Document: 386 U.S. 129 87 S.Ct. 932 17 L.Ed.2d 814 CASCADE NATURAL GAS CORPORATION, Appellant,v.EL PASO CO. et al. PEOPLE OF the STATE CALIFORNIA, Appellant, v. EL SOUTHERN CALIFORNIA EDISON CO., Nos. 4, 5, 24. Argued Jan. 12, 1967. Decided Feb. 27, [Syllabus from pages 129-131 intentionally omitted] William M. Bennett, San Francisco, Cal., Rollin E. Woodbury, Los Angeles, and Richard B. Hooper, Seattle, Wash., for appellants. Daniel Friedman, Deputy Sol. Gen., Gregory A. Harrison, appellees. W. Sabin, Salem, Ore., State of Oregon, as amicus curiae, by special leave Court. Mr. Justice DOUGLAS delivered opinion 1 When this case was here last time,1 we held that acquisition Pacific Northwest Pipeline Corporation El Paso Natural Gas Company violated § 7 Clayton Act; directed District Court 'to order divestiture without delay.' United States Co., 376 651, 662, 84 1044, 1050, 12 12. That on April 6, 1964. It is now nearly three years later and, shall see, no in any meaningful sense has been directed. The States, an appellee, maintains issues respecting are not before us. threshold question does indeed involve another matter. Appellants were denied intervention came way appeal, 32 Stat. 823, 15 U.S.C. 29. We noted probable jurisdiction. 382 970, 86 528, 463. I. 2 initial concerning turns a construction Rule 24(a) Federal Rules Civil Procedure entitled 'Intervention Right.' At time ruled motions provided relevant part, 'Upon timely application anyone be permitted to intervene action * (3) when applicant so situated adversely affected disposition property which custody or subject control court officer thereof.' As amended effective July 1, 1966, subsequent these denied. 24(a)(2) provides there may right, 'when claims interest relating transaction he practical matter impair impede his ability protect interest, unless applicant's adequately represented existing parties.' 3 California, one appellants, where sells most its gas purpose intervening assure Northwest, illegally merged with Paso, successor, would restored competitor California. prior opinion, had 'a substantial factor California market at it acquired Paso.' U.S., 658, S.Ct., 1048. restore 'competitive factor' ordered. Id., 658—662, 1048—1050. Southern Edison, large industrial user natural purchasing sources desirous retaining competition Cascade distributor Oregon Washington, sole supplier will New created under plan. grossly unfair division reserves between Company, Particularly southwest field known Juan Basin. Moreover, approved contracts delivery both Canada Basin, allowed unilaterally Power Commission, saddle new allegedly onerous prices other conditions Company. stock West Coast Transmission Ltd., ordered sold benefit Paso. owned about fourth Transmission's ownership gave said, insight into access Canadian supply. These factors, implicating perform future, give Cascade, argued, standing intervene. 4 Under old 24(a)(3) those 'adversely affected' usually who have property.2 But cannot read mean exclusively group. 5 merely restatement federal practice law equity. If been, force argument rigidity older cases remains unaltered, restricting right very narrowly, example fund third party asserts lost absent intervention. Credits Commutation Co. 177 311, 316, 20 636, 638, 44 L.Ed. 782; Central Trust York Chicago, R.I. & P.R. Cir., 218 F. 336, 339. Advisory Committee stated 24 'amplifies restates present equity.' therefore know some elasticity injected;3 is, how much. Appeals Second Circuit case, 'It always easy draw line.' Ibid. 6 In Missouri-Kansas Pipe Line 312 502, 665, 61 666, 85 975, consent decree entered antitrust suit, designed Panhandle Columbia domination former stifle competition. sought opportunities Panhandle. A security holder Panhandle's behalf reopened right. reversed, noting outset 'the circumstances interested outsiders should become participants litigation barring circumstances, nisi prius court. enforcement public also demands distinct safeguarding private interests giving them formal status decree, power enforce rights thus sanctioned left authorities put keeping district court's discretion.' 506, 668. economic independence 'at heart controversy.' protection competitive system our mandate directing divestiture. For absorption stifled disadvantaged interests. their interests, part system, protect. close Apart but spirit think Edison qualify intervenors 24(a)(3). Certainly two appellants 'so situated' geographically within meaning merger reduces available Californians. conclude error deny need decide whether could intervened Rule. effect version subsection (2) recognizes proper element 'an interest' 'transaction action.' This applies 'further proceedings' pending actions. 383 1031. Since entire merits must opportunity heard intervenors, broad enough include also; see 'existing parties' fallen far short representing reverse each appeals remand directions allow appellant vacate de novo hearings type envisioned made plain 1044. II. 8 necessity needs word explanation. 9 oral agreed urges us approve 'settlement' litigation. do authority Attorney General settle suits after, well before, they reach here. Department Justice, however, stipulation otherwise circumscribe courts carried out. No one, except Court, alter modify mandate. du Pont De Nemours 366 325, 81 1243, 1249, 318. Our direction provide 'divestiture context plainly meant company once position compete market. 10 undertake write decree. suggest guidelines followed: 11 Reserves. granted less relation than independent; developed since equitably divided told gets Basin—which due geographical propinquity critical company, discovered them, Northwest. what equitable require. Hearings necessary, followed meticulous findings light requirements adverted. already indicated, proposed terms contracts4 imposed purchase gathering various sources. urged onerous, detrimental partial pass upon wisdom desirability contracts. note changes, reluctantly acceded Government, redound evaluate advisability negotiate better terms. Nor Commission negotiated such restrictions Act impose. 13 Financial Aspects. noted, sell brought keep proceeds, if considered might result, alleged, profit $10,000,000 more, while Production 1960—1963 showed heavy losses. charged saving cream itself foisting 'cats dogs' earnestly argued sorely valuable fairly liquid working capital necessary balance destroyed. highly arguments. plan kind envisaged establish same comparable illegal obliterated it. 14 pointed out $53,000,000 taxable losses utilized during following illstarred merger. tax loss carry-overs real asset receive assets reduction debt equivalent value. allegations, proven, require remuneration viable, healthy unit, able Control cause formation whose chief executive file earliest practicable date' requesting issuance certificate convenience authorizing acquire, own, operate properties received Paso.5 certificates, authorizations, orders obtained FPC, transfer set forth divestiture, generally return, assume certain Paso's indebtedness issue all common stock. Company's executive, voting trustee. release only accordance divestment plan, completely divest after Alternate methods provided. (1) may, 18 months transfer, distribute least 80% shares holders willing exchange shares, own immediately exchange. remainder disposed offering. dispose first alternative, 'by more sales public.' offering director owner stock, excess one-half percent total outstanding, stock.6 16 Thus Paso-Pacific combination begin severed until regulatory approvals obtained. Complete required assets. An earlier permissible, mandatory years. During interregnum entry approvals, eventual continue reap benefits combination. voted executive. beneficial him. Even though ultimate supervision danger vote manner calculated perpetuate led severance considerable end up controlling sure, neither officers directors nor owners prohibit members families prohibited purchasers obtaining Further, possible group stockholders, acquire substantially influence even dominate Or, combine After offering, restriction number shareholders acquire. Thus, major stockholders blocks obtain control. studied attempt ensure swift make sure controlled Disposition convenient speed interest. do, masquerade beard. bypasses prospect outright outside Two apparently anxious eager; knuckled 'settled' litigation, 'sale desirable alternative plan.' chosen. day, promises rather terminate unlawful merger, threatens turn loose unable maintain role filled took place. 19 easier choice. harder one; criterion follow. evil permeated reflects attitude philosophy frankly follows: 21 'The Court: You proposes country, market, reserves, area That's root is. 22 'Now, you're going get down you'd upset whole scheme. To situation up, there; that's ridiculous thing—long pipelines 23 seems me lot operating much closer Southwest, serving area, among areas. sense.' ramifications precisely that. opposite commanded. Once spoke, remand, delay Chief Judge Judicial Council (28 332) assign different hear case. Cf. Hatahley, 257 F.2d 920, 926, 79 A.L.R.2d 668 sequel, Ritter, 273 30, 32; Occidental Petroleum Corp. Chandler, 303 55, 57; Texaco, Inc. 354 655, 657. 25 Reversed. 26 WHITE FORTAS consideration decision cases. 27 STEWART, whom HARLAN joins, dissenting. 28 presented appeals, question, erred denying appellants' parties. Because I Court's answer wrong, because gone further astray undertaking address adjudication, respectfully dissent. 29 Intervention governed 24(a). passed intervene,1 30 'Rule 31 '(a) Right. Upon action: statute confers unconditional intervene; representation parties inadequate bound judgment action; distribution gather ground 24(a)(1) statutory (1). And clear (2), provision, show 'may bound' Government's res judicata sense. Sam Fox Publishing 683, 1309, 604; Sutphen Estates, 342 19, 72 14, 96 19. See 782. settled government suit claims. supra. 33 finds absolute disagree several reasons. 34 Analysis Rule's scope historical examination practice, for, stated, constitutes 'codification general doctrines intervention.' 508, 668, 975.2 assert derives English doctrine appearance pro interesse suo. rem jurisdiction over property, admiralty libel, sequestration, receivership, process, person claiming title legal come claim property. Otherwise, subjected obvious injustice having erased impaired adjudication ever being heard. Elements procedure gradually assimilated e.g., Pennock Coe, How. 117, 436, foundation courts.3 35 Various generalizations nature support attempted. requisite 'of direct immediate character intervenor either gain lose operation judgment.' Smith Gale, 144 509, 518, 674, 676, 36 521.4 Other spoken distinguished indefinite character', Radford Iron Appalachian Electric 62 940, 942 (C.A.4th Cir.), cert. denied, 289 748, 53 691, 77 1494, 'one protected law, sufficient denominated lien, equitable', Gross Missouri Ry. 74 F.Supp. 242, 249 (D.C.W.D.Ark.). formulations limited use deciding particular More illuminating examples established practice. included attached property,5 personal foreclosed mortgage,6 mortgage line leasehold forfeiture,7 purchaser land involved foreclosure proceedings against seller.8 Interests like continued familiar basis promulgation 24(a)(3).9 traditional interpleader practice; persons possess mutually exclusive, claimant. Oliver 156 281 (C.A.8th deposited price owners. insurance asserted based services rendered sellers, intervene.10 37 sometimes likely recognized interpretations suo types representative Formulabs, Hartley Pen 275 52 (C.A.9th 363 830, 80 1600, 1524. licensed secret manufacturing process parties, seeking apply discovery process. Finding trade 'property' secrecy totally destroyed, 38 lie beyond imaginable 'property court' purposes 'interest' relied justify preference assets, particularly Basin hands theory allocation conducive greater remotely resemble concrete stake overturns principles intervention, but, shown below detail, repudiates long-established body decisions specifically, correctly, 39 too fact inherently protracted. Indeed, just concern nothing confuse prolong rule today announces. entrance additional can serve multiply trial exhibits testimony, confound bring complicated issues. reasons, reluctant grant example, Commonwealth Allis-Chalmers Mfg. 315 564 (C.A.7th Illinois 375 834, 64, Illinois, consumers' rate rebate, utility charging equipment manufacturers fixing.11 40 reasons stronger Government. extent would-be seeks press defendant, Congress carefully separate procedures litigation.12 observed Borden 347 514, 518—519, 703, 706, 98 903, thrust 'is sharply distinguish Government suits, criminal civil, injunctive relief treble damages. Different policy considerations govern these. They proceed simultaneously disregard other.'13 accordingly 'unquestionably sound permitting plaintiffs alleged violators Government'. 693, 1315, 604. fortiori, improper appears vindicate consistently recognized, 'United alone speak Buckeye Coal Hocking Valley 269 42, 49, 46 61, 63, 70 155.14 seek requires. determination requires duty responsibility explicitly 'under General.' §§ 25. command suits. discharge duties undermined cluttered myriad volunteers, pressing 'public other. 41 consistent vindication party. re Engelhard Sons 231 646, 258, 58 416, subscriber enter municipality telephone involving validity city's ordinance overcharges. Similarly, City Consolidated York, 253 219, 511, 64 870, Telephone 261 312, 43 372, 67 673, consumer residents city state utilities regulation. wise principle reflected many decided adoption 24(a)(3).15 42 applicability early Ex parte Leaf Tobacco Board, 222 578, 833, 56 323, enterprises tobacco defendants From since, refused recognize suits.16 Allen Calculators, National Cash Register 322 137, 905, 88 1188; Partmar 338 804, 69, 94 486; Wometco Television Theatre 355 40, 78 120, 71; Westinghouse Broadcasting 364 293, 264, dismissing appeal Radio America, D.C., 186 776; supra; Bardy 371 576, 83 547, 537.17 upheld denial claimed defendant failed carry Ball 802, 486. results follow rejection embodied apparent. There applications below. them. goes millions consumers, suggests remedy. consumers others making meets standards effectiveness, insuring violation found. reasoning gives outset. invites delays seem mercifully short. concern, merit discussion, simply 24(a)(3), provision superseded. approach creates 24, says replaces previous (3), right: 45 '(W)hen amendments promulgated 'take actions thereafter then *.' Cascade's motion 1965, date Rule, inapplicable motion.18 applicable, 47 revision remedy logical shortcomings 24(a)(2), supra, recognition expanded strict model embodied.19 still sufficiently remote concerns Colifornia discussed. insubstantial. While purchases California.20 thought encompass conceivable never entrusted conduct 'direction hurdle, failure 'adequate representation' 48 states 'knuckled Paso' 'fallen representing' public, dereliction serious incompetence. regard charge wholly unjustified. did phenomenon negotiation. Bargaining decrees stipulated remedies normal laws. perfectly course negotiations aware errors opening position. If, suggest, original negotiating unceasingly bitter end, afford reduced, laws ultimately effective. markedly increase. 49 standard comes this: pursued volunteer along disagrees assessment respective strange unprecedented unwise, unworkable. 50 requirement precondition obviously adaptation similar contained 24(a)(2). Decisions conflict himself supposed represent interest,21 complete parties,22 collusion likelihood them.23 Mere tactical disagreement conducted insufficient right.24 ignoring precedents, overlooks policies underlie draws judges adversary arena forces impossible trying second-guess pursuit wasteful productive delay, person's ascertained concluded evaluated. 51 Wrong respect generally, wrong challenge adequacy separation powers generates peculiarly inappropriate Executive. Yet presumes tell conducting lawsuit brought. constitutional secondguess bounds official discretion. President ultimately, electorate. words appropriate here, long ago attack settlement case: '* find statutes defining limitation exercise discretion contention involves. His determinations includes erroneous correct ones.' Swift 276 331—332, 317, 587. lip service principles. 'We here.' Ante, 136, 937. proceeds take own. relies previously cites dictum 318, extraordinary takes. absence fraud, initially resorted aside agreements impose certainly Executive Branch grossest bad faith malfeasance possibly step. Either saying guilty misconduct—a record—or overreached permissible limit judicial power. Not directly pragmatic my today's decision. permit volunteers especially involved, field, technical experience balancing essentially administrative political. Formulation unlikely result 'piecemeal multitude individual complainants'25 Less six fully principle: 54 strongly lead decline (the) invitation assess accepting acting.' 689, 1312, 604.26 55 Today ignores grants whenever convince used settling lawsuit. decision, undermines responsibilities, obstruction unsupported conceivably tolerable governing err appellants,27 dismissed.28 am concluding intervene, contentions met intimately massive record Instead, brushes 'threshold' few devotes pronouncements contracts, intricacies western States. resolved through Appellees brief argue On ex criticisms below, lays 'guidelines' complex shape future important segment Nation's commerce. doing roams large, unconfined anything mundane factual proceedings. 57 restated. sit draft novo. witnesses, sift evidence appraise extended *. short, partake demanded task devising details governance vastly arising unique circumstances.' 371, 1273, 318 (dissenting opinion). little repugnance Court' unjustified extraordinarily opprobrious conclusion under.' happy radical extensions doctrine. marketed, Mexico divided. zeal censure reprimand Department, reshed headlong jurisprudential quagmire dangerous 'evil' purports discern 59 Finally, emphatic judge. reviewing taken step rarest judge's emotional involvement demonstrated. Offutt 348 11, 75 99 11; Cooke 267 517, 390, 69 767; (C.A.10th 372 915, 718, 722. suggested record. Nobody requested replacement stage motion, disqualify judge middle 'philosophy' unprecedented, incredible. 369 482, 82 901, 54, aspect merger; Act, 731, U.S.C.A. 18. Board Comm'rs Sweetwater County, Wyo. Bernardin, 809, 816; Dowdy Hawfield, U.S.App.D.C. 241, 189 637, 638. 1966 said: 1948 Significantly, virtually disregarded language provision. Professor Moore states: concept applied loosely almost personam Moore's Practice 24.09(3), (2d ed. 1962), (9th Cir. 1960). development quite natural, unduly restricted. absentee action, should, rule, depend distributed of. seen counterpart 19(a)(2) (i) joinder needed adjudication: where, joined ought motion. Louisell Hazard, Pleading Procedure: 749—50 (1962).' Moore, (1966 Spec. Supp.), c. pp. 1—2. (Emphasis supplied.) contract relates reciprocal Prior providing develop lines basin cooperatively, whichever other's pay 1.375¢ per Mcf. extra gas. agreement increases 4.5 . increased increase costs compete. informed certification. FPC appeal. enjoined officer, director, employee owns family one-tenth amended. p. 153, infra. statement confirmed Committee, Procedure, Notes, (March 1938). discussion American 24.03; Street, Equity 1364—1370 (1909). Quoting approval Horn Volcano Water Cal. 62, 69. Subsequent formulation Pure Oil Ross, 170 653 Cir.); 628. Krippendorf Hyde, 110 276, 145. Osborne Barge, 805 (C.C.N.D.Iowa). Radice, 445 (C.A.2d Cir.). Gaines Clark, App.D.C. 71, 1017. E.g., Plitt Stonebraker, 90 256, 195 (intervention creditor asserting goods seized marshal). expansive interpleader-type Barnes Alexander, 232 530; Peckham Family Loan 212 100 (C.A.5th Vaughan Dickinson, F.R.D. 323 (D.C.W.D.Mich.), aff'd, Duffy Vaughan, 237 168 (C.A.6th Louisiana Gulf Corp., 158 (D.C.E.D.Mich.) (county dispute). Philadelphia 308 856 (C.A.3d Pennsylvania Public Utility Comm. Elec. 936, 883, 767. 209 (1890), amended, 4; 731 (1914), 15; 282 (1955), 15a; 736, 737, 25, 26; 823 (1903), 28, Bendix Home Appliances, 73, (D.C.S.D.N.Y.). stated: private-injunction treble-damage supplements laws; attorneys primarily protecting public; plaintiff, pursuant determined Congress, expected served.' O'Connell 460 Cir.) retepayer protesting municipality); 940 1494 (business injured utility's dam FPC); MacDonald 119 821 aff'd modified Great Northern 262, 529, 836 mineral railroad patent States); Reich Webb, 336 153 380 890, 800 (depositors proceeding Bank savings loan association officers); 242 (D.C.W.D.Ark) (24(a)(3) municipalities served reorganization party); Butterworth Dempsey, 229 754, 798—799 (D.C.Conn.), Town Franklin 378 562, 1913, 1036 overrepresented towns reapportionment authorities). Terminal R. Ass'n St. Louis, 236 194, 408, 535, 'intervenors' defendants. inapposite. Eastern improperly exercising weaken threat competitor. independence. retention decrees' purpose, 'Panhandle Eastern, application, hereto' modifications bottomed solely specific provisions intervention: 'Its dealing conventional form 667. concluded, 'Therefore, codification touch problem.' behind Society Composers, Authors Publishers, 341 1003 877, 160, 119, ASCAP licensees Government: instituting doing, continuing F.2d, 1008. Klapprott 335 601, 384, 93 266, petitioner reopen default denaturalizing him, relying 60(b). Several Justices petitioner's amendments. bears resemblance hardship Klapprott, persuasively 'more consonant force, lower it.' 629, 397 Notes Rules, Fed.Rule Civ.Proc. U.S.C.App. (1964 ed., Supp. II). supply See, Michigan 108 409, 283 204, 913, 227. Pyle-National Amos, 172 425 Mack Passaic Nat. 150 474, 154 907 Standard Light 716 (D.C.Del.). Pellegrino Nesbit, 203 463 (C,.a.9th Cuthill Ortman-Miller Machine 216 Park Tilford, Schulte, 160 984 332 761, 68 92 347; Klein Nu-Way Shoe 136 986 Molybdenum America International Mining 415 (D.C.S.D.N.Y.); Twentieth Century-Fox Film Jenkins, 197 Alleghany Kirby, 344 571 dismissed, 384 1250, 335; Stadin Union 309 912 373 1298, 415; Authors, 202 340 cf. Ford Motor Bisanz Bros., 95 165, 169 (D.C.N.J.). given courts. 800; modified, 836; 165 71. Atlantic Refining 113 20, 304 387. permissive 24(b). consider challenge. 1188. 266 688 n. 3, event not, protracted abuse choosing views briefs affording full Inc.,

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