Document: 518 U.S. 231116 S.Ct. 2116135 L.Ed.2d 521 BROWN, et al.v.PRO FOOTBALL, INC., DBA WASHINGTON REDSKINS, al.Certiorari to the United States Court of Appeals for District Columbia Circuit. No. 95-388. Supreme Argued March 27, 1996 Decided June 20, Syllabus After their collective-bargaining agreement expired, National Football League (NFL), a group football clubs, and NFL Players Association, labor union, began negotiate new contract. The presented plan that would permit each club establish "developmental squad" substitute players, whom be paid same $1,000 weekly salary. union disagreed, insisting individual squad members should free own salaries. When negotiations reached an impasse, unilaterally implemented plan. A number players brought this antitrust suit, claiming employers' pay them per week restrained trade in violation Sherman Act. entered judgment on jury treble-damages award, but reversed, holding owners were immune from liability under federal laws. Held: Federal laws shield attack among several employers bargaining together implement after impasse terms last best good-faith wage offer. Pp. 3-18. (a) This has previously found implicit, "nonstatutory" exemption applies where needed make process work. See, e.g., Connell Constr. Co. v. Plumbers, 421 U. S. 616, 622. practice here at issue-the postimpasse imposition proposed employment term concerning mandatory subject bargaining-is unobjectionable as matter law policy, and, indeed, plays significant role multiemployer itself comprises important part Nation's industrial relations system. Subjecting it threaten introduce instability uncertainty into process, often forbids or discourages kinds joint discussions behavior collective invites requires. Moreover, if courts tried evaluate particular employer understandings, there created web detailed rules spun by many different nonexpert judges juries, not set enforced single expert body, Labor Relations Board, which give primary responsibility policing bargaining. Thus, implicit case. 3-10. (b) Petitioners' claim only labor-management agreements is rejected, since based inapposite authority, limited petitioners' labor-management-consent principle could 10-12. (c) Also rejected Solicitor General's argument terminate point impasse. His rationale, are thereafter arrangements interim basis with completely accurate. More importantly, simple "impasse" line solve basic problem permits employers, engage considerable behavior, while uniform conduct-at least when accompanied discussion-invites attack. 12-15. (d) alternative rule, exempt antitrust's reach about "tactics," those substantive "terms," unsatisfactory because require courts, insulated delve amorphous subjective motives order determine whether applied. 15-16. (e) arguments relating general ``backdrop'' statutes ``special'' nature professional sports also rejected. 16-18. (f) conduct issue here, took place during immediately negotiation; grew out of, was directly related to, lawful operation process; involved parties required collectively; concerned relationship. Court's intended insulate review every sufficiently distant time circumstances rule permitting intervention significantly interfere process. need decide case whether, where, draw line, particularly does have views Board matter. 18-19. 50 F. 3d 1041, affirmed. Breyer, J., delivered opinion Court, Rehnquist, C. O'Connor, Scalia, Kennedy, Souter, Thomas, Ginsburg, JJ., joined. Stevens, filed dissenting opinion. NOTICE: formal revision before publication preliminary print Reports. Readers requested notify Reporter Decisions, States, Washington, D.C. 20543, any typographical other errors, corrections may made goes press. Justice Breyer Court. 1 question arises intersection suit against owners. had bargained players' over until they then agreed themselves (but union) us such We believe do. Like Appeals, we conclude makes applicable I. 2 can state relevant facts briefly. In 1987, between expired. Association 1989, negotiations, adopted Resolution G-2, up six rookie "first-year" who, agents, failed secure position regular player roster. See App. 42. Squad play games sometimes substitutes injured players. G-2 provided all 3 next month, April, developmental Association. salary week. disagreed. It insisted benefits protections similar leave 4 Two months later, June, salaries program distributing clubs contract embodied advised paying more less than result disciplinary action, including loss draft choices. 5 May 1990, 235 its member clubs. claimed violated 15 Section(s) (forbidding restraint trade). denied laws; permitted jury; subsequently treble-damage award exceeded $30 million. appealed. 6 (by split 2-to-1 vote) reversed. majority interpreted "waiv[ing] restraints competition imposed through so long operate primarily market characterized bargaining." 1056 (CADC 1995). held, consequently, liability. granted certiorari determination. Although do interpret broadly did nonetheless find applicable, affirm immunity conclusion. II. 7 rests upon what called 622 (1975); see Meat Cutters Jewel Tea Co., 381 676 (1965); Mine Workers Pennington, 657 (1965). implied statutes, forth national policy favoring private bargaining, 29 151; Teamsters Oliver, 358 283, 295 (1959); wages, hours working conditions, 158(a)(5), 158(d); NLRB Borg-Warner Corp., 356 342, 348-349 (1958); delegate rulemaking interpretive authority 153; San Diego Building Trades Council Garmon, 359 236, 242-245 (1959). 8 reflects both history logic. As history, Congress (from exemption) adopt justices Duplex Printing Press Deering, 254 443 (1921), urged explicit "statutory" earlier (in 1914) written Id., 483-488 (Brandeis, joined Holmes Clarke, dissenting) (interpreting 20 Clayton Act, 38 Stat. 738, 52); Hutcheson, 312 219, 230-236 (1941) (discussing congressional reaction Duplex). 1930's, enacted Congress, 1914, hoped prevent judicial use resolve disputes-a kind dispute normally inappropriate resolution. Tea, supra, 700-709 (opinion Goldberg, J.); Marine Cooks Panama 362 365, 370, n. (1960); A. Cox, Law Policy 3-8 cf. Duplex, 485 (explicit reflected view "Congress, judges, body declare public regard struggle demands"). ("nonstatutory") interprets accordance intent, namely, limiting court's determine, area conflict, "reasonable" practice. thereby legislative administrative labor-related determinations antitrust-related appropriate legal limits conflict. 709-710. 9 logic, difficult, impossible, groups employees bargain together, forbid competition-restricting potentially necessary work results mutually acceptable. recognizes that, effect policies allow meaningful take place, some must shielded sanctions. Connell, (federal law's "goals" "never" achieved ordinary anticompetitive effects held violate laws); 711 (national scheme "virtually destroyed" routine penalties engaged bargaining); 665 (implicit harmonize Act "national . promoting `the peaceful settlement disputes subjecting controversies mediatory influence negotiation'") (quoting Fibreboard Paper Products Corp. NLRB, 379 203, 211 (1964)). 10 petitioners supporters concede, must, existence described. They concede application statutorily authorized intended, apply employees. Accord Volkswagenwerk Aktiengesellschaft Maritime Comm'n, 390 261, 287, (1968) (Harlan, concurring); 729-732, 735 Brief AFL-CIO Amicus Curiae Associated Gen. Contractors Cal., Inc. Carpenters, O. T. 1981, 81-334, pp. 16-17; P. Areeda & H. Hovenkamp, Antitrust Para(s) 229'd (1995 Supp.) (collecting recent circuit court cases); Artists Associates, Actors' Equity Assn., 451 704, 717, (1981) "bona fide organization[s]"). Nor dissent these principles. post, 3-4. Consequently, one determining exemption's scope: Does offer? assume conduct, practiced case, policy. On assumption, applies. 11 regulates directly, considerably, Both changes preexisting insofar meet carefully circumscribed conditions. For example, "reasonably comprehended" within employer's preimpasse proposals (typically proposals), lest imposing favorable terms, unfairly undermined union's status. Storer Communications, Inc., 294 N. L. R. B. 1056, 1090 (1989); Taft Broadcasting 163 475, 478 (1967), enf'd, 395 2d 1968); Katz, 369 736, 745, 12 (1962). proceeding unfair practice, failure good faith. Akron Novelty Mfg. 224 998, 1002 (1976) (where faith, employment); Hardin, Developing 697 (3d ed. 1992) (same). These regulations reflect fact accompanying implementation constitute integral Bonanno Linen Serv., 243 1093, 1094 (1979) (describing tactic), 630 25 (CA1 1980), aff'd, 454 404 (1982); Colorado-Ute Elec. 607, 609 (1989), enf. grounds, 939 1392 (CA10 1991), cert. denied, 504 955 (1992). caselaw cited focuses employer, no argued does, should, treat differently respect. Indeed, decisions suggest familiar context El Cerrito Mill Lumber 316 1005 (1995); Paramount Liquor 307 676, 686 (1992); NKS Distributors, 304 338, 340-341 (1991), rev'd, 18 (CA9 1995); Sage Development 301 1173, 1175 (1991); Walker 297 746, 748 (1990), 928 695 (CA5 1991); Food Employers Council, 293 333, 334, 345-346 Tile, Terazzo Marble 287 769, 772 (1987), 935 1249 (CA11 502 1031 Salinas Valley Ford Sales, 279 679, 686, 690 (1986); Carlsen Porsche Audi, 266 141, 152-153 (1983); Typographic Service 238 1565 (1978); Fire Proof Warehouse 494, 498-499 (CA7 1966); Cuyamaca Meats, Butchers' Employers' Pension Trust Fund, 638 Supp. 885, 887 (SD Cal. 1986), 827 491 1987), 1008 (1988). proceed assumption. 13 Multiemployer well-established, important, pervasive method offering advantages management labor. Appendix (multiemployer accounts 40% major agreements, used industries construction, transportation, retail trade, clothing manufacture, real estate, well sports); Truck Drivers, 353 87, 95 (1957) (Buffalo Linen) (Congress saw "a vital factor effectuation peace strengthened bargaining"); Charles D. Service, 404, 409, (1982) (Bonanno labor, saving resources, encouraging development industry-wide worker programs smaller otherwise afford, inhibiting workers' expense); Respondent Linen, 80-931, p. 10, (same); General Subcommittee Labor, House Committee Education Bargaining Impact Collective Process, 88th Cong., Sess. 10-19, 32-33 (Comm. Print 1964) Bonnett, Associations States: Study Typical (1922) (history). upshot 14 circumstances, answer host practical questions how conditions proceed-the very seeks avoid. And jeopardy beneficial achieve. That unlike law, welcomes conducive harmony, competitors (such competing employers) unreasonably lessen virtually respect whatsoever. Famous Lasky 282 30 (1930) (agreement insert arbitration provisions motion picture licensing contracts). juries premise little competitors, preceded conversations implying later uniformity might prove desirable, see, Motors 384 127, 142-143 (1966); Foley, 598 1323, 1331-1332 (CA4 1979), 444 1043 (1980), suggests competitor independent decision, American Tobacco 328 781, 809-810 (1946); Masonite 265, 275 (1942); Interstate Circuit, 306 208, 226-227 (1939). generally Areeda, 1416-1427 Turner, Definition Agreement Under Act: Conscious Parallelism Refusals Deal, 75 Harv. Rev. 655 If apply, once reached? impose offer, invite action premised identical (along prior conversations) tending show common understanding agreement. any, all, individually differ charge. safely discuss offers even occurs? discussion about, say, disadvantages proposal, limit occur. true aimed renewed union. adherence expired eliminate plausible charging "conspired" tacitly "agreed" so, maintaining status quo immediate economic self-interest some. Cf. 222-223; 1425. All say threatens 16 obvious problem. recognize, Government suggests, principle, try finding (hence lawful) justified necessity. But evaluation means namely Board. objectives laws, socially economically desirable 3-4; S., 716-719 J.). III. 17 advance suggestions drawing boundary short shall explain why unsatisfactory. Petitioners agreements-a limitation deduce language, (exemption "some union-employer agreements") (emphasis added), principle-that rest consent. however, cases 619-620; 660; 679-680; language rationale. 3d, 1050. 19 consent One cannot mean literally-that understandings agreement-for making Yet necessarily involves procedural participating rescue understandings. Often will (and not) certain positions intend maintain. Law, 229'd, 277 (Supp. 1995) ("[J]oint preparation unit clearly exempt"). Similarly, tactics approved unit-wide lockouts temporary replacements. Brown, 380 278, 284 Buffalo 97. save weakening it, requiring itself. automatically present whenever takes place. Hi-Way Billboards, 206 22 (1973) "based consent" "established unequivocal parties"), 500 181 1974); Weyerhaeuser 166 299, 299-300 (1967). weakened, help practices are, not, immunity. 21 argues he says, "employers longer duty maintain quo," "are union." al. Amici 17. Employers, act independently. ordinarily remains intact; withdraw. 410-413. survives; stand ready resume Worldwide Detective Bureau, 296 148, 155 B., 23. consistent "the abide 416. Regardless, absence "duty" jointly determinative. immunities extend beyond statute "expressly impliedly allows assumes immune." 224, 145 Gordon New York Stock Exchange, 422 659, 682-691 (1975) (immunizing securities permitted, require); Assn. Securities Dealers, 694, 720-730 23 described above. Supra, 9-10. replacement hiring. 289 (hiring workers lockout adapted achievement legitimate end-preserving integrity unit"). matter, four options impasse: (1) quo, (2) (3) lock either shut down hire replacements), (4) separate 516-520, 696-699. What happen agreement? alternatives limited. Uniform likely. Uniformity-at matter-invites ask lawfulness activities intimately 24 aggravated temporary, 412 (approving Board's recurring feature deadlock hiatus almost eventually broken, change mind force ") (internal quotation marks omitted); W. Simkin Fidandis, Mediation Dynamics 139-140 (2d 1986); degree, 691-696; 478; manipulated purposes, 413, (parties might, strategic "precipitate impasse"); occur times course dispute, first reached, J. Bartlett, Familiar Quotations 754:8 (16th 1992). How future impasse? Consider, too, adverse consequences flow failing guess line. who erroneously concluded been risk collectively occurred charges prematurely suspending negotiations. responds softening extending "for reasonable circumstances" consult counsel, confirm occurred, adjust business operations, 24; reestablishing "resumption bargaining," id., 18, 5; looking "rule reason" shield-"in circumstances"-such actions concerted maintenance previously-established benefit retirement plans, ibid. modified, impasse-related creates evaporate middle leaving second-guess parties' consequently forcing choose responses light predict fear administrators, decide. Dallas Warehousemen Helpers, Local Union 745 355 842, 844-845 1966) ("The deciding further futile difficult bargainers whole complex few issues suited appellate appraisal better experience board deals constantly problems"). 26 argue antitrust. 1066-1069 (Wald, dissenting). said can, do, employ "terms" "tactic." Ship 300, 1392, 1404 Circuit-Wise, 309 905, 921 23; 1094. concession "tactical" turn presence determination purpose motive. 1069 investigate group's motive inquiry discussed. And, our view, labor/antitrust drawn too raise (previously discussed) problems. 4-5, 9-10; 716 J.) (expressing concern "roaming large" process). 27 arguments. point, contexts, "backdrop" plant-closing employee severance payments, Fort Halifax Packing Coyne, 482 mandating minimum health benefits, Metropolitan Life Ins. Massachusetts, 471 724 (1985). Those "`neither encourage[d] nor discourage[d] processes [federal laws].'" Halifax, Life, 755). Neither come history. 295-297 (state interferes agreement). 28 irrespective elsewhere "special." understand special interest, excitement, concern. exemption. league depend degree cooperation survival. Collegiate Athletic Regents Univ. Okla., 468 85, 101-102 (1984); 110-115 (declaration Commissioner). context, circumstance like analogy seems irrelevant us. talents, unionized workers, employers. (Stevens, characteristic simply feature, others, (or less) power, lead all) favor demands table. critical difference underlying framework Jacobs Winter, Principles Athletes: Of Superstars Peonage, 81 Yale (1971). odd fashion gave additional virtue superior power) transport coal miners, meat packers enjoy. points "unique features" relationship, which, dissent's "atypical." Post, 5. enforce compliance league-wide rules, consisted nothing sending "notice," therefore amounted "so-called" 6-7. Insofar features underlie purpose, already discussed them. genuine fight assumption petitioners, 782 125, 134 (DC 1056-1057; Pet. Cert. i. Ultimately, satisfactory distinguishing organized workers. rules. 31 reasons, hold here. negotiation. collectively. 32 Our 1057 (suggesting lasts collapse evidenced decertification union); 1006-1007 "extremely long" "instability" "defunctness" unit, justify withdrawal bargaining). extreme outer boundaries without whose "specialized judgment" "intended leave" "inevitable bound arise future." 96 710, 18. 33 34 ordered. 35 dissenting. 36 his classic Lochner York, 198 45, (1905), reminded disagreement theory legislation affect constitutionality. equally course, faithful broad statutory mandates construing impact areas economy specifically addressed texts. unique me decision conflicts expressed series enactments. 37 entities produce price levels. Soc. Professional Engineers 435 (1978). Collusion believed, prices harm consumers. Socony-Vacuum Oil 310 150, 226, 59 (1940). market-wide setting wages levels prevail Anderson Shipowners Pacific Coast, 272 (1926). jury's verdict determined fixed dramatically lower level obtain market. While characteristics industry provide justification reason, 100-104 (1984), stage analysis accept unlawful unless exempt. 39 unregulated applicants produces be.1 Whether fact, surely encourage protect express exemptions activities.2 enable achieve higher available Trainmen Chicago 30, 40 (1957). protects right seek "exempt unions nonlabor parties." 621-622 (1975). judicially crafted, nonstatutory serves accommodate conflicting unions. Ibid. 41 complements counterpart ensuring enhance employees' enjoy resulting agreements. frustrated illegal enter providing supracompetitive explained proper accommodation NLRA markets requires accorded sanctions." 42 Consistent policies, I agree crafted cover response agent's wages. Immunizing scrutiny facilitate demands. So, immunizing designed multi-employer strike tactic destruction interest basis." 93 43 my neither two schemes, narrower focus exemption, provides exempting initiated depress below produced support suppress implementing noncompetitive matters demand inclusion That, stake litigation. 44 struck most ironic acting deny opportunity competitive Perhaps aware irony, chooses analyze though represented typical unexceptional doing, glosses three extension atypical 45 First, market, implicated negotiated. negotiating prevailed bargaining.3 challenge prevailing because, industries, want compensation forces rather although professes inability anything ante 16-17, employees, segment put end 46 Second, respondents comply serve team, stalled revisit subjected Respondents 4. confronted culprits stepping enforcement roster limits. instead chose address forbidding 47 Third, asserts "club impasse," 1, hardly constitutes complete description transpired. representative owners, promptly unequivocally responded proposal inconsistent "principle" negotiation accepted past predated bargaining.4 so-called "bargaining" followed notice decided replace specific players.5 48 Given entitled "[t]he source strong association conditions." know similarly favors predates prefer preserve. 49 Even "integrity unit," (1965), exists pre-existing sought evading gaining advantage. Because regulating relations," 657, 667 seem reason concerted, Radovich League, 352 445 identifying alone anti-competitive action. Ante, Other well-paid athletes, unite undertake causes direct alters employer-employee existed unionization. Here alteration conflict parties. unjustifiable forms. 51 construed narrowly, narrowly still, sweeping today. consequence newly-minted explain, crafts ignoring reasoning actually holds affected challenged conduct. welcome fails explanation persuasive. 52 explains ensure "antitrust courts" substituting concludes, therefore, touches obviously offensive notes contrary conclusion motive," task believes "amorphous" permissible. 15. 53 kept venerable lineage. 443, (1921) precedents subscribing recourse contradict it. 54 considered scope involving challenges 11. then, always apply. 663. 55 Pennington explained, mere issue, suffice trigger fashioned 664. examined 667. 56 attempt square occurs close concludes "grew process," "[i]t collectively," "concerned relationship." 57 qualifiers, Pennington. "This involve compulsory regardless form content agreement." 664-665. 58 final qualifier distinguish partially so. To applied undertook examination strongly supported scrutiny. understood Here, unilateral appears merely unprecedented expansion heretofore unexplained repudiation prior, nonconstitutional seen fit override. 60 nevertheless contends "rationale" supports approach. contention, relies heavily espoused Goldberg's At five junctures opinion, ante, 15, invokes concurrence why, purposes applying admits distinction taken demands, consider 61 remembered exempt, Goldberg advocated. Instead, White, author writing Chief Warren Brennan, examine obtain. 688-697. "The crucial determinant agreement-e. g., wages-but relative product interests members." 690, added). dissenters, Justices Douglas, Clark, Black, all. 735-738. 62 reasons He approach precisely reexamine apparent substitution endorsed Justices, 63 silence remarkable patent factual distinctions clear himself expansive rationale main theme circumscribe 723-725. proved unreliable advocate attributes him. 64 Not served counsel Curt Flood, baseball contended baseball's reserve clause Flood Kuhn, 407 258 (1972). altogether, Baseball Club Baltimore Clubs, 259 200 (1922); Toolson Yankees, 346 (1953), dimensions go unnoticed. 65 article advanced now endorse shortly (1971), Aware commentary, brief protected 66 organization, principal beneficiary escape acts, sole members, concert `to prescribe standards outside unit,' central 668. Compare 676. Ramsey Workers, 401 302, 67 `collective activity subjects bargaining' regulation, `unilateral.' 732 (concurring opinion). hard-core `price-fixing allocation' 733. opinions Baseball's essential, tacit, contention unilateral, alone-the case-is somehow regulation." Reply Petitioner 1971, 71-32, 13-14. 68 69 much clearer Cutters, Ramsey, petitioner fruits activity. relief scheme-the system-which nearly century, trial expressly `created arrival bargaining.'" 14. 70 add preserve agreed, create one. 71 Adoption mean, instances displace exist, perpetuation authority. position. contexts thought sufficient immunize background (1987); (1985).6 IV. 72 stretch labor's restore below. 73 "Because concept agreement, behind continuing expiration (to foster atmosphere agreement) extends never infringe freedom contract, K. Porter 397 108 (one fundamental contract), execution acceptable alike. unlikely sign believed forced agreed." 139 (D.C. 1991) (footnote omitted). 74 Accordingly, respectfully dissent. APPENDIX TO OPINION OF BREYER, 76 TABLE Major Units Employment Private Industry, Type Unit, 1994. (Covers units 1,000 workers.) Number Percent __________________________________________________________ 522 2,305,478 M&S 664 3,040,159 Total 1,186 5,345,637 100 = Multiemployer. M company, location. S Source: Dept. Bureau Statistics, unpublished data (Feb. 14, 1996) (available Clerk file). B _________________________________________________________________ Manufacturing 210,050 50,750 Apparel 141,600 17,700 Nonmanufacturing 477 2,095,428 91 Mining 67,500 Construction 337 995,443 Railroads 189,183 transportation 156,662 Wholesale 8,500 Retail 314,100 Real estate 85,800 Hotels motels 79,200 Business services 63,200 Health 65,100 70,740 0 0.05 percent. (Apr. 17, inequality power possess full actual liberty corporate forms ownership substantially burdens affects commerce, tends aggravate recurrent depressions, depressing rates purchasing earners preventing stabilization industries." 29U.S.C. Posner Easterbrook, 1981) suppressing ."); 723 (1965) workingmen drive substandard employment"). sources 731 52, Norris-LaGuardia 70, 71, 73, 104, 105, 113. combinations conspiracies activities, secondary picketing boycotts, 219 (1941). 662 (1965)." active creation squads added novel category club. treated 1982 Agreement, given contracts. Article XXII, Plaintiffs' Exhibits 1. By contrast, contracts indicates prospective receive non-negotiable 8, 9, 28." 138 1991). memorandum summarizing meeting representative, stated, part: "Gene [Upshaw] indicated fully arrangement eliminated Upshaw number, `in principle' classes rights without." 19-20. presumably fearing hypothetical 10. 283 (1959), employer-union White's explains, Oliver "[a]s embody `"remote indirect wages' frontal structure established contract,' [358 S.], 294, paramount proscribed law." petition controlling. "Petitioner below, system hence conspiracy restrain exempted regulation scheme. No dissented proposition hard core `anticompetitive commercial restraint[s]' allocation'-and boycotts-were about. 732-33 unanimously warned 1949, `Benefits utilized cat's paw pull chestnuts fires.' Women's Sportswear Mfr's Ass'n, 336 460, 464 (1949). Allen Bradley 3, 325 747 (1945). Similar (1957), `without merit,' systems regulated laws." 21, 9.

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