Hillside Dairy Inc., A&a Dairy, L&S Dairy, and Milky Way Farms v. William J. Lyons, JR., Secretary, California Department of Food and Agriculture, et al. (539 U.S. 59)

U.S. Supreme Court · decided June 9, 2003 · Supreme Court Database (Spaeth)

Citation
539 U.S. 59 · 123 S. Ct. 2142
Decided
June 9, 2003
Term
October Term 2002
Vote
8–1
Majority author
Justice Stevens
Issue area
Economic Activity
Disposition
Vacated and remanded
Outcome
Petitioning party won
Ideological direction
Liberal

Opinion excerpt

Justice Stevens delivered the opinion of the Court. In most of the United States, not including California, the minimum price paid to dairy farmers producing raw milk is regulated pursuant to federal marketing orders. Those orders guarantee a uniform price for the producers, but through pooling mechanisms require the processors of different classes of dairy products to pay different prices. Thus, for example, processors of fluid milk pay a premium price, part of which goes into an equalization pool that provides a partial subsidy for cheese manufacturers who pay a net price that is lower than the farmers receive. See West Lynn Creamery, Inc. v. Healy, 512 U. S. 186, 189, n. 1 (1994). The California Legislature has adopted a similar program to regulate the minimum prices paid by California processors to California producers. In the cases before us today, out-of-state producers are challenging the constitutionality of a 1997 amendment to that program. They present us with two questions: (1) whether § 144 of the Federal Agriculture Improvement and Reform Act of 1996, 110 Stat. 917, 7 U. S. C. § 7254, exempts California’s milk pricing and pooling regulations from scrutiny under the Commerce Clause; and (2) whether the individual petitioners’ claim under the Privileges and Immunities Clause is foreclosed because those regulations do not discriminate on their face on the basis of…

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