Schwegmann Bros. Giant Super Markets v. Louisiana Milk Commission

200 So. 2d 37, 1967 La. App. LEXIS 5164
CourtLouisiana Court of Appeal
DecidedMay 29, 1967
DocketNo. 7054
StatusPublished
Cited by4 cases

This text of 200 So. 2d 37 (Schwegmann Bros. Giant Super Markets v. Louisiana Milk Commission) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwegmann Bros. Giant Super Markets v. Louisiana Milk Commission, 200 So. 2d 37, 1967 La. App. LEXIS 5164 (La. Ct. App. 1967).

Opinion

BAILES, Judge.

In this action plaintiff-appellant, Schweg-mann Brothers Giant Super Markets (Schwegmann) seeks: (a) to enjoin the Louisiana Milk Commission (Commission), defendant-appellee, from enforcing against Schwegmann the price-fixing provisions adopted in the proceedings of the Commission styled Louisiana Milk Commission Docket No. LMC-64-P3, as incorporated [38]*38in the Commission’s “Final Decision: Price Order Pertaining to Frozen Desserts in All Commission Sales Area; (b) to cause the recision or modification of the Commission’s price-fixing order.

The basis for this action is the alleged invalidity of those sections of Act 340 of 1962, as amended, (LSA-R.S. 40:940.19 (5)), which authorize the Commission to fix wholesale prices on frozen desserts, and consequently the invalidity of the Commission’s price-fixing order under both the Constitution of the United States and the Constitution of the State of Louisiana. Schwegmann alleged it was entitled to injunctive relief in order to avoid irreparable damage and loss of valuable property rights which would be suffered by it, and others similarly situated, if the price-fixing provisions of the above quoted statute and the price-fixing order were enforced against them.

The Commission answered the plaintiff’s petition by what virtually amounts to a general denial, and then in reconvention, alleged that on March 12, 1965, plaintiff began selling half-gallons of ice milk to its customers at a price of 39 cents per half-gallon; that these sales were in violation of the Act which prohibits non-processing retailers (such as the plaintiff) from selling a frozen dessert, as defined by the Act, “for less than 8% above (a) the minimum wholesale price established by the commission for such item or (b) the invoice price, which ever is higher.” It further alleged that the applicable price order relating to frozen desserts establishes a wholesale price on half-gallons of ice milk at 50 cents; that the ice milk involved in such illegal sales was purchased by plaintiff from Pure-Vac Dairy Products Corporation (Pure-Vac) whose plant is in Memphis, Tennessee, and was transported from Pure-Vac’s plant to the New Orleans area by a common carrier; that prior to 1964, plaintiff had purchased certain frozen desserts from Pure-Vac delivered by Pure-Vac in its own or leased vehicles operated by Pure-Vac’s employees; and that the Commission desires and is entitled to an injunction in order to prevent violation by plaintiff of the Orderly Milk Marketing Law during the pendency of this suit, and to enjoin plaintiff from purchasing frozen desserts at prices which are less than the minimum wholesale prices prescribed by the Commission in its price order applicable to frozen desserts, except in those instances where plaintiff purchases frozen desserts which are processed at a plant located outside the State of Louisiana and are transported to plaintiff by means of common or contract carrier. In accordance with the prayer of the reconventional demand of the Commission, the trial court issued a temporary restraining order against the plaintiff, restraining it from procurement of frozen desserts in violation of the price-fixing order of the Commission.

After trial, the district court granted judgment in favor of the Commission and against Schwegmann, dismissing the plaintiff’s suit. Judgment was rendered in favor of plaintiff in reconvention and against plaintiff enjoining and prohibiting plaintiff:

(1) From selling ice cream, ice milk or any other frozen desserts derived from dairy products at a price which is less than the price required by LSA-R.S. 40:940.19 (5) and the Commission’s price-fixing order relative to frozen desserts, and

(2) From purchasing frozen desserts at prices which are less than the minimum wholesale prices prescribed by the Commission in its price order applicable to frozen desserts, except in those instances where plaintiff purchases frozen desserts which are processed at a plant located outside the State of Louisiana, and transported to plaintiff by means of common or contract carrier or by plaintiff’s own mode of transportation.

The following stipulation of facts was entered by the parties:

“A substantial portion of the frozen desserts (ice cream, ice milk, mellorine, etc.) [39]*39consumed .by Louisiana citizens is manufac-turned outside the state and transported by various means to Louisiana retailers. For example, most of the frozen dessert sold by Swift and Company, Seale-Lily, The Kroger Company, Winn-Dixie and Howard Johnson, are processed in plants located outside the State of Louisiana. In addition, a number of chain supermarkets and ice cream processors obtain a portion of their frozen desserts from processing plants located in.athejc-States.... ,
“On March 12, 1965, Schwegmann commenced selling Camellia brand ice milk in half gallon containers at a retail price of 390 per half gallon at five of its stores in the New Orleans area. Between February 1, 1965, and March 11, 1965, inclusive, Schwegmann’s purchases and sales of frozen desserts were made in compliance with the Orderly Milk Marketing Law and the frozen desserts price order issued by the Commission with an effective date of February 1, 1965. The Commission’s price order established a minimum price on half-gallons of ice milk at 500.
“The Camellia brand ice milk referred to above was purchased from Pure-Vac Dairy Products Corporation whose plant is located in Memphis, Tennessee. The Camellia brand ice milk which Schwegmann commenced selling on March 12, 1965, was transported from Memphis to New Orleans in a ‘piggy-back’ refrigerated truck-trailer by a common carrier, the Illinois Central Railroad Company.
“The purchase price of the Camellia brand ice milk was 310 per half gallon and the transportation cost amounted to approximately 20 per half gallon. The ‘piggy-back’ truck-trailer was first delivered to Schweg-mann’s Gentilly store, where approximately 830 gallons of ice milk were unloaded. Delivery of the truck-trailer to that store (and to Schwegmann’s other stores) was accomplished through use of an Illinois Central Railroad Company tractor.
“The truck-trailer was next delivered to Schwegmann’s Airline store where approximately 675 gallons were unloaded. The vehicle next went to Schwegmann’s Veterans Highway store, where approximately 600 gallons were unloaded. It next went to the Schwegmann’s Annunciation store, where approximately 600 gallons were unloaded, and finally to Schwegmann’s Westside store, where approximately 600 gallons were unloaded. These deliveries constituted approximately 3,300 gallons of the 6,000 gallons shipped.
“Commencing on Monday, March 15, 1965, the applicable freight tariff on file with the Interstate Commerce Commission made it necessary for the Illinois Central Railroad to charge an additional amount for each day the trailer was kept by Schwegmann. This charge is known as a detention charge and the daily amount of this detention charge was as follows:
Monday, March 15 $10.60
Tuesday, March 16 15.90
Wednesday, March 17
and each succeeding day 26.50
A charge of $120 on the shipment of 6,000 gallons of ice milk is equivalent to 10 per half gallon.

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Bluebook (online)
200 So. 2d 37, 1967 La. App. LEXIS 5164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwegmann-bros-giant-super-markets-v-louisiana-milk-commission-lactapp-1967.