Loblaw, Inc. v. New York State Board of Pharmacy

22 Misc. 2d 131, 202 N.Y.S.2d 711, 1960 N.Y. Misc. LEXIS 3462
CourtNew York Supreme Court
DecidedMarch 7, 1960
StatusPublished
Cited by2 cases

This text of 22 Misc. 2d 131 (Loblaw, Inc. v. New York State Board of Pharmacy) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loblaw, Inc. v. New York State Board of Pharmacy, 22 Misc. 2d 131, 202 N.Y.S.2d 711, 1960 N.Y. Misc. LEXIS 3462 (N.Y. Super. Ct. 1960).

Opinion

Reid S. Moule, J.

This is a motion by the defendants for summary judgment. The plaintiff also seeks summary judgment (Rules Civ. Prac., rule 113).

There appear to be no substantial questions of fact presented by the pleadings other than that the amended complaint alleges in paragraphs Tenth and Twelfth that Bayer Aspirin Tablets are not poisonous, deleterious and/or habit-forming within the meaning of section 6816 (subd. 2, par. e) of the Education Law. These allegations are put in issue by the answer but the defendants have not supported the denials by affidavits containing evidentiary facts as is required on such a motion (Shapiro v. Health Ins. Plan, 7 N Y 2d 56, 62; O’Meara Co. v. National Park Bank, 239 N. Y. 386, 395; Farrell v. Shelby Mut. Ins. Co., 18 Misc [133]*1332d 459, 461). Moreover, counsel for the defendants on the argument of these motions stated three times that for the purposes of the motions no claim was made that Bayer Aspirin Tablets are a harmful remedy. These admissions are binding upon the defendants for they were made to avoid “ some question arising on the pleadings ” (Gracie Square Realty Corp. v. Choice Realty Corp., 305 N. Y. 271, 278; Lloyd v. R. S. N. Corp., 251 N. Y. 318, 320).

The action is brought for a judgment declaring that the plaintiff has the right to continue to sell Bayer Aspirin Tablets without first obtaining for its retail establishments registration certificates from the defendant, New York State Board of Pharmacy, and the right to make such sales through its employees who have not been issued licenses as pharmacists by the Board of Pharmacy or through employees who are not acting under the supervision of persons so licensed. Plaintiff also seeks a permanent injunction to restrain the defendants from proceeding against the plaintiff in any way which would interfere with its sale of Bayer Aspirin Tablets and from instituting any proceeding against the plaintiff under subdivision 2 of section 6823 of the Education Law.

In brief, the question here is the right of the plaintiff to sell prepackaged Bayer Aspirin Tablets in its chain of supermarkets in the State of New York without holding registration certificates issued by the Board of Pharmacy and through its unlicensed employees.

Though other questions are presented which will be discussed, the two principal questions are: first, whether Bayer Aspirin Tablets are a ‘ ‘ proprietary medicine ’ ’ not poisonous, deleterious or habit-forming (Education Law, § 6816, subd. 2, par. c), and second, if the Bayer Aspirin Tablets are held not to be a proprietary medicine, whether the statutory provisions relied upon by the defendants as prohibiting the sale of the product in plaintiff’s supermarkets are constitutional.

The defendants rely in support of their position on provisions of the Education Law. Subdivision 1 of section 6805 of that law provides that except as prescribed in article 137, entitled “ Pharmacy”, it shall be unlawful for any person to practice as a pharmacist, druggist, apprentice or storekeeper or to engage in dispensing drugs at retail within the State and that every place in which drugs are possessed for the purpose of dispensing at retail shall be a pharmacy, a drug store, or a registered store ’ ’ and that no pharmacy, drugstore or registered store shall operate as such until the proprietor has applied for and received a registration certificate from the board ”.

[134]*134The term ‘ ‘ drugs ’ ’ is defined in subdivision 14 of section 6801 of the Education Law but it is unnecessary to consider the provisions of this section since the plaintiff does not contest the claim that Bayer Aspirin Tablets come within the statutory definition of drugs and conceded it on argument.

It, however, maintains that they are a proprietary medicine excepted by section 6816 (subd. 2, par. c) of the Education Law from the coverage of the statutory law relied upon by the defendants. . This subdivision provides that article 137 of the Education Law shall not apply except as to the labeling of poison-and to adulterating, misbranding and substituting: “ c. To the sale of proprietary medicines except those proprietary medicines ■which are poisonous, deleterious and/or habit-forming.”

There is no statutory definition of the term proprietary medicines ”. There are, however, decisions in this and other States in which this term has been considered. Some of the decisions follow what is generally referred to as the common usage meaning, while others give a more technical or restricted meaning to the term proprietary medicines. The plaintiff maintains that the Bayer Aspirin Tablets conform to both definitions.

At the outset, this court wishes it to be clear that this decision relates solely to one product and that is Bayer Aspirin Tablets. Each decision on whether or not a drug is a proprietary one depends solely on the circumstances of the individual case. The courts have consistently taken that view and so hold.

Before considering the question as to the meaning of the term “ proprietary medicines ”, the background of this litigation will be briefly discussed. The plaintiff, a New York corporation, through its president, states that it operates 228 grocery supermarkets in the States of New York, Pennsylvania, Ohio and West Virginia, of which 141 supermarkets are in New York. Plaintiff has sold certain proprietary medicines including Bayer Aspirin Tablets in all of its stores since 1950 and its right to do so has not been questioned except in the State of New York where in January, 1955 inspectors of the defendant New York State Board of Pharmacy entered 12 of its stores and left notices of alleged violations of the law in that Bayer Aspirin Tablets were being offered for sale in plaintiff’s supermarkets. Following some correspondence and negotiations, plaintiff states that under duress, it discontinued the sale of the items listed in the notices in its New York supermarkets.

Bayer Aspirin Tablets are a product, more fully described below, manufactured, packaged and distributed in many countries by the Sterling Drug, Inc., and its subsidiaries. It is [135]*135stated that in 1958 a majority of all retail sales of Bayer Aspirin Tablets in the United States were made in nondrng outlets. For many years, the Sterling companies have spent many millions of dollars annually in advertising Bayer Aspirin Tablets in all media for advertising. They are sold in every State of the United States and the District of Columbia. Over 20,000,000 Bayer Aspirin Tablets are produced daily. In the year 1958 over five and a half billion Bayer Aspirin Tablets were sold in the United States.

The basic active ingredient of Bayer Aspirin Tablets is a chemical compound known as aeetylsalicylie acid, now commonly referred to as aspirin. Dr. Maurice L. Tainter, a vice-president of Sterling Drug, Inc., and the director of its research subsidiary, in his affidavit gives a history of the discovery, development and refinement of aeetylsalicylie acid, the patent of the product, the expiration of the patent, the registration of the word aspirin ” in the United States Patent Office, the court decision holding that the name was in the public domain and could be used by its competitors with certain restrictions. He shows that the trademark consisting of the words Bayer ” and Bayer ” in the form of a cross and the word

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Related

Cox v. Stretton
77 Misc. 2d 155 (New York Supreme Court, 1974)
Loblaw, Inc. v. New York State Board of Pharmacy
12 A.D.2d 180 (Appellate Division of the Supreme Court of New York, 1961)

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Bluebook (online)
22 Misc. 2d 131, 202 N.Y.S.2d 711, 1960 N.Y. Misc. LEXIS 3462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loblaw-inc-v-new-york-state-board-of-pharmacy-nysupct-1960.