California v. Raisin Valley Farms

This case involved the raisins. One of the California Marketing Act of 1937's (CMA) requirements was that the Secretary of California’s Department of Food and Agriculture, in adopting a marketing order for industry advertising or research, must find that the order “will tend to effectuate the declared purposes and policies of [the CMA].” The trial court: (1) concluded that this requirement could be met only if “the [o]rder was necessary to address adverse economic conditions in the raisin-growing industry that were so severe as to threaten the continued viability of the industry”; (2) invalidated the advertising and research marketing order challenged here because there was insufficient evidence showing such economic conditions; and (3) found, on these same grounds, that the Department improperly exercised the police power in adopting the marketing order. The Court of Appeal found the trial court’s interpretation of this requirement of the CMA, which Karen Ross, the Secretary, appealed, erroneously limited the CMA’s applicability, as to marketing orders for industry advertising or research, only to Great Depression-like economic circumstances. Consequently, the Court reversed the judgment, which mooted the cross-appeal of Lion Raisins, Inc., and Lion Farms LLC (formerly Lion Brothers) (the cross-appeal concerns the proper calculation of the assessment refund for the invalidated marketing order), and remand the matter for the trial court to consider the other challenges to the marketing order that the raisin companies raised. View "California v. Raisin Valley Farms" on Justia Law