Court Opinion

ID: 9849297
Source: CourtListenerOpinion
Date Created: 2023-09-24 04:38:03.019375+00
Date Added: 2024-06-11T09:19:15.761279
License: Public Domain

HANSON, Presiding Judge
(dissenting).
I am unable to concur in the disposition of this case without a decision on the merits.
There are no controverted issues of fact presented as the case was submitted to the trial court on admitted and stipulated facts. In this respect the complaint alleges plaintiff "is the exclusive distributor to South Dakota wholesalers of certain alcoholic beverages, namely: Seagram's VO Canadian Whisky, Seagram's Seven Crown American Blended Whisky, Seagram's Extra Dry Gin, 100 Pipers Scotch Whisky by Seagram, and Seagram's Crown Royal Whisky" and that plaintiff's products "are in free and open competition with commodities of the same general class produced or distributed by others in the State of South Dakota." These allegations in the complaint, among others, are expressly admitted in defendant's answer. Proof of such facts appear of record in the form of affidavits with reference to a preliminary motion.
According to SD RCP 8(d) "Averments in a pleading to which a responsive pleading is required, * * * are admitted when not denied in the responsive pleading.” There are no exceptions to admissions by implication except as to "the amount of damage”. In the present action the allegations of the complaint were expressly admitted. This was considered sufficient in the prior related case of Miles Laboratories v. Owl Drug Co., 67 S.D. 523, 295 N.W. 292. This is in accord with the *330elementary rule of long standing in this state that a party is not obligated to prove allegations of fact which have been admitted as true by his adversary. To hold otherwise, as this court said in Englund v. Berg, 69 S.D. 211, 8 N.W.2d 861, "would utterly destroy the efficacy of pleadings and burden litigants with the necessity of preparing for a trial at large".
It is a matter of such common and general knowledge this court could take judicial notice of the fact that Seagram's alcoholic products are in free and open competition with other similar products in South Dakota. This would obviate proof of that issue as proof of facts judicially noticed is unnecessary.
It is difficult for me to believe harmful public consequences could possibly result from allowing parties to stipulate or admit that a widely advertised and sold fair traded article was in "free and open" competition. The interest of the public in this action cannot fairly be equated with an action for divorce involving the marriage relationship and custody of minor children. By express statute no divorce in this state can be granted upon the default of the defendant, or upon uncorroborated statement, admission, or testimony of the parties or upon any finding of fact made by a referee, and the court must, in addition to any such statement, admission or testimony of the parties or finding of the referee, require proof of the facts alleged. SDC 1960 Supp. 14.0723. There is no similar governing statute involving the present cause of action and our general rules of practice should apply. Policy matters of this nature for the protection of the public should be left to the legislature.
Instead of accepting the admitted and stipulated facts as this court did in the Miles Laboratories case, a localized Pennsylvania rule of practice is being substituted and enforced. The cases are not cited or followed in any other jurisdiction. Furthermore, the current efficacy of this rule, even in Pennsylvania, may now be seriously questioned as the Pennsylvania Supreme Court in a later case held their Fair Trade Act to be unconstitutional. See Olin Mathieson Chemical Corp. v. White Cross Stores, 414 Pa. 95, 199 A.2d 266.
*331The procedural point upon which this case is being determined was not raised or -suggested by either party. Plaintiff rightfully relied on the precedent of the Miles Laboratories case that proof of admitted facts was unnecessary. By affirmance an opportunity to prove those facts is foreclosed and decision on the merits denied.