Northern California Supermarkets, Inc. v. Central California Lettuce Producers Cooperative

In this antitrust action, plaintiff, Northern California Supermarkets, Inc. (Northern), charges that defendants, Central California Lettuce Producers Cooperative (Central) and nine of its members, have combined and conspired to fix the price of lettuce shipped in interstate commerce from the Salinas-Watsonville-King City area of the Salinas Valley in California in violation of Section 1 of the Sherman Act ( 15 U.S.C. § 1 ) (Section 1). The Court must determine if the activities of defendants, alleged to be in violation of Section 1, are shielded from antitrust attack by Section 6 of the Clayton Act ( 15 U.S.C. § 17 ) (Section 6), the CapperVolstead Act ( 7 U.S.C. §§ 291-292 ) (CapperVolstead), and/or Section 5 of the Cooperative Marketing Act of 1926 ( 7 U.S.C. § 455 ) (Section 5). For the reasons hereinafter stated, I hold that Section 6 and CapperVolstead, and each of them, exempt the activities of defendants challenged in this complaint from the application of Section l.

I.

The question at issue is before the Court on cross-motions for summary judgment supported by statements of facts, voluminous briefs, affidavits, one deposition, answers to interrogatories, and…