Document: 383 U.S. 213 86 S.Ct. 781 932 15 L.Ed.2d 709 CARNATION COMPANY, Petitioner,v.PACIFIC WESTBOUND CONFERENCE et al. No. 20. Argued Nov. 8, 1965. Decided Feb. 28, 1966. As Amended March 7, [Syllabus from pages 213-214 intentionally omitted] Arthur B. Dunne, San Francisco, Cal., for petitioner. Daniel M. Friedman, Washington, D.C., the United States and Federal Maritime Commission. Edward D. Ransom, Elkan Turk, Jr., respondents. Mr. Chief Justice WARREN delivered opinion of Court. 1 We granted certiorari in this case order to determine whether Shipping Act 1916, 39 Stat. 728, as amended, 75 762, 46 U.S.C. §§ 801—842 (1964 ed.), precludes application antitrust laws shipping industry. 2 The petitioner is a shipper foreign commerce that ships substantial quantities evaporated milk West Coast Philippine Islands. respondent conferences are associations companies establish rates their respective members pursuant agreements approved by Pacific Westbound Conference composed operating between Far East; East Conference, Atlantic Gulf Coasts East. 3 In 1957, announced rate increase $2.50 per ton shipment Petitioner attempted persuade restore original rate, but declined do so until 1962. 4 filed an treble-damage action against shortly after was restored. alleged initiated maintained implement certain rate-making which have never been also alleges it asked refused only because would not agree it. claimed entitled recover treble damages implementation such unapproved unlawful se under laws. 5 Respondents moved dismiss, claiming Act, 1916 repealed all regulation activities District Court motion. Appeals Ninth Circuit affirmed dismissal on ground cannot be Commission has passed upon agreements, 336 F.2d 650. certiorari, 380 905, 85 885, 13 793, hold subject 6 contains explicit provision exempting lawful § Sherman Clayton Acts. This express covers 15, does apply specifically prohibited 15.1 creation exemption implies exempt. interpreted analogous Agricultural Marketing Agreement 1937, 50 246, 7 601 seq. marketing Secretary Agriculture there declared 'explicit provisions requiring official participation authorizations show beyond question how far Congress intended should operate render inapplicable. If had desired grant any further immunity, doubtless said so.' v. Borden Co., 308 188, 201, 60 182, 189, 84 L.Ed. 181. contend, nevertheless, reflect true intent enacted They insist structure its legislative history demonstrate unstated purpose free industry 8 believe remaining can reasonably construed implied repeal industry's activities. recently said: 'Repeals implication regulatory statute strongly disfavored, found cases plain repugnancy provisions.' Philadelphia National Bank, 374 321, 350—351, 83 1715, 1734, 10 915. long recognized represent fundamental national economic policy therefore concluded we lightly assume enactment special scheme particular aspects more general wholly inapplicable have, therefore, construe regulations even when did contain accommodation See, e.g., supra. 9 historical background indicate different rule construction applied interpreting Act. hostile regulation. On contrary, end product extensive investigation conducted Act.2 claim, nonetheless, Committee must abolition conference system, probably required, public interest. But system produced evils permitted continue without governmental supervision. 11 'While admitting many advantages, disposed recognize steamship conferences, unless same brought some form effective government To permit supervision mean giving parties thereto unrestricted right action. Abuses exist, numerous complaints received they recognized.' H.R.Doc. 805, 63d Cong., 2d Sess., pp. 417 418. 12 Therefore, seems likely really wanted give limited exemption. frustrated subjected scrutiny examination agency.3 if considered possibility complete at time 1914 Report, clearly demonstrates those who drafted during next decided immunity. Since problem one focal points entire inquiry, could casual afterthought. language selected matter deliberate choice extent remain well exempted 14 Court's decisions Navigation Co. Cunard Steamship 284 474, 52 247, 76 408, States, 342 570, 72 492, 96 576, conflict with our interpretation Those merely courts refrain imposing sanctions debatable legality avoid plaintiffs were seeking enjoin allegedly implemented though determined constituted agreements. There real risk might find defendants while later proceeding danger best avoided holding tribunal or other exclusive make initial factual determination. specialized knowledge industry, primary jurisdiction vested accordingly instructed acting ascertained circumstances underlying legal issues. 16 relief requested created another source possible conflict. Even decide approve prospective obviously hampered exercise power court previously issued unconditional injunction prohibiting question. issue absence determination disapproving future operations 17 considerations led require totally immunized principles taking interfere Commission's powers. explicitly case. observed Government reinstate suit defendants' prospectively.4 18 award past completed conduct violated certainly Although approval, respondents concede no validate pre-approval preclude awarding arguably 19 thought respondents' It conceivably 1952 agreement dismissing 20 erred apparently proper course dismissed However, indicates chose dismiss rather than stay proceedings pending prejudice plaintiff's obtain appropriate time.5 That plaintiff injunctive continuing conduct. Such easily reinstituted time. claims Statute Limitations barred acts. stayed instead 21 own approval cover subsequent basis petitioner's complaint.6 An appeal decision now pending. 22 Petitioner's based theory 23 participated before Commission, ask reparations and, accorded any. failure seek affect rights entirely collateral sought suggest recovery both, choice. 24 reverse remand Northern California instructions final outcome then proceed manner consistent opinion. 25 Ordered reversed remanded. Section set forth 814, provides part: 'Any modification cancellation approved, disapproved, shall unlawful, modifications, cancellations Commission; disapproval carry out whole part, directly indirectly, agreement, modification, cancellation; except tariff rates, fares, charges, classifications, rules, explanatory thereof (including changes charges covered section 813a title involve change spread applicable noncontract shippers) agreed amendments thereto, otherwise accordance law, take effect prior compliance publication filing requirements 817(b) may adopt. 'Every section, title, excepted sections 1—11 Title Acts supplementary thereto. 'Whoever violates liable penalty $1,000 each day violation continues, recovered civil * *' following exhaustive into combinations undertaken House Merchant Marine Fisheries chairmanship Congressman Alexander. Report Agreements Affiliations American Foreign Domestic Trade, Sess. ('Alexander Report') 1914. contend actions will frustrate Committee's purposes. found, however, discriminated among shippers discrimination eliminated. assert awards equivalent rebates receive unequal 'rebates' juries inevitably measures damages. conclude equality treatment shippers. concerned assuring proceedings. reason want deprive assure generous others. 'Having submission Board either retained docket Board's here served present abeyance judicial review enforcement being pursued. A similar later, appropriate.' 576—577, 495. held circumstances, consider dismissed. Thus, effectively See note 4, commenced 1959 full parties. culminated issuance Joint Between Member Lines Docket 872, July 1965, rehearing denied, November 1, entered number joint consultation none approval. implementing

Category: 7