Lee v. Clearwater Growers' Ass'n

Citation93 Fla. 214,111 So. 722
PartiesLEE et al. v. CLEARWATER GROWERS' ASS'N et al.
Decision Date11 February 1927
CourtUnited States State Supreme Court of Florida

Suit by the Clearwater Growers' Association against W. E. Lee and others for an injunction, in which the Florida Citrus Exchange intervened. From a temporary restraining order defendants appeal.

Affirmed.

Syllabus by the Court

SYLLABUS

In construing statutes and contracts against monopolies or in restraint of trade, courts apply rule of reason rather than literal import of statute; contract violating statutes against monopolies or illegally restraining trade must be detrimental to public welfare and obnoxious to public policy. In construing statutes and contracts against monopolies or in restraint of trade, both state and federal courts apply the rule of reason rather than the literal import of the statute and have said in substance that it must amount to an undue or unreasonable restraint of trade. It must, in other words, be such a restraint as to be detrimental to public welfare and obnoxious to public policy.

Courts universally presume contracts are legal; if contract is legal on face, illegality must be alleged and proved. Courts universally indulge the presumption that all contracts are legal, and, when legal on its face, its illegality must be alleged and proven.

Ordinarily contract not attempting to limit production and fix prices of commodities beyond real value is not void as in restraint of trade; co-operative marketing contract held not to impair obligation of contract; co-operative marketing contract held not illegal is in restraint of trade (Const. Declaration of Rights, §§ 12, 17; Acts 1923, c. 9300, § 17(b), and § 24; Acts 1909, c. 5958, as amended by Acts 1917, c. 7383, Acts 1923, cc. 9144, 9300, and Acts 1925, c. 10097). Ordinarily a contract will not be declared viod in restraint of trade which does not attempt to limit production or control and fix the price of the commodities embraced in it beyond their real value.

Agreements fixing amount of liquidated damages in co-operative marketing contracts will be upheld, in absence of showing that they unjust, oppressive, or disproportionate to actual damages. Agreements fixing the amount of liquidated damages in co-operative marketing contracts will be upheld, in the absence of a showing that the amount is unjust, oppressive or disproportionate to the damages that would result from a breach of the agreement.

Statute authorizing injunction against breach of co-operative marketing contract and authorizing specific performance is valid (Rev. Gen. St. 1920, § 4514, par. 7, as amended by Acts 1925, c. 10097, § 2). Paragraph 7 of section 4514, Revised General Statutes of Florida 1920, authorizing injunction to prevent the breach of a co-operative marketing contract and require its specific performance, does not contravene any general law of this state and was well within its legislative prerogative.

Appeal from Circuit Court, Pinellas County; Freeman P. Lane, judge.

COUNSEL

Billie B. Bush, of Tampa, for appellants.

Baskin & Jordan, of Clearwater, and William Hunter, of Tampa, for appellees.

OPINION

TERRELL J.

Appellee Clearwater Growers' Association is a co-operative marketing association organized pursuant to chapter 5958, Acts of 1909, as amended by chapter 7383, acts of 1917, as amended by chapter 9144 and chapter 9300, Acts of 1923, as amended by chapter 10097, Acts of 1925, Laws of Florida. It is a corporation, not for profit, organized for the purpose of picking, packing, processing, and marketing in a systematic and orderly manner the citrus fruits produced or controlled by its members.

The appellants W. E. Lee and Miriam Mays Lee, his wife, are members of appellee Clearwater Growers' Association, and entered into contract with it to pick, haul, pack, process, ship, sell, and market all their citrus fruits grown on certain lands therein more specifically described. Subsequently during the life of said contract appellants commenced disposing of their citrus fruits to other parties covered by said contract, and appellee Clearwater Growers' Association brought its bill of complaint in the circuit court of Pinellas county seeking to enjoin the sale and delivery of any citrus fruits from the lands described in said contract to any person or persons other than appellees.

The Florida Citrus Exchange was permitted by petition to intervene and become a party complainant, a demurrer to both the bill of complaint and petition for intervention was overruled and a temporary restraining order was granted, from which appeal was prosecuted to this court.

It is first contended that the contract between appellants and appellee Clearwater Growers' Association is violative of section 12 and 17 of the Declaration of Rights of the Constitution of the state of Florida, in that the law under which said appellee is created impairs the oligation of a contract in that appellee is in no way bound on its part in damages to appellants for breach of the contract complained of.

This contention of perhaps argued inferentially in brief of appellants, but under the well-established rule of this court it might properly be passed by us without consideration; suffice it to say that we know of no rule of law on which such a contention could be grounded.

The purpose and policy of the law authorizing the incorporating of co-operative marketing associations such as appellee is clearly set forth in section 1 of chapter 9300, Acts of 1923, Laws of Florida, in the following terms:

'Declaration of Policy.--In order to promote, foster and encourage the intelligent and orderly marketing of agricultural products through cooperation and to eliminate speculation and waste; and to make the distribution of agricultural products as direct as can be efficiently done, between producer and consumer; and to stabilize the marketing of agricultural products, this act is passed.'

When analyzed it clearly appears that cooperative marketing associations are designed for a fourfold purpose, viz.: (1) To promote, foster, and encourage the intelligent and orderly marketing of agricultural products through co-operation; (2) to eliminate speculation and waste in such marketing; (3) to distribute agricultural products between producer and consumer as efficiently and directly as possible; and (4) to stabilize the marketing of agricultural products.

Co-operative marketing, in other words, is another name for a great movement of late years among the agricultural, horticultural, and stock-raising classes to organize for the purpose of more effectively, economically, and equitably distributing and marketing their products. In the South and the Southeast co-operative marketing associations have been organized to market cotton, citrus fruits, tobacco, peanuts, rice, peaches, vegetables, and dairy products; in the East such associations are organized to market fruits, potatoes, and berries; in the Middle West they are organized to market wheat, potatoes, dairy products, and apples; and in the Far West to market wheat, citrus fruits, grapes, and berries, and most of the known fruits and vegetables. In aggregate value the products handled by these associations annually run into many millions and perhaps billions of dollars. They have become a necessary factor in our economic life, 'not only as a matter of justice, but also as a matter of existence to the producers of the great staples of the country, and as a protection against the gigantic combinations of capital which have been taking all the profits, or more, which should have gone to the producers of the great staple crops of the country, and to furnish a reasonable and decent wage for the laborers in such industries.'

The Columbia Law Review of February, 1923, contains a very illuminating article on the history of co-operative marketing in this country, from which the following pertinent comment is taken:

'From year to year, the movement towards the co-operative marketing of farm products is assuming greater scope and greater economic importance. On the Pacific Coast the large fruit growers co-operatives have become by far the most important factors in the marketing of citrus fruits, raisins and grapes, prunes and apricots, and similar products. The annual turn-over of co-operative associations in California alone is approximately $300,000,000. In the wheat and corn belts, co-operative country grain elevators have been a familiar feature for a generation, and their importance is said to be growing. Co-operative creameries and cheese factories play a significant part in the economy of dairy farming in the Middle West. Associations of potato growers, of truck gardeners, of growers of berries, apples and vegetables, for canning or direct consumption, have been known for years. It was
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21 cases
  • Louis K. Liggett Co. v. Amos
    • United States
    • Florida Supreme Court
    • April 4, 1932
    ... ... compared with cognate laws to determine its meaning and ... effect. Lee v. Clearwater Growers' Association, ... 93 Fla. 214, 111 So. 722; Amos v. Mathews, 99 Fla ... 1, 65, 115, ... ...
  • Love v. Miami Laundry Co.
    • United States
    • Florida Supreme Court
    • May 5, 1934
    ... ... Salciccia, 102 Fla. 847, 136 So. 522, in which the case ... of Lee v. Clearwater Growers' Ass'n, 93 Fla ... 214, 111 So. 722, was cited with approval ... It ... ...
  • Janet Realty Corp. v. Hoffman's, Inc.
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    • Florida Supreme Court
    • December 23, 1943
    ... ... commodities, are valid and enforceable. See Lee v ... Clearwater Growers' Ass'n, 93 Fla. 214, 111 So ... Contracts entered ... into between parties, ... ...
  • Rotemi Realty, Inc. v. Act Realty Co., Inc.
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    ...must be pleaded and proved at trial. See Robert & Co., 33 So.2d at 734; Busot, 338 So.2d at 1334 (citing Lee v. Clearwater Growers Ass'n, 93 Fla. 214, 111 So. 722 (1927)). In this case, the district court concluded that the agreement was not valid on its face. See Act Realty, 863 So.2d at 3......
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