Document: 330 U.S. 585 67 S.Ct. 918 91 L.Ed. 1117 PENFIELD CO. OF CALIFORNIA et al.v.SECURITIES & EXCHANGE COMMISSION. No. 453. Argued Jan. 16, 1947. Decided March 31, Rehearing Denied May 5, See 331 865, 1301. [Syllabus from pages 585-587 intentionally omitted] Mr. Morris Lavine, of Los Angeles, Cal., for petitioners. Roger S. Foster, Washington, D.C., respondent. Justice DOUGLAS delivered the opinion Court. 1 The Securities and Exchange Commission, acting pursuant to its authority under § 20(a) Act 1933, 48 Stat. 74, 86, 15 U.S.C. 77t, U.S.C.A. 77t(a), issued orders directing an investigation determine whether Penfield Company had violated in sale stock or other securities. In course that it directed a subpoena duces tecum Young, as officer Penfield, requiring him produce certain books corporation covering four year period ending April, 1943. 19(b) Act, 77s(b). Upon Young's refusal appear records, Commission filed application with District Court order enforcing subpoena.1 After hearing, court ordered them.2 Young persisted his non-compliance. then applied rule show cause why should not be adjudged contempt—a proceeding which, we shall see, was one civil contempt. delayed action on motion until after disposition criminal case involving others. When concluded, court, It refused, however, grant any coercive relief designed force documents but instead imposed flat, unconditional fine $50.00 which he paid.3 2 That July 2, 1945. On September 24, 1945, notice appeal subsequently statement points challenging error imposing fine, remedial penalty calculated make documents. Circuit Appeals reversed, holding erred imprisoned produced 9 Cir., 157 F.2d 65. is here petition writ certiorari by Co. Young. Neither nor rendered judgment against Penfield. Nor sought here. Accordingly dismissed 3 First. argued since no allowance made, jurisdiction entertain it.4 If suit nature, filing adequate Federal Rules Civil Procedure.5 4 nature asked determinative proceeding. Lamb v. Cramer, 285 217, 220, 52 315, 316, 76 715. This United States party seeking vindicate public interest. Gompers Bucks Stove Range Co., 221 418, 445, 31 492, 499, 55 797, 34 L.R.A.,N.S., 874. contempt proceedings were instituted part enforcement subpoena. production documents; only sanction compel their production. Where imprisonment contemnor 'intended coercing defendant do what refused do', supra, at page 442, 498, 874, remedy Mine Workers, 258, 677. Then 'the punishment wholly remedial, serves purposes complainant, intended deterrent offenses public.' McCrone States, 307 61, 64, 59 685, 686, 83 1108. One who fined, unless day produces books, has power avoid penalty. And those are they obey order, 'carry keys prison own pockets.' re Nevitt, 8 117 F. 448, 461. Fine employed interest sanctions law made duty do. Doyle London Guarantee 204 599, 27 313, 51 641; Oriel Russell, 278 358, 49 173, 73 419; Fox Capital 299 105, 57 57, 81 67; supra. 5 gives require records investigations. absence basis saying demand exceeds lawful limits (Oklahoma Press Publishing Walling, 327 186, 66 494), entitled aid obtaining them.6 A enforce prior denies statutory relief. issue thus raised poses problem civil, criminal, contempt.7 6 embodied single contains admixture elements, aspect fixes character procedure review. Union Tool Wilson, 259 107, 42 427, 848. But there such Commission. denial ground Commission's appeal. being final, appealable, 221, 317, 715, right way dependent imposition fine. 7 Second. question merits two-fold: (1) granting required (2) exceeded reversing substituting term conditioned continuance As have already noted, requires demanded lends judicial obtain them. There record before us limits. is, suggestion warranted denying hearing came trial petitioners another case, during many Penfield's examined. thought apparently probed enough into affairs. did hold request become moot, satisfied legitimate needs, additional ones irrelevant functions.8 We agree least finding, full places behind abuse discretion. might well disclose 1933 administers. history this reveals long, persistent effort defeat inves igation. fact paid indicates may been easy victory him. hand, dilatory tactics suggest if justice done, necessary. substituted put place punishment. For authorized would suffered continue so long recalcitrant. Court, unlike involved 106, 58, 67, sought. solely exclusively punitive character. Cf. Nye 313 33, 42, 43, 61 810, 812, 813, 85 1172. 10 subjecting maintains, once paid, exhausted; without substitute add satisfied. argument rests statute federal courts punish contempts authority, Judicial Code 268, 28 385, decisions construing it. 'to punish, imprisonment, discretion authority,' including violations orders. At both provides alternative penalties. Bradley, 318 50, 63 470, 87 500. Hence pays it, sentence thereafter amended provide imprisonment. added to, position sound, limitation 'fine imprisonment' preclude measure measure, vice versa. 11 dual function recognized—(1) vindication contemptuous conduct; coercion 441 seq., L.R.A., N.S., 874; stated Bessette W. B. Conkey 194 324, 327, 24 665, 666, 997, 'The purpose uphold also secure suitors therein rights awarded.' 12 assume, arguendo, allowing governs proceedings. construed, find barrier exaction sanction, versa.9 practice approved. Kreplik Couch Patents 190 565, 571. see Phillips Sheet Tin Plate Amalgamated Ass'n, 208 335, 340. imposes penalty, punishing yesterday's conduct. adds announcing consequences tomor ow's contumacious situation same. most forbids same offense. 13 raises objections go These considered determined Since adverse judgment, precluded renewing stage. Le Tulle Scofield, 308 415, 421, 422, 60 84 355; Helvering Pfeiffer, 302 247, 250, 251, 58 159, 160, 161, 82 231. 14 difference view among portion set aside $50 assume majority correct setting aside, Affirmed. 16 RUTLEDGE (concurring). 17 decision 677, I difficulty concluding that, consequently, could imposed, alone allowable case. 418,1 held 'was fundamentally erroneous 'A vs. B, assault battery,' entered confined twelve months.' 449, 501, 18 By every test Here entitled, conducted collateral litigation. relief, namely, specified records.2 issuance citation grounded upon disobedience court's production.3 19 act, like act constituted conduct sustained either appropriate unequivocal ruling penalties cannot 444, 451, 452, 502, Not result, whole tenor effect whole, must correlated two scrambled, regardless constituting support type kind given.4 simply pursued, held, determines validity afforded.5 20 ruling, previously maintained, historical grounding constitutional compulsion.6 Moreover, recently reinforced Rule 42(b) Criminal Procedure, prescribed instituting 'shall state essential facts charged describe such.'7 (Emphasis added.) 21 Hence, others following clear district judge impose flat equally clear, record,8 altogether.9 22 think these problems presented our determination true Court's Appeals, appealed entirety, do,10 payment exhausted all deal further indeed maintains reverse judgment.11 23 clearly, holds, wanting, litigation contrary exactly accordance cases imposed. laying reversed remanded looking giving contemnors service void while part, oust review relief.12 character, different presented.13 compliance because proceedings, valid matters opposing parties respect. 25 short, forced rendered, acquiesce done thereby suffer unauthorized thwarting investigating power. rightfully taken entirety reviewed partially completely.14 Our brought entire reversal mandate relief.15 my take phases. 26 am agreement accord controlling affirmed, though modification respect.16 ind difficult, reconcile Workers decision. prosecuted according rules applicable equity causes,17 types mixed appellate free concerning extent therefore remanding necessity leave room exercise relation suffice regard requirements line procedures followed conducting penalties, reason thing given allowed stand. having serious terms 268 exhaust proceeding, more especially phase.18 too, necessarily settled govern 29 name, arose itself. moving both, representative pointed out.19 And, vast liberality hardly can solid distinguishing represented, phase, eo nomine name 30 Notwithstanding difficulties, rule, represents law, join affirmance insofar But, Appeals' proper revise awarded. scope matter, first instance, rather than Appeals. Accordingly, modify phase directions framing effective disclosure.20 32 FRANKFURTER, whom concurs JACKSON, dissenting. 33 Beginning Interstate Commerce 1887, became conventional feature Congressional regulatory legislation give administrative agencies subpoenas relevant information. Congress never attempted, confer agency itself obedience beside point consider deterred difficulties. consistently withheld powers testimonial compulsion discloses policy speaks impressive significance. Instead authorizing subpoenas, them resort enforcement. discharge adjuncts. precisely automata carrying out wishes administrative. They discharging implications scheme. Brimson, 154 447, 1125, 38 1047; Id., 155 3, 19, 39 49. agency, does matter course. An contested bounds Fourth Amendment unreasonable search seizure; inquiry outside delegated agency; testimony elicited subject inquiry; person responsible papers. 479 489, 1134, 1138, Harriman 211 407, 115, 53 253; Ellis 237 434, 35 645, 1036; Smith 245 30, 62 135; Trade American Tobacco 264 298, 44 336, 68 696, A.L.R. 786; Oklahoma 494. Lilienthal, Power Compel Testimony, Harv.L.Rev. 694. Company, company 1, 1939, April 9, failure comply, 13, 1943, compelling obedience. From affirmed June 1944, 143 746, spread December 7, 1944. January cited postponed final hearings ord r cause, pending, apparently, completion indictment growing issued. acquitted heard. 36 found petitioner guilty 1943 called S.E.C. Government's contingent records. Instead, sentenced $50. Without objection maintained Government contempt, ordering pay stand committed coerce allow inspection appeal, challenged do, dissenting, lower court: question.' 65, 67. granted certiorari, 'reverse case.' properly refusing remedy, accordingly correctness decree. 37 immediately order. ultimate focus attention precise circumstances acted did. tells us: 'Mr. Cuthbertson: So far fit impose, up still anxious get look disposed, whatever connection inspection. Court: don't going disposed anything that. sat six weeks listened people over matter. 40 say, your Honor, mind acts indictment. propose went 41 evidence definite positive witnesses, time nothing whatsoever Company. Whether covered seeks not, know. efendant $50, paid.' 43 Bearing automaton unquestioningly abused fair believes howsoever obsolete, above colloquy means Judge Hall events needless call He wrong belief. presided canvassed. we, knowledge had, neither say confidence thinking change revealed obviated need surely ought abstract assumption papers issued, continued several months later. later when lasting approved instance persuaded longer understanding intervening inappropriate use powers, counsel gainsay judge's view. contradict interpretation present technical exception taken. significance counsel's silence confirmation circumstances. contradiction, us, exercised finding spent force, time, justified disobeyed alive, fined feel flout impunity. 45 question, then, such, formal pleading charging disobedience. direct clerk attachment inform obviously knew abundantly understand sui generis treated practical incidence. circumscribed procedural formalities traditional limitations ordinarily crimes, except due process standards decency fairness administration require. faintest safeguard protection. 46 reinstated. Sec. 22(b), 77v(b), provides: 'In contumacy person, said courts, within resides, examiners designated documentary ordered, touching question; punished thereof.' 1027. colloquy: refuses doing ver Section 8(c) February 1925, 936, 940, amended, 230, 230 'No * bring decree circuit appeals duly three entry decree.' Alaska Packers Ass'n Pillsbury, 301 174, 682, 988; Georgia Hartford Lumber Compania, 323 334, 65 293, 89 280. 73(a), section 723c, part: 'When permitted prescribed, appeal.' Procedure conflicts statute, prevails. 1064, 723b, 723b. note 1. disposes contention timely U.S.C.Supp. II 682. Hark, 320 531, 64 359 88 290. will seen rendering sentence, noted connected added: 'Whether know.' Some governing are, course, contempts. 446—449, 500—501, differences if, Swan, 150 637, 225, 1207; Matter Christensen Engineering 458, 729, 1072; Merchants' Stock Grain 223 639, 339, 56 584; Farmers Mechanics Nat. Bank Wilkinson, 266 503, 144, 69 408, segregated, adequacy presented. No propriety combining Fox, 96 23; Norstrom Wahl, 910. affidavit forth alleged constitute violation. docket, 'No. 2863, Civil, California.' commanded A.W. dealt accordingly.' terms. urgently pronouncement step indicat ng nature. 746. discussion particularly 444—449, 451 ff., 499—501, 263, dissenting opinion, p. 730, Part III. criterion factor account. stress factors, private arises corollary litigation, observing distinct trial, seems clearly reverse. references supra; 5. provided subdivision (a) notices. reasonable preparation defense, such. orally open presence or, attorney appointed purpose, arrest. *' 42(b), 687. 372, 735, 45. 21, 1946, hence concluded date. text infra. alt ough accepted, contrary, fact, affirmatively appeals. purport transpired between Counsel expressly limited said, referring suit: subpoena's exhausted. assigned 'listened records,' witnesses 'from matter.' Taking said: '* (Young) Company.' grounds, equivalent pursuing through beyond confines closed trial. 8. infra preceding 20. 225; Clarke 128 542; principal respect based Code, Bradley section's terms, applicability applicable. Compare concurring opinions Sixth Wisconsin Tower, Inc., 108 538. ruled invalid satisfaction exhausts affording judgment. so-called civil-criminal forbid punitive, notes 10, 14. states: 'Young entitled.' 66. Ruling moot 'discretion' paragraph stated: concluded: reversed,' 'decree' 'that be, hereby Court.' printed 'Statement Points Which Appellant Intends Rely,' specifies comprehend 329 706, 202, action, entirety. comprehended determination. 363, provided: 'It Is Further Ordered, accused, each them, shall, waived tried charges advisory jury empanelled court.' waived. supra text. inquired counsel, response parties, independent power: operate itself, it? mean operates doesn't it?' E. Ingraham Germanow, 1002, 1003.

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