Milk Commission v. Safeway Stores, Inc.

102 S.E.2d 332, 199 Va. 837, 1958 Va. LEXIS 131
CourtSupreme Court of Virginia
DecidedMarch 10, 1958
DocketRecord No. 4726
StatusPublished
Cited by3 cases

This text of 102 S.E.2d 332 (Milk Commission v. Safeway Stores, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milk Commission v. Safeway Stores, Inc., 102 S.E.2d 332, 199 Va. 837, 1958 Va. LEXIS 131 (Va. 1958).

Opinion

Hudgins, C. J.,

delivered the opinion of the court.

This case is a sequel to Safeway Stores, Inc. v. Milk Commission, 197 Va. 69, 87 S. E. 2d 769, wherein we sustained the contention of Safeway Stores, Inc., that the Milk Commission was required by Code, § 3-359 to establish both a “reasonable minimum price and reasonable maximum price for each grade of milk with reasonable spreads as between the minimum prices and the maximum prices for all grades” sold in the Arlington-Alexandria market. We reversed the decree of the lower court affirming an order of the Commission that fixed only the minimum resale prices of milk, and remanded the case to the Commission with directions to correct and amend its order “by fixing the minimum and maximum wholesale and retail prices to be charged in the Arlington-Alexandria. Milk Market * * *."

In complying with the foregoing mandate and under the authority granted it by Code, § 3-355,1 the Commission gave notice that on July 14, 1955, it would hold a public hearing for the purpose of determining, “whether or not it would be to the public interest for the Milk Commission to withdraw the exercise of its powers in the Arlington-Alexandria Milk Market and/or the Manassas Milk Market and for the further purpose of considering the entire price structure concerning the sale of milk and to consider an adjustment in any or all prices of the sale of milk for the said Arlington-Alexandria Market and/or the Manassas Market.” Although the Commission held a joint hearing for both the Arlington-Alexandria and Manassas milk markets, no question is presented herein as to the validity of any order entered by the Commission involving the Manassas market.

At the hearing, which lasted two full days, the Commission heard, or read, the unsworn statements of 37 witnesses, including the attorneys for the respective parties, numerous and voluminous exhibits [839]*839consisting of newspaper and magazine articles and editorials.2 On August 25, 1955, the Commission in its order designated “Arlington-Alexandria Market Order No. 11,” held that it was to the public interest for it to continue to exercise its authority in the Arlington-Alexandria milk market by fixing the prices to be paid producers by distributors. And by a vote of two to one it held that it was to the public interest for it to fix the minimum and maximum wholesale and retail prices to be charged for milk in that market.

From this order Safeway Stores, Inc., appealed to the circuit court of the city of Richmond. That court, without hearing additional exidence, reviewed the case on a transcript of the evidence considered by the Commission, and upheld the Commission’s finding that it was to the public interest for it to continue to exercise its authority in the Arlington-Alexandria market by fixing the prices to be paid for milk by the distributors to the producers. However, the court reversed the Commission’s finding that it was to the public interest for it to fix the minimum and maximum wholesale and retail prices to be charged for milk in that market. In so holding, the court in its decree said that “there has been shown no reasonable basis in fact to justify the conclusion of the Defendant [Commission] that it would not be in the public interest to withdraw its regulatory authority in fixing resale prices of milk in the Arlington-Alexandria Market, and * * * the Defendant has abused its discretion in so failing to withdraw from resale price fixing of milk in such Market, thereby acting in an unreasonable and capricious manner.” From that decree the Commission and the Alexandria Dairy Products Company, Inc., an intervenor in the lower court, obtained this appeal.

The only substantive question presented is whether the lower court erred in the exercise of its statutory power of judicial review under Code, § 3-371(4), in declaring void that part of the order of the Commission fixing the minimum and maximum wholesale and retail prices of milk in the Arlington-Alexandria milk market.

Code, § 3-371(4) permits an interested party to appeal from an order of the Commission to the circuit court of the city of Richmond, [840]*840defines the issues to be determined by the court and limits its authority in this language:

“* * * Upon the hearing, the court shall determine whether the order appealed is within the discretion vested in the Commission by law, and if so, whether the Commission has exercised a reasonable discretion or the order is unreasonable and capricious. If the Commission is found to be without authority of law to enter the order complained of, or that it was unreasonable and capricious, the court shall enter an order declaring the order of the Commission null and void. Where the appeal is from a finding of fact, the order of the Commission shall be given the weight of a jury on a fact found. If the court finds that the findings of fact are not sustained by the evidence, the court may either declare such findings of fact void or remand the case to the Commission for further proceedings.” (Italics supplied).

It will be observed that this statute provides that the court shall determine two things: (1) “whether the order appealed is within the discretion vested in the Commission by law,” and (2) “whether the Commission has exercised a reasonable discretion or the order is unreasonable and capricious.” No issue is presented on this appeal as to the validity of the lower court’s affirmative determination of the first requirement of the statute.

Code, §§ 3-354, 3-355 and 3-359 empower the Commission, after a public hearing and investigation, to determine whether it is “to the public interest” to fix the prices to be charged for milk on both the producer and resale levels of marketing. The Commission and the intervenor contend that when these Code provisions are considered in connection with the second requirement of Code, § 3-371(4), the evidence does not warrant the lower court’s holding that the Commission’s order, finding that it was to the public interest to continue its price fixing powers on the resale level, was unreasonable and capricious.

The provisions of the Milk and Cream Act (Acts 1934, c. 357, p. 558) were adopted by the General Assembly for the purpose of protecting and benefiting the consumers, the producers and the distributors of milk in the Commonwealth; hence it is “to the public interest” (Code, §§ 3-354, 3-355) to maintain for all the inhabitants of Virginia a constant supply of pure wholesome milk at reasonable prices. Safeway Stores, Inc. v. Milk Commission, supra; Pet Dairy Products Co. v. State Milk Commission, 195 Va. 396, 78 S. E. 2d [841]*841645; Lucerne Cream and Butter Co. v. Milk Commission, 182 Va. 490, 29 S. E. 2d 397.

In our determination of the question presented, we must keep in mind the requirement of Code, § 3-371(4), that the court give the order of the Commission “the weight of a jury verdict on a fact found.” This means that the evidence, and all reasonable inferences to be drawn therefrom, must be resolved in favor of the facts found by the Commission, and that an order based thereon must be sustained if there is credible evidence to support it. And to be incredible, the evidence “must be either so manifestly false that reasonable men ought not to believe it, or it must be shown to be false by objects or things as to the explanation and meaning of which reasonable men should not differ.”

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Cite This Page — Counsel Stack

Bluebook (online)
102 S.E.2d 332, 199 Va. 837, 1958 Va. LEXIS 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milk-commission-v-safeway-stores-inc-va-1958.