Uelman v. Freeman

267 F. Supp. 842, 1967 U.S. Dist. LEXIS 8351
CourtDistrict Court, E.D. Wisconsin
DecidedMay 19, 1967
DocketNo. 66-C-234
StatusPublished
Cited by7 cases

This text of 267 F. Supp. 842 (Uelman v. Freeman) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Uelman v. Freeman, 267 F. Supp. 842, 1967 U.S. Dist. LEXIS 8351 (E.D. Wis. 1967).

Opinion

OPINION AND ORDER

REYNOLDS, District Judge.

This action was brought by a cooperative association of producers and a producer, Donald Uelman, who is a vice-president of said cooperative, to enjoin the Secretary of Agriculture from applying § 1039.54 of the Milwaukee Milk Marketing Order (7 C.F.R. 1039.54). The effect of plaintiffs’ action would be to render ineffective the supply-demand adjustment factor of minus 24 cents in the Class I price computation of the Milwaukee Milk Order and thus increase said Class I price by 24 cents.

Defendant filed an answer to the complaint and also a motion to dismiss the action. An oral argument was had before the Court, at which plaintiffs appeared by their attorney, George St. Peter, and defendant by James B. Brennan, United States Attorney, through John C. Chernauskas, attorney, United States Department of Agriculture.

Plaintiffs contend that § 1039.54 of the Milwaukee Milk Order is invalid in that it allows the Secretary of Agriculture to determine, without a hearing, a price factor required in the computation of the Class I price which is equivalent to a similar factor contained in the Order and which is no longer available. Plaintiffs contend that §§ 608c(3), (4), and (18) of the Act require a public hearing to be held before a determination of an equivalent price factor can be made. Plaintiffs allege that if the Secretary had not replaced the price factor involved here with an equivalent, the Milwaukee Class I price would have increased by 24 cents per hundredweight of milk. Plaintiffs allege that the Secretary’s action in replacing the price factor and preventing them from receiving the increased price is causing them irreparable damage.

Defendant contends that plaintiffs’ complaint should be dismissed on the ground that plaintiffs, as producers, are not regulated by the Marketing Order and thus lack standing to contest a provision in the Marketing Order regulation. Defendant further contends that the complaint should be dismissed on the merits because the Secretary’s determination of an equivalent price factor, without a hearing, is authorized by the Act and required by the Marketing Order. Defendant asserts that:

1. Section 608c(18) of the Act sets forth the basic criteria which the Secretary must apply in establishing the level of Class prices, and in establishing or changing such level of price the Secretary must do so on the basis of evidence received at a public hearing;

2. That § 608c(5) (A) of the Act states that the Secretary may fix, or provide a method for fixing, Class prices and that § 1039.54 of the Order, which requires the Secretary to determine an equivalent price factor, is an inherent and necessary method to maintain the Class I price level established under § 608e(18) of the Act; and

3. That in any event § 608c(7) (D) of the Act authorizes provisions in the Order which are incidental and necessary to effectuate the terms and conditions of the Order and that a determination of such as involved here is necessary so that the Order, i. e., the Class I price level, may continue to operate when a factor necessary to the Class I price computation is not available.

BACKGROUND

Plaintiff, Pure Milk Products Cooperative, is an association of producers, and the milk of certain of the cooperative’s members is sold to handlers regulated by the Milwaukee Milk Marketing Order. Plaintiff, Donald Uelman, is a producer who is a vice-president of the cooperative. Neither Uelman, the cooperative, nor any of the cooperative’s members are regulated by the Milwaukee Marketing Order.

Milk Marketing Order No. 39 (7 C.F.R. 1039), which regulates the handling of milk for the Milwaukee, Wisconsin,

[844]*844Milk Marketing Area, was issued by the Secretary of Agriculture in 1950 (15 Fed.Reg. 6598). As amended from time to time through the public hearing process, the Marketing Order has been effective without interruption since that date. From its inception, the minimum Class prices under the Order have been established under the authority contained in §§ 8c(5) (A) [7 U.S.C.A. § 608c(5) (A)] and 8c(18) [7 U.S.C.A. § 608c(18)] of the Act. In this connection the Secretary, pursuant to § 8c(5) (A), provided a method for fixing minimum prices under the Order and, pursuant to § 8c(18), established a level of minimum prices as will reflect the factors specified in that section, insure a sufficient supply of pure and wholesome milk for the marketing area and be in the public interest. The Marketing Order has thus operated uninterruptedly for a period of over sixteen years, and minimum Class prices have always been fixed under the authority of §§ 8c(5) (A) and 8c(18) of the Act.

The Class I price provisions of the Milwaukee Order were based on evidence received at a public hearing and were placed in the Order after being favorably voted upon by more than 75% of the producers supplying the market.

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Bluebook (online)
267 F. Supp. 842, 1967 U.S. Dist. LEXIS 8351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uelman-v-freeman-wied-1967.