Duarte Nursery, Inc. v. California Grape Rootstock Improvement Commission

Plaintiff Duarte Nursery, Inc., sells grape rootstock, the part of grapevines that becomes the root system. (Food & Agr. Code, §§ 74718, 74725; undesignated statutory references are to this code.) Plaintiff challenges mandatory assessments it must pay to the California Grape Rootstock Improvement Commission (Commission) to help fund research for pest-resistant and drought-resistant rootstock. (§§ 74701-74796.) Plaintiff views this “Commission Law” and the Commission’s operation as unconstitutional exercises of the state’s police power in violation of plaintiff’s liberty interests and due process rights under the federal and state Constitutions. (U.S. Const., 14th Amend.; Cal. Const., art. I, §§ 1, 7.) In this appeal, plaintiff does not claim impairment of its rights to free speech or free association. Instead, plaintiff — which has the wherewithal to conduct its own research for its own competitive advantage— asserts a right to refuse to help fund research that benefits the industry as a whole.

Plaintiff sought injunctive and declaratory relief and refunds. After a bench trial, the trial court entered judgment in favor of defendants — the Commission, which administers…