Florida Lime & Avocado Growers, Inc. v. Paul
Opinion of the Court
delivered the opinion of the-Court.
Section 792 of California’s Agricultural Code, which gauges the maturity of avocados by oil content, prohibits the transportation or sale in California of avocados which contain “less than 8 per cent of oil, by weight . . .
Appellants in No. 45, growers and handlers of avocados in Florida, brought this action in the District Court for the Northern District of California to enjoin the enforcement of § 792 against Florida avocados certified as mature under the federal regulations. Appellants challenged the constitutionality of the-statute on three grounds : (1) that •under the Supremacy Clause, Art. VI, the California standard must be deemed displaced by the federal stand-' ard for determining the maturity of avocados grown in Florida; (2) that the application of the California statute to Florida-grown avocados denied appellants the Equal
Both parties have brought appeals here from the District Court’s judgment: the Florida growers urge in No. 45 that the court erred in not enjoining enforcement of the state statute against Florida-grown avocados; in No. 49 the California state officials appeal on the ground that the action should have been dismissed for want of equity jurisdiction rather than upon the merits. We noted probable jurisdiction' of both appeals. 368 U. S. '964, -965. We . affirm the judgment in the respect challenged by the cross-appeal in No. 49. In No. 45 we agree that appellants have not sustained their challenges to § 792 under the Supremacy and Equal Protection Clauses. However, we reverse and remand for a new trial insofar-as the judgment sus
The California statute was enacted in 1925. Like the federal marketing regulations applicable to appellants, this statute sought to ensure the maturity of avocados reaching retail markets.
The federal marketing regulations were adopted pursuant to the Agricultural Adjustment Act, 7 U. S. C. §§ 601 et seg. The declared purposes of the Act are to restore and maintain parity prices" for the benefit of producers of agricultural commodities, to ensure the stable' and steady flow of commodities to consumers, and “to establish and maintain such minimum standards of quality and maturity ... as will effectuate such orderly marketing of such agricultural commodities as will be in the public interest,” § 2 (3), 7 U. S. C. § 602 (3). Whenever he finds that it would promote these declared policies, the Secretary is empowered upon notice and hearing to adopt federal marketing orders and regulations for a particular growing area, § 8c (3), (4),'7 U. S. C. § 608c (3), (4). Orders thus proposed by the Secretary become effective only when approved by a majority of the growers or producers concerned, § 8c (8), (9), 7 U. S. C. § 608c (8), (9).
In 1954, after proceedings in compliance with the statute, 19 Fed. Reg. 3439, the Secretary promulgated orders governing the marketing, of avocados grown in South Florida.
The experts who testified at the trial disputed whether California’s percentage-of-oil test or the federal marketing orders’ test of picking dates and minimum sizes and weights was the more accurate gauge of the maturity of
I.
We consider first appellants’ challenge to § 792 under the Supremacy Clause. That the California statute and the federal marketing orders embody different maturity tests is clear. However, this difference poses, rather than disposes of the problem before us. Whether a State may constitutionally reject commodities which a federal authority has certified to be marketable depends upon whether the state regulation “stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress,” Hines v. Davidowitz, 312 U. S. 52, 67. By that test, we hold that § 792 is not such an obstacle; there is neither such actual conflict between the two schemes of regulation that both cannot stand in the same area, nor evidence of a congressional design, to preempt the field.
We begin by putting .aside two suggestions of the appellants which obscure more' than aid in the solution of the problem. First, it is suggested that a federal license or certificate of compliance with minimum federal standards immunizes the licensed commerce from inconsistent or more demanding. state regulations. While this suggestion draws some support from decisions, which have invalidated direct state interference with the activities of interstate carriers, Castle v. Hayes Freight Lines, Inc.,
Second, it is suggested that the coexistence of federal and state regulatory legislation should depend upon whether the purposes of the two laws are parallel or divergent. This Court has, on the one hand, sustained state statutes having objectives virtually identical to those of federal regulations, California v. Zook, 336 U. S. 725, 730-731; cf. De Veau v. Braisted, 363 U. S. 144, 156-157; Parker v. Brown, 317 U. S. 341; and has, on the other hand, struck down state statutes where the respective purposes were quite dissimilar, First Iowa Hydro-Electric Cooperative v. Federal Power Comm’n, 328 U. S. 152. The test of whether both federal and state regulations may operate, or the state regulation must give way, is whether both regulations c'an be enforced without impairing the federal superintendence of the field, not whether they are aimed at similar or different objectives.
The principle to be derived from our decisions is úhat federal regulation of á field of commerce should not be deemed preemptive of state regulatory power in the absence of persuasive reasons — either that the nature of the regulated subject matter permits no other conclusion, or, that the Congress has unmistakably so ordained. See, e. g., Huron Portland Cement Co. v. Detroit, supra.
A.
A holding of federal exclusion of state law is inescapable and requires no inquiry .into congressional design where compliance with both federal and state regulations is a
B.
The' issue under the head of the Supremacy Clause is narrowed then to this: Does either the nature of the subject -matter, namely the maturity of avocados, or any explicit declaration of congressional design to displace state regulation, require' § '792 to yield to the federal marketing orders? The maturity of avocados seems to be an inherently unlikely candidate for exclusive federal regulation. Certainly .it is not a subject by its very nature admitting only of national supervision, cf. Cooley
On the contrary, the maturity of avocados is a subject matter of the kind this Court has traditionally regarded as properly within the scope of state superintendence. Specifically, the supervision of the readying of foodstuffs for market has always been deemed a matter of peculiarly local concern. Many decades ago, for example, this Court sustained a State’s prohibition against the imp'ortation of artificially colored oleomargarine (which posed no health problem), over claims of federal preemption and burden-on commerce. In the course of the opinion, the Court recognized that the States have always possessed a legitimate interest in “the protection of . . . [their] people against fraud and deception in the sale of food products” at retail markets within their borders. Plumley v. Massachusetts, 155 U. S. 461, 472. See also Crossman v. Lurman, 192 U. S. 189, 199-200; Hygrade Provision Co. v. Sherman, 266 U. S. 497; Savage v. Jones, 225 U. S. 501, 525-529.
It is true that more recently we sustained, a federal statute broadly regulating the production of renovated butter. But we were scrupulous in pointing out that a State might nevertheless — at least in the absence of an express contrary command of Congress — confiscate or exclude from market the processed butter which had complied with all the federal processing standards, “because of a higher standard demanded by a state for its consumers.” A state regulation so purposed was, we affirmed, “permissible under all the authorities.”
c.
Since no irreconcilable conflict with the federal regulation requires a conclusion that § 792 was displaced, we turn to the question whether Congress has nevertheless ordained that the state regulation shall yield. The settled mandate governing this inquiry, in deference to the fact that a state regulation of this kind is an exercise of the “historic police powers of the States,” is not to decree such a federal displacement “unless that was the clear and manifest purpose of Congress,” Rice v. Santa Fe Elevator Corp., 331 U. S. 218, 230. In other words, we are not to conclude that Congress legislated the ouster of this California statute by the marketing orders in the absence
The provisions and objectives of the Agricultural Adjustment Act bear little resemblance to those in which only last Term we found a preemptive design in Campbell v. Hussey, 368 U. S. 297. In the Federal Tobacco Inspection Act involved in that case, Congress had declared “uniform standards of classification and inspection” to be “imperative for the protection of producers and others engaged in commerce and the public interest therein.” 7 U. S. C. § ,511a. The legislative history was replete with references to a need for “uniform” or “official” standards, which could harmonize the grading and inspection of tobacco at all markets throughout the country. Under the. statute-a single set of standards was to be promulgated by .the Secretary of Agriculture, “and the standards so established would be the official standards of the United States for such purpose.” S. Rep. No. 1211, 74th Cong., 1st Sess. 1.
Nothing in the language of the Agricultural Adjustment ■ Act — passed by the same Congress the very next day
Other provisions of the Act, and their history, militate even more strongly against federal displacement of these state regulations. • First, the adoption of marketing agreements and orders is authorized only when the Secretary has determined that economic conditions within a particular growing area require federally supervised cooperation among the growers to alleviate those conditions. 7 U. S. C. § 608c (1), (2). Moreover, the relief afforded the growers is to be temporary; “the Secretary is directed to cease exercising such powers” when “the circumstances described ... no longer exist.” H. R. Rep. No. 1241, 74th Cong., 1st Sess. 4. . And consistently with' these terms, the Secretary himself has characterized the marketing agreements as essentially “self-help programs” instituted and administered by the farmers involved. This view has recently been elaborated by the Secretary:
“The Act itself does not impose regulations over the marketing of any agricultural commodity. It merely provides the authority under which an industry can develop regulations to fit its own situation and solve its own marketing problems.” United States Department of Agriculture, Marketing Agreements and Orders, AMS-230 (rev. ed. 1961), 3. See also United States Department of Agriculture, Agricultural Adjustment 1937-1938 (1939), 71.
Second, the very terms of the statute require that the Secretary promulgate marketing orders “limited in their application to the smallest regional production areas” which he finds practicable; and the orders are.to “prescribe such different terms, applicable to different production areas and' marketing areas” as will serve to “give due recognition to the . differences in production, and market
A third factor which strongly suggests that Congress did not mandate uniformity for each marketing, order arises from the legislative history. The provisions concerning the limited duration and local application of marketing agreements received much attention from both House and Senate Committees reporting on the bill. Though recognizing that the powers conferred upon the Secretary were novel and extensive, both Committees concluded : “These and other restrictive provisions are... adequately drawn to guard against any fear that the regulatory power is so broad as to subject its exercise to the risk of abuse.” H. R. Rep. No. 1241, 74th Cong., 1st Sess. 7; S. Rep. No. 1011, 74th Cong., 1st Sess. 3. The Committee Reports also discussed § 10 (i), 7 U. S. C. §610(i), which authorized federal-state cooperation
“Notwithstanding the authorization of cooperation contained in this section, there is nothing in it to permit or require the Federal Government to invade the field of the States, for the limitations of the act and the Constitution forbid federal regulation in that field, and this provision does not indicate the contrary. Nor is there, anything in the provision to force States to cooperate. Each sovereignty operates in its own sphere but can exert its authority in conformity rather than in conflict with that of the other.” H. R. Rep. No. 1241, 74th Cong., 1st Sess. 22-23; S. Rep. No. 1011, 74th Cong., 1st Sess. 15.
Thus the revealed congressional design was apparently to do no more than to invite farmers and growers to get together, under the auspices of the Department of Agriculture, to work out local harvesting, packing and processing programs and thereby relieve temporarily depressed marketing conditions. Had Congress meant the Act to have in addition a pervasive effect upon the ultimate distribution and sale of produce, evidence of such a design would presumably have accompanied the statute, as it did the Tobacco Inspection Act, see Campbell v. Hussey, supra. In the absence of any such manifestations, it would be unreasonable to infer that Congress delegated to the growers in a particular region the authority to deprive the States of their traditional power to enforce otherwise valid regulations designed for the protection of consumers.
An examination of the operation of these particular marketing orders reinforces the conclusion we reach from this analysis of the terms and objectives of the statute. The regulations show that the Florida avocado maturity standards are drafted each year not by impartial experts in Washington or even in Florida, but rather by the South
This case requires no consideration of the scope of the constitutional power of Congress to oust all state regulation of maturity, and we intimate no view upon that ques
II.
We turn now to appellants’ arguments under the Equal Protection and Commerce Clauses.
It is enough to dispose of the equal protection claim that we express our agreement with the District Court that the state standard does not work an “irrational discrimination as between persons or groups of persons,” Goesaert v. Cleary, 335 U. S. 464, 466; cf. Railway Express Agency, Inc., v. New York, 336 U. S. 106. While it may well be that arguably superior tests of maturity could be devised, we cannot say, in derogation of the findings of the 'District Court, that this possibility renders the choice made by California either arbitrary or devoid of rational relationship to a legitimate regulatory interest. Whether or not the oil content test is the most reliable indicator of marketability of avocados- is not a question for the courts to decide; it is sufficient that on this record we should .conclude, as we.do, that oil content appears to be an acceptable criterion of avocado maturity.
More difficult is the claim that the California statute unreasonably burdens or discriminates against interstate
The District Court referred to these precedents but nevertheless concluded that the California oil content test-was not burdensome upon or discriminatory against interstate commerce. 197 F. Supp., at 786-787. However, we are unable to review that conclusion or decide whether the court properly applied the principles announced in these decisions because we cannot ascertain what constituted the record on which .the conclusion was predicated. Much of the appellants’ offered proof consisted of depositions and exhibits, designed to detail both the rejection of Florida avocados in California and the oil content of Florida avocados which had met the federal test but which might nonetheless have been excluded from California markets.
For these reasons we conclude that the judgment must, to the extent appealed from in No. 45, be reversed and the case remanded to the District Court for a new trial of appellants’ Commerce Clause contentions. We intimate no view with respect to either the admissibility or the probative value of the disputed evidence, or of any other evidence which might be brought forth by either party concerning this aspect of the case.
In No. 49, the state officers cross-appeal on the ground that the District Court should have dismissed the action for want of equity, rather than for lack of merit. Their contention is that there was insufficient showing of injury to the Florida growers to invoke the District Court’s equity jurisdiction: We ■ reject that contention, and affirm the judgment insofar as it is challenged by the cross-appeal.
In Florida Lime & Avocado Growers, Inc., v. Jacobsen, 362 U. S. 73, we held that because of the Florida growers’ allegations that California officials had consistently condemned Florida avocados as unfit for sale in California, “thus requiring appellants [the Florida growers] — to prevent destruction and complete loss of their shipments — to reship the avocados to and sell them in other States,” it was evident that “there is an existing dispute between the parties as to present legal rights amounting to a justiciable controversy which appellants are entitled to have determined on the merits.” 362 U. S., at 85-86. In viéw of our mandate in Jacobsen, therefore, the District Court necessarily assumed jurisdiction and heard the case on its merits. Cf. United States v. Haley, 371 U. S. 18.
Even on the present ambiguous record, we think that the Florida growers have demonstrated sufficient injury to warrant at least a trial of their allegations. In the California officials’ briefs below, it was conceded that the Florida growers had suffered damage in the amount of some $1,500 by reason of the enforcement of the statute. Before the bar of this Court, it was conceded that the State, in objecting to the growers’ proffered evidence, did not dispute the claim that some shipments of Florida avocados had in fact been rejected by California for failure to comply with the oil content requirement. Indeed, the
In addition, it is clear that the California officials will continue to enforce the statute against the Florida-grown avocados, for the State’s answer to the complaint declared that these officials “have in the past and now stand ready to perform their duties under their oath of office should they acquire knowledge of violations of the Agricultural Code of the State of California.” Thus the District Court, both on the pleadings before it, and in light of our opinion in Jacobsen, properly heard the remanded case on the merits and did not err in refusing to dismiss for want of equity jurisdiction.
The cross-appellants rely upon the court’s finding of fact that “[p]laintiffs have neither suffered nor been threatened with irreparable injury.” This finding was, however, adopted pursuant to that court’s prior opinion, which stated that “[p] lain tiffs’ monetary losses as a result of the rejected shipments are not clearly established, but at most do not appear to be oyer two or three thousand dollars.” 197 F: Supp., at 783-784. We read this finding as importing no more than the District Court’s view that whatever harm or damage the Florida growers might have suffered fell short of the “irreparable injury” requisite for the entry of an injunction against enforcement of the statute.
The judgment of the District Court is reversed and the cause is remanded for a new trial limited to appellants’
It is so ordered.
Avocados not meeting this standard may not be sold in California. Id.. § 784. Substandard fruits are “declared to be a public nuisance,” and they may be seized, condemned, and abated. Id., § 785. Violators may be punished criminally, id., § 831 ($50 to $500 fine or imprisonment for not more than six months, or both), and by civil penalty action, id., § 785.6 (market value of fruits).
The orders are approyed by the Secretary pursuant to § 8c of the Agricultural Adjustment Act, 7 U. S, C. § 608c. The basic marketing agreement provisions were initially adopted, in substantially their present form, in the 1935 amendments to the Agricultural Adjustment Act, 49 Stat. 750, 753-761. These sections were, reenacted in 1937, 50 Stat. 246, as the Agricultural Marketing Agreement Act of 1937, virtually unchanged. Concerning the reasons for the reenactment, and the extent of the changes, see United States Department of Agriculture, Agricultural Adjustment 1937-1938 (1939), 72-73. •
The evidence in the record concerning the actual effect of the California maturity test upon Florida avocados is sketchy at best. The appellants introduced only one witness, a marketing expert in the United States Department of Agriculture, who testified concerning the relative scientific and other merits of the federal and California maturity tests. He gave no testimony concerning the actual impact of the California regulation upon shipments from Florida. One of appellees’ witnesses at trial made cursory references to the fact that California inspectors had rejected and excluded some Florida shipments, but there was no testimbny concerning the dates and quantities of any rejections. In a motion for dismissal and an accompanying affidavit before the District Court, the appellees presented certain figures concerning^ the percentage of Florida avocados which failed to comply with the Cálifornia regulation during the years 1954 through 1957. There was, however, neither data for years after 1957 nor statistical proof at the trial which would corroborate these summary figures.
See Roche, Regulations for Marketing Avocados, in California, in California Avocado Assn. 1937 Yearbook (1937), 88-89, concerning the purpose of the California oil-test statute. It has not been contended that the purpose of this statute is to ensure a certain caloric or nutritional value in avocados which reach the consumer. No health issue has been raised in this case. See 197 F. Supp., at 785-786.
See also Church and Chace, Some Changes in the Composition of California Avocados During Growth (U. S. Dept, of Agriculture Bull. No. 1073, 1922), -2; Hodgson, The California Avocado Industry (Calif. Agricultural Extension Service Circular No. 43, 1930), 54-55; Hodges, Immature Avocado Selling Illegal, 111 Pacific Rural Press, Apr; 3, 1926, p. 435. And for a discussion of the particular problems encountered in the marketing of immature avocados in California, see Roche, supra, note 4, at 88-89.
The nature of the avocado and its ripening process make it very difficult for ariy but the expert to gauge its maturity, and an avocado which may appear satisfactory at the time of purchase may later fail to ripen properly because it was prematurely picked. See, e. g., Ruehle, The Florida Avocado Industry (Univ. of Fla. Agr. Expt. Stations Bull. No. 602, 1958), 69; Avocado Maturity Tests, 37 Cali
This order is applicable only to avocados grown in the South Florida growing area. The California growers have not adopted a federal marketing order or agreement.
The findings of the United States Department of Agriculture, contained in its order determining what terms should be contained in the avocado regulations, were that the marketing of immature fruits increases consumer resistance and materially impairs the marketing of the entire crop, that there was no satisfactory physical or chemical test for determining maturity, and that maturity can satisfactorily be determined by the picking-date-size method. Handling of Avocados Grown in South Florida, 19 Fed. Reg. 2418, 2424-2425.
Each year since 1954, the Secretary has issued maturity regulations fixing the dates upon which each variety of Florida avocados may be picked and shipped. See, e. g., 27 Fed. Reg. 5135-5136, 6705, 8264-8265, 9174-9175, 10090-10091.
Section .53 of the regulations, 7 CFR § 969.53, provides that an exemption certificate shall be granted to a grower “who furnishes, proof, satisfactory to the committee, that his avocados of a particular variety are mature prior to the time such variety may be handled under such regulation.” Such a certificate authorizes the recipient to “handle” the certified fruit, i. e., to “sell, consign, deliver, or transport avocados within the production area or between the production area and any point outside thereof 7 CFR § 969.10.
See Traub et al., Avocado Production in the United States (U. S. Dept, of Agriculture Circular' No. 620, 1941), 6-8. Occasionally, however, even California growers have experienced difficulty in meeting the oil content requirement, and sizable shipments have had to be destroyed. See Demand for Avocados, 74 California Cultivator, Feb. 8, 1930, p. 167; Roche, Look Out for Immature Avocados, 87 California Cultivator, Nov. 2, 1940, p. 590; California Avocado Assn. 1937 Yearbook (1937), 88.
Compare Hodgson, The California Avocado Industry (Calif. Agricultural Extensityi Service Circular No. 43, 1930), 39.
See 19 Fed. Reg. 2418, 2424-2425; compare Harding, The Relation of.Maturity to Quality in Florida Avocados, 67 Florida State Horticultural Society Proceedings, 276 (1954).
It is true that the statute involved in the Cloverleaf case provided that federal law was not intended to displace state laws “enacted in the exercise of [the States’] -police powers . . . .” 32 Stat. 193, 21
It might also b.e argued that the California statute, having been designed-to test the maturity only of California avocados, bears no rational relationship to. the marketability of Florida fruit. Such a contention would seem untenable, however, in the face of the District • Court’s express finding of fact, supportable on the testimony before it, that “[a-] standard requiring a minimum of 8% of oil in an avocado before it may be marketed is scientifically valid as applied to hybrid and Guatemalan varieties of avocados grown in Florida and marketed in California.” And there is considerable dispute as to the oil conten’ of Florida avocados which have been certified as mature under th 'federal regulations. See note 21, infra.
The marketing agreement provisions were enacted among the 1935 amendments to the Agricultural Adjustment Act, 49 Stat. 750753-761. These amendments were accepted by Congress the day following the enactment of the Tobacco Inspection Act, 49 Stat. 731-735.
Although the Manager of the Avocado Administrative Committee stated in his deposition (which was neither formally admitted nor excluded by the District Court) that the Secretary had occasionally rejected orders recommended by the Committee, he insisted that as to maturity regulations “the Secretary has always followed the Committee’s recommendations.” •
Significant with regard to the essentially local nature of the orders and their administration is the testimony in a deposition (on the admissibility of which the District Court did not rule) .of the supervising inspector of fruits and vegetables of the Federal and State Agricultural Inspection Service for the South Florida district: •
“. . . these regulations ■ from time to time are subject to change at the direction of the Avocado Administrative Committee. Whenever they do change them, Mr. Biggar, the manager of the Avocado Administrative Committee, immediately furnishes the inspection service with copies of the effective rules and changes. There are times when they change them, and when they change them I am the first man to get the changed regulations, because I have to see that the inspectors get the revised regulations issued by the Avocado Administrate vm Committee.” "
For further evidence that the avocado marketing agreement was undertaken chiefly as a “self-help program,” designed only to regulate South Florida production and ensure maturity of the produce from that growing area, see Krome, The Federal Avocado Marketing Agreement, 67 Florida State Horticultural Society Proceedings 268 (1954).
Compare, e. g., Oregon-Washington B. & Nav. Co. v. Washington, 270 U. S. 87; McDermott v. Wisconsin, 228 U. S. 115. See generally Note, Federal Inspection Legislation — A Partial Remedy for Interstate Trade-Barriers, 53 Harv. L. Rev. 1185 (1940).
Nor have we any occasion to consider the possible applicability ito the Supremacy Clause issue of the provisions of 21 U. S. C. § 341, since neither party has made any reference to that statute either before the District Court or in this Court.
The District Court assumed that in 1925 California growers faced no meaningful competition from Florida growers. It appears, however, that the Florida industry was well developed when the California industry was in its infancy, see Collins, The Avocado, A Salad Fruit From the Tropics (U. S. Dept. of Agriculture Bureau of Plant Industry, Bull. No. 77, 1905), 35-36. Not only does there appear to have been vigorous competition between Florida and California producers for all markets in 1925, see Popenoe, The Avocado—California vs. Florida; 61 California Cultivator, Nov. 3,1923, p. 459; but in some years during the 1920’s the Florida production exceeded that of California. See Traub, sufra, note 10, at 2. See generally Hodgson, supra, note 5, at 60, 82-83.
The passage of the California statute was immediately and vigorously protested by Florida producers, and.a United States Senator from Florida filed an informal complaint with the Department of Agriculture, see, e. g., California Avocado Law Unfair to Florida: New Pacific Coast Maturity Standards Practically Ban All Shipments from this State, 32 Florida Grower, Nov. 7, 1925, pp. 4, 22. See also id., Nov. 21, 1925, p. 15. Even in California there was contemporaneous recognition that passage of the statute severely restricted the access of Florida growers to the markets at least of Northern California; see Hodgson, The Florida Avocado Industry—A Survey II, 66 California Cultivator, June 26, 1926, pp. 721, 743. And see 80 American Fruit Grower, Feb. 1960, p. 64.
On the other hand, there have been suggestions that neither the adoption nor the application of the California statute reflected any discriminatory or anticompetitive purpose. In some years, California growers themselves experience great difficulty meeting the oil content requirement, and sizable shipments must be destroyed — see Demand for Avocados, 74 California Cultivator, Feb. 8, 1930, p. 167; Roche, Look Out for Immature Avocados, 87 California Cultivator, Nov. 2, 1940, p. 590; California Avocado Assn., 1937 Yearbook (1937), 88— even though the oil content of mature California avocados in good years runs substantially above 8%, see Traub, supra, note 10, at 6-8. Moreover, the California Growers’ Association has regarded its ability
At the very close of the trial, two of the three members of the court offered inconsistent views when appellees’ counsel asked for clarification concerning the status of- appellants’ disputed depositions and exhibits. One member of the court replied that “your objections stand to every word that is in these depositions here,” while another responded, “[t]hey are all in evidence subject to your objections and the Court will rule on them when it makes its ruling in the case if it is necessary.”
Specifically, appellees offered to show that in measuring the oil content of avocados the Florida experimental test procedures did not. employ the same equipment as is used in California, the former, so it was contendéd, extracting less oil than the California equipment would obtáin from the same avocado. ■ They claimed that the average variation amounted to a failure of the Florida equipment to remove 2.9% of the oil from the fruit, and, further, that the Florida results were erratic. In addition, appellees asserted that the avocados used in the Florida experiments were hot representative of the graded, sized, and-.inspected fruit that appellants would normally market.
Dissenting Opinion
dissenting in No. 45.
This is the second time, this case has come before the Court. In Florida Lime & Avocado Growers, Inc., v. Jacobsen, 362 U. S. 73, the case was here for review of dismissal of the complaint for want of jurisdiction. The Court reversed and remanded for trial and the case is. now here on. the merits, after the three-judge District Court refused to enjoin the appellee state officers from enforcing § 792 of the California Agricultural Code against the appellant' growers. 197 F. Supp. 780, probable jurisdiction noted, 368 U. S. 964, 965. In view of the'Court’s disposition of the matter today, it is probable that this case like a revenant will return to us within another few Terms with, a still moré copious record.
• Appellants grow, package, and market Florida avocados in interstate commerce, subject to the applicable provisions of § 8c of the Agricultural Adjustment Act, as amended, 7 U. S. C. § 608c, and the regulations of the Secretary of Agriculture promulgated thereunder. An average of 6.4% of the Florida avocados shipped to. California each year are barred for failure to satisfy the requirements of California Agricultural Code § 792,
The California statute was enacted in 1925, when, according to the District Court, practically all the avocados in the United States came from that State. 197 F. Supp., at 782. The purpose of this legislation was to prevent the marketing of immature avocados, which never
In 1925, when the state law was enacted, most of the avocados grown in California were, as they are at the present time, from trees derived from Mexican varieties. Such avocados contain at least 8% oil when mature. The Florida avocado growers, however, the only substantial competitors of the California growers, 197 F. Supp., at 787, n. 8, depend in substantial part on trees of non-Mexican parentage. The Florida avocados involved here, hybrid and Guatemalan varieties, may reach maturity and be acceptable for marketing, at least under federal standards, prior to reaching an 8% oil content.
I.
The Agricultural Adjustment Act, .§ 8c, 7 U. S. C. § 608c, provides that, whenever the Secretary “has reason to believe that the issuance of an order will-tend to effectuate the declared policy” of the Act, which is “to establish and maintain such minimum standards of quality and maturity ... [for fruit] in interstate commerce as will effectuate . . . [the] orderly marketing of . •. . agricultural commodities as will be in the public interest,” § 2 (3), 7 U. S: C. § 602 (3), he shall give notice for and hold a hearing upon a proposed order. In the case of fruits, §8c(6)(A) provides that the Secretary may limit or provide methods for the limitation of.quality of produce “which may be marketed in or transported to any or all markets in the current of interstate or foreign commerce . . . ,” or affecting commerce, during any specified period.
Orders proposed by the Secretary under this statute become effective only when approved by a majority of the affected growers. See § 8c (8)--(9). In 1954 the Secretary held hearings and found that a majority of the South Florida avocado growers favored imposition
II.
The ultimate question for the Court is whether the California law may validily apply to Florida avocados which the Secretary or his inspector says are mature under the federal scheme. We in the minority believe that it cannot, for in our view the California law “stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” Hines v. Davidowitz, 312 U. S. 52, 67.
We would hesitate to strike down the California statute if the state regulation touched a phase of the subject matter not reached by the federal law and a claim were nevertheless made that such complementary state regulation is preempted, compare Campbell v. Hussey, 368 U. S. 297, with Savage v. Jones, 225 U. S. 501. But here the Secretary has promulgated a comprehensive and pervasive regulatory scheme for determining the quality and maturity of Florida avocados, pursuant to the statutory
Nor does the California statute further a distinctive interest of the State different from the one which the federal scheme protects. Compare Huron Co. v. Detroit, 362 U. S. 440; Union Brokerage Co. v. Jensen, 322 U. S. 202. There is no health interest here. The question
We also believe that the purpose and objective of Congress and of the marketing order promulgated under its authority call'for the application of uniform standards of quality, even absent the total occupation of the field by the federal regulatory scheme. See Guss v. Utah Board, 353 U. S. 1; Gibbons v. Ogden, 9 Wheat. 1. Lack of uniformity tends to obstruct commerce, to divide the Nation into many markets. When produce is accepted or rejected in different localities depending upon local vagaries, the flow of commerce is inevitably interrupted, hindered, and diminished. In recognition of this need for uni
“It is declared that the disruption of the orderly exchange of commodities in interstate commerce . . . destroys the value of agricultural assets which support the national credit structure . . . and burden [s] and obstruct [s] . ., . commerce.
“It is declared to be the policy of Congress . •. . to establish and maintain such minimum standards of quality and maturity and such grading and inspection requirements for agricultural commodities . . . as will- effectuate . . . orderly marketing . . . .” §§ 1, 2; 7 XJ. S.-C. §§ 601, 602.
The language of the statute is buttressed by the Committee Reports, H. R. Rep. No. 1241, 74th Cong., 1st Sess., at 22; S. Rep. No. 1011, 74th Cong., 1st Sess., at 15, where it is said in explanation of § 10 (i) that the Secretary is authorized to negotiate with state authorities in order to secure their voluntary compliance in carrying out the declared policy of the Act of uniformity of-regulatory programs.
The contention is made that § 8c (11) negatives the policy declaration that uniformity is sought by the Act. That section directs the Secretary to issue orders limited to as small a geographic region as practicable in order to insure that due recognition be accorded to local conditions of soil, climate, and the like. This provision recognizes that while uniformity at the market-end of the flow of commerce may be necessary to prevent burdens on commerce in produce, nationwide uniformity may-be neither necessary nor desirable at the production-end of the flow of commerce. It may be, as the Court suggests, that the Secretary might find for other avocado growing regions, if there were any, that different tests furnished the most convenient index of maturity for those avocados. But it
It is also suggested that the use of the term “minimum standards” indicates a lack of desire for uniformity. This reads too much into a phrase, for it is a commonplace that when the appropriate federal regulatory agency adopts minimum standards which on balance satisfy the needs of the subject matter without disproportionate burden on the regulatees, the balance struck' is not to be upset by the imposition of higher local standards. See for example Southern R. Co. v. Railroad Comm’n, 236 U. S. 439. And when the cumulative operation of more strict , local law is to be continued in such circumstances, despite the congressional balance struck, Congress has so provided in express terms. For example, in Rice v. Board of Trade, 331 U. S. 247, 255, it was noted that the federal statute provided that “nothing in this section or section 4b shall be construed to impair any State law applicable to any transaction enumerated or described in such sections.” See, to the same effect, Plumley v. Massachu
Nothing in the Act, marketing order, or legislative history shov/s any congressional intention to accommo- • date or permit state controls inconsistent with federal law or marketing orders issued thereunder. The authorization contained in § 10 (i) to seek the cooperation of state authorities in pursuit of the goal of uniform standards of quality and maturity carries no implication that state standards contrary to the federal are to stand. The Secretary was not directed to defer to any State. The fact is that he did work out a cooperative scheme with the State of Florida where the avocados involved in this case are grown.. These avocados, which California rejected, were jointly inspected by federal and state authorities applying the same standards in order to move mature avocados into the stream of interstate commerce. To read into an authorization to the Secretary to cooperate with the States a diréction that he cooperate with, or that his regulatory scheme defer to, not . only the State directly affected by a marketing order but every other State in which avocados might be sold would clearly frustrate the federal purpose of the orderly marketing of avocados in interstate commerce.
We would not, as appellees would have it and as the majority .appears to suggest, construe § 10 as limiting the power of the Secretary under § 608c to the issuance of marketing orders which are complementary to and not ' inconsistent with state regulation.
The .conflict between federal and state law is unmistakable here. The Secretary asserts certain Florida avocados are mature. The state law rejects them as immature. And the conflict is over a matter of central importance to the federal scheme. The elaborate regulatory scheme of the marketing order is focused upon the problem of moving mature avocados into interstate commerce. The maturity regulations are not peripheral aspects-of the federal scheme. Compare International Assn. of Machinists v. Gonzales, 356 U. S. 617. On the contrary, in the Department of Agriculture order which
California nevertheless argues that it should be permitted to apply its oil test cumulatively with the federal test to insure that only mature avocados are offered in its markets. The Court accepts this contention as “a well-settled proposition,” in the name of Cloverleaf Butter Co. v. Patterson, 315 U. S. 148, and the uncited “all the authorities,” which appear to be nonexistent, ante, p. 144 and n. 13. There are at least three answers to this contention.
Even if the California oil test were an acceptable test for the- maturity of the Florida avocados, which the Secretary found it was not, the cumulative application of that test solely for the purpose of -a second check on the maturity of Florida avocados, solely to catch possible errors in the federal scheme, would prove only that the particular
We have, then, a case where the federal regulatory scheme is comprehensive, pervasive, and without a hiatus which the state regulations could fill. Both the subject matter and the statute call for uniformity. The conflict is substantial — at least six out of every 100 federally certified avocados are barred for failure to pass the Colifornia test
In such circumstances, the state law should give way; it “becomes inoperative and the federal legislation exclu-. sive in its application.” Cloverleaf Co. v. Patterson, 315 U. S. 148, 156. Accord, McDermott v. Wisconsin, 228 U. S. 115; Hill v. Florida, 325 U. S. 538. The conclusion is inescapable that the California law is an obstacle to the accomplishment and execution of the congressional purposes and objectives, and that the California law and
There is ho question in this case as to whether the California oil content law keeps out of California Florida avocados'which pass the federal test. In their motion to dismiss and the accompanying sworn affidavit below, the appellee state officers gavé 6.4% as the average rejection figure per year; over a four-year period, basing the per
Avocados not meeting this standard may not be sold in California, are “declared to be a public nuisance,” and they may be seized, condemned, and abated. Violators may be punished criminally and by civil penalty action. See ante, p. 134, at n. 1.
It is not contended that the purpose of the 8% minimum oil content requirement is for the purpose of insuring a high caloric or other nutritional'content in. the fruit. No.health issue has been raised in this case. Cf. 197 F. Supp., at 785-786. Nor has it been contended at any stage of the proceedings that the statutory purpose is directly to protect local consumers from fraudulent and deceptive practices; moreover, there is no evidence to support that view.
“Mexican varieties of avocados contain (generally speaking) the highest oil content of any varieties, when mature. Hybrid varieties attain the next highest oil percentages, and West Indian the lowest. Hybrid varieties generally attain oil content in excess of 8% if left on the trees long enough, but they do not necessarily attain such an oil content by the time that they may be marketed under the Florida Avocado Order. They are mature enough to be acceptable prior to the time that they reach that content, according to plaintiffs’ witnesses.” 197 F. Supp., at 783.
While it would appear to be theoretically feasible to' determine the proper oil content to gauge maturity for each different variety of avocado, this is highly impracticable, as the District Court pointed out; over 40 varieties of avocado are marketed in Florida. Id., at 785.
The findings of the United States Department of Agriculture, contained in its order determining what terms should be contained in the avocado regulations, were that the marketing of immature fruits increases consumer resistance and materially impairs the marketing of the entire crop, that there was no satisfactory physical or chemical test for determining maturity, and that maturity can satisfactorily be determined by the pieking-date-size method. Handling of Avocados Grown in South Florida, 19 Fed. Reg. 2418, 2424-2425 (Dept. of Agr. Dkt. No. AO-254).
California has a statute similar to the federal law, the California Marketing Act, Cal. Agr. Code §§ 1300.10-1300.29, which allows the Director of Agriculture to promulgate, marketing orders when a majority of the affected handlers or producers assent. Id:, § 1300.16.(a). The purpose of the Act is to restore and maintain adequate purchasing power for California agricultural producers, establish orderly marketing, provide uniform grading, develop new and larger markets and maintain present markets for produce grown within the State, eliminate trade barriers which obstruct the free flow of such produce to the market, and permit the issuance of marketing orders which assure stabilized and orderly distribution of produce. Id., §§ 1300.10, 1300.29; Brock v. Superior Court, 109 Cal. App. 2d 594, 598, 241 P. 2d 283, 286. The Director promulgated an avocado marketing order in 1960 and it has been upheld as valid in the state courts. Child v. Warne, 194 Cal. App. 2d 623, 15 Cal. Rptr. 437.
This is the customary method of administering marketing orders under the Act. See, e. g.; 7 CFR §§ 905.51, 906.39, 907.51, 907.63, 908.51, 908.63, 909.51,909.52,910.51,910.65,911.51. In the case of the avocado order, supra, note 5, the Department specifically determined that this would be the appropriate method to administer the regulatory program. 19 Fed. Reg., at 2422-2423.
Section .53 provides that such exemption shall be granted under procedural rules approved by the Secretary. Section .52 (b) would appear to provide for review of particular determinations before the Secretary, taken by a party aggrieved thereby or taken by the Secretary sua sponte. Exemption under § .53 is allowed only from the picking-date-size standards prescribed■ under §,51 (a)(1), and not from other regulations such as .quality (§ .51 (a) (2)), container and packaging (§ .51 (a) (3)), or grading and labeling (§ .51 (a) (4)). And inspection by the Federal-State Inspection Service for these standards and those set'out as the terms and conditions of advance release under § .53 is, of course,’ required;
Violation of the order is punishable by a fine of from $50 to $500. 7 U. S. C. § 608c (14). Violations of regulations may also be made punishable by the Secretary by a penalty not to exceed $100. 7 U. S. C. §610 (c).
These regulations and others, 7 CFR §§51.3055-51.3069, govern in exhaustive detail the size and shape of avocados, their color, skin condition, stem length, and the manner in which they may be shipped.
27 Fed. Reg. 5135-5136, 6705, 8265, 9175, 10091; 26 Fed. Reg. 3692, 4928, 5418-5419, 6429, 7694, 8663 ; 25 Fed. Reg. 5476, 7712, 8903, 9170, 9888 ; 24 Fed. Reg. 1152, 3105, 4050, 4828, 5824-5825, 6904, 7354, 8444, 9123, 9262;- 23 Fed. Reg. 1025-1026, 4351-4352, 5477, 6318, 7344, 7943, 8047, 9056, 9689 ; 22 Fed. Reg. 3652, 4251-4252, 5680, 6746, 7173-7174, 7357-7358, 8118 ; 21 Fed. Reg. 3307-3308, 3488, 6329-6330; 20 Fed. Reg. 3427,'4178-4179; 6699-6700, 7876, 8328-8329, 8688; 19 Fed. Reg. 4404-4405, 4601, 4862, 5469, 5966, 5967, 6368, 6604, 6625, 7477. Similar orders have been issued from time to time concerning maturity of imported avocados. See, e. g., 25 Fed. Reg. 5445; 24 Fed. Reg. 4134, 4829, 5825, 5996; 23 Fed. Reg. 4352, 6027; 22 Fed. Reg. 3957; 21 Fed. Reg. 4257.
“There is not — and from the very nature of the problem there cannot be — any rigid formula or rule which can be used as a universal pattern to determine the meaning and purpose of every act of Congress. This Court, in considering the validity of state laws in the
We do not imply that these regulations governing the fitness of avocados in terms of maturity-would preclude application of local regulations. concerning, for example, bacteria content or DDT content. Cf. Huron Co. v. Detroit, 362 U. S. 440. Neither health regulation nor safety considerations, cf. Lyons v. Thrifty Drug Stores Co., 105 Cal. App. 2d 844, 234 P. 2d 62, are involved' in this case. And there-is no finding that there is anything fraudulent, deceptive, or unmarketable about a Florida avocado which is mature enough to be introduced into interstate commerce under a federal certificate evidencing its quality. Compare Plumley v. Massachusetts, 155 U. S. 461, 472, quoted ante, p. 144.
It was suggested that there is á gap in the federal scheme through which immature avocados may enter commerce bearing an exemption certificate issued "seemingly . . in the unfettered discretion of the growers’ own Committee.” This contention omits the requirement .of § .53 that .exemption from the normal pieking-date-size provisions be allowed only to avocados inspected and proved mature ' because they satisfied special maturity tests prescribed under procedures approved by the Secretary, and the fact that such avocados carry a federal certificate, as to maturity and quality. It also omits .the Secretary’s general review power over regulatory determinations provided by §.52 (b). No contention has been made that actual abuses have occurred under the exemption certificate provisions nor has any basis upon which they may be anticipated been suggested.
It also came out, by representation of the Solicitor General as amicus curiae before this Court, that the Department of Agriculture had collaborated in drafting the state raisin program; and had taken other actions which “must be taken as an expression of opinion by the Department of Agriculture that the state program ... is consistent with the policies of the Agricultural Adjustment and Agricultural Marketing Agreement Acts.” Id., at 358. Hence, in holding “We find no conflict between the two acts [state and federal] and no such occupation of the legislative field by the mere adoption of the ; . . [federal] Act, without the issuance of any order by the Secretary putting it into effect, as would preclude the effective operation of the state act/” the Court expressly declared, “We have no occasion to decide whether the-same conclusion would follow if the state program had not been adopted with the collaboration of officials of the Department of Agriculture . . . ." Id., at 358.
We note that § 1300.24 (b) of the California Agricultural Code contains a provision similar to federal § 10 (i):
“The director is hereby authorized to Confer with and cooperate with the legally constituted authorities of .other States and of the United States, for the purpose of obtaining uniformity in the administration of Federal and State marketing regulations, licenses or orders, and*173 said director is authorized to conduct joint hearings, issue joint or-concurrent marketing orders, for the purposes and-within the standards set forth in this act, and may exercise any administrative authority prescribed by this act to effect such uniformity of administration and regulation.”
Under the reasoning suggested to us the California law should be construed not to apply to Florida avocados marketed under a federal order. And see Oil Workers Union v. Missouri, 361 U. S. 363, 370; Allen-Bradley Local v. Wisconsin Board, 315 U. S. 740, 746; Pearson v. Probate Court, 309 U. S. 270, 277; Carey v. South Dakota, 250 U. S. 118, 122.
“Probably the most important single factor of quality is that of maturity.” 19 Fed. Reg., at 2424.
To the extent that this contention is to be understood to be limited to “all the authorities” supporting “a higher standard for consumers,” we have already indicated, pp. 168-169, supra, that the California law is not aimed at consumer protection but at avocado grower protection.
The avocado may remain hard and in perfect condition on the tree for some time after reaching maturity, for the fruit does not soften until after it is picked. But the harvesting and shipping of fruit which has reached the fullest possible degree of maturity on the tree is not recommended. The' seed may sprout while the fruit is on the tree or the fruit may ripen so rapidly after harvesting'that it cannot be shipped satisfactorily. Ruehle, The Florida Avocado Industry, 70 (Univ. of Fla. Agr. Expt. Sta. Bull. No. 602, 1958); Wolfe, Toy and Stahl, Avocado Production in Florida, 83 (Ruehle rev. ed., Fla. Agr. Ext. Serv. Bull. No. 141, 1949).
There is no indication in the record as to how many Florida avocados are kept out of the California market by the prudence of growers and Randlers who voluntarily avoid the risks of the California oil test. Nor are we advised as to whether other States have
It is suggested that the regulations involved here are “simply schemes for regulating competition among growers . . . initiated and administered by the growers and shippers themselves.” From this proposition it is in some way reasoned that “the self-help standards of this marketing program” should not be deemed to preclude application of state law which conflicts with and interferes with the operation of the comprehensive federal marketing program. The “simply” part of the proposition overlooks, however, the fact that these are the Secretary’s regulations, promulgated under congressional authority. It also overlooks the Secretary’s extensive supervisory powers and his statutory duty under 7 U. S. C. § 6Q2 (3) to insure that regulations be carried on “in the public interest.” And no ease has been cited to us which indicates that the delegation to the regulatees of the power to propose regulations in the first instance violates any provision of general law. See Parker v. Brown, 317 U. S. 341, 352; Sunshine Anthracite Co. v. Adkins, 310 U. S. 381; United States v. Rock Royal Co-op., 307 U. S. 533, 577-578; Currin v. Wallace, 306 U. S. 1, 16; Johnson Co. v. Securities & Exchange Comm’n, 198 F. 2d 690, 695 (C. A. 2d Cir.).
And see Castle v. Hayes Lines, Inc., 348 U. S. 61; First Iowa Coop. v. Federal Power Comm’n, 328 U. S. 152; Gibbons v. Ogden, 9 Wheat. 1; Dumont Labs. v. Carroll, 184 F. 2d 153 (C. A. 3d Cir.). The- suggestion, ante, p. 141, that the doctrine of Gibbons v. Ogden is limited to carriers is unwarranted in view of such cases as First Iowa.
Reference
- Full Case Name
- FLORIDA LIME & AVOCADO GROWERS, INC., Et Al. v. PAUL, DIRECTOR OF THE DEPARTMENT OF AGRICULTURE OF CALIFORNIA, Et Al.
- Cited By
- 1888 cases
- Status
- Published