Opinion ID: 1565085
Heading Depth: 1
Heading Rank: 8

Heading: was the kentucky milk marketing law administered in an arbitrary manner so as to be violative of kentucky constitution, section 2

Text: Appellants argue that Kroger did not meet its burden of proof in declaring the Kentucky Milk Marketing Law unconstitutional. We are well aware that the presumption of constitutionality of a statute is axiomatic. Walters v. Binder, Ky., 435 S.W.2d 464 (1968). It is sufficient to say that we believe the Milk Marketing Law is clearly in violation of Section 2 of the Kentucky Constitution and that the presumption of constitutionality has been overcome. As we previously have said, the Kentucky Milk Marketing Law, in being administered by the Commission, has been treated as a minimum retail mark-up law. There have been no forms or standardized procedures provided by the Commission which would enable a respondent to justify his selling cost. The formula used by the Commission for many years was, without reason or explanation, changed by the Commission in this particular case. Vice-Chairman Ewing, even though he had regularly refused himself when competitors were involved in the past, failed to do so in this particular case. As we have also said, the Commission, without reason or explanation, refused to accept Kroger's invoice cost per gallon, even though it regularly had done so in similar situations in the past. Moreover, the order handed down by the Commission contained no findings of fact. Based on these facts, the trial court held, and we agree, that the Commission finding Kroger guilty of a statutory violation was arbitrary and capricious, prejudicing the sustantial rights of (Kroger).