Document: 333 U.S. 795 68 S.Ct. 855 92 L.Ed.1 091 UNITED STATESv.SCOPHONY CORPORATION OF AMERICA et al. No. 41. Argued Jan. 12, 13, 1948. Decided April 26, Appeal from the District Court of United States for Southern New York. Mr. Sigmund Timberg, York City, appellant. Edwin Foster Blair, appellees. Justice RUTLEDGE delivered opinion Court. 1 The appellee Scophony, Limited, is a British corporation which has its offices and principal place business in London, England. question whether that company 'transacted business' was 'found' within under § 12 Clayton Act,1 so it could be sued served there civil proceeding charging violation §§ 2 Sherman Act. 26 Stat. 209, 50 693, 15 U.S.C. 1, 2, U.S.C.A. 2. violations stated were Scophony other defendants2 had monopolized, attempted to monopolize, conspired restrain monopolize interstate foreign commerce products, patents inventions useful television allied industries. cause here on direct appeal3 an order granting Scophony's motion quash service process dismiss complaint as it. 69 F.Supp. 666. manufactures sells apparatus owner licensor covering reception transmission.4 With outbreak European War 1939, Broadcasting Corporation stopped broadcasting. Consequently became impossible continue commercial development, manufacture sale equipment It therefore sent personnel States, opened office began demonstrations product activities preliminary establishing manufacturing selling this country. 3 Late 1941 found itself financial distress, part because restrictions imposed by Government export currency. imperative new capital American sources enterprise. Accordingly Arthur Levey, director founders, undertook negotiations with picture televisions interests, including Paramount General Precision. They culminated execution three interlacing contracts, so-called master agreement July, 1942, two supplemental agreements August 11, 1942. Copies latter been attached agreement, provided their later execution, they when executed effect carried out terms. alleged Act center around these agreements. 4 William George Elcock, mortgagee all assets, Precision, Productions, wholly owned subsidiary Paramount. formation Delaware corporation, authorized stock 1,000 Class 'A' shares like number 'B' shares. individuals interested it5 given Under ownership those conferred right elect five directors president, vice president treasurer. allotted Precision Productions. By virtue such corporations entitled name remaining secretary assistant Scophony. Levy named corporation. 5 set forth general desire parties promote utilization 'particularly America generally Western Hemisphere.' then organized 'as means therefor.' agreed transfer enter into first agreement. parties, also both For rights acquired, Productions second pay specified sums cash or benefit liquidation listed obligations. 6 Pursuant agreement's terms, Scophony; other, present purposes necessary only taken together. transferred not but interests Hemisphere. granted exclusive licenses patents. royalties products produced transmit fifty per cent gave sublicense Eastern Hemisphere royalty basis licensed Provision made interchange technical data information respecting inventions. Finally, would market any involving Hemisphere.6 7 This rather complex plan soon fell own weight. Starting 1943, impasse developed affairs stemmed failure unwillingness exploit themselves refusal modify permit licensing firms Several manufacturers expressed interest obtaining licenses. But each instance representing holding unwilling approve modifications existing arrangements. In 1945, resigned. transact business, since charter by-law provisions adopted pursuant required presence at least one quorum. Adding difficulties shortage funds apparent reluctance cooperate efforts firmer footing. further complicated institution antitrust December 18, 1945. 8 Levey kept advised developments dispute between factions otherwise progress reports States. As impass heightened, act behalf States.7 Service City 20, 1945.8 9 On 5, 1946, summons copy directed Elcock City. He dominant figure arrived country March, mission investigating ending disposing Elock assets having large loan company. comptroller member board. At time him, he held comprehensive power attorney, irrevocable until 1947, giving him complete regard Scophony.9 10 Court, meaning 12. court rejected contention thej urisdiction reason agents. concluded none related ordinary manufacturing, apparatus, confined protecting conduct did serve bring jurisdiction. I. 11 Section functions, first, fix venue suits against corporations; second, determine where may served. Venue 'not judicial district whereof inhabitant, wherein transacts business.' And 'in wherever found.' (Emphasis added.) A plain literal reading section's words gives deceptively simple appearance. source trouble lies use verbs descriptive behavior human beings describe entities characterized Chief Marshall 'artificial * *, invisible, intangible, contemplation law.' Trustees Dartmouth College v. Woodward, Wheat. 518, 636, L.Ed. 629.10 13 translating group institutional relations terms individual ones, keeping them distinct nongroup people whose are thus integrated, perennial, law's norm much man, continuing evolution institutions more compels fitting individualistically conceived legal patterns. Perhaps no field have vagaries exemplified often than determination matters jurisdiction, liability our federal system.11 gone Bank Deveaux, Cranch 61, 38, Baptist Association Hart's Executors, 499, International Shoe Co. Washington, 326 310, 66 154, 90 95, 161 A.L.R. 1057, now case.12 14 translation, necessity it, permeates every significant word excluding 'or If statutory slate clean, might readilyc onclude 'inhabitant' same locating proper serving process. even so, indeed term 'transacts specific content actually corporate events taking areas. Because action must vicarious, determined judgment selects attributes mass activity done purporting behalf, acts relevant particular policies hand. slate, however, neither entirely nor clean. Both legislative hands written upon writing meandering, unclear part, partly erased. cannot disregarded. What legible furnish guidance decision. We deal problem construction, constitutional import.13 Nor do we exercise Congress' farthest limit. issue simply how far Congress meant go, specifically intended create through occurrence kinds behalf. 16 enlargement Anti-Trust Act, note. Eastman Kodak Photo Materials Co., 273 359, 47 400, 71 684. earlier statute suit iin defendant 'resides 210. fixing places 17 stop review decisions construing similar statutes, cf. Suttle Reich Bros. Const. 163, 587; see supra, pages 317—319, 158—160, except refer People's Tobacco 246 79, 38 233, 62 587, Ann.Cas.1918C, 537. There 'reside.' withdrawn state located revoked authority agents there, district, although certain continued. 18 conventional rationalization applied equated sequence 'presence,' 'doing there,' 'of character warranting inference subjection local jurisdiction.'14 facts continued advertise goods make sales jobbers send drummers who solicited retail orders turned over jobbers, finally subsidiaries, constitute sort jurisdiction statute's purposes. Harvester Kentucky, 234 579, 34 944, 58 1479, narrowly distinguished. page 87, 235. 19 case begun 1912, decision rendered 1918. Meanwhile, 1914, enacted following year case, Northern Georgia. Process issued defendant, Rochester. 1927 sustained service, objections broadened merely explicit what decided it.15 20 argument certainly plausible, fact addition redundant meaningless. refused accept argument, doing defeated remedial purpose 12.16 That section enacted, held, enlarge adding words, 'so establish only, theretofore, resides 'found,' business'—although residing therein—in either 'found." 372, 403.17 21 construction broader concept 'carrying denoted preexisting decisions. scope indicated statement 'that engaged transacting if fact, usual sense, therein substantial character.' Id. 373, 403. 22 purposes, sloughed off highly distinctions theretofore glossed filling particularized meaning, emptying trn slation stead substituted practical conception engaging operations. Cf. Frene Louisville Cement 77 App.D.C. 129, 134 F.2d 511, 146 926; supra. Refinements previously 'mere solicitation' 'solicitation plus' criteria, drawn, e.g., cases, longer determinative. practical, everyday carrying character' test venue. 23 Applying 'manifestly' Company 'present' Georgia tests being amenable 371, 402. aligned one. But, room established.18 24 Thus, substituting conceptions previous hairsplitting technicalities encrusted 'found'-'present'-' carrying-on-business' sequence, yielded effective purpose. Thereby relieved persons injured laws 'often insuperable obstacle' resorting distant forums redress wrongs residence. come perpetrate injuries outlawed, retreating without retreating19 headquarters defeat delay retribution due. 25 established approach, presented regarding process, possibly ruling run another brought. 374, whatever test, old good noted, 'inhabitant.'20 relating district. Any necessarily dictum, th facts. Nevertheless, 'the found' business,' clause. took account difference went indicate forward law, some situations valid, though clearly 12.21 27 regardless pronouncement's effect, decision, resolving problem, substantially removed serious obstacles immunities grown up larger i.e., companies incorporated outside dubious can assured causing presents obstacle bringing maintaining existed prior necessity, that, directing creates most slight inconvenience additional expense. II. 28 existence 'jurisdiction,' sense To say transacted during period covered times disregard nontechnical, standard supplied provision. ignore largely, exclusively, engage time. 29 operations continuous course before throughout here. consisted strenuous save 'investment,' urged, salvage resuscitate whole enterprise disasters brought war. generally, changes method immediate objective tried turn failed work out. ultimate objective, namely, find mode saving profitably exploiting inventions; intensity continuity object pursued 30 First phase attempting manufacturer seller equipment. When failed, means. arrangements practically technically joint adventure companies. project forms contracts binding participating common enterprise, well special medium executing pat icipant controls created share important respects contract beyond dictating character.22 keystone structure, came stalemate, shifted once more, getting trap. Again shift constant pursuit primary object, way 31 story trouble, desperate. sympathy company's plight. does follow continuing, intensive put normal course, shifting successive winds blew, 'transacting 'any major shifts tacking toward end interrupted activity. drive achieving basic objects suspended. 32 Appellee avoid view consequences different place. emphasizes objects, charter, sell Hence concludes directly pointing ceased, followed seeking centering ceased promoting From on, claimed, concerned solely creating resume effort final stage break arrived, revived. 33 seeks apply Court's interpreting requirements application companies,23 dictum concerning especially invalidate casting check list minor incidents matching service.24 Obviously determinative approach wide variance ones dealing necessary, reject sustaining consider clause should dictum. event think misconceived effects rely, determining validity case. 35 Certainly appellee's conclusionary premise accepted, sole actual equipment; business. Indeed take out, hold patents, covered. nothing show restricted exclusively sale. therefore, after chose another, ceasing consequence discontinued incident discarded method. 36 alternative chosen matter others, active exploitation them. casual contracting. framework dictated These mere arrangements, shareholder investment shareholder's voting control well, conjunction called supervision intervention affairs.25 need decide whether, agreements' pervasive effects, considered sufficing district.26 Whether not, pattern regular program patent requiring, said, intervention. 37 shown, among ways, contractual information, correspondence dv oted informed fully here, received instructions own. acting officer Rather representative, interest. representative His position dual investor's agent about corporation's stock. functions Scophony's. negotiation Neither 'investment' occasional contracting, cites. 39 Moreover, efforts27 resolve impasse. Apart unrestricted almost said his triple mortgagee, attorney-in-fact, stalemate standstill along extricate continuous. 40 Those cessation warding fate. Their liquidate, and, stages, again. this, constantly continuously, retiring interrupting Connecticut Mutual Life Insurance Spratley, 172 602, 308, 43 569; Pennsylvania Lumbermen's Meyer, 197 407, 483, 49 810; St. Louis Southwestern R. Alexander, 227 218, 245, 57 486, Ann.Cas.1915B, 77. interruptions phases adventure, continuity, totality itself. 41 sum, situation cases relies. enterprises. viz., selling, working partaking others requiring shareholders' companies' representatives qua such. 42 know adequate confer valid service. Such far-reaching governed respect rules evolved reference very businesses selling. Nor, comes thing, atomizing minute parts events, unity conduct, sometimes borderline activities. left untouched arisen wi ch applied. expanding pulverizing one, comprehended rulings effects. More extension inappropriate, recalled governs corporations. For, back enforcement remedies domestic give relief obstacles. Even established, impossible, countries 'inhabitants.' construe manner evils abolished, foreclosed decisions, policy together laws, amendment necessary. 44 sum service-of-process Of conceivable element offense 'traditional notions fair play justice.' See 316, 158; Hutchinson Chase & Gilbert, Cir., 45 139, 141. remains argued, Levey's expired delivery him. unrevoked personal 46 Accordingly, reversed remanded proceedings conformity opinion. Reversed remanded. 48 JACKSON concurs result. FRANKFURTER, concurring. I deem appropriate why concur 51 limited, party Law pending satisfy According provision, Limited properly if, activities, 'found York, there. 52 untechnical meaning. answer turns appraisal unique circumstances situation. anywhere, whenever needs law attribute location episodic again turning situation, ascertained questions day judges. 53 detailed opinion, establishes ol y ever 'found.' 54 reach result, open difficult subtle problems attitude abstain joining am disagreement prepared agree. agree wish forecast, entail, bearing discussion us theoretical bound influential. Law, doubt, 'practical rights, maintain theories.' Davis Mills, 194 451, 457, 692, 695, 1067. theories rights. Since will me future, prefer destination shorter route recognizing never 'transact somewhere attribution No doubt reasoning guard oversimplify. Dangers lurk over-complicating. 55 earliest enforced exacted liabilities utilizing concept—by recognizing, is, juristic beings. operation developed, justified, qualified, defined subject sizable library. historic roots society, economic pressures, philosophic notions, response ways men familiar device responded religious Hindu idol standing enforce Pramatha Nath Mullick Pradyumna Kumar Mullick, L.R.I.A. 245 (1925). Attribution duties person man metaphorical worse 'metaphors watched,' Cardozo, J., Berkey Third Avenue 244 N.Y. 84, 94, 155 N.E. 58, 599. instruments thought watched lest abused fail reason. 'Sec. suit, action, business; 736, 22, 22. instituted (designated 'Scophony'), 'American Scophony'), Equipment 'General Precision'), Television Inc. 'Productions'), Pictures, 'Paramount'), defendants, presidents corporations, Expediting February 1903, 823, 29, 238 Judicial Code, 938, 345, 345. main relate systems transmission reception, known 'supersonic' system 'skiatron' system. shall future processes, designs, data, etc., third system, cathode-fluorescent early century used today. An 4, amended original two-thirds remainder individuals. understandings territorial division assigning Hemispe re Productions; suppress competition equipment, markets; monopoly enabled deprive use. included various attorneys, Parliament, English officer. immediately England designate counsel. 21, airmail. attorney appoint 'and bind affecting Company's *.' institute prosecute conserve interests; defend compromise settle accounts; subagents; borrow money; dispose property States; 'generally represent pertaining difficulty transferring shaped nomenclature normative relation flesh blood. See, unable adapt 'inhabitancy,' cited, scheme diversity individualistic solution lasted decades. Henderson, Position Foreign Corporations Constitutional 50—76; Harris, Citizen, Va.L.Rev. 507. 499. Cahill, Jurisdiction Individuals Who Carry Business Territory, Harv.L.Rev. 676; Scott, Nonresidents Doing State, 871; Bullington, Corporations, N.C.L.Rev. 147; Note, Constitutes Purposes Jurisdiction, Col.L.Rev. 187. federalism structure magnifies multiplying governmental boundaries across runs greatest freedom. arises common-law levels. 1057; Puerto Rico Russell 288 476, 447, 903. makes suggestion issue. Government, suggests recent aspects similarly presented, extend criteria formulated so. considerably finding utmost power. said: 'The rule deducb le nature warrant subjected duly officers attempted. Philadelphia Reading Ry. McKibbin, 243 264, 280, 61 710; 226, (247), 77.' Counsel argue broaden section, already statute. 361, 401. This, 'is 7, others. Rather, supplements provision resulting illegal restraints trade, relieving committed nonresident however distant, 'found'—often obstacle—and enabling frequently residence, note 16. concrete sustain shipping dealers soliciting salesmen demand demonstrators increasing 404. expressly contrast limitations, 'none less reside district,' referring connection 946, Farmers' Co-operative Equity 262 312, 556, 557, 67 996. I.e., artful arrangement agents' authority, comings goings, geography artifice saw substantive contrary thereby advent stated, Although appear incongruous, ordinarily seem susceptibility accompanied amenability things correlation, lack provisions. requirement coextensive. support matter, considerations verbal pointed stated. E.g., hemispheric territories prevented companies; contractual, limitations powers. used, refinements by-laws veto undertakings embodied designated become interests. Cannon Mfg. Cudahy Packing 267 333, 250, 634; Consolidated Textile Corp. Gregory, 289 85, 529, 1047; catalogue dates office, warehouse owning realty physical property; staf employees; 'other counsel Elcock'; telephone listing; making sales; conducting research; orders. Correspondingly atomizes separate, disconnected (in Scophony); contracting patents; protect 'interests' distribution powers conform overall bylaw execution. Especially fixes suits, sound differentiating all-pervasive run-of-mine intermittent commodities company, 7.

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