Document: 486 U.S. 492 108 S.Ct. 1931 100 L.Ed.2d 497 ALLIED TUBE & CONDUIT CORPORATION, Petitionerv.INDIAN HEAD, INC. No. 87-157. Argued Feb. 24, 1988. Decided June 13, Syllabus The National Fire Protection Association—a private organization that includes members representing industry, labor, academia, insurers, organized medicine, firefighters, and government—sets publishes product standards codes related to fire protection. Its Electrical Code (Code), which establishes requirements for the design installation of electrical wiring systems, is routinely adopted into law by a substantial number state local governments, widely as setting acceptable product-certification laboratories, insurance underwriters, inspectors, contractors, distributors. Throughout relevant period, permitted use conduit made steel. Respondent, manufacturer plastic conduit, initiated proposal before Association extend approval well. was approved one Association's professional panels, thus could be simple majority attending 1980 annual meeting. Before meeting held, petitioner, Nation's largest producer steel other manufacturers, independent sales agents collectively agreed exclude respondent's from 1981 packing with new whose only function vote against proposal. After defeated at an appeal Board Directors denied, respondent brought suit in Federal District Court, alleging petitioner others had unreasonably restrained trade market violation § 1 Sherman Act. jury found liable, but court granted judgment n.o.v. reasoning it entitled antitrust immunity under doctrine Eastern Railroad Presidents Conference v. Noerr Motor Freight, Inc., 365 127, 81 523, 5 464. Court Appeals reversed. Held: does not apply petitioner. Pp. 469-510. (a) scope protection depends on source, context, nature anticompetitive restraint issue. Where result valid governmental action, opposed those urging action enjoy absolute liability restraint. In this case, context standard-setting process association without official authority having horizontal vertical business relations economic incentives restrain competition. Such cannot treated "quasi-legislative" body simply because legislatures adopt its Code, afforded who merely urge government trade. 499-502. (b) Nor theory exclusion effect own force marketplace, were incidental effort influence action. Although, large governments law, efforts are arguably most effective means influencing legislation regulating although limited "direct" petitioning officials, immunize every concerted activity genuinely intended There no merit argument that, regardless nonlegislative status, petitioner's must given same wide berth accorded legislative lobbying or political arena. 502-504. (c) Unlike publicity campaign Noerr, did take place open arena, where partisanship hallmark decisionmaking, took within confines process. validity established, more, literal compliance rules, hope Code's procompetitive benefits upon existence safeguards sufficient prevent being biased interests restraining An validate activities adopting rules fail provide such safeguards. At least where, here, economically interested party exercises decisionmaking formulating standard comprises participants, enjoys any flowing has marketplace. 505-510. 817 F.2d 938 (CA2 1987), affirmed. BRENNAN, J., delivered opinion REHNQUIST, C.J., MARSHALL, BLACKMUN, STEVENS, SCALIA, KENNEDY, JJ., joined. WHITE, filed dissenting opinion, O'CONNOR, joined, post, p. ----. Marvin E. Frankel, New York City, Fredric W. Yerman, respondent. Justice BRENNAN Court. Petitioner contends affect immune primarily association's governments. 464 (1961) (Noerr). United States Second Circuit held apply. We affirm. 2 * (Association) private, voluntary more than 31,500 individual group government. Association, among things, through known "consensus making." One performance systems. Revised three years, influential code nation. A little change; certification Underwriters Laboratories, normally will list label meet standards; many underwriters refuse insure structures built conformity Code; distributors falls outside Code. 3 Among products covered hollow tubing used raceway carry wires walls floors buildings. using steel, almost all sold fact conduit. Starting 1980, began offer polyvinyl chloride. Respondent claims offers significant competitive advantages over including pliability, lower installed cost, susceptibility short circuiting. however, there also scientific basis concern during fires high-rise buildings, chloride might burn emit toxic fumes. 4 include type edition Following scheduled consideration meeting, rejected present. Alarmed if approved, pose threat met plan strategy with, others, agents. They upcoming would Combined, recruited 230 persons join attend alone 155 employees, executives, agents, agents' employees two divisions sell products, wife national director. paid $100,000 membership, registration, attendance expenses these voters. voters instructed sit how when leaders walkie-talkies hand signals facilitate communication. Few technical documentation necessary follow None them spoke give their reasons opposing approve Nonetheless, solid opposition, returned committee 394 390. appealed membership's Directors, denied ground been circumvented, they violated.1 6 October 1981, 26 Stat. 209, 15 U.S.C. 1. bifurcated trial March 1985. conceded conspired pecuniary interest do so. jury, rule reason carried burden showing effects actions outweighed setting, liable. answers special interrogatories, violate acted, part, based genuine belief unsafe, nonetheless "subvert" consensus standard-making Association. App. 23-24. findings adverse impact competition, restrictive expressing opposition laws. then awarded damages, trebled, $3.8 million lost profits resulting excluding No damages injuries stemming adoption entities.2 7 applied "akin legislature" "by methods consistent [Association] respect thereby various bodies [Code]." Pet. Cert. 28a, 30a. reversed, rejecting both should indirect attempts (1987). certiorari address important issues regarding application associations.3 484 814, 65, 98 29 II 8 Concerted monopolize officials protected established Noerr; Mine Workers Pennington, 381 657, 669-672, 85 1585, 1593-1595, 14 626 (1965); California Transport Co. Trucking Unlimited, 404 508, 92 609, 30 642 (1972). depends, "[W]here monopolization action," U.S., 136, S.Ct., 529; see supra, 671, 1594. addition, results directly form "incidental" 143, 532-533. efforts, applicability immunity, varies activity. directed general public, seeking executive even employs unethical deceptive methods. 140-141, 531. But less arenas, practices can constitute abuses administrative judicial processes may violations.4 Transport, 512-513, 612. 9 predicated imposed incorporation association. Typically, associations, like relations. See generally P. Areeda, Antitrust Law ¶ 1477, 343 (1986) (trade associations continuing conspiracies members). doubt often have competition set serious potential harm.5 American Society Mechanical Engineers, Inc. Hydrolevel Corp., 456 556, 571, 102 1935, 1945, 72 330 (1982). Agreement is, after all, implicitly agreement manufacture, distribute, purchase certain types products. Accordingly, traditionally objects scrutiny. See, e.g., ibid.; Radiant Burners, Peoples Gas Light Coke Co., 364 656, 365, 358 (per curiam). FTC Indiana Federation Dentists, 476 447, 106 2009, 90 445 (1986). When, promulgate safety merits objective expert judgments procedures stifling cf. Hydrolevel, 570-573, 1944-1946 (noting absence "meaningful safeguards"), advantages. It led courts rule-of-reason analysis associations.6 10 Given agree publishes. F.2d, 943-944. Whatever de facto enjoys, conferred government, composed, Continental Ore Union Carbide Carbon 370 690, 707-708, 82 1404, 1415, 777 (1962). id., 706-707, 1414-1415; Goldfarb Virginia State Bar, 421 773, 791-792, 95 2004, 2015, 44 572 (1975). "We presume, absent contrary, [a government] acts public interest. party, hand, presumed acting his behalf." Hallie Eau Claire, 471 34, 45, 105 1713, 1719-1720, 24 (1985). dividing line between restraints always obvious.7 unaccountable authority, whom personal financial we difficulty concluding resulted 11 still apply, if, argues, notes lion's share case came predictable 939, n. Indeed, argues rely so heavily lack resources expertise second-guess it, This claim some force. certainly characterized sham actual statutes ordinances. quarrel contention widespread marketplace was, main, action.8 And, persuasively dismissed conduct issue involved itself immunized "indirect" petitioning. (immunizing part action). 12 remains absolutist position immunizes If then, example, competitors free enter price agreements long wished propose appropriate level ratemaking supports. Georgia Pennsylvania R. 324 439, 456-463, 65 716, 725-729, 89 L.Ed. 1051 (1945). Horizontal boycotts designed exact higher prices conspirators' terms. Evans, 316 159, 62 972, 86 1346 (1942). Firms output restrictions dramatize plight industry spur Immunity claimed mergers merging corporations added clout. necessarily dispositive securing imagine situations bribery, never suggested kind attempt conclude impact, 13 Here Having concluded body, reject "quasi-legislature" lobbying. That rounding up supporters constitutionally method elections mean protected. receive latitude ethically dubious 531, ultimate aim (principally) dispositive. misrepresentation allowed arena odds very good court's decision codified—nor matter misrepresentations oath hearing hopes spurring What distinguishes progeny make commercial determined laws themselves. True, conspiracy railroads destroy truckers customers. 142, 532. noted there: "There specific attempted persuade anyone deal truckers. Moreover, evidence record, oral documentary, deals railroads' passage enforcement Circulars, speeches, newspaper articles, editorials, magazine memoranda documents discuss way another charges heavy trucks injure roads, create traffic hazards, forced pay fair costs rebuilding compelled obey laws, limits placed weight loads carry." 142-143, 16 light findings, classic "attempt . publicity," "inevitable" "the infliction direct injury directed." Id., essential character concluded, political, segregated activity's business. Rather, plaintiff's cause embraced inherent possibility fights "that get hurt arguments made." 144, 533. As activity, factors counseled laws: "Insofar [the Sherman] Act sets ethics condemns restraints, and, already pointed out, clearly category proscriptions Act, tailored world, Congress exercised extreme caution legislating problems relating activities, reflected decisions interpreting legislation. All go naught extension regulate involve termed unethical." 531 (footnote omitted). 17 precluded inquiry validity.9 18 counsel validity. here defined circumscribed regard whether likely law. 500. comprising firms understanding conducted nonpartisan manner offering benefits, ibid., are, respects, rigorous prevailing partisan adversarial adjudication. cannot, regulated caution, 141, "bear[s] resemblance combinations violative Act," 529. And confine decisionmaker, 138, 139, 530 (describing "mere solicitation"); rather, orchestrated exercise standard. power persuasion, involves power. members, consumers, distributors, manufacturers implicit Cf. id. Although backwards conclusion "political," think conduct, aptly impact. Just "simply impact," what essence impact.10 19 NAACP Claiborne Hardware 458 886, 3409, 73 1215 (1982), contrary. First Amendment nonviolent elements boycott white merchants Advancement Colored People comply demands equality racial justice. boycotters inflict merchants, motivated desire lessen reap vindicating rights freedom lying heart Constitution, consumers stand profit financially lessening boycotted market. 914-915, 3426. Here, contrast, partially business, stood making difficult compete.11 20 Thus us must, despite evaluated forth govern safeguards.12 collapses liability. governing process, hold decision-making 21 deprive input information individuals organizations leave ample petition 137-138, 529-530. 510, 611-612. Petitioner, concerned about can, full engage lobbying, campaigns, traditional avenues expression. To extent avenues, reflects preference confidence undermined. advantage forum provided presenting vigorously arguing accurate body.13 avoid strictures attempting forums. (without exposing possible injuries) bias by, stacking decisionmakers sharing 22 Affirmed. 23 O'CONNOR joins, dissenting. (1961), construed forbid joint railway companies disadvantage trucking industry. These rather lawmakers subject challenge fundamental importance maintaining flow right people seek relief, indirectly. (1965), (1972), adjudicative proceedings. 25 now refuses cases participants organizations, (NFPA), regularly propound publish health variety industries present authorities purpose enacted NFPA participating code-writing withstand scrutiny reason. Believing misapplication improvident construction I respectfully dissent. presents stronger itself. turned obtain concedes constituted "genuine ante, 1938, "ultimate aim," 1939. dispersed broad diluted move note respond accordingly. apparently tax favorable Jersey, York, Ohio, procured Governor's veto bill passed Pennsylvania. 130, 525-526; F.Supp. 768, 777-801 (ED Pa.1957). actually drafted proposed (NEC) presented countrywide. Not much greater likelihood successful Noerr. germane "purpose" "design" "solicitation laws," 530. 27 Rather confronting severe damage today's doctrine, asserts aim" "is dispositive." Ante, statement reconciled statements quoted earlier major purposes, sole purpose, "to competitors," 530, ultimately "directed toward obtaining 140, later doubles back statement, suggests "petitioner compete." 509. need hardly said true Nobody condones fraud, form, federal ensure punishable. point otherwise punishable either becomes operation larger not. workable boundaries declaring, repeating turn, everything of" 504, 505, 506, 509, unable further guidance vague reference supposed mean, especially wrong reputed remain unfortunate consequence decision, therefore, district appeals obliged puzzle raised intelligible why it. 28 themselves wrote scratch, concerns Allied, together friends, jointly testify impunity though motives doing concedes, days foregone vast change. untenable consider too far removed warrant announced faithfully cases. view Judge Sneed colleagues Ninth Sessions Tank Liners, Joor Mfg., 827 (1987), gave applying persuasive anything contrary offer. Court's 400 preparing publishing enormous standards. necessarily, course, turn citizens. verbatim Columbia; minor changes. disseminated model world today. work contributes enormously participation competence experience discouraged. today surely just that. inevitably NEC satisfy hence name reduce here. Yet, putative twice course code-making approved; (or not), well become defendants facing treble-damages unless prove evil "presenting body," ante 510 (though knowing inevitable eliminating competition). Allied resorted tactics employed, done successfully argue faith hazards inflicted risked suit, deciding implications 31 suggestion ability assist wrong. holding marketplace." 509—510. description encompasses structure know them. saying, effect, standards, sued means, Henceforth, peril, breathing room enjoyed 32 alternative envisioned gain nobody "exercis[e] authority" (i.e., vote) recommendations particular Insisting perverse effects. Legislatures willing precisely possess uses, entirely design, sell, distribute Sanitizing discouraging active undermines utility. 33 fear impair usefulness inhibiting frank discussion characteristics old affected codes. focuses thought subverted entire abuses, occasional happenings. speculate terrible lead condone future cases, 503-504, fantasies, since nothing sort occurred wake seems me therefore overkill. 34 Of unlimited terms unavailable alleged sham. limitation enough guard flagrant abuse. event, abuse insufficient render useful reliable. reverse below remand sought tentative interim amendment exigency amendment. subsequently buildings stories 1984 1987 relied solely "flowed 31a, stigma [Code] [petitioner's] 'marketing' caused harm [respondent] jurisdictions permitting [polyvinyl chloride] [Code], high. [Respondent] redress arising governments." 938, 941, (1987) (emphasis added). decide framed Appeals. whether, violated vacate our grant improvident. whatever forum, aimed procuring mere deemed 533; 511, "Product standardization several ways. [It] desired product, eliminate quality rival producers, oligopolistic pricing easing rivals' monitor each other's prices." 1503, 373 J. von Kalinowski, Laws Trade Regulation §§ 6I.01[3], 6I.03, 6I.04, pp. 6I-6 6I-7, 6I-18 6I-29 (1981) (collecting cases). enforce (rather upon) face 659-660, 367, Fashion Originators' Guild America, FTC, 312 457, 61 703, 949 (1941). 513, 613 (stating dicta "[c]onspiracy licensing competitor" "bribery purchasing agent" laws); 4, 1594, (1965) (holding noting "was act co-conspirator" contrasting ); (1962); Areeda D. Turner, 206 (1978) (discussing transactions involving government). (1975); Ore, 1414. exacerbated "market" suffered excluded 3. disposition infra, extent, "marketing" alter status harm. 532 "no truckers"). Similarly review structured "us[ing] channels agencies courts." 612; 612-613. admittedly draw precise lines separating unprotected close line. For criticizing uncertainty particularized inquiry, dissent dispute describe fails distinguishing non-immune case. states elaboration exception abuse," 516, embracing covers defendant "genuinely seeks achieve result, improper means." 458, 465, original). word "sham" distorts meaning bears relation described cover H. Hovenkamp, 203.1a, 13-14 (Supp. 1987). More importantly, Circuit's approach renders deem unworthy (probably unarticulated activity), providing superficial certainty real "intelligible guidance" litigants. Post, 513. deems "sham." 465. determining Hardware, suggest immunity. points anticompetitive. 512-513. Our dispositive," stands proposition Even giving changes Tr. Oral Arg. 41-42. mistakenly competitor's code. 514-516. expressly "economically participants." Supra page added); 506-507 (relying distinction decisionmaker). associations. 515. fact, composed suppressing Sessions, 461, 2.

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