Porter v. Crawford & Doherty Foundry Co.

154 F.2d 431, 1946 U.S. App. LEXIS 3796
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 16, 1946
DocketNo. 11025
StatusPublished
Cited by12 cases

This text of 154 F.2d 431 (Porter v. Crawford & Doherty Foundry Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porter v. Crawford & Doherty Foundry Co., 154 F.2d 431, 1946 U.S. App. LEXIS 3796 (9th Cir. 1946).

Opinion

DENMAN, Circuit Judge.

The Price Administrator appeals from a judgment dismissing his complaint for an injunction against appellee restraining it from directly or indirectly selling or delivering or offering to sell or deliver, gray iron castings, including Meehanite castings, at prices higher than the maximum prices established therefor by Maximum Price Regulation No. 244, as amended (7 Fed.Reg.7871), and for a judgment seeking- triple damages for alleged sales in excess of that maximum price regulation .and the general maximum price regulation preceding it.

Appellee, between May 11, 1942, and March 11, 1943, sold certain gray iron castings. The question" here is whether appellee in selling them is a person selling a commodity who “violates a regulation, order, or price schedule prescribing a minimum or maximum price or maximum prices.” Under Sec. 925 (e) of the Emergency Price Control Act, 50 U.S.C.A.Apperidix, such a person if not sued or is not suable by the buyer is subject to a suit for damages by the Price Administrator “ * * * for reasonable attorney’s fees and costs as determined by the court, plus whichever of the following sums is the greater: (1) Such amount not more than three times the amount of the overcharge, or the overcharges, upon which the action is based as the court in its discretion may determine, or (2) an amount not less than $25 nor more than $50, as the court in its discretion may determine: Provided, however, That such amount shall be the amount of the overcharge or overcharges or $25, whichever is greater, if the defendant proves that the violation of the regulation, order, or price schedule in question was neither wilfull nor the result of failure to take practicable precautions against the occurrence of the violation.” 1

It is not questioned that no suit was brought by any buyer and that so far as concerns Sec. 925 (e) appellant is entitled to seek court action on any of the claimed violations of the Act. Under Sec. 925 (a) such violators are subject to injunction against further violations.

A. Violations under General Maximum Price Regulation (7 F.R. 3153) effective May 11, 1942.

The appellee sold castings of a common character to various corporate purchasers in the period between May 11, 1942, and October 26, 1942. The price charged each was the highest price which had been paid by a different customer in the base price fixing period of March, 1942, a period fixed by the General Maximum Price Regulation, hereinafter referred to as GMPR. This price charged each such customer was higher than the price paid by it for similar castings sold it in that month.

The district court held that GMPR warranted such a charge. We are favored with no opinion from that court and the findings of fact and conclusions of law give no consideration to the administrative interpretation of GMPR nor of the applicable cases. We do not agree with its decision.

GMPR provides in Section 2’ (b) that “the ‘highest price charged’ shall be a price charged during March, 1942, to a purchaser of the same class.” Section 20 (k) defines “purchasers of the same class” by reference to “the practice adopted by the [433]*433seller in setting different prices for commodities or services for sales to different purchasers or kinds of purchasers * * ”, The interpretations establishing the administrative practice under the regulations are that each purchaser to whom an article is sold in March, the base month, constitutes a separate class and the purchases thereafter by such a person are not to be at a price higher than charged to him in March, 1942.2 Since such administrative construction is not irrational, its interpretations are binding upon the courts. Skidmore v. Swift & Co., 323 U.S. 134, 137-140, 65 S.Ct. 161; Federal Communications Commissioner v. Pottsville Broadcasting Co., 309 U.S. 134, 143, 60 S.Ct. 437, 84 L.Ed. 656; Cf. Bowles v. Glick Bros., 9 Cir., 146 F.2d 566, 568.

The Tenth Circuit in Bowles v. Nu Way Laundry Co., 10 Cir., 144 F.2d 741, 747, held in accord with our view, stating “In other words, the test is not necessarily whether customers were purchasing the same service in the same area during the same period of time, but whether the said purchasers were paying the same prices for the same services during the base period.” Similarly the appellate court of the District of Columbia in Rainbow Dyeing & Cleaning Co. v. Bowles, App.D.C., 150 F.2d 273, 274, and more recently this court in Bowles v. Wheeler, 9 Cir., 152 F.2d 34.

Appellee contends that the case was tried below on the theory that customers were of different classes only if the castings were different in character or the trade as to distance or delivery terms, etc. were different, and that appellant did not raise the contention that difference in price to different customers in the base period made a difference in class. Hence, it is argued, that appellant cannot mend its hold here and try the case on a different theory. We do not agree. There was discussion to the effect that there might be a difference in class on other grounds than of price, but appellant stated at pretrial

“ * * * Then of course to me the most important thing to determine whether or not a purchaser falls within the same class is the price that was charged. I think that is probably the most important item to consider.

$ * %

“I believe that our evidence will disclose that these four purchasers are the primary purchasers or customers of Crawford and Doherty Foundry Company, or were during the period of time; that as to those particular classes [plural] of purchasers their price would be governed accordingly by the base period charges, their previous charges * * (Emphasis supplied.)

After all the evidence was in and on the submission of the case, the court states as follows:

“Mr. Wagner: [Counsel for appellant] If your Honor please, there has been na pretrial order in this case.

The Court: No. We will consider this case having been tried with the benefit of pre-trial conferences but without having-completed the pre-trial.” (Emphasis supplied.)

The judgment so far as it concerns the sales by appellee at prices higher to any individual customer of gray iron castings than charged to it in March, 1942, is ordered reversed and the court instructed to proceed in accordance with this opinion.

B. Violations under Maximum Price Regulation No. 244,

Effective on October 26, 1942, Regulation 244 provided a freezing price limit on sales of gray iron castings to any purchaser at the highest net price paid by that [434]*434purchaser in the period between August 1, 1941 and February 1, 1942.

Prior to October 26, 1942, appellee made offers to its customers to sell gray iron castings at prices in excess of those at which such castings were sold to them in the base periods.

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Bluebook (online)
154 F.2d 431, 1946 U.S. App. LEXIS 3796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porter-v-crawford-doherty-foundry-co-ca9-1946.