Bidart Brothers, a California Corporation v. The California Apple Commission

The California Apple Commission (“the Commission”), created by a majority vote of California Apple producers, pursuant to California Food & Agriculture Code §§ 75501 et seq., assesses a fee of one-fourth cent per pound of apples marketed on all producers of more than 40,000 pounds of California apples per year. The assessments are used predominantly to promote .the sale of California apples. Bidart Brothers (“Bidart”), a major producer of California apples, brought suit in the Eastern District of California seeking declaratory and injunctive relief on the grounds that the Apple Commission legislation violated its First Amendment free speech and freedom of association rights, and its Fourteenth Amendment Equal Protection Rights. The district court granted a preliminary injunction, ordering the Commission to segregate all assessments on Bidart in a separate account, and to refrain from using those funds pending outcome of the case. The Commission appeals, arguing that the district court did not have subject matter jurisdiction because of the Tax Injunction Act (“TIA”), 28 U.S.C. § 1341 , which prohibits federal district courts from enjoining “the assessment, levy or collection of…