Opelika Royal Crown Bottling Co. v. Goldberg

299 F.2d 37
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 25, 1962
DocketNo. 18879
StatusPublished
Cited by36 cases

This text of 299 F.2d 37 (Opelika Royal Crown Bottling Co. v. Goldberg) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Opelika Royal Crown Bottling Co. v. Goldberg, 299 F.2d 37 (5th Cir. 1962).

Opinions

RIVES, Circuit Judge.

The Opelika Royal Crown Bottling Company, a partnership, and Griffin MeGinty, a partner, appeal the determination of the court below, sitting without a jury, that several of their employees are covered by the minimum wage and hour provisions of the Fair Labor Standards Act.1 In the alternative, they argue that these employees are not subject to the overtime provisions of the Act since they are specifically exempt by section 13(b) (1) of the Act.2 The Secretary of Labor cross-appeals on the failure of the district court to enter an injunction against further violations by the partnership.

On the primary issue of coverage, the facts are not in dispute and are well stated in the opinion of the court below:

“The defendants are engaged in the wholesale distribution and sale of soft drink beverages to 600-800 Alabama customers (primarily retailers) from defendants’ office and warehouse at Opelika, Alabama, where such drinks are stored until their distribution and sale.
“At all times material to this action defendants held franchises issued by Nehi Corporation (Nehi) of Columbus, Georgia, for the beverages distributed and sold by the defendants. From the fall of 1957 until the latter part of October 1960, the defendants purchased substantially all of their requirements for soft drinks from Nehi pursuant to a written agreement entered into with Nehi on July 9, 1957, which was terminable at will by either party and which afforded defendants the right to make soft drink purchases from Nehi upon certain terms, including a requirement that defendants furnish to Nehi on each occasion of purchase of beverages sound cases and bottles in number equal to those received. Defendants on infrequent occasions [39]*39purchased their requirements of soft drinks from a bottler at Roanoke, Alabama.
“From 1957 until late October 1960, the defendants operated in substantially the following manner: Defendants’ soft drink purchases were transported to defendants’ Opelika, Alabama, warehouse in defendants’ transport truck where the drinks were unloaded by'the transport truck driver or by the warehouseman, or both, and placed in the warehouse. Cases of drinks on pallets were removed from the warehouse stock, as needed, by the warehouseman and placed by him adjacent to five route trucks owned and used by defendants in the local distribution of their drinks and were loaded upon the route trucks by the driver-salesmen and their route-helpers. During said period defendants employed approximately five driver-salesmen and 5 route-helpers, in the operation of the local route truck (sic) whose duties in addition to the loading of beverages upon their route trucks involved the distribution and sale of the beverages along their respective local Alabama routes. At the various stops along each route, the route-helper unloaded soft drinks in the amounts ordered at that time by the customer and picked up empty bottles of the type owned by the defendants, as available, and placed them on the route truck after separating out any broken bottles. Following the return of each local route truck to the warehouse, the driver-salesman and his route-helper unloaded the empty bottles and stacked them on pallets placed by the warehouseman. The warehouseman then sorted and separated them and through the use of a fork lift truck stored them in the warehouse. The defendants normally maintained in the warehouse an inventory of some 1,000 to 2,000 cases of beverages and from 1,500 to 2,500 cases of empty bottles. Cases of empty bottles were removed from storage by the warehouseman and loaded upon the transport truck by the transport truck driver or warehouseman prior to each trip to the bottling source. The transport truck, which was used exclusively in the transport of beverages to the warehouse from the bottling source and transportation of empty bottles to the bottler from the warehouse, made from 4 to 6 trips per week during the period involved. The route-helpers performed none of the duties of either the transport driver or warehouseman.
“The defendants owned their own bottles and purchased new ones from time to time as needed by them from independent outside sources. None of the bottles owned by defendants were purchased from Nehi and defendants sold none of their bottles to Nehi during the period involved in this action.”

According to the testimony of defendant McGinty, over 95 per cent of the drinks they distributed during this period were obtained from the Columbus, Georgia, plant. The primary question is whether, under these facts, the warehouseman and the route-helpers are covered by the Act.

In Stewart-Jordan Distributing Co. v. Tobin, 5 Cir., 1954, 210 F.2d 427, a case almost directly in point, this Court held adversely to the defendants. There the distributor handled beer, wine and ale in the City of Jacksonville, Florida, which it obtained from an out-of-state supplier. About 25 per cent of the beer and ale was sold in returnable bottles, which were' picked up by the distributing trucks from the retail outlets, returned to the distributor’s warehouse where they were sorted, and then returned to the out-of-state supplier under a set agreement whereby the supplier agreed to buy all those offered at a fixed price. The Court there held, with Judge Hutcheson dissenting, that the drivers and drivers’ helpers on the distributing trucks were covered by the wage and hour provision of the Act, because the empty returnable bottles picked up at the retail outlets [40]*40were destined for shipment to an out-of-state supplier under a pre-existing agreement and thus were “goods in commerce” within the meaning of the Act. The appellants attack this decision on two grounds: (1) that it is erroneous and should be overruled, and (2) that it is distinguishable from the case at bar.

The appellants claim that the Stewart-Jordan case is an erroneous interpretation of the Supreme Court opinion upon which it relied, Walling v. Jacksonville Paper Co., 1943, 317 U.S. 564, 63 S.Ct. 332, 87 L.Ed. 460. Their argument is that the return route of the empty bottles is de minimis and that clearly the distribution of the full bottles is not “in commerce” within the meaning of the Jacksonville case. We agree with the appellant that the distribution of the full bottles is not “in commerce” since they are not ordered from Nehi in accordance with pre-existing orders from customers; the retailers do not make their orders until the distributing truck arrives on its daily route. But this does not mean that the return route may be overlooked. As the Supreme Court stated in Jacksonville, “It is clear that the purpose of the Act was to extend federal control in this field throughout the farthest reaches of the channels of interstate commerce.” 317 U.S. at 567, 63 S.Ct. at 335. Thus, the Act will reach any substantial movement of goods whether they be empty or full. In this case, the return route of the empties is clearly an integral part of the appellants’ business, for, under the distributor’s agreement with Nehi, an equivalent number of empty bottles must be returned before full ones may be obtained. If the empties were not picked up, new ones would have to be purchased by the appellants on the open market. In addition, the handling of these empties is a substantial part of the employees’ duties here in question.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Williams v. Central Transport International, Inc.
830 F.3d 773 (Eighth Circuit, 2016)
Osorio v. Mathews Prime Meats, Inc.
101 F. Supp. 3d 255 (E.D. New York, 2015)
Vallejo v. Garda CL Southwest, Inc.
56 F. Supp. 3d 862 (S.D. Texas, 2014)
Donald Allen v. Coil Tubing Services, L.L.C
755 F.3d 279 (Fifth Circuit, 2014)
Tomlin v. JCS Enterprises, Inc.
13 F. Supp. 3d 1330 (N.D. Georgia, 2014)
Rojas v. Garda CL Southeast, Inc.
297 F.R.D. 669 (S.D. Florida, 2013)
Arlington v. MILLER'S TRUCKING, INC.
2012 MT 89 (Montana Supreme Court, 2012)
Abel v. SOUTHERN SHUTTLE SERVICES, INC.
620 F.3d 1272 (Eleventh Circuit, 2010)
Garcia v. Fleetwood Limousine, Inc.
511 F. Supp. 2d 1233 (M.D. Florida, 2007)
Musarra v. Digital Dish, Inc.
454 F. Supp. 2d 692 (S.D. Ohio, 2006)
Alvarado v. I.G.W.T. Delivery Systems, Inc.
410 F. Supp. 2d 1272 (S.D. Florida, 2006)
Badgett v. Rent-Way, Inc.
350 F. Supp. 2d 642 (W.D. Pennsylvania, 2004)
Jones v. Centurion Investment Associates, Inc.
268 F. Supp. 2d 1004 (N.D. Illinois, 2003)
Major v. Chons Bros., Inc.
53 P.3d 781 (Colorado Court of Appeals, 2002)
Webb v. Athens Newspapers, Inc.
999 F. Supp. 1464 (M.D. Georgia, 1998)
Friedrich v. U.S. Computer Services
974 F.2d 409 (Third Circuit, 1992)
Friedrich v. Computer Services
974 F.2d 409 (Third Circuit, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
299 F.2d 37, Counsel Stack Legal Research, https://law.counselstack.com/opinion/opelika-royal-crown-bottling-co-v-goldberg-ca5-1962.