Legal Document

471 U.S. 48 105 S.Ct. 1721 85 L.Ed.2d 36 SOUTHERN MOTOR CARRIERS RATE CONFERENCE, INC., et al.v.UNITED STATES. No. 82-1922. Argued Nov. 26, 1984. Decided March 27, 1985. Syllabus Petitioner Southern Motor Carriers Rate Conference and petitioner North Carolina Association (petitioners), "rate bureaus" composed of motor common carriers operating in Carolina, Georgia, Tennessee, Mississippi, submit, on behalf their members, joint rate proposals to the Public Service Commission each State. This collective ratemaking is authorized, but not compelled, by respective States. The United States, contending that petitioners' violates federal antitrust laws, filed an action Federal District Court enjoin it. Petitioners responded conduct was immune from laws virtue "state action" doctrine Parker v. Brown, 317 341, 63 307, 87 L.Ed. 315 (1943). entered a summary judgment Government's favor. Appeals affirmed, holding compulsion threshold requirement finding immunity. court reasoned two-pronged test California Retail Dealers Assn. Midcal Aluminum, Inc., 445 97, 100 937, 233 (1980), for determining whether state regulation private parties shielded laws—the challenged restraint must be one clearly articulated affirmatively expressed as policy State supervise actively any anticompetitive conduct—is inapplicable suits against parties; even if applicable, compelled cannot taken pursuant "clearly policy" within meaning § first prong; because Goldfarb Virginia Bar, 421 773, 95 2004, 44 572 (1975)—which held acting alone, could immunize its fixing minimum fees lawyers—was cited with approval Midcal, endorsed continued validity "compulsion requirement." Held: Petitioners' activities, although are liability under doctrine. should used determine bureaus' activities protected laws. Moreover, actions party can attributed policy," test's prong, absence compulsion. prong test. Here Tennessee statutes expressly permit ratemaking. while approving ratemaking, has intent displace price competition among regulatory structure. Because Government conceded there adequate supervision, both prongs satisfied. Pp. 55-66. 702 F.2d 532 (CA5 1983), reversed. Allen I. Hirsch, Atlanta, Ga., petitioners. Lawrence G. Wallace, Washington, D.C., respondent. Justice POWELL delivered opinion Court. 1 Conference, Inc. (SMCRC), Association, (NCMCA), petitioners, four Southeastern bureaus, submit or rejection. States which bureaus operate. this alleged practices. We here consider though entitled Sherman Act immunity 2 * A. 3 In Commissions set carriers' rates intrastate transportation general commodities.1 Common required proposed relevant approval.2 A becomes effective agency takes no specified period time. If hearing scheduled, however, will become only after affirmative approval.3 thus have exercise ultimate authority control over all rates. 4 allowed agree prior submission agency.4 By reducing number proposals, permits more carefully submission. fact, some stated without they would unable function effectively rate-setting bodies.5 Nevertheless, States; every carrier remains free individual Commissions.6 5 As indicated above, SMCRC NCMCA associations Tennessee.7 Both organizations committees possible changes.8 committee concludes changed, proposal changed submitted Commission. Members bureau, bound proposal. Any disapproving member may independent Commission.9 B 6 On November 17, 1976, instituted Northern Georgia.10 charged two had violated conspiring members fix commodities. exempt See (1943).11 They further asserted did violate ultimately were determined appropriate agencies. found arguments meritless, favor Government. 467 F.Supp. (1979). defendants enjoined engaging members. 7 Fifth Circuit (Unit B, now Eleventh Circuit), sitting en banc, affirmed (1983).12 Relying primarily (1975), conduct, it State, forth Liquor irrelevant, reasoned, case public official named defendant.13 F.2d, at 539. applicable party's claim immunity, Act. concluded acts State's expressed" Midcal. 8 After 672 469, 481 1982).14 It rejected contention agencies charged, violated. "joint ratesetting . reduce[d] amount filing otherwise characterize market process," raised prices Id., 478. "naked restraint," per se illegal. Ibid. 9 Four judges strongly dissented. argued success depend upon activity rather than identity defendant. 543-544. asserting provided test, dissenters lack dispositive. Even compulsion, articulate clear express policy." 546. dissent denies needed flexibility formation programs, inconsistent principles federalism Congress intended embody Act.15 10 granted certiorari16 1240, 104 3508, 82 818 (1984), decide operate, immunity.17 II 11 U.S., S.Ct., prohibit imposing restraints competition.18 There, raisin producer Director Agriculture enforcement Agricultural Prorate Under statute, cartel producers created order stabilize prevent "economic waste." 346, 311. recognized program anticompetitive, assumed Congress, "in commerce power, [could] maintaining [such] stabilization program. ." 350, 313. refused find "an unexpressed purpose nullify state's officers agents. 351, 12 Although involved official, Court's reasoning extends parties. decision premised assumption enacting Act, intend compromise States' ability regulate domestic commerce.19 limited officials, congressional frustrated, implement programs restrain plaintiff frustrate such merely suit regulated parties, officials who plan. decline reduce formalism stand little proposition Porter Brown sued wrong Cantor Detroit Edison Co., 428 579, 616-617, n. 4, 96 3110, 3130, 49 1141 (1976) (Stewart, J., dissenting). 13 circumstances available regulating defined most specifically our 937. Hallie Eau Claire, 34, 46, 10, 1713, 1720, 25 (1985). we state-court injunction prohibiting enforcing statute requiring wine establish resale schedules. First, " 'one policy.' 105, 943, quoting, Lafayette Louisiana Power & Light 435 389, 410, 98 1123, 1135, 55 364 (1978) (opinion BRENNAN, J.). Second, conduct. 943.20 supervision prevents frustrating national casting "gauzy cloak involvement" what essentially 106, 943.21 III 14 does provide Appeals, reached conclusion that: (i) brought (ii) (iii) these points order. 15 agency, where given narrow reading. concerned, here, restraining Therefore, nature challenged, supra, 604, 3124 (BURGER, C.J., concurring part judgment); 420, 1140 judgment). 16 liability. According court, policy, "when left carry out he sees fit." petitioners individually. therefore policies neutral respect frustrated construed require submissions. 17 reaching conclusion, interest engage type analysis ignores manner permissive work. Most probably allow them share cost preparing proposals. viewed too high, individually lower obtain larger market. Thus, through self-interested carriers, achieve desired balance between efficiency fostered Construing eliminates choice necessary ensure do forbid adopt permit, compel, long articulates satisfied.22 C 18 said "[t]he inquiry meant proscribe sovereign." 790, 2015. approval. 104, 942-943. basis citation, eliminate requirement" Goldfarb. 19 Goldfarb, properly read making sine qua non case, Fairfax County lawyers adhere minimum-fee schedule. 776-778, 2007-2008. concerned necessity compulsion—its presence issue. focal point source compelled. Instead, "acting sovereign" competition. 2015; see 1135 J.) ("Goldfarb made that, purposes doctrine, act sovereign"). 20 employ language beyond dispute same result applied later "as designed lawyers. Supreme explicitly directed "to controlled" 789, 19, 2014, 19. recognize ambiguity, prerequisite D 21 represents attempt resolve conflicts arise goal unfettered marketplace. values. reduces range alternatives At time, insofar encourages require, greater trade. believe competing interests impairing necessary. 22 summary, hold Midcal's parties' claims permits, articulated" Midcal.23 Our today suggest, irrelevant. To contrary, often best evidence 45-46, 1719-1720; P. Areeda D. Turner, Antitrust Law ¶ 212.5, p. 62 (Supp.1982) (compulsion "powerful evidence" existence policy). when other conclusively shows intends prove fatal IV 23 inflexible suggest necessarily found, concedes, bureaus. issue policy. 24 supra. Acting Bar—a special agency"—prohibited charging those schedules published local bar. sovereign. 2014. undertaken itself, approved legislature, New Vehicle Bd. Cal. Orrin W. Fox 439 96, 99 403, 58 361 (1978), Court, Bates Bar Arizona, 433 97 2691, 53 810 (1977). therefore, sanctioned legislatures carriers.24 actions, least Mississippi's addressed whether, permitting 26 Mississippi Carrier Regulatory 1938, Miss.Code Ann. 77-7-1 seq. (1972 Supp.1984), gives carriers. provides prescribe "just reasonable" 77-7-221. legislature details inherently process, agency's discretion. exercised discretion encouraging Response Comm'n Amici Curiae 76-1909A (ND Ga.1977), 11. took deprived 27 need "point specific, detailed legislative authorization" 415, 1138 sovereign particular field structure, unavailable away Similarly, utility unprotected Michigan Legislature intention 584-585, 3114-3115. 28 detail difficult policies. Agencies able deal problems unforeseeable to, outside competence of, legislature. Requiring authorization might effectuate diminish, destroy, usefulness. Cf. 44, 1719 (requiring explicit impose "detrimental side effects municipalities' autonomy"). clear, Mississippi,25 failure describe implementation subject 29 Commissions, accept, reject, modify recommendation. fourth Anticompetitive satisfies second likewise met, agencies, V 30 conclude Brown. Accordingly, 31 so ordered. 32 STEVENS, whom WHITE joins, dissenting. 33 term "price fixing" generally refers process competitors prevail goods services offer. Such behavior essential industry. example, established evaluating reasonableness propose charge transport, tolerate 34 Reasoning deductively dictum holds bureaus—at prompted, required, language1 precedent. interfere unlawful law. situation, face conflicting obligations law, threatened. Except circumstances, state-action persons.2 35 "Whatever peculiar characteristics, far price-fixing agreements establishes uniform rule industries alike":3 combinations tampering competitive structures unlawful. legislatures, whose powers Supremacy Clause,4 person Only implication, authorize fixing, done compelling circumstances. Implied immunities, disfavored,5 exemptions strictly construed.6 These "canon[s] construction reflec[t] felt indispensable role maintenance economy." Philadelphia National Bank, 374 321, 348, 83 1715, 1733, 915 (1963). Applying principles, consistently embraced view "[r]egulated Act." Georgia Pennsylvania R. 324 439, 456, 65 716, 725, 89 1051 (1945). For many years enactment business insurance, scrutiny supported "our reading into exemption" allowing insurance businesses premium agents' commissions. South-Eastern Underwriters Assn., 322 533, 559, 64 1162, 1176-1177, 88 1440 (1944). Underwriters, tersely observed "if exceptions written come Court." 561, 1178. Thereafter, McCarran-Ferguson 1945, 59 Stat. 33, decided, matter Act's prohibition "shall [only] extent Law." U.S.C. 1012(b). 37 Consistent treatment repeatedly collusive railroads end reasonable commission.7 455-463, 725-729; Trans-Missouri Freight 166 290, 337-340, 540, 557-559, 41 1007 (1897). Railroad explained why so: 38 "The fact been fixed [Interstate Commerce] immaterial before us. [E]ven combination non-discriminatory [Keogh Chicago Northwestern 260 156, 161, 43 47, 49, 67 183 (1922) ]. reason Interstate Commerce remedies correction abuses rate-making constitute violations anti-trust Thus 'zone exists maxima minima ordinarily adjust charges itself.' Chicago, M., St. P.R. 294 499, 506 [55 462, 465, 79 1023] [1935]. Within zone lacks power grant relief conspiracy tactics. Damage presumed flow manipulate zone." 460-461, 727-728. 39 Collusive causes upward pressure reasonableness, conspiracies actionable theory case. 40 reacted much decision. permitted industry, enacted Reed-Bulwinkle 1948 choice.8 1980,9 sharply curtailed availability exemption. Collective still comply strict procedural requirements. infra. stipulated arrangements identical followed Committees declared App. 40-41. also acknowledge neither nor exempts contend permitted, 42 defendants' implied entities unless reach state." mandated furtherance price-support farmers. prohibited Act: "[T]he prorate never operate force agreement combination. derived efficacy command command. nothing history suggests agents legislature." 350-351, 45 Parker, "directed" eligible 46 involving attorneys schedules, unanimously stated: 350-352 [63 313-314]; Continental Co. Union Carbide, 370 690, 706-707 [82 1404, 1414-1415, 777] (1962)." 2015, (1975). defendant schedule, "is purposes. enough puts it, 'prompted' action; rather, direction 791, 47 (1976), unanimous understanding immunity.10 settled "that authorization, approval, encouragement, participation restrictive confers immunity." 592-593, 3118-3119 (footnotes omitted).11 dissenting Justices agreed: "private exemption, 'compelled' action." 637, 3140 (STEWART, dissenting, joined REHNQUIST, JJ.). Cantor, divided question alone sufficient confer penalize light-bulb-distribution discontinued 614-615, 3129. hand, acknowledged continuation light-bulb ostensibly went exemption fundamental Since Michigan's electricity market, "[r]egardless outcome utilities' distribution almost entirely unimpaired." 598, 3121. idea utility, continue signaled departure area. discussing law quoted extensively Goldfarb12 requirement. quite resale-price-maintenance activities. occasion explore contours references, opinion, "actively supervised" restated standards requirements scope entities; expand protect prompted State.13 50 Today abandons him violation Hereafter, supplant supervises charged. justifies change consistent "principles marketplace." Ante, 61. I conclusions unsound. Deference Programs 51 reliance vague federalism" obscures traditional disfavor authorized make work 'and then necessary.' "14 No lesser showing repugnancy justify based 52 separates existence. enhance raisins output price.15 words, replaced economic regulation. Price support like possibly succeed participate his option. heart California's agriculture; abandon project. denominator reservation evaluate terms carriage.16 "no requires service uniform, [and] requires, either regulation, administrative mandate, formulated conferences." 471, 477 Ga.1979). When, mandatory, conflict systems; entity edicts Indeed, meaningless contemplate "regulatory" carte blanche excuse itself consequences speeding enforced motorist drive fast chose. When declares follow procedure, admits element inconsequential program.17 54 noted, Act18 authorizes interstate doubts "Congress adopting virtually level." 60, 22. abolished single-line requests, applies stringent safeguards channel useful informational tasks thereby diminish threat misconduct.19 sound reasons20 extending amended, contain comparable safeguards, "[t]hese considerations body amend [the statute] judicial legislation wholly unjustifiable." 340, 559. embraces specious argument "insofar trade." finds "result" seriously flawed. 56 practical level, assumes cause rush recently acted increase remain silent level. assumptions speculative. 57 theoretical effect practices litigation.21 correctly "[c]ollective [rate] formulation tampers structure commodities; bureau arrangement substitutes concerted pricing decisions influence impersonal forces rates." 478 (CA5, Unit CA11, 1982). increased caused especially grave basic transportation, ripple magnified raw materials, semifinished finished transported various stages production distribution. Active process—like 1980—might minimize ratemaking.22 structured ICC reject fall "zone reasonableness." Unless supervise" Unfortunately, "active supervision" take fully disclosed record.23 Whether wise unwise seek enforce consider. precedent fixing. Immunity cases, today, shroud doctrine,24 resurrected. 60 respectfully dissent. N.C.Gen.Stat. 62-130(a) (1982); Ga.Code 46-7-18 (Supp.1984); 77-7-217 (1972); Tenn.Code 65-15-106(a) (Supp.1984). 10704. reserves rates, affect commerce. 10521(b). 62-134(a) 46-2-25(a) §§ 77-7-211 77-7-215 65-5-202 (1982). 62-134(b) 46-2-25(b) 77-7-219 65-5-203(a) 62-152.1(b) (Supp.1984), Ga.Pub.Serv.Comm'n Rule 1-3-1-.14 (1983); Ga.1917), 11; 65-15-119 Tenn.Pub.Serv.Comm'n 1220-2-1-.40, Rules, Regulations Statutes Governing Carriers, (1974). See, e.g., Comm'n, 15-16. uniformity tends produce considered desirable another. Miss.Pub.Serv.Comm'n 39D(4), Rules Practice Procedure General Miss. (1972). N.C. Gen.Stat. 62-152.1(e) 1-3-1-. 14, supra,; 1220-2-1-. 40, time filed, represented Alabama. SMCRC, longer active Alabama Brief 3, 2. Carolina. separate operate—North Tennessee. NCMCA, solely matters Commission, committee. addition providing forum discuss bureaus: "[ ] publish tariffs supplements containing agree; [(ii) counsel, staff experts, facilities preparation studies, exhibits testimony use hearings commissions." 532, 534 1983). Traffic (MCTA), another MCTA appeal judgment, Utility Commissioners (NARUC), organization intervene Fed.Rule Civ.Proc. 24(a). Throughout litigation, NARUC contended Noerr-Pennington Eastern Presidents Noerr Freight, 365 127, 81 523, 464 (1961); Mine Workers Pennington, 381 657, 1585, 626 (1965). defense, address panel judge judgment. 469 elected, explanation, name banc reinstated panel's violation. 542. Judge Clark's criticized majority ignoring "the history, fairness." 548. petition writ certiorari NARUC. well, 11, disposition makes unnecessary applicability noting "[i]mplied immunities disfavored .," post, 67, cites (1944), apparently significance 70. dissent's point, course, logical us overrule progeny, acquiescence, unwilling STEVENS relies (1945), section Neither bearing "business commerce," Group Life Health Ins. Royal Drug 440 205, 217, 1067, 1076, 261 (1979), proscriptions. silence, companies states coerce, intimidate, boycott consumers [there] alleged." 562, 21, "domestic relied silence. There are, statements desire invade several H.R.Rep. 1707, 51st Cong., 1st Sess., (1890). 632, 3137, (1985), municipalities. municipality supervised qualify 1720. argues 'necessary [program] .' Post, 74 (quoting 597, 3121, (1976)). overlooks exception questionable deciding Silver York Stock Exchange, 373 357, 1246, 1257, 389 context, courts wrongly "unnecessary," correct error. recognizes, Clause taking similar remedial action. 67. prompt "kind interference sovereignty prevent." 214, (1978). dependent "necessary." 10706(b)(2) 10706(d)(2)(C). advantages think unlikely Contrary arguments, "give authorizing it." 313-314; Schwegmann Bros. Calvert Distillers Corp., 341 384, 71 745, 1035 (1951). satisfy "casting gauzy involvement arrangement." 943. ensures demonstrated commitment oversight." ¶§ 213a, 73 (1982 Supp.1984); stands sharp contrast Colorado Home Amendment, Community Communications Boulder, 455 102 835, 70 Constitution gave municipalities extensive self-government. 43-44, 836-837. Pursuant authority, city Boulder cable television company expanding operations. Amendment id., 55, 842, Boulder's anti-competitive ordinance "home municipality," elect free-market alternative 56, 843. choose statutorily enumerated factors. 77-7-221 factors bear discernible relationship perfectly efficient unregulated indicates trucking industry "Every contract, form trust otherwise, conspiracy, trade foreign nations, illegal." 1. Of 46-47, 1720-1721, less reflects presumption interest." 45, 1720; cf. Affiliated Capital Corp. City Houston, 735 1555, 1571-1572 1984) (en banc) (Higginbotham, concurring), cert. pending, 84-951. Socony-Vacuum Oil 310 150, 222, 811, 843, 84 1129 (1940); 785, 2012, (1975); McKesson Robbins, 351 305, 309-310, 76 939-940, 1209 (1956); Paramount Pictures, 334 131, 143, 68 915, 922, 92 1260 (1948). "This Constitution, Laws shall Pursuance thereof supreme Land; Judges thereby, Thing notwithstanding." Const., Art. VI, cl. E.g., Gerimedical Hospital Gerontology Center Blue Cross Kansas City, 452 378, 388-389, 101 2415, 2421-2422, 69 (1981); Securities Dealers, 422 694, 719-720, 2427, 2442-2443, 486 Insurance 231, 1083, (1979); Abbott Laboratories Portland Druggists 425 1, 1305, 1313, 537 (1976). "In ], damages formed secure freight constituent railroad seen, recovered. But Mr. Brandeis speaking illegal non-discriminatory. He said: 'All That proceedings Anti-Trust illegal; so, redress criminal forfeiture 6. 290 [17 1007] [1897], Joint 171 505 [19 25, 259] [1898]. not, seems, bar Government.' [260 161-162, 49]." 457-458, 726, pursue remedy invoking original jurisdiction, forum. 484, 489, 738, 740 (Stone, is, seeks "Parties persons hereby relieved operation agreement, carrying conformity provisions conditions prescribed Commission." 473. current version codified 10706(b)(2). 94 803, 10706(b)(3)(B)-(D). 609, 3126 (BLACKMUN, stated, 706-707, 777 (1962); 313, (1943); Pacific 313 450, 467-468, 61 1064, 1074, 1453 (1941); 193 197, 436, 460, 679 (1904). "Several recent Parker's analysis. 773 [95 572] fee association ethical attack. 'It "prompted" sovereign.' 791 2015]." ostensible reviewed monitor effectiveness conditions, "State simply setting enforces thwarted 105-106, 3121 (1963)). pointed favored, justified convincing system. 348 [83 1733]; Borden 308 188, 197-206 [60 182, 187-192, 181] (1939)." 2442-2443; nn. 5, 6, cases "cardinal rule," generally, repeals implication favored. Posadas 296 497, 503, 349, 352, 80 (1936). establishment, marketing agricultural commodities produced state, restrict growers maintain packers. 'conserve wealth State' 'prevent waste products' objective excessive supplies 'adversely affecting' speaks 'economic stability' 'agricultural waste' price, evident state' raising prices, 'without unreasonable profits producers.' 355, 315. 46-2-25(b), 77-7-217, 62-134(b), 62-146, 62-147 65-5-203, consolidating petitions modifications, arguably preserves resources promotes simplicity 60-61, 83-84, 90-91. governing may, deprive purported advantages. 51. being argue facets systems program's success. Iowa al. ("The serves cognizable interest"). valuable information-gathering 84, 90. final interfered function. ("Each statistical data advice wishing avail expertise"). 8, conferences, things, disclose names affiliates 10706(b)(3)(A); limit discussion voting subjects 10706(b)(3)(B)(i); file protest complaint tariff item account carrier," 10706(b)(3)(B)(iii); employees employee docket effecting item," 10706(b)(3)(B)(iv); "upon request, divulge proponent docketed admit meeting rules discussed voted upon, vote cast organization," 10706(b)(3)(B)(v); 120 days, 10706(b)(3)(B)(vii). American Trucking Assns., 354, 2458, 282 (1984). 1980 suggested otherwise: "During course hearings, Committee heard good criticism process. disadvantage system compensatory participating discussions. happens, lose benefit occur offer attractive Another serious problem closed proceedings. Voting specific behind doors." S.Rep. 96-641, (1980). 96-1069, U.S.Code Cong. Admin.News 1980, pp. 2283, 2309. Policy Competition "It elaboration contrary underlying illegality unreasonableness since unreasonable." 940. Commissions' 539, 1983) banc). Some implementing regulations indicate basis. 62-152.1(c) 1220-2-1-.40 ante, 53, merits question. (1965); (1961).

Classification Label: 7