Cumberland Farms, Inc. v. LaFaver

                United States Court of Appeals
                    For the First Circuit
                                         
No. 93-2066

                   CUMBERLAND FARMS, INC.,
                    Plaintiff, Appellant,

                              v.

                    JOHN LAFAVER, ET AL.,
                    Defendants, Appellees,

                                         

        BOSTON MILK PRODUCERS, INC., WAYNE HAPSWORTH,
            PRISCILLA ROWBOTHAM, AGRI-MARK, INC.,
            HAROLD LARRABEE AND ADRIAN WADSWORTH,
                   Intervenors, Appellees.
                                         

         APPEAL FROM THE UNITED STATES DISTRICT COURT
                  FOR THE DISTRICT OF MAINE

         [Hon. D. Brock Hornby, U.S. District Judge]
                                                   
                                         

                            Before

                   Selya, Boudin, and Stahl,
                       Circuit Judges.
                                     
                                         

Joel  C.  Martin,  James  B.  Haddow,  Petruccelli  & Martin,  and
                                                            
Sheldon A. Weiss on brief for appellant.
            
Janet  M.  McClintock,  Assistant  Attorney  General,  Michael  E.
                                                                  
Carpenter,  Attorney  General,  and  Cabanne Howard,  First  Assistant
                                               
Attorney General on brief for appellees.
Jerrol A. Crouter,  Richard A. Spencer, Drummond Woodsum  Plimpton
                                                                  
&  MacMahon on brief for Boston Milk Producers, Inc., Wayne Hapsworth,
       
Priscilla  Rowbotham,  Agri-Mark,  Inc.,  Harold  Larrabee  and Adrian
Wadsworth.
                                         

                       August 24, 1994
                                         

          Per  curiam.   The  Maine Dairy  Farm Stabilization
          Per  curiam
                     

Act, 36 Me. Rev. Stat. Ann. tit. 36,    4541-4547 (West Supp.

1993), imposes a tax on all packaged fluid milk sold in Maine

irrespective  of the origin of the milk, but only Maine dairy

farmers  are eligible for what  amounts to a  rebate from the

Maine Dairy Farm Stabilization Fund.  Cumberland Farms, which

sells to Maine consumers  milk produced by out-of-state dairy

farmers, filed suit against various Maine officials, alleging

that  the tax-and-rebate scheme  violates the restrictions on

state power inherent  in the Commerce  Clause.  The  district

court  denied Cumberland  Farms' motion for  summary judgment

and  granted  that of  the  defendants,  using the  following

reasoning as  the linchpin of its analysis:  "It is true that

the  proceeds [of the  tax] are .  . . used  to benefit Maine

milk producers,  but current  precedents permit this  kind of

economic  protectionism."    See  Cumberland  Farms, Inc.  v.
                                                         

LaFaver, 834 F. Supp. 27, 32 (D. Me. 1993).
       

          We believe that with  the intervention of West Lynn
                                                             

Creamery, Inc. v. Healy, 114 S. Ct. 2205 (1994), which struck
                       

down a similarly discriminatory tax-and-rebate scheme imposed

by Massachusetts, the  reasoning of the district  court is no

longer  tenable.   Defendants  argue  that West  Lynn  is not
                                                     

dispositive because the Massachusetts dairy tax was collected

primarily from out-of-state milk  sellers while the Maine tax

is collected primarily from in-state milk sellers.  The Court

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has rejected such quantitative  distinctions in the past, see
                                                             

New  Energy  Co. v.  Limbach,  486  U.S.  269, 276-77  (1988)
                            

("Varying   the  strength   of   the  bar   against  economic

protectionism according  to the  size and number  of in-state

and out-of-state firms affected would serve no purpose except

the  creation  of new  uncertainties  in  an already  complex

field."),  and  we  are compelled  to  do  the  same in  this

instance.  Accordingly, we deny the parties' request for oral

argument,  reverse the  decision of  the district  court, and

remand the case with instructions to  enter judgment in favor

of  the plaintiff  and  to conduct  any necessary  additional

proceedings in a manner consistent with this opinion.

          So ordered.
                    

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