Rettig Beverage Co. v. United States

13 F.2d 740, 1926 U.S. App. LEXIS 3662
CourtCourt of Appeals for the Third Circuit
DecidedJuly 13, 1926
DocketNo. 3466
StatusPublished
Cited by8 cases

This text of 13 F.2d 740 (Rettig Beverage Co. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rettig Beverage Co. v. United States, 13 F.2d 740, 1926 U.S. App. LEXIS 3662 (3d Cir. 1926).

Opinion

WOOLLEY, Circuit Judge.

The main question raised on this appeal’is whether, in deciding a case of this kind, the court is governed by the rule of evidence which is applied in law cases or the rule applied in equity eases. The question is difficult to state understandingly before the pleadings and the facts of the ease and the substance of the decision are given.

[741]*741The Pleadings.

The United States filed a bill in equity under section 22, tit. 2, of the National Prohibition Act (Comp. St. Ami. Supp. 1923, § 10138%k), charging the respondent corporation and its officers with maintaining on its premises a common nuisance as defined by section 21 of the act, and praying that the court abate the nuisance, first, by enjoining the respondents from manufacturing and selling intoxicating liquor on the premises, and, second, by closing the premises to occupancy and use for one year. The corporate respondent and its president made sworn answers denying all the incriminating averments of the bill, and, as a separate defense, averring that, under a permit, they did manufacture and keep on the premises beer containing more than one-half of one per cent, of alcohol, as they lawfully and necessarily may do in the course of its manufacture, but that they proposed before any such beer should be sold to reduce its alcoholic content to the lawful percentage, as they were bound to do.

The Pacts.

There is little dispute about the actual occurrences; the trouble is with the inferences properly to he drawn from them and particularly with tho rule which should be used in drawing the inferences. The facts and the inferences which the opposing parties attribute to them, briefly stated, are as follows:

As the first step in executing a search warrant, a prohibition agent went to the office of tho company and made his business known. While he was courteously received and was told that every facility would be given him to make a thorough search, some delay ensued. At the same time other prohibition agents wont to a side door of the brewery where they heard within bells ringing, buzzers sounding, and noises similar to such as are made by knocking in the bungs of barrels. Without waiting for tho agent at the office, these men broke down a door and entered a racking room or loading room, where they found nine one-half barrels with the bnngs out and beer therefrom, aided by water from a hose, running into a sewer. The employees were standing around doing nothing. An empty motor truck was nearby. Samples were taken of tho remaining contents of the running barrels, and analyses, subsequently made, showed 3.8 per cent, of alcohol by volume. There was testimony, vigorously contradicted, that an officer of the company suggested that a little water be added to the samples. Unexplained, these facts would without doubt sustain an inference of guilt. But tho respondents attempted to expía,in them by testifying that bells and buzzers were located about the brewery for the purpose of calling the brewmaster to the office, and that just at this time he was being called in this way. While admitting the beer was of high alcoholic content, they said that it had been mistakenly barreled from a vat containing beer not yet reduced to the lawful alcoholic content, and that, when the agents broke into the room, this mistake was being rectified by dumping the beer. Further, a defendant testified that the truck had brought to the brewery a number of gas tanks which had been unloaded, and maintained that from the mere presence of the empty truck no inference of an intention to load the beer can be drawn. There was no evidence of sales.

The Decision.

After the hearing, the learned trial court entered a decree against the respondents, finding -they had maintained a common nuisance as defined by the statute, and providing for its abatement by injunction against the further manufacture and sale of beer on the premises and against their occupancy and use for one year, first delivering an opinion which shows quite clearly by what processes and by what rule of evidence it had reached its' judgment, the pertinent parts of which are the following:

“We. place of record, for whatever value it may be to the defense, that we refuse to make the finding that tho witnesses for the defense are unworthy of belief. This refusal includes not merely a refusal to find that they are intentionally false or that they do not believe in the truth of the defense, hut also a formal refusal to make tho negative finding that we believe that the defense set up is not true. We do not doubt that there are sincere believers in its truth, and that these include the counsel who conducted the trial on behalf of the defense and the general counsel of the defendant, and we are not ready to make the finding that tho truth of the case is not with the defendant because we have not gone into this. * * * The only refuge of a trial court is in the resort to its judgment of the weight of the evidence.

“Our finding in the instant ease is that tho weight of the evidence is with the plaintiff and we accordingly find the truth of the averments of the bill and that the prayers of the hill should he granted.

“We have made our findings with what [742]*742may seem to be meticulous care, and indeed the findings made may seem to conflict with the refusals to find because belief in one thing is necessarily disbelief in its opposite. We have made the distinction, however, in order to squarely present two points and to raise two questions. One is this: The proceeding is in form a proceeding in chancery. The objective in all such proceedings is to ‘move the conscience of the chancellor/ and to do this a higher degree of proof is required than what is needed to found a verdict or a judgment at law. The first question then becomes whether the equitable doctrine applies. The view we take is that the proceeding, although in form a bill in equity, is purely statutory, and that the command of Congress is that the court shall decide all questions of fact raised in- accordance with the weight of the evidence rule and not the rule which pertains in chancery. In the chancery view, an answer under oath is part of the evidence from the beginning. It follows that the complainant by his proofs must not only establish what would be a good prima facie case without the answer, but the proofs must also overcome the answer.

. “A wholly different view prevails at law. The plea of the defendant forms no part of the proofs. If the plaintiff makes out.a prima facie case, the burden shifts, and the defendant then must establish the facts on which rests the defense. We wish to make it clear that this is the position in which we have put this defendant.

“The second question then becomes whether it has established its defense. Hence we have made three findings:

“(1) A prima facie finding of the fact averments of the bill.

“(2) A refusal to find the facts set up by the defense.

“(3) A finding that the weight of all the evidence is with the plaintiff and a finding in its favor because of this.”

The Discussion.

Restated in the light of the decision, the question of law on this appeal is whether the proceeding, although in form in equity, is purely statutory, and is to be determined on the facts by the weight of the evidence rule applicable in cases at law or by the rule calling for a higher degree of proof which pertains in equity.

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Bluebook (online)
13 F.2d 740, 1926 U.S. App. LEXIS 3662, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rettig-beverage-co-v-united-states-ca3-1926.