People v. Black's Food Store

THOMPSON, J.,

pro

tem.

The above-entitled eases were consolidated for trial. Each complaint charges the defendants, as merchants, with unlawfully selling products for less than cost “for the purpose of injuring competitors and destroying competition”, contrary to section 3 of the Unfair Practices Act of California, as amended in 1937. (Stats. 1937, p. 2395; 2 Deering’s Gen. Laws of 1937, p. 4157, Act 8781.) Upon the hearing of a notice to show cause, at which time evidence was adduced, the court, in the exercise of its discretion, issued

[61]

preliminary injunctions under the provisions of section 527 of the Code of Civil Procedure. From the orders granting the preliminary injunctions the respective defendants have appealed. The records are presented on a bill of exceptions. The only question involved is whether the court abused its discretion in granting the orders for preliminary injunctions.

Since the evidence which was adduced upon the applications for preliminary injunctions is conflicting and there was no showing that the temporary injunctions will result in unusual detriment to the defendants, we may not hold that the court abused its discretion. It has been held upon sound principle that the legislature has the authority, under its police powers, to regulate business for the general welfare of the public, by prohibiting merchants from selling products below cost “for the purpose of injuring competitors or destroying competition”.

(Wholesale Tobacco Dealers Bureau of Southern California, Inc.,

v.

National Candy & Tobacco Co.,

11 Cal. (2d) 634 [82 Pac. (2d) 3, 8, 118 A. L. R 486].)

The title to the Unfair Practices Act, as amended, sufficiently embraces the subject-matter included therein to conform to article IV, section 24, of the Constitution of California.

The authorities are numerous and uniform to the effect that the granting or denial of a preliminary injunction on a verified complaint, together with oral testimony or affidavits, even though the evidence with respect to the absolute right therefor may be conflicting, rests in the sound discretion of the trial court, and that the order may not be interfered with on appeal, except for an abuse of discretion.