Dairymen’s League Contract Declared Illegal by Court
A New York appellate ruling holds the Dairymen’s League pooling contract ultra vires and unenforceable against non members. The decision overturns a $228 verdict for the League in the Holmes case and orders the defendants paid for milk and related sums. The court critiques unlimited deductions and a noisy penalty clause as unenforceable damages.
MENTIONED IN THIS ARTICLE
Appellate Division
Supreme Court
Holmes Brothers
Afton
N. Y
Fourth Department
Dairymen’s League Co-operative Association
Merle Holmes
George Holmes
New York
League
Sears
The Holmes Case Impacts Dairy League Members and Non Members
The Holmes decision clarifies effects for non members who delivered milk to the Dairymen's League and those who signed the postcard membership. Non members can recover unpaid milk at gross pool price minus selling costs, and recover deducted Certificates of Indebtedness with interest. Members can similarly recover unpaid milk and deducted sums not turned into Certificates. The League's penalty clause is illegal for all, and recovery from members for selling expenses is unlikely or small.
MENTIONED IN THIS ARTICLE
St. Regis Paper Co
Hubbs-Hastings Paper Co
N. Y
Court of Appeals
Holmes Brothers
Dairymen’s League
League
Dairymen’s League Co-operative Association
Also Mentioned on This Page
Food For Thought
Dairymen’s
Dairymen’s League Co-operative Association, Inc
Willard R. Pratt
Non
New Yorker
Holmes
Merle
N.Y
George Tholmes
Mary Holmes
Beause
Barnes
Martin
Teague
Cooperative Association
Seidlitz
Auerbach
Little
Non. P. C.F. DeAngelis
Seward A. Miller
Department of Food and Markets
Utica
Millard Davis
Orange County
Bradley Fuller
Oneida County
Dairymen’s Co-operative Association
Frederick C. Barnes
W. Chase Young
E. C. Eterson
Supreme Justice of
Watertown
Messrs
Elmira
Rowland I. Davia
Cortland
Charles Sears
Buffalo
Leonard C. Crouch
Syracuse
Clark
W. A. Simpson
Fapiye
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