Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_97-cv-01179/USCOURTS-caed-2_97-cv-01179-3/pdf.json

Nature of Suit Code: 950
Nature of Suit: Contitutionality of State Statutes
Cause of Action: 28:1331 Fed. Question

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STIPULATION AND ORDER MODIFYING PERMANENT INJUNCTION (CIV-S-97-1179 GEB JFM; CIV-S-97-1185 GEB JFM) 

IN THE UNITED STATES DISTRICT COURT 

FOR THE EASTERN DISTRICT OF CALIFORNIA 

HILLSIDE DAIRY, INC., et al., 

Plaintiffs, 

v. 

A.G. KAWAMURA, Secretary, California 

Department of Food & 

Agriculture, et al., 

Defendants. 

CIV-S-97-1179 GEB JFM 

STIPULATION AND ORDER 

MODIFYING PERMANENT 

INJUNCTION 

PONDEROSA DAIRY, et al., 

Plaintiffs, 

v. 

A.G. KAWAMURA, Secretary, California 

Department of Food & 

Agriculture, et al., 

Defendants. 

CIV-S-97-1185 GEB JFM 

Case 2:97-cv-01179-GEB -JFM Document 427 Filed 09/30/05 Page 1 of 4
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-1- 

STIPULATION AND ORDER MODIFYING PERMANENT INJUNCTION (CIV-S-97-1179 GEB JFM; CIV-S-97-1185 GEB JFM) 

RECITALS

WHEREAS, on May 11, 2004, this Court entered an order granting summary judgment in 

favor of Plaintiffs (“Summary Judgment Order”); 

WHEREAS, the Summary Judgment Order permanently enjoined Defendants from 

enforcing Section 900 of the California Department of Food and Agriculture Pooling Plan for 

Market Milk on interstate raw milk sales (“Injunction”); 

WHEREAS, on June 2, 2004, Defendants filed their Notice of Appeal of the Summary 

Judgment Order; 

WHEREAS, on June 16, 2004, Plaintiffs filed their Notice of Cross-Appeal of the Summary 

Judgment Order; 

WHEREAS, on September 3, 2004, this Court denied Defendants’ request to stay the 

Injunction pending the resolution of Defendants’ appeal; 

WHEREAS, on December 9, 2004, this Court granted Plaintiffs’ motion for attorneys’ fees 

and costs and ordered Defendants to pay $2,517,696.49 in attorneys’ fees and $14,405.30 in costs 

(“Fee Award”); 

WHEREAS, pursuant to a Stipulation and Order entered by this Court on August 19, 2005, 

Plaintiffs are permitted to file their first supplemental request for attorneys’ fees on or before 

October 14, 2005; 

WHEREAS, Plaintiffs have demanded from Defendants reimbursement for all monies that 

Plaintiffs allege were unlawfully taken and withheld as a result of the now-enjoined 1997 

amendments to the Pooling Plan; 

WHEREAS, Defendants deny that they have violated Plaintiffs’ Constitutional rights as held 

by this Court in the Summary Judgment Order; 

WHEREAS, after negotiation with and through the Mediator for United States Court of 

Appeals for the Ninth Circuit, the parties have voluntarily decided to settle all their existing claims, 

appeals, and other disputes by entering into a final settlement agreement (“Settlement Agreement”) 

that would dispose of this action in the District Court as well as in the Court of Appeals; 

Case 2:97-cv-01179-GEB -JFM Document 427 Filed 09/30/05 Page 2 of 4
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-2- 

STIPULATION AND ORDER MODIFYING PERMANENT INJUNCTION (CIV-S-97-1179 GEB JFM; CIV-S-97-1185 GEB JFM) 

WHEREAS, the terms of the Settlement Agreement provide that the settlement is 

contingent upon the parties obtaining a modification to the Injunction that would limit the 

Injunction’s application to milk produced outside of California (“Proposed Modified Injunction”) 

because, inter alia, Defendants have expressed concern that the Injunction is broader than needed 

to remedy the unconstitutional discrimination found in the Summary Judgment Order and may 

interfere with Defendants’ otherwise lawful regulations now or hereafter promulgated; 

WHEREAS, Plaintiffs are satisfied that the Proposed Modified Injunction is nonetheless 

broad enough to protect the interests of out-of-state dairy farmers as articulated in this lawsuit; 

WHEREAS, this Stipulation is expressly conditioned upon and dependent upon the Court 

signing and entering this Stipulation as an Order; and 

THEREFORE: 

STIPULATION

IT IS HEREBY STIPULATED AND AGREED, by and between the parties, through their 

counsel of record, that the Injunction shall be modified to limit the Injunction’s application to milk 

produced outside of California. 

IT IS SO STIPULATED. 

Dated: September 28, 2005 

Bill Lockyer 

Attorney General of the State of California 

By: /s/ Linda Berg 

LINDA BERG

Deputy Attorney General 

Attorneys for Defendants 

California Secretary of Food & Agriculture, et al. 

Dated: September 28, 2005 

Thelen Reid & Priest LLP 

By: /s/ Charles M. English, Jr. 

CHARLES M. ENGLISH, JR. 

Case 2:97-cv-01179-GEB -JFM Document 427 Filed 09/30/05 Page 3 of 4
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-3- 

STIPULATION AND ORDER MODIFYING PERMANENT INJUNCTION (CIV-S-97-1179 GEB JFM; CIV-S-97-1185 GEB JFM) 

Attorneys for Plaintiffs 

Hillside Dairy, Inc., et al. (No. 97-1179) 

Dated: September 28, 2005 

Law Offices of John H. Vetne 

By: /s/ John H. Vetne 

JOHN H. VETNE

Attorneys for Plaintiffs 

Ponderosa Dairy, et al. (No. 97-1185) 

I, John Foust, hereby attest that I have obtained the authorization of the attorney signatories 

to this document to electronically sign on their behalf. 

Dated: September 28, 2005 

Thelen Reid & Priest LLP 

By: /s/ John Foust 

JOHN FOUST

Attorneys for Plaintiffs 

Hillside Dairy, Inc., et al. (No. 97-1179) 

ORDER

Defendants are hereby permanently enjoined from enforcing Section 900 of the California 

Department of Food and Agriculture Pooling Plan for Market Milk on raw milk produced outside 

of California. 

The permanent injunction previously issued by this Court pursuant to an Order entered on 

May 11, 2004 [Order, May 11, 2004, CIV-S-97-1179, Docket Entry No. 336, at p. 9:1-2], is 

hereby revoked, revised, and replaced with the paragraph immediately preceding this one. 

IT IS SO ORDERED. 

DATED: September 29, 2005 /s/ Garland E. Burrell, Jr. 

 GARLAND E. BURRELL, JR. 

 United States District Judge

Case 2:97-cv-01179-GEB -JFM Document 427 Filed 09/30/05 Page 4 of 4