Legal Document

42 United States Supreme Court Reports Lawyer’s Edition 2d Series KF101.8 U54 378 95 Reporter 392 419 U.S. 186 GULF OIL CORPORATION et al., Petitioners,v.COPP PAVING COMPANY, INC., al. Number 73—1012. Argued Oct. 21, 22, 1974. Dec. 17, syllabus Respondent operators of a California 'hot plant,' at which asphaltic concrete for surfacing highways is manufactured and sold entirely intrastate, alleging violations of, inter alia, § 2(a) the Clayton Act, as amended by Robinson-Patman Act §§ 3 7 (hereafter 2(a)), brought suit against petitioner liquid asphalt producers two their subsidiaries, to such use it manufacture sell in competition with respondents. Section forbids 'any person engaged commerce, course commerce' discriminate price 'where either or any purchases involved discrimination are has substantial anticompetitive effects 'in line commerce.' makes unlawful 'for make tie-in sales enter exclusive-dealing arrangements where effect 'may be substantially lessen tend create monopoly And certain acquisitions corporation 'engaged assets stock 'of another also may commerce section country.' The District held that had no jurisdiction claims because market exclusively necessarily local, but Appeals reversed, holding jurisdictional requirements 2(a), 3, were satisfied fact made interstate highways. Held: 1. instrumentalities does not render petitioners' conduct respect material constructing these matter law purposes Act. Overstreet versus North Shore Corp., 318 125, 63 494, 87 L.Ed. 656, Alstate Construction company Durkin, 345 13, 73 565, 97 745, distinguished. Pp. 193 199. 2. language provisions question extend on an 'effects theory acquisitions. 199—203. (a) In face longstanding judicial interpretation requiring 'either (be) commerce,' meaning applies only "at least one transactions which, when compared, generate . cross(es) state line," Hiram Walker, Incorporated A & Tropical, Inc., 5 Cir., 407 Federal Reporter, 2nd 4, 9; Belliston Texaco, 9 455 175, 178, continued congressional silence subject, this warranted extending beyond its clear reach multitude local activities hitherto left regulation. 199—201. (b) theory, whereby would having even if legally correct, fails here want proof, since respondents presented evidence from 201—203, 487 202, reversed. Moses Lasky, San Francisco, Cal., petitioners. Martin M. Shapero, Los Angeles, Mr. Justice POWELL delivered opinion Court. 1 This case concerns 49 Statutes-at-Large 1526,1 15 Code KF62 13(a), 38 731, amended, 14 18. It presents questions whether firm intrastate concrete, product can marketed locally, within each sections, respectively. Ninth Circuit satisfied, without more, construction 202 (1973). We reverse. 2 * Asphaltic used surface roads plants' combining, temperatures approximately 375 F, about 5% petroleum 95% aggregates fillers. substance truck sites, placed 275 KF105 F3 Because must hot great weight relatively low value, profitably radius 35 miles so plant. Petitioners Union Oil Co., Gulf Edgington defendants below, produce crude oil refineries. companies subsidiaries other firms throughout Western States. interstate, concedes engages commerce. 4 Petitioner sells some wholly owned subsidiary, Sully-Miller Contracting uses 11 plants Angeles Orange Counties, Rptr. (West’s) all Industrial Asphalt, distributes third parties 55 California, Arizona, Nevada. to, Sully-Miller, Industrial, Respondents, Copp Paving Equipment Ernest Atlantic Copp,1a operate plant Artesia, they both Copp's own paving contractor sale contractors. operations limited southern half County, competes market. All three more than de minimis share segments highway system. Neither Copp, nor product.2 6 filed complaint Central companies, seeking injunctive relief treble damages.3 complaint, alleged various committed catalog antitrust markets. Claiming harm itself consumer asphalt, alleged: fixed prices allocated geographically, violation Sherman 26 209, 1; discriminatory purchasers, Act; violated acquiring Industrial. Also claiming competitor market, further prices, divided employed methods monopolizing attempting gain area that, conditioned areas did compete customers' agreeing buy compete, 'tied' commodities favorable extensions credit; acquired apparently lessening market; and, finally, discriminated charging higher 2(a). claims, was Liquid Asphalt cases transferred, pursuant 28 1407, Northern coordinated pretrial proceedings.4 thereafter moved summary judgment favor arising motion sought limit issues those involving asphalt. 8 ordered full discovery over claims. At conclusion discovery, showing rested solely streets federal system, stipulation greater amount repair. thereupon entered order dismissing marketing concrete. accompanying court explicitly discussed Act.5 On facts it, found components produced purchased product's local. factors, concluded restraints trade could deemed flow despite Moreover, failed show, deduction itself, affect neither shown necessary probable adverse consequence hence suggested supported lacked under therefore support Acts. 10 interlocutory appeal, 1292(b), 'that production rendered 'instrumentalities' them 'in' law.' F.2d, 204. Having concluded, properly attached well, Acts intended supplement purpose Id., 205—206.6 granted certiorari, character Circuit's judgment, importance litigation proper laws, ostensible conflicts decisions circuits.7 grant, however, Acts.8 415 988, 94 1586, 39 885 (1974). II 12 text statutory set forth margin.9 brief, arrangements, 13 explicit extends persons themselves term 'commerce' being defined insofar relevant here, 'trade among several foreign nations ..' 12. differs distinctly includes scope prohibited restraint States, thus keyed directly markets goods. our have recognized enacting Congress 'wanted go utmost extent Constitutional power restraining trust agreements South-Eastern Underwriters Assn., 322 533, 558, 64 1162, 1176, 88 1440 (1944). Consistently plain thrust language, however immediate object, 'contract, combination conspiracy' nonetheless constitute adversely affects E.g., Mandeville Island Farms American Crystal Sugar 334 219, 234, 68 996, 1005, 92 1328 (1948). 'If feels pinch, how operation squeeze.' Women's Sportswear Mfrs. 336 460, 464, 69 714, 716, 93 805 (1949). contrast 1, distinct we concerned appears denote commerce—the practical, economic continuity generation goods services transport distribution consumer. If so, cannot merely allegedly Unless (i) commercial (§ 7), (ii) Industrial's occur (§§ 3), (iii) fail. argues, agreed, exactly sort showing. contend otherwise national Cf. Philadelphia National Bank, 374 321, 336, 83 1715, 1726, 915 n. (1963). Nor integral part component products. Instead, argument turns 16 argument, relies primarily decided Fair Labor Standards Act.10 first these, 656 (1943), railroads indispensable employees repair whom, terms, extends. Subsequently 745 (1953), materials phrase reasons connection between road enough application should sufficient warrant invocation sellers materials. 17 But significantly different statutes. As Alstate, there Congress' Commerce Clause include ostensibly regulation, sufficiently implicate commerce.11 question, rather, far mandate Acts.12 answer depends read light legislative history. See FTC Bunte Bros., 312 349, 61 580, 85 881 (1941). 18 critical economy authorized extensive participation financing Nothing, Federal-Aid Highway Act13 legislation evinces intention apply range laws who, business, supply roads. somehow suppliers sense Overstreet. No drawn Alstate. statute reached according find embodied required producing Court's places employees, materials, 19 rests essentially purely formal 'nexus' commerce: commerce; petitioners ingredient per se us expand concept incorporating categories perceptibly connected instrumentalities. whatever merit categorical inclusion-and-exclusion approach dealing regulatory enactments, carry context chain logical endpoint. universe arguably included broad limits nebulous extreme. supra, 17—18, 567—568 (Douglas, J., dissenting). More importantly, all, definition way anchored realities markets, intensely practical underlie laws. Yellow Cab 332 218, 231, 67 1560, 1567, 91 2010 (1947). 20 short, assuming, arguendo, facially narrow something restrictive flow-of-commerce concept, think nexus irrational proceed. justification expansive viable rest intent practices, character, harmful marketplace. justification, require courts look consequences, apparent perhaps nominal connections significant hold, therefore, Sully-Miller's contractors ambit 7. III 21 Our rejection 'nexus requires advances, somewhat obliquely, second judgment. contends provisions, manifest degree power. Therefore, argued, courts, rather extend, equally unavailing record here. 22 least, extraordinarily complex history argument. When Patman bill passed House, contained, addition present following provision: 23 '(I)t shall person, not, indirectly, purchasers ..'14 24 Conference Committee, deleted provision, leaving 2(a).15 Whether took action wanted then understanding power,16 strongly militates result expressly declined enact. ambiguous, nearly four decades interpreted manner contrary approach. With almost perfect consistency, Courts mean line."17 silence, been B 25 situation clear. Both complement facilitate achievement reaching, incipiency, acts practices promise, growth, impair E. I. du Pont Nemours 353 586, 589, 77 872, 875, 1057 (1957); Standard Fashion Magrane-Houston 258 346, 360, 66 653 (1922). argues amicus brief given purpose, seen historical anomaly. sections originally enacted, thought subjects narrowly Thus, coextensive bring exercise constitutional authority. Since passage expansively, U.S., 229—233, S.Ct., 1002—1005. concludes like expanded correspondingly, foster achieved. force measure support.18 justify radical expansion Act's defines—expansion, moreover, decision amendatory legislation—is doubtful. event, occasion decide question. Even presume exist. plaintiff prove consequences invoke prohibitions. 230—234, 1566—1568. 27 allowed issues. relied rejected above, Instead argued presumed basis before 'substantial impact commerce.'19 There circumstances activities, case, existed considered erroneous. fail proof. Reversed. 29 MARSHALL, concurring. 30 N Immigration Nationality Decisions join Court, qualification. Part correctly notes today pass upon applicability although case. For same reason, ought characterize offered 'radical scope.' says, 'the clear.' Until issue resolution, express it. 31 DOUGLAS, whom BRENNAN joins, dissenting. 32 suppose conceded might well States.' though come ban affected held, 'Congress 33 While modified restricting possible labor unions,1 expanding cover aggregation through acquisitions,2 word suggest desired contract term.3 furnish bare suggestion inference meant less became 1914; prior time Swift 196 375, 397, 276, 518 (1905); Patten, 226 525, 541—543, 141, 144 145, 57 333 (1913). These holdings reflected 'affecting standard Shreveport Rate Cases, Houston Texas R. 234 342, 353—355, 34 833, 837—838, 58 1341 (1914). primary purposes, States.'4 years just preceding occasions 'among states' embraces save 'which confined single states.' Second Employers' Liability 223 46—47, 169, 173, 56 327 (1912) (emphasis added); Minnesota 230 352, 398—399, 729, 739—740, 1511 applying prohibitions corporations (among States),' reasonably said whose while nature, Transamerica Corporation Board Governors, 206 163, 166 (CA3 1953), Congress, enacted 'to clause Constitution fullest extent,' nothing rebut timorous moving centers aggrandize Heretofore Act: regulating incipiency actions irreparably damage reaching level actual proscribed absence indication contrary, lightly assume undercut complementary function circumscribing Penn-Olin Chemical 158, 170—171, 84 1710, 1716—1717, 775 (1964); 597, 879, 355 356, 362, (1922); S.Rep. 698, 63d Cong., Sess., assumed Celler-Kefauver 1950, 1125, 18, addressed problem. Brown Shoe 370 294, 315—323, 82 1502, 1518—1523, 510 (1962), showed concern 'desirability retaining 'local control' industry protection small businesses.' 315—316, 1519. One dramatic leveling business pulling into vast regime nature complaint. agree below sustained theory.6 commerce'; (FLSA), 52 1060, 201 seq., enterprises building repairing toll roads, bridges, canal locks power, virtue relationship system Mitchell C. W. Vollmer 349 427, 75 860, 99 1196 (1955); Fitzgerald Const. Pedersen, 324 720, 65 892, 89 1316 (1945); (1943). true, majority notes, FLSA statutes, difference statutes arises weakens inquiry. 36 many determined classes regulation entire class, regardless individual instance activity generally Perez 402 146, 152 154, 1357, 1360—1362, 686 (1971); Darby, 100, 119—121, 451, 459—461, 609 represents determination payment wages specified employment exceeding number hours week (under conditions). 206, 207. Once exist employer employee covered FLSA, called play inquiry employer's 37 provided treatment. broadly prohibits bar discrimination, tie-ins, corporate of' finding trigger automatic prohibition; instead, individualized potential particular person's corporation's commerce.7 differ enactments. turn difference, raise named out laws; goes merits stage. now raises threshold point statute. covers employers (FELA) cases, carrying bolts bridge repairs, supra; see reason why broadly, thereby supplying very construction. aptly noted: 'Regulation justifiably types aiding 204 An alternative ground affirming likewise majority, encompass stated introductory portion opinion, I, one, am persuaded respect. disclaims resolve 'proof' effects, entitled continue reading phrase; my view, burden proof imposes imposed stage litigation. 40 alleges acquisition creating Like allegations respecting Oil. Allegations divide geographic eliminating competition. indulge base rock cheaply who maintained high exists, products artificially prices—below cost—and practice Copp. alleged. 41 trial. disposed pleadings affidavits. Judge 'develop bearing conspiracy affecting end allotted ruled regard respects (who party us) judgment.8 speaking Alfred T. Goodwin said—properly, think: 43 'Nor accept defendants' plaintiffs show injured jurisdiction. confusing substantive his whole give hear it.' 206. 44 plainly gave jurisdiction.9 What trial knowns. said: 'I conclude That possibly until proof; yet, said, need prove, court, obtain opportunity try it.10 Hereafter, simplicity, cited 1a Respondents collectively referred hereinafter 'Copp.' Although Nevada close Arizona borders allow deliveries disavowed sales, contradiction. App. 117. 15. re 303 F.Supp. 1053 (Jud.Pan.Mult.Lit.1969); 309 157 (Jud.Pan.Mult.Lit.1970). explained infra, 1972 Clearing House Trade Cases 74,013. ruling us. reserved defendant Fed.Rule Civ.Proc. 54(b). 1254(1). Hawaii 405 251, 885, 184 (1972). grant reservation 6, participated June 19, 1936, chapter 592, 1526, 13(a): 'It grade quality, 15, 1914, 323, 730, amended: (15 14): lease goods, wares, merchandise, machinery, supplies, condition, agreement, lessee purchaser thereof deal competitors lessor seller, lease, sale, 18): 'No acquire, capital country, competition, monopoly. .' seq. Heart Atlanta Motel, 379 241, 249—258, 348, 353—358, (1964). general turning particularized determination, specific Compare 232—233, 1567—1568, (1947), with, e.g., Maryland Wirtz, 183, 2017, 1020 (1968); Katzenbach McClung, 377, 290 101 H.R. 8442, 74th Sess. (1936) added). H.R.Conf.Rep.No.2951, (1936). Rowe, Price Discrimination 77—83 (1962) Note, Restraint 86 Harv.L.Rev. 765, 770—772 (CA5), cert. denied, 396 901, 90 212, 177 (1969); 178 (CA10), 408 928, 2494, 341 implies Moore Mead's Fine Bread 348 115, 148, 145 (1954), bread bakeries town lower charged in-state customers adjoining State. Tenth applied exceed J.) unanimously stating clearly finances predatory multistate operations. spoke fact, fell literal Stations 337 293, 314—315, 1051, 1062—1063, 1371 74—013, Page 92,208. objection procedure, Brief 11—12, form foreclosed presenting available concerning issues, McBeath Inter-American Citizens Decency 359, 363 (CA5 1967). assuming subject-matter jurisdiction, simply elements cf., Employing Plasterers 347 186, 74 452, 456, 98 618 (1954); (1948); Moore, Practice 38.36(2.—2), 299 (2d ed. 1974), is, dissenting Douglas identity 'jurisdictional' merits, hence, Land Dollar, 330 1009, 1209 reserving hearing merits. By token, use, appropriate procedure determine genuine elements. 17. H.R.Rep.No.627, 14—16 (1914); Hutcheson, 463, 788 18; (1957). 'antitrust laws' actually 'broadened insular possessions do relating trusts.' declares illegal every contract, combination, misdemeanor 'Commerce' follows: "Commerce,' herein, means nations, Columbia Territory State, Territory, nation, possession place State Indeed, sit Committee Revision shaping fit prejudices regulations, hold provide comprehensive coverage Prior union fall regarded Loewe Lawlor, 208 274, 300—301, 301, 308—310, 488 (1908). Teamsters Local 167, etc. 291 297, 54 396, 398, 78 804 (1934); Apex Hosiery Leader, 310 469, 60 982, 1311 (1940); 189, 454, (1954). right saying restrictively drafted (including Louis D. Brandeis) protect needlessly concerned—no exemption necessary, (if read) attempts theory. drafters obviously otherwise. issue, remains intact 205 holds, coverage. latter holding, difficult imagine reception will receive remand. Of course, say, conclusively effects. White Motor 372 253, 259—262, 696, 699—701, 738 (1963), collected therein. viewed exceptions described above. Rule 'deals merits' claim abatement,' 56.03, 2051 1974). Lack abatement usually substitute dismiss 2052—2053. propriety orders sort, id., 26.56(6); '(t)here intertwined prefer reserve after completed.' 26—191. discussion 10, infra. face, asserts non-frivolous 'arising under' law. Baker Carr, 369 199—200, 691, 700—701, 663 (1962); Bell Hood, 678, 682—683, 773, 776, 939 (1946). stated, empowered good bad, failure cause action. Romero International Terminal Operating 358 354, 79 468, 473, 368 (1959); Montana-Dakota Utilities Northwestern Public Service 246, 249, 71 692, 694, 912 (1951). Such dismissal supra. sometimes district court's challenged, party, inquire resolving issue. 735, cited; Federation Musicians Bonatz, 475 433, 437 1973). hand, closely interwined dependent preferred proceed Comm., 362—363 389 896, 216, 214 (1967); Jaconski Avisun 359 931, 935—936 1966). proposition met amount-in-controversy requirement. independent examination, challenged. Where linked disposition becomes inappropriate. Thus members Maritime Commission unlawfully shares Dollar belonged dismissed reversal dismissal, '(A)lthough rule authority consider affidavits pleadings, type merits.' 1011. true prevailed theories (that acquire shares, pledge outright transfer), prevail Fifth reversed grounds lack (for commerce). Relying error giving chance 218 reviewed 'interstate dismissals suits Those dismissals, based, motions claim. taken true. 224, 1563. us, went

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