Document: 331 U.S. 752 67 S.Ct. 1493 91 L.Ed. 1796 AIRCRAFT & DIESEL EQUIPMENT CORPORATIONv.HIRSCH et al. No. 95. Argued Jan. 15, 1947. Decided June 16, As Amended on Denial of Rehearing Oct. 13, Appeal from the District Court United States for Columbia. [Syllabus pages 752-754 intentionally omitted] Mr. Arthur R. Hall, Chicago, Ill., appellants. Robert L. Stern, Washington, D.C., appellees. Justice RUTLEDGE delivered opinion Court. 1 This case is fourth in a series seeking here determination invalidity, constitutional grounds, First and Second Renegotiation Acts1 allied legislation. 2 In Coffman v. Breeze Corporations, 323 316, 65 298, 89 264, Alma Motor Co. Timken-Detroit Axle Co., 329 129, 231, Royalty Adjustment Act2 was attacked. The remanded to Circuit Appeals Act's applicability. suit by patent owner restrain his licensees paying accrued royalties Government pursuant provisions. We held that complaint had been rightly dismissed want equity jurisdiction, since plaintiff an adequate remedy at law against its licensees, also justiciable or controversy. 3 Mine Safety Appliances Forrestal, 326 371, 66 219, 90 140, government contractor challenged Acts.3 sought enjoin Secretary Navy taking action 'which would stop payment money lawfully Sttes Treasuery satisfy government's not Secretary's debt appellant.' page 374, 221, 140. Accordingly we indispensable party. Since it neither joined nor consented be sued such proceeding, followed properly dismissed. 4 one other case, Macauley Waterman S.S. Corporation, 327 540, 712, 839, constitutionality involved, but coverage Acts put issue. brought declaratory judgment further renegotiation proceedings affecting specified contracts. decision Tax has power decide questions authorized § 403(e)(1) Act. Hence, under authority Myers Bethlehem Shipbuilding 303 41, 58 459, 82 638, have dismissed, this instance plaintiff's failure exhaust administrative remedy. 5 Now Aircraft Diesel Equipment Corporation seeks are unconstitutional various grounds. Injunctive relief asked. And, addition questions, issues matters. 6 defendants, appellees here, consist members War Contracts Price Board, War, Under War.4 Pursuant statutory requirement, 50 Stat. 751, 752, 28 U.S.C. 380a, U.S.C.A. district court three judges especially convened. After hearing, dismissed.5 One ground premature, were pending undetermined Court, appellant's applications, redetermination allegedly excessive profits 1942 1943.6 without jurisdiction equity, view available Aircraft. Probable appeal duly noted here.7 1346. 7 think correctly complaint, reasons stated as grounding action. expansively include almost all comprehended causes previously determined here. But reaches posture differing some substantial respects characterizing any those proceedings. Hence becomes necessary set forth with particularity facts controlling issues. I. 8 Appellant business manufacturing diesel fuel injection equipment precision parts, aircraft parts. Its activities, insofar material,8 carried subcontracts contractors. turn furnished completed engines t Unite d States. 9 Act, acting though delegate October 27, 1943, during fiscal year ended November 30, 1942, appellant realized (less tax credits) amounting $204,000. On April 29, 1944, directed customers withhold sum appellant. Thereafter filed petition Court9 alleged profits. Nevertheless, July 19, pay $204,000 into Treasury States, direction obeyed.10 10 Following instituted January 11, 1945, entered order determining $1,265,000. Deduction credits reduced amount approximately $270,000. again Court.11 Then suit. 11 amended too lengthy detailed summarization opinion. Apart allegations going coverage, including asserted defects procedures followed,12 establish equitable character, showing inadequacy legal remedies. These included proceedings, possible Claims following completion Court's determination, actions customers, contractors recover amounts said due their varios contract s. 12 particular that, notwithstanding pendency Board Secretary, delegates, steps prevent Aircraft's over moneys owing contracts, aggregating $270,000, claimed threatening direct these sums Treasury13 unless they restrained, made, irreparable injury.14 No asked, way decree, refund collected 1942. It suggested, however, if Act should found invalid sustained,15 permitted collect only difference between suggestion, course, formally substantially claim setoff latter amount. Cf. supra. 13 contested each claims. primary contentions aimed jurisdictional showing. argues substance effect which there no governmental consent, cf. supra; because until done will exhausted remedy, given exclusive matters; event, character afford seeks, upon contracts may determined. 14 connection appellee Hirsch, chairman affidavit admitting he appellees, take steps, alleges, $270,000 it, secure Treasury. sets forth, required made more than two and, event does result full amount, proceed whatever remain 15 Aircraft, hand, both supporting president, from, could to, customers. Rather collection sixteen And same basis require institution numerous different jurisdictions, resulting expense delay, well loss good incurring continued risk customers' solvency.16 claims conferred reason multiplicity suits involved asserting injurious consequences follow pursuing course. II. 16 do find undertake threshold question whether Were issue squarely presented rofmal concerning aspect very close supra.17 17 tarry, consider feature absence formal specific nature otherwise indicates, think, strategic avoid difficulties definite unequivocal assertion, score being fact function Government. Something mere suggestion bring play judicial affording when appears deliberately accepted further. reinforced acted on, involve serious questions. They entertained dubious presentations or, most certainly, presentation reasonably taken intended them forward inescapably. Rescue Army Municipal 549, 1409; 231. side confine our consideration relating 1943. 18 also, urges, effective make Government, consented. view, likewise, relies decision, others.18 undertakes distinguish cases official enjoined conduct funds out Treasury, whereas analogous affects Government's actual possession touch third persons account. difference, urged, withholding about 19 That indeed substantial. sufficient enable difficulty foreclosing officials, essentially trespassers,19 joining itself. words determine is, effect, grounds sustain dismissal cause. 20 Ordinarily course exhaustion remedies, condition precedent securing relief, existence either separate separable matters, treated entirely distinct. generally speaking simply performed prior invoking exercise courts. goes basic sense. problem closely, inseparably related. colored relevant provisions Acts, particularly alone provides redetermination.20 21 supra, called relation provided 403(e)(1), courts regard Section authorizes 'any subcontractor aggrieved received by' him, file within ninety days after notice mailed.21 section then provides: 22 'Upon filing shall order, finally any, subcontractor, reviewed redetermined agency.' 23 expressly states proceeding 'shall review Board,22 de novo.' powers duties, 'insofar applicable,' respecting 'the contractor, respect attendance witnesses production papers,' together procedural sections Internal Revenue Code redetermining deficiency taxes. Moreover, commands: 'The subsection operate stay execution (c)(2).' 24 account provisions, said: legislative history moreover, shows Congress law,23 raised subject Act.' 544, 714, 839. 'To grant injunction sought,' continued, first instance. Whether ever can so not, cannot now agencies24 yet determination. Here, just process, far exhausted, hardly begun. consequently correct holding lacked j urisdiction act.' Id., 545, 25 differed respects. There 'hardly begun' while do. contracted directly agency, Maritime Commission. Here importance matter later noted. said, constitutionality. types presented. identical sought. Each asked injunctive restraining looking toward application 26 differences mentioned purposes applying rule. Certainly derived begun gone can. doctrine, wherever applicable, merely initiation prescribed procedures. exhausting them, appropriate conclusion correlatively, awaiting final outcome before intervention. 27 purpose providing initial preliminary either, substitution other, foundation perchance unnecessary Where clearly commanded initially exclusively, lawful anticipate own, rendered intervene presumed accordance Congress' because, reasons, exclude exerted manner. To contravene restricting deferring nullify congressional objects uniformity policy disposition,25 expertness judgment, finality least things commit agencies decision. doubt whatever, history, ends stage. Indeed created large part single aegis last stage informal action, thus nearly uniform administration problems.26 provision redetermination. procedure chosen preference elsewhere, primarily Court's27 matters arising problems,28 exerience.29 29 equally clear endow decisions degree finality, terms whole structure history.30 express command 'exclusive determine' profits, any. buttressed prohibition Board's 403(c)(2).31 irrelevant statute's general making determinations final, time, delegates similar Board. 403(c) (1). 30 True, statute confers rights through stages end phase. Nevertheless entire indicates promptly expeditiously settled; accomplish negotiations introducing compulsion every succeeding commanded. 31 At height war recognized, did procuring agencies,32 speed procurement, materials, outweighed considerations normally applicable. product necessity rather cause, problems time consuming closely related pricing difficulties.33 Often worked hinder delay process procurement. Congess theref ore sought, possible, relieve interrelated processes tedious burden litigation. writing east successive stage, although saving right resort eventually way. 32 opinion, explicitly reserve Tas infer conditioned background, purpose, inevitable circumstances allow skirting devised altogether partially, where greater inconvenience flow inability seek dependent completion. 33 forced give word law, surely purpose. Nor need become attempt what might left, leave, body's conclusive disposition. For seems obvious, terms, policies incorporated, functions motion fully performed, intervention place position. 34 ruling case. there, overcome, record injury forestall complete operation congressionally procedure. 35 contrary, true situations,34 constitutes strong allowing performance function. When done, nothing left claim, complaint. 36 favor. Indeed, offers support possibility unlikely one. For, apart otherwise,35 forward, proceedings,36 exemption noncoverage involving much arger amou nts aggregate affected renegotiation, deduction credits.37 founded, disposition, render cause moot. 37 anticipated, 1409. forestalled coverage. 38 presence coupled threatened impending flowing incident procedure, dispense instituting intervention.38 But, analysis decisions, rule convenience ready application. intent exclusion advance required, harm, permit short-circuiting process. commands restraint lightly disregarded. 39 Mor especiall y legislation, type, adopted meet emergency resting, part, powers. cases, 'only say incapable petitioners conclude shown excuse infringed,' Yakus 321 414, 435, 64 660, 672, 88 834, statement implicitly requiring exhaustion, initiation, 40 adequacy anticipation another inconsistent command, certain even expeditiious convenient substituted circumvents command. added qualification certainly probably destruction substantive rights. 41 brings us equity's showing, considered light foregoing principles intent, sufficient. 42 Whatever scope allowed explicit exists mandate present tendered absence. must cast scales factors which, fact, weight balance favor utilization resources. itself way, situations doubtful short, so-called isolated necessarily readily overriding it. 43 place, availability certainty effectiveness owe agreements. Suits forbidden, impliedly Acts. proceedings.39 Moreover know why 44 addition, special pointed out, While whom dealt, nevertheless conceivable go least, undertaking responsibility defense. 403(c)(2)40 provided: 'Each hereby indemnified withheld paragraph.' 45 face indemnity, stakeholder latter's terminated favorably complainant, obligate indemnify reimburse liability incurred. incurs virtue subcontractor's 46 Accordingly, seem regarding inherently inadequate ineffective protection appellant, ones. stands identically supra.41 If exists, extraneous 47 injury. multiplicity, justify eliminating proceeding.42 Boiled down, come assuming, period withhold, solvency, allegation seriously claim; deprivation, period, use withheld.43 approaches proceeding. 48 Nor, Appellant's sue 'or more' scattered consequent litigation 'resulant ill-feeling injury' business. hand Hirsch needed instances, 49 version assumption jurisdiction. disposed override trial court, turning fact.44 apparent, rate allegations, perhaps preserve A test serve former fully, show recourse others lost suit, legally statutes limitations practically, probable incidence insolvency. 51 kind argument actually comes deprivation customer. limited depends first, coverage; second, whether, held, litigation, obligation be, indirectly withheld.45 52 circumstances, suing many extraordinary conditions full, completely law. 53 others, advanced rejected sustaining circumvent noting company's 'it subjected contracts,' 'Even possibly occur future, affect arise future contingencies.' 715, 54 stronger retaining complainant namely, guaranty indemnity incurred him 55 among wholly immaterial. countenance long overreaching arm. 56 affirmed. 57 Affirmed. JACKSON concurs result. 59 DOUGLAS dissents. contained 403 Sixth Supplemental National Defense Appropriation 226, 245, 798, 982, 347, 564. 1943 21, 78, 294, U.S.C.A.Appendix, 1191. Of 31, 1013, §§ 89—96, 89—96. See note 1. 403(d)(1) U.S.C.App. 1191(d)(1), 1191(d)(1). successors office original defendants. 62 F.Supp. 520. 9. date appeal, enforce statutes, notifying payable Acts' terms. notes 10, infra. alleges supplied materials Department paid supplies. Apparently, therefore, bearing provide originally enacted; specifically review, body, Steadman, Further Legal Inquiry Into Renegotiation: (1944) Mich.L.Rev. 1, 12. afforded retroactive. 1191(e)(2), 'Any * enactment ending profits.' amended, eliminate subcontract (iii) directing *.' 983. 13. An earlier initiated review. one, redetermination, denied own. example, violate Article I, Constitution constitute unlawful delegations compensation Fifth Amendment, jury Seventh Tenth based information obtained 'governmental reliable sources' opportunity examine rebut. 403(c)(2) 1191(c) (2), 1191(c)(2), agreement, entry paragraph (1) (e) forthwith authorize Secretaries (A) reductions Departments, revision terms; (B) profits; (C) subcontractor; (D) recovery repayment, credit, him; (E) combination methods, deemed desirable. *' following: 'Notwithstanding whereby orderly America, purporting act defendant Henry Stimson, contractors, plaintiff, directions sms mone delegate, P. Patterson, heretofore, recited America 1943.' 42. omission Second, see, e.g., invalidating constitutional. Although setoff, 'stop i appellant,' 'an indirect effort owed consented,' 375, Especially State Louisiana McAdoo, 234 627, 938, 1506; Belknap Schild, 161 443, 599; re Ayers, 123 164, 216. ordering 'trespass property' Lee, 106 196, 240, 171; Land Dollar, 330 731, 1009, orders deprive vested property rights, contrary funds, like 'where (as immunity suit) merits.' 735, pag e 1011. provision, applies date. Otherwise final. 403(c)(1). reads: 'In limit (e)(1), Similarly, limitation placed 'all liabilities accrued' year. 403(c)(3). Citing, Cong.Rec. 1355, sponsor House failed refused attend conferences supply 9928—9929. Previously departments concerned up central board 'more profits,' H.Rep. 871, 1st Sess., 75, dissatisfaction voluntarily established, see 9934, 'insistence coordination having renegotiating voluntary cooperation necessity.' I 6. 158, 957, 1100, Int.Rev.Code, 1100: (hereinafter referred 'Board') independent agency Executive Branch known thereof presiding judge States.' 78th Cong., 77; II 235, 270; S.Rep. 109; 1079, 2d 83. Dobson Commissioner, 320 489, 498, 239, 248; 27. 'That accrued, fair price determined, 77. 9930: committee old cooperative signed closing agreement issues, otherwise, decided court.' contains Patterson reads part: 'Wartime procurement military establishment differs radically times peace. Speed once all-important. '* normal methods pressing requires abandonment drawn-out negotiation careful surveys sound purchasing require. Competition wanes longer guide prices paid. Above all, forecasting costs becomes, measure, informed guessing real cost analysis.' separated repricing renegotiation. 92, 1192, 1192. 37—38. 23, Helvering Independent Life Ins. 292 154, 224, reversing Commissioner Cir., F.2d 470, affirming B.T.A. 757; Stein Bros. Mfg. T.C. 863. copy attached exhibit alleged, total sales $3,548,845.50 renegotiated, $2,207,574.95, renegotiation; $1,312,250.07 'Standard Commercial Articles' defined Act; articles sold competitive sale manner protected prices, such, $29,020.48 ultimate department, instrumentality thereof, civilian use, renegotiation.' Thus, federal state enforcing confiscatory rates precluded supersedeas 'acting capacity' Oklahoma Natural Gas Russell, 261 290, 353, 659; Pacific Telephone Telegraph Kuykendall, 265 553, 68 975; Porter Investors Syndicate, 286 461, 617, 76 1226. wrong, Hillsborough Cromwell, 620, 445, 358; Wallace Hines, 253 66, 782. applied frequently inapplicable latter, regulate obstacles cases. proper defer deciding American Federation Labor Watson, 582, 599, 761, 873, cited. preserve, status quo (War Adjustment) Board' mean deprived stays necessary. 'Where wished historic power, knew how apt Scripps-Howard Rapid Federal Communications Commission,316 , 17, 875, 883, 86 1229. Emergency Control 901 seq.; 429, 437, 669, 673, using language. literally automatice covers situation licensor reference exactly remedy: 'But valid appellants relief. defense, entitled invalid, remains unimpaired. sufficiency defense tested receive entitled.' 323, 302, 264. stood rested alternative royalties, 'and, found, compliance enjoined, declines contest.' This, prayer bill 'but request advisory validity royalties.' 324, maintain caused unnecessarily run impaired credit insolvency funds; working capital essential carrying obligations subcontractors reduced; operations 'will hampered irreparably damaged reduction capital'; continue supplying payment, impairing assets interests stockholders alternative, refuse shipments consequence unable business, 'inasmuch portion market products presently prime thereof.' 'could interest money' Claims, counts asserts unavailable inadequate. allegation, recoverable above, sufficiently broad cover withholding, preclude merits significance connection, years 80 per cent dollar value private concerns, Fairchild Engine Airplane General Motors Woodward Governor Company, Navy. Concerning Navy, 8.

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