Kentucky Milk Marketing & Anti-Monopoly Commission v. Borden Co.

456 S.W.2d 831
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedJune 19, 1970
StatusPublished
Cited by32 cases

This text of 456 S.W.2d 831 (Kentucky Milk Marketing & Anti-Monopoly Commission v. Borden Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentucky Milk Marketing & Anti-Monopoly Commission v. Borden Co., 456 S.W.2d 831 (Ky. 1970).

Opinion

OSBORNE, Judge.

This is a declaratory judgment action instituted for the purpose of testing the constitutionality of KRS 260.675 to 260.- 760, commonly referred to as the Kentucky Milk Act. The action also seeks to enjoin the Milk Marketing Commission, which is created by the Act, from enforcing its administrative regulations on the grounds that the Act is unconstitutional, thereby rendering the regulations invalid. It is also alleged that even if the Act were constitutional, the regulations are vague and in excess of the delegated power.

The original action was filed on July 23, 1963, by Cedar Hill Farms, Inc., in the Franklin Circuit Court. It sought to enjoin the Kentucky Milk Marketing and Anti-Monopoly Commission from enforcing the Milk Act and regulations promulgated thereunder. Because of the absence of the judge of the Franklin Circuit Court, application was made to the Kenton Circuit Court for a temporary injunction and one was granted by that court on August 13, 1963. This injunction prohibited the Commission from hearing certain specific charges against the Cedar Hill Dairies for alleged violations of the Milk Act. From the record it appears the matter in controversy between Cedar Hill and the Milk Commission was somehow resolved and the case lay in limbo until May 31, 1967, at which time Cedar Hill Farms filed a supplemental complaint which in effect restated the allegations in the old complaint and again attacked the constitutionality of the Act and the regulations of the Commission. This was an action for a declaration of rights and also sought injunctive relief against the Commission to prohibit it from enforcing the Act or regulations passed thereunder. Borden then filed a similar action. These two actions were considered by the Franklin Circuit Court jointly and a single judgment entered disposing of both at the same time.

The judgment of the Franklin Circuit Court was entered on July 19, 1968. Prior to this, on April 23, the trial judge entered an opinion which held the Milk Marketing Act to be unconstitutional as special legislation. He reasoned that since Kentucky had an Unfair Trade Practices Act, KRS 365.020, etc., which in effect regulated destructive competition in the production, manufacture and distribution of all commodities, and since milk was a commodity within the terms of this Act, the legislature having so enacted by a general law could not later enact a specific law dealing with milk. Therefore, the entire Milk Marketing Act constituted special legislation and was unconstitutional. Even though the opinion of April 23, 1968, entered by the Franklin Circuit Court portended the final disposition of the case and all issues then pending before it, the court provided that “counsel for the plaintiff may *833 tender an order and judgment in conformity hereto, including additional findings of fact as deemed appropriate.” Later counsel did tender findings of fact and conclusions of law which were signed by the court on July 19, 1968. In this judgment the court found the following facts, which we have greatly condensed.

1. That the Borden Company was a New Jersey corporation and had been permitted a license as a distributor of milk by the Kentucky Commission.
2. Cedar Hill Farms was an Ohio corporation and had been issued a license as a distributor of milk by the Kentucky Commission.
3. That the Milk Marketing and Anti-monopoly Commission was organized under the statutes and the members of the Commission appointed thereunder.
4. That the individual defendants were duly appointed members of the Commission.
5. That Wendell Butler was Commissioner of Agriculture at the time the action was instituted and that by virtue of this office he was chairman of the Commission.
6. That Milford Foellger is vice-chairman of the Commission and has been on the Commission since August, 1961, and that prior to becoming a member of the Commission and thereafter he was and is president of the Clover Leaf Dairies, Inc., located in Campbell County, Kentucky, and is in competition with the plaintiffs.
7. That J. C. Beckett is a member of the Commission, was appointed in June, 1960, and that prior to 1967, he owned and operated a dairy farm in Pendleton County but no longer owns and operates the farm.
8. That defendant Bruce Strader is now a member of the Commission and was appointed in June, 1966, and that he is a partner in Strader Brothers Dairy located in Barren County.
9. That Lester Rector is a member of the Commission and was appointed in June of 1960; that he is president and principal owner of Sunshine Dairies, Inc., which operates a production plant in Paducah, Kentucky.
10. That A. D. Herndon is a member of the Commission and was appointed thereto July, 1964; that he was and is vice president of Southern Bell Dairy Company of Pulaski County and that he is engaged in competition with the Borden Company.
11. That the Commission promulgated at various times various regulations enumerated in the order.
12. That the members of the Commission contend that they are authorized to enforce the regulations of the Commission.
13. That the purpose of the Milk Marketing Act is to prevent destructive competition in the sale of milk, which might result in the denial to the public of an adequate supply of the product.
14. That the purpose of KRS 260.705 (1) is the prevention of the destructive competition in the sale of dairy products and that this may be fulfilled by a general law, to wit, the Unfair Trade Practices Law, KRS 365.020-365.090.
15. That milk is within the catalogue of commodities or products regulated by the Unfair Trade Practices Law.
16. That the Milk Marketing Act and Regulations under same impose an economic burden upon the milk industry and establishes a special classification for the industry not justifed in view of the Unfair Trade Practices Law.
17. That the Milk Marketing Law imposes criminal sanctions.
*834 18. That the regulations of the Commission exceed the command of the statute from which they derive.
19. That the criminal sanctions of the law and regulations are vague and indefinite.
20. That the law and regulations authorize the execution of discretionary powers by the Commission in the imposition of criminal sanctions, a function not dele-gable by the legislature under the Constitution of this Commonwealth.
21.

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Bluebook (online)
456 S.W.2d 831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-milk-marketing-anti-monopoly-commission-v-borden-co-kyctapphigh-1970.