At issue is whether Cherry Growers is a grower-owned cooperative or a handler. Cherry Growers claims to be a cooperative, thereby exempt from the provisions of the Agricultural Marketing and Bargaining Act (Public Act 344). Cherry Growers also argued that the proper jurisdiction for any dispute is with the courts.
MACMA and the Agricultural Marketing and Bargaining Board (AMBB) argued that under P.A. 344, Cherry Growers is subject to the mandatory bargaining and arbitration provisions of the act.
The state appellate court ruled that the proper jurisdiction of these matters rests with the AMBB and not with the courts.
“We affirm the AMBB’s determination that CGI is subject to mandatory bargaining and arbitration under the act as a handler of agricultural commodity,” according to the written opinion.
Decisions on this issue have see-sawed back and forth. The original lawsuit stemmed from the action by the Agricultural Marketing and Bargaining Board and MACMA to try and force Cherry Growers to undergo arbitration for the price of the 1999 apple crop. Cherry Growers sued the AMBB in the fall of 1998, claiming it was not subject to the act. Cherry Growers asked for and received a temporary restraining order against MACMA in order to avoid arbitration.
When that order expired, MACMA and the AMBB took the matter to arbitration. Cherry Growers refused to take part in the proceedings. The arbitrator ruled in favor of MACMA, adding that Cherry Growers was subject to the act.
Cherry Growers then sued, and Grand Traverse County Circuit Judge Philip Rodgers Jr. ruled in its favor. Rodgers ruled that Cherry Growers was a cooperative and thus was exempt from the act. The appellate court disagreed with this definition in its opinion.
The Michigan Processing Apple Growers Marketing Committee said it will participate in several meetings with Cherry Growers to establish a method for bargaining minimum prices for apples in the future.
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