State Ex Rel. Landis v. S. H. Kress & Co.

155 So. 823, 115 Fla. 189, 1934 Fla. LEXIS 1488
CourtSupreme Court of Florida
DecidedJune 8, 1934
StatusPublished
Cited by43 cases

This text of 155 So. 823 (State Ex Rel. Landis v. S. H. Kress & Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Landis v. S. H. Kress & Co., 155 So. 823, 115 Fla. 189, 1934 Fla. LEXIS 1488 (Fla. 1934).

Opinions

Ellis, J.

An information in the nature of quo warranto was filed in this Court, September, 1933. Its purpose was to obtain an order to oust S. H. Kress & Company, a foreign corporation organized and existing under the laws of the State of Texas, from its permit to do business in the State of Florida. A writ of quo warranto was issued requiring respondent to show cause why it should not be ousted of its permit to do business' in Florida. By stipulation entered into between counsel for the respondent and the Attorney General and counsel appearing for certain persons named in the information as co-relators, an amended information was filed in October.

It appears from the information that S. H. Kress & Company is a Texas corporation and has its principal place of business in New York City; that it obtained a permit to *193 do business in this State in September, 1927. It is one of a group of several corporations consisting of S. H. Kress & Company, a New York corporation, another by the same name created by and existing under the laws of California, another by the same name created in Colorado, and respondent, the Texas corporation.

The respondent owns and operates eleven stores in Florida, one of which is located in Key West. Respondent sells' “hundreds of articles of merchandise, including toilet articles, notions, novelties, hardware, stationery, office supplies, confectionery and clothes'.” They are sold in competition with “independent merchants of the State of Florida,” one of which is John A. Gardner named as co-relator, who conducts a business known as “Gardner’s Pharmacy” in which he sells “drug and medical supplies, toilet articles, stationery and sundry other articles.”

The group of Kress corporations operate in many cities of the United States and as the “co-relators are reliably informed and believe and therefore aver” there are two hundred and thirty such stores in “which merchandise is sold to the American public in the approximate sum of One Hundred Million Dollars ($100,000,000.00) annually.”

The information alleges that the respondent is “engaged in a combination of capital, skill and acts” with the S. H. .Kress & Company corporation of New York and other corporations and with the officers and agents of such corporations “for the purpose of creating and carrying out restrictions in the full and free pursuit of businesses authorized and permitted by the laws of the State of Florida.”

Those businesses are described in the petition as the “businesses of retail and wholesale merchandising” of the articles above described.

On the information of the co-relators it is' alleged the *194 Kress New York corporations owns the “entire capital stock of said corporation, as well as the entire capital stock of the California and Colorado corporations.” The information, by way of argument, alleges that the “combination” exists because of the reliable information coming to corelators that the New York corporation owns the entire capital stock of the other three Kress corporations” and by reason of the fact that three of the principal officers of said Texas corporation are also officers of the New York corporation” and “by reason of the fact that S. H. Kress & Company, a New York corporation, owned and operated most of the stores now owned and operated by the respondent in the State of Florida prior to the 10th day of September, A. D. 1927, on which date the New York corporation withdrew from the State of Florida, and on which date the Texas corporation began doing business in Florida.”

. It is alleged that as a “part of said combination and in pursuance thereof” the Texas Corporation has from that date “created and carried out restrictions in full and free pursuit of businesses authorized and permitted by the laws of the State of Florida.”

The information alleges an incident occurring in the City of Tampa to show the effect of the alleged combination upon lawful trade. The incident was the sale by the Kress Store of a “Greystone Tea Kettle No. jo” for thirty-five cents which could not be purchased by a retail merchant in the city at the date of the sale for less than seven dollars and ninety cents per dozen, and which “could not be sold profitably by any retail merchant in said City on said date for less than 8oc each.” It is also alleged that other articles of merchandise were sold by the respondent at about the same time at prices' below the prices at which independent merchants were “able to retail said goods.”

*195 The remainder of the information sets up another and different attack upon the respondent. It alleges that the “combination” alleged to exist has great financial resources of which it avails itself in the matter of purchasing articles of merchandise for sale and distribution; that it is enabled to obtain large quantities of merchandise and dispose of it at prices with which independent merchants cannot compete; that the combination operates at a less' overhead expense, employs what is known as the “direct to consumer” method of merchandising and thus eliminates “wholesale” merchandising of the articles sold; that by reason of that method of merchandising, made possible by the large resources of the “combination” and its system of doing business, many independent merchants' in the State have been unable to successfully compete with the stores of the respondent and have in consequence sustained financial loss and many have been required to suspend business, and employees and merchants have found “difficulty in securing employment.” It is alleged that by reason of that method employed “brokers, common carriers, hotels, restaurants, artisans and professional men have lost business and sustained financial loss and have found it necessary to curtail their business and reduce their number of employees.”

The information concludes with two propositions of law alleged to be applicable. First that the respondent is exercising its permit to do business in Florida in violation of the anti-trust laws of the State; second, that the Act of the Legislature under which the respondent obtained a permit as a corporation to do business in this State is unconstitutional and void in its application to the respondent because it operates to permit “intercorporate relations ás' have been alleged” to exist in the information to the detriment of the public welfare in contravention to the preamble of the Con *196 stitution of Florida in which it is declared that the “Constitution was ordained to insure domestic tranquility and the public welfare.”

A demurrer to the information and motion to quash it were interposed by respondent.

The information is filed in the name of the State on relation of the Attorney General and “John Kilgore, trading and doing business as The State (a newspaper) and John A. Gardner, trading and doing business as Gardner’s Pharmacy, by their undersigned attorneys, and on behalf of themselves and independent merchants and citizens of Florila similarly situated and affected.”

In the case of State of Florida by W. H. Ellis, Attorney General, et al., v. Bryan and others as the State Board of Control, 50 Fla. 293, 39 South. Rep.

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

Related

Zoltan Barati v. State of Florida, Motorola, Inc.
198 So. 3d 69 (District Court of Appeal of Florida, 2016)
Bondi v. Tucker
93 So. 3d 1106 (District Court of Appeal of Florida, 2012)
Ago
Florida Attorney General Reports, 2003
In Re Proposed Petition to Recall Hatch
628 N.W.2d 125 (Supreme Court of Minnesota, 2001)
State v. Chastain
871 S.W.2d 661 (Tennessee Supreme Court, 1994)
BUTTERWORTH EX REL. BUTTERWORTH v. Anclote Manor Hosp., Inc.
566 So. 2d 296 (District Court of Appeal of Florida, 1990)
State Ex Rel. Boyles v. PAROLE & PROB. COM'N
436 So. 2d 207 (District Court of Appeal of Florida, 1983)
William Lee Thompson v. Louie L. Wainwright
714 F.2d 1495 (Eleventh Circuit, 1983)
Department of Educ. v. Lewis
416 So. 2d 455 (Supreme Court of Florida, 1982)
Wier v. Howard Hughes Medical Institute
404 A.2d 140 (Court of Chancery of Delaware, 1979)
State Ex Rel. Shevin v. INDICO CORPORATION
319 So. 2d 173 (District Court of Appeal of Florida, 1975)
State Ex Rel. Christian v. Austin
302 So. 2d 811 (District Court of Appeal of Florida, 1974)
State Ex Rel. Meyer v. Peters
199 N.W.2d 738 (Nebraska Supreme Court, 1972)
State Ex Rel. Shevin v. Yarborough
257 So. 2d 891 (Supreme Court of Florida, 1972)
Hansen v. Barlow
456 P.2d 177 (Utah Supreme Court, 1969)
Lazarus v. Faircloth
301 F. Supp. 266 (S.D. Florida, 1969)
State v. Andersen
208 So. 2d 814 (Supreme Court of Florida, 1968)

Cite This Page — Counsel Stack

Bluebook (online)
155 So. 823, 115 Fla. 189, 1934 Fla. LEXIS 1488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-landis-v-s-h-kress-co-fla-1934.