictional hui’dle.

The court was in agreement with ap-pellee’s contentions but allowed appellant to file a second amended complaint showing the requisite jurisdictional amount. Appellant introduced a new issue into the case in his second amended complaint.

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Cite This Page — Counsel Stack

Bluebook (online)
478 F.2d 216, 17 Fed. R. Serv. 2d 804, 1973 U.S. App. LEXIS 10138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-r-gibson-sr-dba-gibson-products-company-v-clinton-e-jeffers-ca10-1973.