United States v. W. F. Morgan & Sons

155 F. Supp. 847, 1957 U.S. Dist. LEXIS 3022
District Court, E.D. Virginia·Decided November 26, 1957·No. Civ. A. 2458-M·Published

Opinion

HUTCHESON, Chief Judge.

This cause came on for hearing upon the plaintiff’s complaint for a permanent injunction. The Court examined the pleadings and heard the testimony and argument for both parties. Upon the basis of the admissions in the pleadings and testimony and exhibits presented, the Court hereby makes the following findings of fact and conclusions of law:

Findings of Fact

1. Defendant W. F. Morgan & Sons is a partnership trading and doing business at Weems, Virginia.

2. Defendant Cranston Morgan is an active partner in the said partnership, residing at White Stone, Virginia, and is presently in charge of the oyster packing operations of said partnership.

8. Defendant Raymond F. Morgan is the other active partner in said partnership, residing at White Stone, Virginia, and is actively engaged in the business conducted by the said partnership, being principally in charge of the fish business thereof.

4. Prior to October 25, 1953, W. F. Morgan & Sons was managed by Wilbur F. Morgan, the father of Cranston and Raymond F. Morgan, and the founder of the business. The said business had been operated for many years as the sole proprietorship of the said Wilbur F. Morgan, and for approximately a year and a half immediately prior to October 25, 1953, under an operating agreement with Cranston Morgan and Raymond F. Morgan. It is unnecessary to decide whether or not the said operating agreement resulted in the formation of a partnership, since it is found that management and control remained in Wilbur F. Morgan.

5. After the death of their father, on October 25, 1953, Cranston Morgan and Raymond F. Morgan assumed active management and full operating control of the business of W. F. Morgan & Sons.

6. The defendants have been and are now engaged in the business of processing, preparing, and packing into double seamed and friction top cans, and selling and distributing in interstate commerce, raw oysters, articles of food within the meaning of the Federal Food, Drug, and Cosmetic Act.

7. There is a definition and standard of identity for raw oysters, 21 C.F.R. 36.10, promulgated under 21 U.S.C.A. § 341. This definition and standard of identity provides, inter alia, that oysters prepared and packed in the manner employed by the defendants shall be drained so that they do not contain more than 5% free liquid by weight when tested within 15 minutes after packing. 21 C.F.R. 36.10(c) (2)(ii). It also provides that raw oysters prepared in the manner employed by the defendants shall not remain in contact with fresh water more than 30 minutes after shucking. 21 C.F.R. 36.10(b).

8. Plaintiff introduced no satisfactory proof that defendants’ oysters introduced into interstate commerce contained more than 5% free liquid within 15 minutes after packing, as specifically provided by the regulations establishing definitions and standards of identity for raw oysters, and did not charge or prove that these regulations had been violated by the defendants under 21 U.S.C.A. § 343(g).

9. The complaint charges that the oysters are adulterated under 21 U.S.C.A. § 342(b)(2) and (b)(4) by reason of the presence of added water. To prove adulteration under these sections, [848] plaintiff relied on the proposition that oysters do not “bleed” after packing— that is, that oysters, if properly packed according to the definition and standard of identity so that there is no more than 5% free liquid within 15 minutes after packing, will not at anytime thereafter have more than 5% free liquid. This was plaintiff’s contention although the Findings of Fact made by the Federal Security Administrator in establishing the definition and standard of identity for oysters, 11 Fed.Reg. 9333, declared that “All oysters exude some liquid after removal from the shell... If oysters are washed, drained, and packed while still bleeding, liquid will appear in the container in which packed giving the appearance of inadequate drainage.” Plaintiff’s present contention is that when oysters are tested at any period after 15 minutes after packing and found to contain in excess of 5% free liquid, the excess was present within 15 minutes after packing.

10. According to Government witness Hoshall, “There has long been a difference of opinion as to whether or not oysters from the Chesapeake Bay (those which we particularly deal with) do bleed.” The evidence offered by the Government in support of the contention that oysters do not “bleed” after packing consisted principally of the results of two tests. First, Food and Drug Inspectors prepared 182 packs "of oysters at commercial plants and determined the free liquid contént within fifteen minutes of packing and at different time intervals subsequent to packing. However, the specific results of these determinations were not introduced into evidence. Second, under the supervision of Food and Drug Administration officials Daughters and Hoshall, seven lots of oysters taken from the Chesapeake Bay in November 1951, were prepared according to the regulations, shipped to four districts of the Food and Drug Administration to simulate conditions under which commercial packs would be shipped, and analyzed over a period of from 1 to 19 days from the day of packing. The packs on both experiments were put up under the method referred to in 21 C.F.R. 36.10(c) (2) (i), not 21 C.F.R. 36.10(c) (2) (ii), the method used by most commercial plants including defendants. On the basis of these experiments, the Government’s conclusion was that Chesapeake Bay oysters do not gain in free liquid after 15 minutes after packing.

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United States v. W. F. Morgan & Sons, 155 F. Supp. 847, 1957 U.S. Dist. LEXIS 3022 (E.D. Va. 1957).

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