Southern Milk Sales, Inc. v. Don Martin, T.C. Jacoby & Company, Inc., and Northshore Milk Producers Association

924 F.2d 98, 18 Fed. R. Serv. 3d 1425, 1991 U.S. App. LEXIS 1259, 1991 WL 4276
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 22, 1991
Docket89-2139, 90-1029
StatusPublished
Cited by104 cases

This text of 924 F.2d 98 (Southern Milk Sales, Inc. v. Don Martin, T.C. Jacoby & Company, Inc., and Northshore Milk Producers Association) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Milk Sales, Inc. v. Don Martin, T.C. Jacoby & Company, Inc., and Northshore Milk Producers Association, 924 F.2d 98, 18 Fed. R. Serv. 3d 1425, 1991 U.S. App. LEXIS 1259, 1991 WL 4276 (6th Cir. 1991).

Opinion

SILER, Chief District Judge.

Southern Milk Sales, Inc. (Southern) appeals from the district court’s denial of a motion for a preliminary injunction and subsequent denial of a motion for reconsideration. Southern sought equitable relief pursuant to Michigan law, Mich.Comp. Laws § 450.109, and the federal Agricultural Fair Practices Act of 1967 (AFPA), 7 U.S.C. §§ 2301-06. The district court held that Southern would not be entitled to preliminary injunctive relief under Michigan law, as it applies only to permanent injunctions; nor under Fed.R.Civ.P. 65, as there was no irreparable injury to Southern; nor under the AFP A, as Southern did not have standing. We now affirm.

I.

Southern is a nonprofit agricultural cooperative association whose membership consists of approximately 1,700 dairy farmers nationwide, including 50 farmers in the state of Michigan. Southern markets the milk produced by its members pursuant to individual membership and marketing agreements providing that Southern will be the “sole and exclusive agent for the purpose of marketing all milk of marketable quality ... save and except that used for home consumption.... ” In Michigan, Southern had an agreement with a dairy hauler, defendant Don Martin (Martin), to deliver its members’ milk to the Borden, Inc. dairy processing plant.

On August 11, 1989, Martin diverted the bulk of his daily Southern milk pickup from the Borden plant to Sunshine Biscuits, Inc. The district court found that this diversion was arranged by a milk broker, defendant T.C. Jacoby & Company, Inc. (Jacoby), at the request of Martin, for the benefit of one of Southern’s competitors, defendant Northshore Milk Producers Association (Northshore). Southern responded by sending a letter to its Michigan membership, informing them that their milk was not being shipped to Borden’s and that it would arrange for a new hauler. Moreover, Southern indicated that if the milk was not picked up in a timely manner the members could dump their milk and receive compensation from Southern. Only three of the fifty Michigan members ceased their relationship with Martin. 1

At the time of the preliminary injunction hearing, August 23, 1989, 47 of Southern’s fifty Michigan members were continuing to deal with Martin. To fulfill its oral agreement with Borden, Southern relied on a temporary supply agreement it had with the Michigan Milk Producers Association (MMPA).

II.

As a preliminary matter, we note our concern about whether the requisite controversy required by article III of the United States Constitution still exists in this case. We do not have jurisdiction where there is no “real and substantial controversy admitting of specific relief through a decree of a conclusive character, as distinguished from an opinion advising what the law would be upon a hypothetical state of facts.” Aetna Life Ins. Co. v. Haworth, 300 U.S. 227, 240-41, 57 S.Ct. 461, 464, 81 L.Ed. 617 (1937).

Southern demands that the defendants be enjoined from wrongfully interfering with the contractual relationships that Southern allegedly had with its member milk producers. This request for relief is contingent on the existence of valid contracts. If the cooperative members no longer have a contractual obligation to provide milk to Southern, then the defendants are free to do business with them.

There has been no attempt in this action to enjoin the recalcitrant members. In *101 deed, 47 out of 50 have chosen to ignore their alleged agreements even in light of an offer by Southern to pay for dumped milk. Moreover, each of the members signed agreements with Southern that expressly provide for termination upon written notice after one year. That these contractual obligations may have expired during the pendency of this action is of no moment in our determination of jurisdiction. United States v. Munsingwear, 340 U.S. 36, 39, 71 S.Ct. 104, 106, 95 L.Ed. 36 (1950). Thus, it may very well be that this case is moot in that we are asked to resolve a conflict without a remedy to offer and consequently without power to decide.

Mootness, however, is a constitutional limitation of judicial power as well as a rule of self-restraint which the Supreme Court has sometimes relaxed. See Wirts v. Glass Blowers Ass’n, Local 153, 389 U.S. 463, 474, 88 S.Ct. 643, 649, 19 L.Ed.2d 705 (1968); Southern Pacific Terminal Co. v. ICC, 219 U.S. 498, 515, 31 S.Ct. 279, 283, 55 L.Ed. 310 (1911). In Southern Pacific, for example, the Court established the doctrine of deciding otherwise moot cases because they are capable of repetition yet evade review. See also Weinstein v. Bradford, 423 U.S. 147, 148-49, 96 S.Ct. 347, 348, 46 L.Ed.2d 350 (1975). At oral argument, Southern asserted that this is such a case.

Southern maintains that it will continue to do business in Michigan, as will the defendants. Furthermore, we agree that the business decisions and relationships that led to the present controversy are capable of being repeated. Southern argues, however, that the controversy is also of the type that will escape review since in the normal course of events judicial resolution as to the appropriateness of equitable relief cannot be obtained before the expiration of the member agreements. Southern’s contention is that even if it receives all the damages to which it is entitled, it can never be adequately compensated, absent a preliminary injunction, for its loss of marketing position.

While we are not indifferent to Southern’s argument, see United Food & Commercial Workers Union v. Kroger Co., 778 F.2d 1171, 1175-76 (6th Cir.1985) (holding that issue presented by the denial of preliminary injunction would escape review if not addressed until appeal of the case after disposition on the merits), we will reach the substantive issues in this case on other grounds. Specifically, there is an absence of facts to show definitively that a live controversy does not exist.

III.

This case presents a classic choice of law problem as governed by Erie R.R. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), and its progeny. The choice presented is between applying Michigan or federal law to Southern’s request for a preliminary injunction.

Article III, § 2 of the United States Constitution grants Congress the power to establish a federal court system.

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924 F.2d 98, 18 Fed. R. Serv. 3d 1425, 1991 U.S. App. LEXIS 1259, 1991 WL 4276, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-milk-sales-inc-v-don-martin-tc-jacoby-company-inc-and-ca6-1991.