Sperry & Hutchinson Co. v. California State Board of Pharmacy

This is an appeal from a judgment on the pleadings. The respondent, Sperry and Hutchinson Company, commenced the action by filing a complaint seeking both declaratory relief and an injunction. Appellants’ demurrer to the complaint was overruled. Appellants filed an answer and a cross-complaint seeling injunctive relief against re spondent. A demurrer to the cross-complaint was sustained without leave to amend. Respondent’s motion for judgment on the pleadings was granted.

The parties agree that the decisive issue on appeal is the validity of a 1962 amendment to the board’s regulation 1765, which prohibits the giving of trading stamps by pharmacists on purchase of prescription drugs. If that amendment is invalid on any ground urged, then the judgment must be affirmed. As will appear, we have concluded that the amendment is invalid upon at least one ground relied upon by respondent, and for that reason, affirm the judgment.

Respondent is in the business of licensing retail merchants, including pharmacists, in a plan which it calls its ‘ ‘ Co-Operative Cash Discount” system. It involves the sale to merchants of the widely known “S & H green stamps”; advertising of the fact that…