Document: 409 U.S. 289 93 S.Ct. 573 34 L.Ed.2d 525 Thomas RICCI, Petitioner,v.CHICAGO MERCANTILE EXCHANGE et al. No. 71-858. Argued Oct. 18, 1972. Decided Jan. 9, 1973. Petitioner filed an antitrust complaint charging respondents with conspiring to restrain his business by transferring another person petitioner's Chicago Mercantile Exchange membership, without notice and hearing, in violation of rules the Commodity Act. The District Court dismissed complaint. Appeals reversed but held that action should be stayed. Held: correctly determined proceedings stayed until Commission can pass on validity respondents' conduct under Though cannot decide whether Act immunize from laws, Commission's determination Exchange's were violated as petitioner claims or followed requires a factual within special competence Commission. That will greatly aid court arriving at essential accommodation between regulatory regimes. Pp. 298—308. 7 Cir., 447 F.2d 713, affirmed. Jerome H. Torshen, Chicago, Ill., for petitioner. Lee A. Freeman, respondents. Mr. Justice WHITE delivered opinion Court. 1 question before us is this case Seventh Circuit properly further judicial pending administrative which deemed available Act, 42 Stat. 998, amended, U.S.C. § seq. 2 began when Ricci against Exchange, its president, vice chairman board, Siegel Trading Company, member conspiracy Sherman 26 209, 15 1. alleged had purchased membership 1967, using funds borrowed February 1969 instance transferred another, utilizing blank transfer authorization previously been revoked.1 Allegedly, course both was pursuant unlawful aimed restraining Ricci's business. result was, asserted, excluded trading 11, 1969, March 4, he considerably higher price than cost. 3 On motion respondents, judgment; because challenged subject jurisdiction Secretary Agriculture (Secretary) (Commission) virtue provisions directed stay permit take place. 713 (CA7 1971). We granted certiorari, 405 953, 92 1173, 31 230 (1972), now affirm judgment Appeals. 4 * Act,2 first passed 1922 time amended—the most recent substantial amendments being 1968—makes dealing commodity futures crime except undertaken through members board trade meets certain statutory criteria designated 'contract market' Secretary. §§ 6 6h.3 Contract markets must file their bylaws, rules, regulations, have express duty enforce all such prescriptions (1) 'which relate terms conditions contracts sale . other requirements, not disapproved to' authority, id., 7a(8),4 (2) provide minimum financial standards related reporting requirements commission merchants who are contract market, approved Agriculture,' 7a(9).5 If any market enforcing government made condition designation, if it violating provision Commission, official agency established Act,6 authorized, upon hearing review, suspend revoke designation 8(a),7 may order director, officer, agent, employee, cease desist conduct, 13a.8 Under relevant interested having information concerning request institute proceedings, initiate own motion,9 there persons seeking intervention proceedings.10 II 5 It background deprived contrary And context Appeals, concluded specific allegedly violated11 bounds adjudicative remedial hold hand afford opportunity consideration dispute co-conspirator-defendants. problem addressed itself recurring.12 arises seemingly reach laws also least arguably protected prohibited statute enacted Congress. Often, always, regime includes authority major accordance statute's distinctive standards, include concern competitive considerations. Silver v. New York 373 341, 83 1246, 10 389 (1963), where nevertheless claimed immune challenge Securities 1934. sought recover damages suffered wire connections terminated adopted 1934, 48 881, 78a general power approve disapprove no deal challenges, Silver's, applications rules. Moreover, conferred exemption laws. declined Congress intended oust completely supplant them self-regulatory scheme authorized Repeal implied 'only necessary make work, even then only extent necessary.' U.S., 357, S.Ct., 1257. thus became which, any, 'character objectives self-regulation contemplated incompatible maintenance action.' Id., 358, Conceding 'entire public policy self-regulation, beginning idea set up barriers contemplates engage restraints might well unreasonable absent sanction Act,' 360, 1258, hence 'particular instances exchange fall scope purposes regarded justified answer assertion claim,' 361, 1259, finally nothing required self-regulating permitted impose serious deprivations neither nor posed legal barrier action. 8 In conclusion, expressly noted review enforcement rules; 'obviate(d) need consider petitioners resort relief coming into court,' 1257, avoided 'any conflict coextensiveness coverage agency's power,' bid.; 'ensuing different would arise operation designed prevent anticompetitive activity, issue we do today.' 358 n. 12, 1257 12. 9 'different case' us, agree that, given examine Ricci-Exchange light officials act. This rests three premises: determine 'incompatible action,' 1257; some facets Commission; (3) adjudication promises material resolving immunity question.13 As first, premise, argument limits applicability limit case, plainly substantial. lightly assumed. United States Philadelphia National Bank, 374 321, 350, 1715, 1734, 915 (1963); Stock supra, California FPC, 369 482, 485, 82 901, 903, 54 (1962); Georgia Pennsylvania R. Co., 324 439, 456—457, 65 716, 725—726, 89 L.Ed. 1051 (1945); Borden 308 188, 198, 60 182, 84 181 (1939). But here one either be, through, specified qualifications carrying market. clearly organization existence acquisition, transfer, loss membership. has they constituted 'trading requirements', 7a(8). valid rule, immediate rule exclusion insulated attack. substance, like 'engage sanction' 1258. See Board Trade City States, 246 231, 238, 38 242, 243, 62 683 (1918). hand, if, alleges, very likely normal course, more convincing indications congressional intent present jurisdictional powers exclusive. 11 second premise our judgment, answered affirmative Because done though members, requirements' among those could ignore bringing adjudicate remedy 'of chapter orders thereunder ..' 8(a) 13a. purposes, sufficient support area requested proceedings.14 12 think prior ultimately deciding forecloses suit, matter seems depend failure follow turn appears pose issues fact15 questions about scope, meaning, significance These matters dealt especially familiar customs practices industry unique market-place involved case. Western Pacific 352 59, 64—65, 66, 77 161, 165 166, 126 (1956); Far East Conference 342 570, 574—575, 72 492, 494—495, 96 576 (1952). They typically lying heart task appear placed recognize 'that courts, while retaining final expound statute, avail themselves implicit superiority gathering facts marshaling meaningful pattern.' Federal Maritime Isbrandtsen 356 481, 498, 78 851, 861, 926 (1958). forthcoming, obviate necessity relitigate actually disposed decision. Cf. 353—354, 1736 1737; 498—499, 861—862. Of immunity, such, agency; sustained, dissolve, whereas rejected warranted much better position go forward. Affording 'prepare way, litigation ultimate informed precise meaning applied (these) particular circumstances.' Ibid. III 13 MARSHALL's dissent concedes, must, proper 'between usual principles exclusionary exchanges obviously exercise.' concedes administered agency, antitrusts institution 'likely contribution resolution law-suit.' Our differences narrow justify 14 asserts 'whether application, serves legitimate goal,' consistent ends, mistakenly premised jurisdiction, basis deferring proceedings.16 misapprehends fails come grips reality. claim takes precedence over policies. Rather, simply specialized followed. Either require interpretation application great help regimes: disappears entirely found rule; merely enforced intelligent sensitive wil punish what apparently permits. Accordingly, 16 Judgment 17 Chief BURGER, concurring. 18 I read Court's opinion, disclaims left open (1963) namely, self-regulation' occurring providing 'justified claim' members. Indeed, us. careful note expressed 'no inaction taken case.' 720 18. 19 holds materially determining Exchange. suggest foreclose subsequent 20 With understanding, join opinion. 21 DOUGLAS, dissenting. 22 While concur my Brother dissent, wish add empowered regarding petitioner, anomaly direct plaintiff civil federal supervising regulations charged violated, has, inaction, already shown every indication sanctioning violation. By remanding, requiring seek regulators admission regulate (or negligence regulating). 23 odds getting find contradiction past not, view, expense delay interests orderly efficient administration, parties generally futile gestures. inequity pronounced since, MARSHALL points out underlying 24 My remitting state courts agencies collateral law stated Clay Sun Insurance Office, 363 207, 227—228, 80 1222, 1233—1234, 1170; see England Louisiana State Medical Examiners, 375 411, 429, 461, 472, 440 (concurring opinion). road litigant travel obtain justice equally long expensive purses, remitted agency. 25 MARSHALL, whom STEWART, POWELL join, majority accurately describes Brethren nowhere explain why lower likelihood lacks resolve lawsuit. Instead carefully balancing advantages disadvantages deferral apply mechanical test deference despite probability relevance contribute. principle govern quite adequately single sentence: An primary probably departs principle1 and, hence, needlessly bifurcates complicates suit readily resolved therefore respectfully dissent. 27 At outset, means provides '(t)he bylaw, regulation, made, issued proposed market.' 12a(7) (emphasis added). Similarly, '(i)f enter directing shall violation.' 13a although private party report apparent violations—see CFR 0.3(a), 0.53(a)—the act these reports. Vaca Sipes, 386 171, 87 912, 842 (1967). contrary, '(n)othing construed minor violations prosecution, whenever interest does 13c(b). 28 behest, participate proceedings. filing (to proceedings) status proceeding instituted applicant intervene therein called witness.' 0.53(b) (emphais 0.3(b). Although parties, unfettered discretion allow intervention. 0.58. 0.8.2 29 Should decision leave Judge horns dilemma. Normally, stays collaterally attacked returns court. See, e.g., Port Boston Marine Terminal Assn. Rederiaktiebolaget Transatlantic, 400 62, 71—72, 91 203, 209—210, 203 (1970). decides lawsuit allowing intervene, attack him participation. undertakes de novo reconsideration submitted decision, together concomitant delay, naught. 30 Court, then, remands procedure invoke, right invoked, seeks allowed participate.3 Yet justifiable '(w)hen action, independent route threshold responsibility governmental supervision control activity involved.' 68, 208. reason self-evident: 'in cases raising fact conventional experience judges exercise discretion, created regulating over.' 574, 494, Thus, aspect expertise could, perhaps, awaiting For example, grant violators, sound administration consultation suit. But, recognizes, power. Carnation Co. Westbound Conference, 383 213, 218, 86 781, 784, 709 (1966), '(w)e recognized represent fundamental national economic assume enactment aspects render wholly inapplicable industry.' practice, meant '(r)epeals implication strongly disfavored, plain repugnancy provisions.' 350 351, (footnotes omitted). Such exist rare regulation pervasive substitute Government competition. Pan American World Airways 371 296, 476, 325 (1963). Radio Corp. America, 334, 79 457, 354 (1959). 32 Obviously, sort give rise exemption. policing duties, day-to-day largely itself. Where, here, affairs, particularly important abused purpose eliminating 33 rely, violations. Its argument, understand it, subtle same time, attenuated. exclude nonmembers participation trading. Were legislative exchanges, constitute group boycotts per se Klor's, Inc. Broadway-Hale Stores, 359 705, 741 total reached exercise. Silver, holding 'exchange response charges protect achievement aims Act.' 1259. purpose, mere excludes individuals competition mean out. where, itself, serve goal, effect lay predicate Applying argues conformity Superficially, least, considerable force. marred, however, two flaws fallacious. 35 First, allege broken. maintains entered deliberate 'maliciously, wilfully, knowingly, unlawfully just cause provocation, illegal intent, object preventing exercising part lawful interstate commerce.' Whatever goals believe malicious suppression Surely, tell antithetical comity preclude finding defendants' lawful' scheme. 222, (1966). conspiracies sole suppressing 'arguably Act.4 36 To sure, develop unable substantiate allegations actions less sinister submit affidavits trial demonstrating factually supported forestall remand becomes clear during insubstantial, enough reconsider propriety deprive access prove says is. 37 insufficient still doubt acted ordering litigation. majority's assumption ends.5 examination makes incorrect.6 Neither roving oversee functioning various exchanges. limited discrete, none grants tools dispute. exchanges' 7a(8) '(e)nforce resolutions, governing thereof committee, requirements,' permits cease-and-desist forth section title.' obvious authorize issue. quoted sections enforced. possible respected letter, impermissible facially permissible, offsetting gain. obeying rules—the answer—does test. 39 supplementary invalidate power, too, extremely limited. Title empowers 'disapprove relates finds violates violate chapter, thereunder.' (Emphasis added.) 'chapter' referred is, incorporates principles. follows empower policy. 40 above, restrictions far pervasive, Secretary's similarly restricted. ability end. reading thought everything purposes—a defies common sense. refuse way useful requirement.7 41 totally useless resumes deliberations. relies on, conclusively since relied findings statements areas helpful. meet burden showing remedies securing virtually involving regulated industry, something value contribute opportunity. never suggested suits invariably postponed consulted. 43 argued doctrine involves postponement, rather relinquishment jurisdiction. K. Davis, Administrative Law Treatise 3—4 However, observation invocation imposes costs. days crowded dockets delays, frequently prolongs More fundamentally, derogates extraordinary situations, citizen entitled call judiciary expeditious vindication right. said somewhat 'due process requires, minimum, countervailing overriding significance, forced settle heard.' Boddie Connecticut, 401 371, 377, 780, 785, 113 (1971). surely 'meaningful heard' comprehends heard delay. worthy protection field unmistakably agencies, 487—490, 904—906, (1962). 44 remains important, responsibilities administrators overlap. doctrine, exhaustion requirement, 'applied blindly 'an understanding McKart 395 185, 193, 201, 1657, 1662, 194 (1969). Wise use necessitates balance benefits derived utilization processes costs complication Where invoking guarantee input remote, strike favor Since scale differently calibrated, Company owner notified membership; indebted $18,000 brokerage fees offset $15,000 acquire did lien App. 11. Recognizing '(t)ransactions future delivery (futures)' commerce imposed 'sudden fluctuations prices,' 5. Congress, 'futures' transactions, 'Grain Futures title changed 'Commodity Act' 1936, 49 1491. constitutionality Commerce Clause, Art. I, 8, cl. 3, Constitution upheld Olsen, 262 1, 470, 67 839 (1923). following indicate content Act: market,' 6h. measures excessive speculation, 6a, transactions prohibited, 6a 6c. floor brokers register (a 2), 6d 6e, so, 6f. Customers' money, securities, property handled prescribed fashion, 6d, recordkeeping keep books records inspection, 6g. Specified reported kept, 6i. 7; perform 7a. suspended revoked, 7b subjected orders, reasons Secretary, order, 13b, banned, 12b. cooperative associations corporations conditions, 10a. A vacated subsequently redesignated, investigations reports, disclose names traders markets, Certain acts punished felonies misdemeanors, 13, 13—1, 13a, 13b. Persons thereto responsible principals, 13c(a). equired 'for provides: 'It deliver transmission mails telegraph, telephone, wireless, communication offer execute, confirmation execution of, quotation execute sale, used (a) hedging transaction products by-products thereof, (b) commerce, (c) delivering sold, shipped, received fulfillment except, foregoing cases, hereinafter provided evidenced record writing shows date, addresses, covered price, delivery: Provided, each period years date longer so direct, times inspection representative Department Justice.' 6h states: person— '(1) office place anywhere territories soliciting accepting purchase delivery, making offering conducting dealings commodities '(A) '(B) '(C) 'if contracts, executed consum- mated otherwise market; '(2) falsely agent member, merchant registered merchant, handling connection 7a 'Each shall— '(8) Enforce paragraph (7) 12a title; resolution, issued, Disapproval 12a, 'The authorized— '(7) committee '(9) resolutions Agriculture.' composed Secretaries Attorney General, designees, designee serving chairman, 2. exceed six months trade, employee thereunder. suspension revocation after officers affected hearing: conclusive, unless fifteen appeals circuit principal business, clerk written petition praying aside modified manner petition, bond sum determine, conditioned pay directs. immediately copy Agriculture, thereupon notify 2112 28. testimony evidence commission, duly aforesaid record, considered preferred expedited way. modify order. No unsupported weight due reasonable afforded infringes beyond commission.' 'If title, thereunder, may, appeal violation, thereafter lapse affirmance fail obey comply guilty misdemeanor conviction fined $500 $10,000 imprisoned year, both. Each day refusal continues separate offense.' 0.53 '(a) Application Any act, promulgated Administrator (see infra) requesting writing, signed behalf applicant, short simple statement constituting name address complains.' (The 'Act Administrator,' 'administers (Act),' 140.1, Authority, 0.52(r).) '(b) Status applicant. described therein, subpart, witness, applicant's identity divulged Department, consent '(c) Who institute. If, investigation (by regional offices Authorities, 140.1(d)) complained section, motion, appropriate proceeding: willfullness health, safety warrant attention accorded demonstrate achieve compliance requirements. Proceedings complains pleadings persons.' investigation, ibid., respondent 0.54, referee 0.52(p) (s) 0.55 seq., oral request, 0.61. prepares based including prepared referee, 0.66, 0.68, 0.70, instances, 0.69. 0.58 'At proceeding, consideration, good shown, therein. preciseness particularity: relationship nature intends evidence, make, (d) intervene.' indicated 2, vested disciplinary officers, agents, employees, individuals, associations, partnerships, corporations, trusts, 0.3 0.8, identical above supra. Rules Rule 307, 322, concerns trade. 307 'Membership personal privilege herein. When deceased incompetent desires sell sign form Board. individual President agreement seller deposit fee amount $100.00 certified check, payable agreed price.' 322 'A qualified Spot To-Arrive Calls firm corporation 810 calls. Clearing Member.' (1966); (1959); (1952); (1939); Navigation Cunard S.S. 284 474, 52 247, 76 408 (1932); Keogh & N.W.R. 260 156, 47, 183 (1922). Thus exclusive governance structure conclusion. supra; Nor confer respect rulemaking 350—354, 1734—1737; Maryland Virginia Milk Producers 362 458, 847, 880 (1960); 339—352, 461—468. contains categorical kind; indeed, confers all, focused considerations; policies duties complete anti-trust clear, complainant become party, discretionary. unusual system vain, event pointed complaints 'the proceeding' reveals violated. 0.53(c). Likely factfinder revoked transferred; valid; loan owned Ricci; debt purchase. 'Ricci's conspiracy, lies ignores refuses accept factfinding function failed allegation characterizes attempt invoke suggests 'need purposes.' abstention. approach lead result. leaves open, later event, possibly lengthy told conclusion irrelevant different. defers authoritatively intend possibility able 6(a) Procedure 555(b). Communications 298 648, 650 (CA2 1962). Petitioner's problematical best. Easton Utilities Comm'n AEC, 137 U.S.App.D.C. 359, 362—365, 424 850—853 Shapiro, Some Thoughts Intervention Courts, Agencies, Arbitrators, 81 Harv.L.Rev. 721, 764—767 (1968). recommend criminal prosecutions, argues, '(ignore) fact-finding Commission.' proposition fact-finding. authorizes engaged motivated anti-competitive purposes. me cf. cites absence mixed pure unrelated standard system—with tradition jury trials, adversary highly developed evidentiary principles—that 'expert' process. neatly illustrates fact. termination hearing. served goal Had arisen invalidated hearings purpose. Hence,

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