Kent Products, Inc. v. Hoegh

61 N.W.2d 711, 245 Iowa 205, 1953 Iowa Sup. LEXIS 484
CourtSupreme Court of Iowa
DecidedDecember 15, 1953
Docket48392
StatusPublished
Cited by20 cases

This text of 61 N.W.2d 711 (Kent Products, Inc. v. Hoegh) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kent Products, Inc. v. Hoegh, 61 N.W.2d 711, 245 Iowa 205, 1953 Iowa Sup. LEXIS 484 (iowa 1953).

Opinion

Garfield, J.

— Prior to July 4, 1953, sale of colored oleomargarine in Iowa was prohibited by statute. Sections 190.6, 191.2, subsection 3, Code, 1950. Chapter 97, Acts of the Fifty-fifth General Assembly, effective on said date, permits the sale of colored oleomargarine (we will call it “margarine”) upon compliance with certain specified conditions. This requirement Of section 3, chapter 97, is the subject of this controversy: “There shall be four readily legible imprints made by the manufacturer of the *208 word ‘oleo’ on tbe product equally distributed on one of the greater sides of each one-quarter pound, one-half pound, or pound.”

Section 3, chapter 97, states, immediately preceding the above quoted “imprint provision”: “3. No person shall sell or offer for sale, colored oleo, oleomargarine or margarine unless —such oleo, oleomargarine or margarine is packaged; the net weight of the contents of any package sold in a retail establishment is one pound or less; there appears on the label of the package the word ‘oleo’, ‘oleomargarine’ or ‘margarine’ in type or lettering at least as large as any other type or lettering on such label, and a full and accurate statement of all the ingredients contained in such oleo, oleomargarine or margarine; and each part of the contents of the package is contained in a wrapper which bears the word ‘oleo’, ‘oleomargarine’ or ‘margarine’ in type or lettering not smaller than 207point type.”

Other parts of section 3, following the imprint provision, are: “* * * Whenever coloring of any kind has been added it shall be clearly stated on both inside wrapper and the outside package. The ingredients of oleo, oleomargarine or margarine shall be listed on both the inside wrapper and outside package in the order of the amounts of ingredients in the package. * * *

“Each one pound package of oleo, oleomargarine or margarine shall be approximately four and three-quarter inches by four and three-quarter inches in its greater dimensions commonly known as the ‘Eastern pack’. * *

Code section 189.19 prescribes the penalty for violation of any provision of chapter 97 and other statutes — a fine of $10 to $100 or imprisonment in the county jail not over thirty days, and on a third conviction for the same offense the offender may be restrained from operating his place of business.

Plaintiff Kent Products, Inc., is a manufacturer of margarine in Kansas City. Plaintiff Skelton is a retail grocer in Des Moines. They brought this action in behalf of themselves and other maziufacturers and retailers of colored margarine against the Attorney General and Secretary of Agriculture of Iowa and the County Attorney of Polk County to enjoin enforcement of the imprint provisiozi of the Act quoted first above.

*209 In Count I of the petition plaintiff Kent Products alleges the imprint provision is arbitrary, unnecessary, unreasonable and an unwarranted interference with a lawful business, depriving it and other manufacturers of property rights of great value, in violation of due process and equal protection clauses of the State and Federal Constitutions (sections 9 and 6, Article I, Iowa Constitution, section 1, 14th Amendment to U. S. Constitution). Kent Products also alleges the imprint provision constitutes an undue burden on interstate commerce in violation of the commerce clause (section 8, Article I) of the Federal Constitution.

In Count II of the petition plaintiff Skelton asks a declaratory judgment that the Act does not subject anyone other than a manufacturer to prosecution and penalty if margarine is not imprinted with the word “oleo.” Skelton alleges defendants have interpreted the Act to subject retailers to prosecution and penalty if colored margarine is found on their shelves not imprinted as required by section 3. That as so interpreted the Act is unconstitutional because the language is vague, indefinite, unreasonable, oppressive, and subjects retailers to prosecution and loss of business as a result of climate, nature of margarine and other conditions beyond their control. Skelton asks that enforcement of the imprint provision be enjoined if the Act is construed as subjecting retailers to a penalty.

Defendants filed written resistance to the prayers for temporary injunction stating the grounds of unconstitutionality alleged in the petition are inadequate to warrant such relief, a temporary injunction would not maintain the status quo since sale of colored margarine was prohibited prior to July 4, 1953, the alleged injuries to manufacturers are mere conjecture since they have been limited to sales of uneolored margarine in the past, many manufacturers have already manufactured margarine bearing acceptable imprints of the word “oleo” which is available to the retail trade, granting a temporary injunction would do greater injury than would result from its refusal.

Following a hearing July 2, 1953, on the application in the petition for a temporary injunction against enforcement of the imprint provision (quoted above) such relief was granted on July 6. Pursuant to rule 332(a), Rules of Civil Procedure, we *210 granted defendants an appeal from this interlocutory order. (See Wolf v. Lutheran Mutual Life Ins. Co., 236 Iowa 334, 344, 18 N.W.2d 804, 810.)

At the hearing on July 2, Mr. Kent, president of plaintiff company, testified in substance that its sole business is manufacturing margarine, it is in the lower third ■ of the industry in size, it has no office or agents in Iowa, it sold uncolored margarine in Kansas City to wholesalers who in turn sold to stores in Iowa, his company would like to enter the Iowa' market for colored margarine as Iowa is within its natural trade territory, the manufacturer of its packaging machines which supplies such machines for ninety per cent of the margarine throughout the country “advised us they cannot supply a machine to make a satisfactory imprint”, margarine is soft when the imprint would have to be made and there is no assurance it would stay in the product if made, his company and other smaller manufacturers have no elaborate machine shops and are dependent upon the advice of the packaging machine people, he has read and been told that some large manufacturers which have their own machine shops were ready to comply with the law, it would take time and special handling to segregate margarine for ultimate sale in Iowa if it had to be imprinted, normally margarine is without refrigeration part of the time before it reaches the consumer and that would add to the danger the imprint would be obliterated, he knows of no other state where such imprint is required, his company will lose what business it has in Iowa and be prevented from taking on any new business if the margarine must be imprinted, the large companies which have been able to comply with the requirement would then get established in Iowa and it would be hard for anyone else to get any of the market.

Plaintiffs offered no other evidence. Two representatives of wholesale groceries in Des Moines testified for defendants. One said his company deals in two brands of colored margarine, the other testified his company handles five brands. A package of each of the seven brands, taken from regular stock, was brought to court in insulated containers and produced.

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Bluebook (online)
61 N.W.2d 711, 245 Iowa 205, 1953 Iowa Sup. LEXIS 484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kent-products-inc-v-hoegh-iowa-1953.