Document: 422 U.S. 66 95 S.Ct. 2080. 45 L.Ed.2d 26 Stewart S. CORT et al., Petitioners,v.Richard A. ASH, etc. No. 73—1908. Argued March 18, 1975. Decided June 17, Syllabus Respondent stockholder brought this action seeking damages in favor of petitioner Bethlehem Steel Corp., a Delaware corporation, and injunctive relief because advertisements connection with the 1972 Presidential election that corporate directors had authorized from general funds alleged violation 18 U.S.C. § 610, which prohibits corporations making contributions or expenditures specified federal elections. jurisdiction under 28 1331 sought to state private claim for also invoked pendent an ultra vires law. The District Court's denial preliminary injunction was upheld on appeal, following respondent dropped rather than post security expenses law before proceeding claim. Court then granted petitioners' motion summary judgment. Appeals reversed, holding passage not mooted case since were 'a cause action, whether by citizen secure derivative damage (is) proper remedy 610.' After decision Congress enacted Federal Election Campaign Act Amendments 1974 (hereinafter Amendments), which, inter alia, Commission can receive complaints statutory violations where warranted request Attorney General seek action. Held: 1. constitute intervening relegates Commission's cognizance respondent's complaint as against any 610 future elections, must examine according existing at time its decision. United States v. Schooner Peggy, 1 Cranch 103, 110, 2 L.Ed. 49; Bradley Richmond School Board, 416 696, 711, 94 2006, 2016, 40 476. Pp. 74-77. 2. stockholder's suit regard cannot be implied remedy, if any, Delaware's corporation 77-85. (a) Section primarily concerned, internal relations between stockholders, but source aggregated wealth therefore potential corrupting influence; thus statute differs other criminal statutes causes have been inferred clearly articulated right plaintiff, e.g., Bivens Six Unknown Narcotics Agents, 403 388, 91 1999, 29 619, pervasive legislative scheme governing relationship plaintiff class defendant particular regard, J.I. Case Co. Borak, 377 426, 84 1555, 12 423. 78-82. (b) history suggests no congressional intention vest shareholders statute. 82-84. (c) A would further purpose dulling influence elections compelled repayment might well deter initial violation. P. 84. 3 (d) is one traditionally relegated area concern. In addition urged misuse might, some States, give rise breach fiduciary duty. 84-85. 4 496 F.2d 416, reversed. 5 Edwin Rome, Philadelphia, Pa., petitioners; Jerome R. Richter, Richard McElroy, William H. Roberts, Curtis Barnette, New Haven, Conn., briefs. 6 David Berger, respondents; Cletus Lyman Paul J. McMahon, brief. 7 Solicitor Gen. Robert Bork, Acting Asst. Atty. John C. Keeney, M. Feit, Washington, D.C., filed brief amicus curiae. 8 James F. Rill, Thomas Shannon, Hardin Young, Milton Smith, Lawrence B. Kraus, Chamber Commerce 9 Alan Morrison Reuben Robertson III, Judith Bonderman others amici 10 Mr. Justice BRENNAN delivered opinion Court. 11 There are questions, principal issue presented prohibiting contribution expenditure Vice electors . voted for.'1 We conclude implication such suggested context required accomplish Congress' purposes enacting occasion address questions properly construed, proscribes case, unconstitutional violative First Amendment equal protection component Due Process Clause Fifth Amendment. * August September 1972, advertisement caption 'I say let's keep campaign honest. Mobilize 'truth squads" appeared various national publications, including Time, Newsweek, News World Report, 19 local newspapers communities Corp. (Bethlehem), has plants. Reprints advertisement, consisted mainly quotations speech Cort, chairman board Bethlehem, included 11, quarterly dividend checks mailed stockholders corporation. main text appealed electorate 'encourage responsible, honest, truthful campaigning.' It vigilance needed 'careless rhetoric accusations being thrown around these days—their target business community.' italics, picture quoted 'the statement made political candidate: 'The come tax system says big business-you pay your fair share." printed Cort's rejoinder his speech, 'large (are) carrying their share burden' 'baloney.' concluded offer send, request, copies entire speech2 folder 'telling how go about activating Truth Squads.'3 These publications could obtained free Public Affairs Department Bethlehem. stipulated costs mailings paid Bethlehem's funds. App. A29—A30; 350 F.Supp. 227, 229 (ED Pa.1972). 13 owns 50 shares stock qualified vote election. He Eastern Pennsylvania 28, behalf himself derivatively, two separate distinct bases relief. Count I 1331, mentioned, terms provides only penalty. II law, alleging 'ultra vires, unlawful willful, wanton gross (defendants') duty owed (Bethlehem).' Immediate sought, compensatory punitive 14 denied October 25, 1972. 227. While supported three grounds,4 it appeal Third Circuit narrow ground irreparable harm shown. 471 811 (1973).5 15 affirmance petitioners order requiring court declined I, did $135,000 II. Rather security, amended complaint, II, case.6 16 judgment without opinion. (1974). held that, controversy moot, although occasioned past. Id., 424. certiorari, 419 992, 302, 42 264 reverse. 17 consider first (as) (or stockholder) relief.' history, seeks circumstance, after Appeals, 1974, Pub.L. 93—443, 88 Stat. 1263 (Amendments) (amending 1971, 86 3), requires reversal Appeals. terms, statute, providing fine imprisonment At filed, there provision civil enforcement parties Government agency. But created Commission, 437(c)(a)(1) (1970 ed., Supp. IV);7 established administrative procedure processing January 1, 1975, 437g IV), amended, 410, note 431 IV); provided '(a)ny person who believes (of 610) occurred may file Commission.' 437g(a)(1)(A) IV). either investigate refer General, §§ 437g(a)(2)(A) (B) IV).8 If chooses investigation determines 'any engaged engage acts practices will violation' 'institute relief, permanent temporary injunction, restraining order, appropriate ..' 437g(a)(7) And 437c(b) IV) expressly vests 'primary jurisdiction' over claimed within purview.9 Consequently, complainant enjoin henceforth pursue invoke authority H.R.Conf.Rep.No. 93—1438, p. Thus, our decide rule announced Chief Marshall 49 (1801): 20 'It true province appellate enquire when rendered erroneous not. subsequent court, intervenes positively changes governs, obeyed, obligation denied. constitutional know contest obligation. laws, necessary set aside judgment, rightful rendered, affirmed aside.' 21 most recently reaffirmed principle Peggy 476 (1974), we said: 'We anchor apply effect renders decision, unless doing so result manifest injustice direction contrary.' 'statutory contrary' respecting Amendments, nor possible 'manifest injustice' respect yet occur Amendments. III 22 Our conclusion Part pretermits addressing question standing voter maintain derivatively stockholder. Therefore, turn next hold available itself, available, all, corporations.10 23 determining implicit one, several factors relevant. First, 'one whose especial benefit enacted,' Texas & Pacific Rigsby, 241 33, 39, 36 482, 484, 60 874 (1916) (emphasis supplied)—that is, does create plaintiff? Second, indication intent, explicit implicit, deny one? See, National Railroad Passenger Assn. Passengers, 414 453, 458, 460, 690, 693, 694, 38 646 (1974) (Amtrak). Third, consistent underlying imply Amtrak, supra; Securities Investor Protection Barbour, 421 412, 423, 1733, 1740, 44 263 (1975); Calhoon Harvey, 379 134, 85 292, 190 (1964). finally, basically concern inappropriate infer based solely law? See Wheeldin Wheeler, 373 647, 652, 83 1441, 1445, 605 (1963); cf. 434, 1560, 423 (1964); 394—395, 2003—2004, 619 (1971); id., 400, S.Ct., 2006 (Harlan, J., concurring judgment). 24 dissenting judge here suggest penal alone, regarded creating people. 'Every designed protect individual, public, social interest. To find every social, public interest invaded do intended enact code companion code.' F.2d, 428—429 (Aldisert, dissenting). Cf. Nashville Milk Carnation Co., 355 373, 377, 78 352, 354, 340 (1958). 25 Clearly, penalty necessarily preclude damages. Wyandotte Transportation 389 191, 201 202, 379, 385—386, 407 (1967); see Taxas supra. However, Wyandotte, least basis inferring sort lay someone.11 Here, nothing more bare absolutely kind anyone. need not, however, far circumstance never deemed sufficiently protective special group member group. For intent particularly best subsidiary relevant all helpful militate implying 27 derived 26, 1907,12 'seems motivated considerations. necessity destroying exercised through financial contribution. feeling officials moral use consent stockholders.' CIO, 335 106, 113, 68 1349, 1353, 92 1849 (1948). Cong.Rec. 96 (1905) (Annual Message President Theodore Roosevelt). second purpose, claiming invested demonstrates up used purpose. 1907 Act, recited length Auto Workers, 352 567, 77 529, 563 (1957), ordinary secondary concern.13 Rather, primary 1925 Corrupt Practices 43 1070, reenacted 313 supra, 577, 534, assure "free power money," U.S., 574, 533, eliminate "the apparent interests sometimes obtain reason liberal contributions." 576, quoting 65 9507 (1924) (remarks Sen. Robinson). 571—577, 531—534. legislation concerned influence, directly stockholders. contrast, those situations provided, generally I. whatever 610. True, clear persons certain rights, show controlling.14 where, here, dubious rights broader regulation corporations, fact suggestion or, indeed, reinforces expectation, continue entrusted entirely 30 while 'it courts alert provide remedies make effective purpose,' 433, instance aid goal. Recovery cure permit 'borrow' time; later certainly decrease impact upon already 31 Fourth, reasons intimated, relegate situation pressed n. 6, may, Miller American Telephone Telegraph 507 759 (CA3 1974). Corporations creatures investors commit understanding except responsibilities govern affairs If, example, permits Miller, 763 4, notice recourse reluctant recover laws put shareholder recovery. 32 '(If) State happened attach responsibility misleading proxy statements, whole (§ 14(a) Exchange 1934) frustrated.' 434—435, 1561. committing state-provided effect. involved intrusion into corporations; extent differed impeded suit, compromised statecreated regulating such, As seen, existence nonexistence hinder 33 Because presently light intrude committed aiding 34 ordered. 35 Reversed. Title ed. III) part follows filed: 'Contributions banks, labor organizations. bank, organized Congress, office, convention caucus select candidates whatever, organization Senator Representative in, Delegate Resident Commissioner for, foregoing offices, candidate, committee, accept prohibited section. makes section shall fined $5,000; officer director organization, consents be, accepts receives conribution, section, $1,000 imprisoned year, both; $10,000 years, both. 'As phrase 'contribution expenditure' include direct indirect payment, distribution, loan, advance, deposit, gift money, services, anything value (except loan money bank accordance applicable banking regulations course business) party offices referred section; communications families members subject; nonpartisan registration get-out-the-vote campaigns aimed families, families; establishment, administration, solicitation segregated fund utilized organization: Provided, That utilizing secured physical force, job discrimination, reprisals, threat reprisal; dues, fees, monies condition membership employment, commercial transaction.' Definitions 591 III). 1263, 101(e), 102, increased substantially fines changed many definitions defense 'big business' current system. Although named candidate party, large devoted refuting quoted, prominent presidential candidate.' 'candidate' quite Democratic (George McGovern), A13. listeners '(m)obilize squads"—organize refute 'false deceptive' statements 'outrageous accusations.' entitled: 'How you help honest.' suggestions informing oneself election, using research tools, wrong,' organizing friends neighbors same. Unlike contained discussion issues. sanctions exclusive, implied. 231. specific candidate,' payment 'expenditure' meaning 231—232. found '(i)n failing prove likelihood success merits, failed granted.' 232. affirming, observed seemed ultimate addressed considered tentative, leaving renew contentions final hearing. 812. seems invite Court, effect, reinstate decline so. argues, somewhat cryptically, 'was nullity' '(a) dismiss theory Brief state-law claim; deliberately complaint. merits applied claim, Sargent Genesco, Inc., 337 1244 (MD Fla.1972); Cohen Beneficial Loan 541, 69 1221, 93 1528 (1949), foreclosed consideration now raised operative pleading. (1963). think preserved circumstances verbatim repetition allegation original conduct 'in law.' us argument Del.Code.Ann. Ann. Tit. 8, 101; W. Fletcher, Cyclopedia (1968 ed.), 'arises under' 1331. relies Smith Kansas City 255 180, 41 243, 577 (1921); 659—660, 1443—1449 (Brennan, Not respondent, him he neither cross-petitioned contention Opposition Petition Certiorari. Moreover, depend district appeals determinations law; practice deference should render unnecessary review decisions respect. Internal Revenue Estate Bosch, 387 456, 462, 87 1776, 1781, 886 Ragan Merchants Transfer 530, 1233, 1235, 1520 (1949). Obviously, then, undertake inherent theory, instance. sum, 'we deviating normal policy considering issues here.' Neely Eby Construction 386 317, 330, 1072, 1081, 75 Wiener 357 349, 351 n., 1275, 1277, 1377 Senate-passed bill eliminated conference. Berry Goldman, Policy: Study Harv.J.Legis. 331, 343, 354 (1973); S.Conf.Rep. 92—580, pp. 34—35 H.R.Conf.Rep. 92—752, (1971). Senate version given 382, 308(b), passed Aug. 5, 1971 (3 Leg.Hist. 1971). Other provisions relevance parties' 437g(a)(9) judicial behest aggrieved' 437h(a) permitting individal eligible office States' 'such actions construe constitutionality 610).' disagree reference complainant, filing fails filed. They dispute exhaustion requirement applies Compare 120 35134 Hays) (suggesting exclusive) 35132 Brademas) ('individuals organizations (must) exhaust .' supplied)); relevant; suffices desiring occur. availability arise obtains Richardson Wright, 405 208, 209, 788, 789, 151 (1972). considerations base present similar determination view same 9, 14, infra. conceded rem ship obstructing navigation Rivers Harbors 1899, retain proceeds sale vessel cargo. 200 12, 385. penalties 16. 1934 specifically 'enforce liability title rules thereunder,' declaratory authorized; rescission available. 430—431, 1559. Further sue Borak. 78u. Finally, noted language pertinent damages, rendering '(t)he inference irresistible.' 40, 484. Republic 362 491, 80 884, 889, 903 (1960). provided: '(It) office. Vice-Presidential legislature Senator. 864. expanded unions prohibition. expansion recounted before. 114—116, 1353—1354, (1948); 578—584, 534—537, (1957); Pipefitters 385, 402—409, 2247, 2258—2261, concern, permanently expanding unions, protecting union purposes. 135, 142, 1363, 1367 (Rutledge, concurring). This difference emphasis reflect recognition acquires voluntarily dispose it, dues often involuntary checkoff provisions. Machinists Street, 367 740, 81 1784, 1141 (1961). arguable much greater parallel state-created corporations. fact, comprehensive legislation, Taft-Hartley 1947, dealt intimate members, despite stronger remedies. Petitioners point out disclosure enacted, 308(d), yet, 205, amend Relying T.I.M.E., Inc. 359 464, 79 904, 952 (1959), they ask excursion extrapolation unilluminating. plaintiffs concerning issue. frequently stated construction remedies, expand coverage subsume remedies.' 693. addition, support Amtrak proposition exclusive. 458—461, 693—694. rely parts Interstate none others. again, inference. 471—472, 477, 908—909, 912. was, able independently determine, Further, ways earlier origin, odd newly regarding long-existing throw 'cross-light,' 427, S.Ct.At 2270, Any cast view, exceedingly dim little here.

Category: 2