Legal Document

330 U.S. 743 67 Supreme Court Reporter 1015 91 L.Ed. 1219 BRUCE'S JUICES, Inc.,v.AMERICAN CAN CO. Number 27. Reargued Nov. 14, 1946. Decided April 7, 1947. Messrs. Thurman Arnold, of Washington, D.C., and Cody Fowler, Tampa, Fla., for petitioner. Mr. John Lord O'Brian, respondent. Justice JACKSON delivered the opinion Court. 1 The federal question which survives proceedings in Florida state courts is whether renewal notes representing purchase price goods sold are uncollectible if it found that vendor violated Robinson-Patman Act, 49 Statutes-at-Large 1526, 1528, 15 United States Code KF62 §§ 13, 13a, Annotated KF65 U5 13a. 2 Bruce a canner and, over period years, bought its cans chiefly from American Can Company. A debt accumulated was put into promissory on one or more occasions they were renewed, reduced by amounts had been paid. Upon eventual default, two suits, later consolidated, brought aggregating about $114,000. As to each note, pleaded defense 'the consideration said illegal void no force effect.' This be reason Company others at prices discriminated against thereby Act. 3 alleged discrimination relied upon consisted quantity discounts. Annual purchases $350,000. Some other canners much larger quantities. Company's contract with all customers allowed discount 1% On annual $500,000, nothing those whose less than that. It so graduated as give maximum 5% To customer $7,000,000 year. consequence relatively small packers pay More their largest competitors. 4 claimed this advantage buyers renders per se violation sustain case would necessary hold. not denied got same discounts purchasers like quantities when qualified, year $500,000 bracket received Discount. failed where earned under uniform contract, given earned. within classification questioned purchaser have class. 5 Before court could particular case, also overcome difficulties law fact. Act does prohibit but expressly permits them certain conditions. indicates, too, Federal Trade Commission appropriate tribunal hear first instance complicated issues growing out grievances practice seller. § 13(a), 13(a). Quantity among oldest, most widely employed best known practices. They common retail trade, wholesale manufacturer-jobber relations. regulated well unregulated structures. Congress refused declare flatly illegal. become only conditions accept receive allow them. Bruce, t e years included balance account, purchased half million dollars precisely kind amount now asserts 6 argument made such remedy seeks here support antimonopoly policy Congress. But complaining high cans. complains lower others—which enable competitors products market cheaper. may some disadvantage, follow forbid savings large-scale mass production passed along consumers. economic effects competition judge. Until has determined question, guidance what public interest require concerning harm benefit these ultimate interests sought protected far-reaching decision outlaw Courts should rush feared tread. 7 Because fundamental defect petitioner's however, find consider effect features before conclusion reached petitioner win merits. questions fact, considerable evidence taken pretrial hearings parties dispute thereon final judgment so, adjudicated insufficient facts. Although record unsatisfactory, we take sales evidenced after passing appears, identified any sale represent remaining running account credits many claim might supportable. indebtedness supplant conceded incurred February, 1940. covered least four-year involved types asks us excuse paying either type can date transaction. contends proving show different approximately time 'because scheme aggregate dollar volume comprehends whatever size price.' position mean competitor large 1940 higher invalidated 1936 need contention simply bill got, settlement extension uncollectible. 8 However, purposes decision, view uncertain nature below, assume, do decide, facts established pleaded. We decide plan, were, sole unenforceable plan violates Petitioner suggests paths answer, answer will yes. broad ground offers 'that transaction unlawful constitutes criminal conduct money based.' narrow yet favor. 'But, admitted buyer (sic) entitled fair value goods,' says, respon ent probably already paid 1936—40. When trial court, urges, substantially equivalent discount.1 9 In effect, treating $114,000 claims gotten 1937—42 $2,000,000. alternative liable bought, suit determine was. fact transactions $2,000,000 agreed price. Those cannot particularity, respondent's prices. did allege contend specific identified. his testimony an mingled individual transactions.2 brief here, response statement 'None original * tied transaction' 'The shows entire series transactions.' There substantial equivalence numerically discrimination, separate item discrimination.3 10 prescribes sanctions, make uncollectibility Violation conviction violator fined imprisoned. Any person who injured business property anything forbidden therein sue recover three fold damages him sustained costs suit, including reasonable attorney's fee. 38 731, 15, 15. triple damage provision redress private injury vindicate sanctions provided 11 contended act judicially add sanction declaring argued effective enforcement provision. Addressed Congress, persuasive, very obviously makes even significant it; committee dealing proposed word suggesting appears debates Congress; proponent pointed favor self-enforcing because sanction; opponent alarm consequences drastic commerce nation. contrary, Senate receded, gave extreme compel remission excess charged. See S. 3154, 2(d), 74th Cong., 1st Sess., Rep. 1502, 2d Page 8: Conference Rep., Haw. Hawai‘i Reports KFH45 A2 2951, 8. declined adopt moderate appear house wanted go far permit get nothing. 12 Where individuals groups bear special relation prohibition statute identical having enforced, uncommon invoke sanctions. stimulates set combat transgressions another without resort governmental agencies. Such remedies putting back statutes strong reliable motive enforcement, relieves Government cost enforcement. lose, course, there presumed disinterested, standards expertness agency initiative control retributory measures. clear intended use self-interest means arm persons retribution party cause action good threefold, 13 undertaken Br ce's Juices, Inc., versus Co.,* 569, Civ. T., S.D. 1942. indicate establish additional unauthorized discredit belittle both authorized. likely prove protracted expensive; caused disadvantageous competitive speculative usually unprovable. Nor rely protection government. Department never around matter.' little dubious sort litigation four reverse send again, antidote 'protracted expensive' suits. Moreover, respondent charged illegal, must order win, suit. 'speculative' nor 'unprovable' other, establishment statutory form carries bonus. 14 Annexation implication inference unexpressed intention result doctrine law, justified rational, nondiscriminatory making effective. seller giving someone else greater discount, meet test. seem test rationality appropriateness reparation measured roughly extent violation. This, principle damages. urged. indemnity injury, dealings affected solely credit obtained lose carried open account. Had Bruce's delinquency greater, gain; asked way defense. obvious discourage vendors extending operation rather difficult doubt. Since danger loss greatest discounts, deny trust who, defend hardly comport argument, dwelt petitioner, status concern trying battle giant. suppose 'little fellows' always giants sell goods. itself canned trade practices include 'little' side issue collect wholesaler one. gets disadvantage treacherous. 16 construction grant point vulnerability avoided holding whole price, merely credit, recoverable voluntarily transaction, extended, measure suffer violating 17 But, system o thereof recoverable, similarly tainted. hard see how valid theory advanced. If taken, certainly soon end discounts—by ending business. believe contemplated deadly left judicial edict dislocate do. forgotten retroactive several unsettle accounts. justify declaration effect. 18 few cases unsettled—those, say, positions similar Bruce's—what becomes nondiscrimination? Other cash themselves competing absolved part cans—something one-third being case. words, penalty establishing five percent obliged something 30% Discount year, shown ever made. 19 urged holdings Sherman Anti-Trust supply analogy allowing former provides, things, every restraint 'is hereby declared illegal.' 26 209, 50 693, 1, 1. held based agreement defendant plaintiff parties, object accomplishment ends consummated sought, entertain express statute. Continental Wall Paper company Louis Voight & Sons Co., 212 227, 29 280, 53 486. Cf. Sola Electric Jefferson 317 173, 63 172, 87 165. sued intrinsically enforcing duty violations inhering reaffirmed 'doctrine 'where creates new offense denounces penalty, gives right declares remedy, punishment prescribes." D. R. Wilder Mfg. Corn Products Refining 236 165, 174, 175, 35 398, 401, 59 520, Ann.Cas.1916A, 118; Connolly Union Sewer Pipe 184 540, 22 431, 46 679. 20 single violate At place constitute discrimination. Thus, today legal week later, latter Whether rendered simultaneous preexisting ones, transactions, now. plain violation, one, inherent upon, goods, third parties. No approved furthermore, characteristics basis judging Acts fit 21 None less, invalidating obligations otherwise If, own proves then aid recover.4 Here, import consideration. denied, he stated That law. goes outside between proved relevant time, amounting discrimination—a unnecessary plaintiff's action—that asserted appears. approval litigants just holds irrelevant litigation. defendant's freed obligation note payee, cans, compared unlawfully discriminatory, supported resting congressional policy. Not named surprising been, give. assumed discriminatory that, clearly evidence. For despite complaint difficulty damages, times difference illegality illegally damaged, absence extraordinary circumstances, why victim recover, proof, offense. inducement thrice suffered bring sufferer assure help, thought offer choice taking amount. embodied second weak shadow gave, reduplication miniature. hold affirmed. 23 Affirmed. 24 MURPHY, dissenting. 25 sellers differentials RobinsonPatman approaches quite meets issue. unmistakable Court's recovery language lessening result. N Dec. Immigration Nationality Decisions remain unconvinced, consistent ideals our rule Section discriminates, knowledge, granting 'any rebate, allowance, advertising service charge' available respect grade, quality quantity. 2(a) Clayton amended 'to discriminate commodities grade quality' lessen tend create monopoly. light provisions examine 27 proceeds basic assumption, unsupported contentions, seeking avoid liability assumption justified. Petitioner's brief, true, theories position: (1) based; (2) above collected pursue alternative, pointing narrower presented record. Thus really differential outlawed notes, 'does tainted thus windfall.' prevail unenforceable, still free quantum meruit recovered. Penn-Allen Cement Phillips Sutherland, 182 N.C. 437, 109 Southeastern KF135 S6 257. 28 indication passage continuing respondent; during 1937 instituted, owed represented here. enforceability affect differential, assumes transactions. basis. Hence enough represents over-all standpoint. 30 states, figure reflect sentiments necessarily premature present posture case; full opportunity try connect differential. concededly burden sales. prove, collapses. important chance shut court's door face chance. prejudice intimating proof impossible. Certainly thinks purported proved. thing raise defense; it. concerned proposition, beside 31 dismiss unwarranted fear going sustained. pleading collection 32 2. Equally inquiry 'wanted nothing' violated. us, designed through action. determination precludes involve finding framers desired forfeit placed involves frown effectuate 33 3. interposing vendor's vendor. actions exclusive 34 overlooks courts. contrary policy, up legislative recognition Otherwise sanctioning agreements. McMullen Hoffman, 174 639, 669, 670, 839, 850, 851, 43 1117. applied early recognized authorizing used, 'anyone action.' Bement National Harrow 186 70, 88, 747, 754, 1058; Similarly, permission, antitrust laws limit scope patent rights. Mercoid Corporation Mid-Continent 320 661, 64 268, 88 376; 165; B.B. Chemical Ellis, 314 495, 62 406, 86 367; Morton Salt G.S. Suppiger 488, 788, 402, 363; Edward Katzinger Chicago Metallic 329 394, 416, 424, MacGregor Westinghouse 421, 424. And refuse involved. failure mention slips insignificance precedents analogous situations. 36 4. holds, invalidates contracts denying violative imperfect. 37 misconceives evils directed. discount. apparent once reach defects surprise discover Discrimination evident contracts, accounts forms indebtedness. tangible appearance subsequent retain charge. requires discriminates permitting purchaser's tenor falls squarely area defined Indeed, shorn meaning permitted fruits conduct. used purpose wholly differential; enforce monopolistic agreement. cases, negative. parcel elaborating subtle refined eliminate. treat accordingly. 39 does, Of course done, relative matter depending suits Ladoga Conning Cir., 44 Reporter, 2nd Series 763. frequently defenses Discriminations monopolies rarely documents introduced securing Judges constantly look beyond Surely, unlawful, factor inconvenience looking ignoring recovery. insist due hark mediev l concepts practice. deals complex realities. Litigants judges accordingly properly defendant. respected, judged superficial perfection pleadings proof. 40 strike down wherever Statutory countenanced reap harvest time. 41 5. intimates, actually deciding, raised until competition. expressed Commission's guidance, untold liabilities. 42 short reluctant assume unable comprehend Robinson-Patment sets regard granted technical knowledge experience complexities problem courts; inestimable judge called deal Commission, framework specifically recognizes injure monopoly; differences manufacture, delivery, permissible. problems sit idly differentials—a function qualifies ideal toward strive. conception logical conclusion, abdicate duties whenever subject treble indictments seems me, process vigor responsibility willing imply 6. Finally, indicates treacherous deciding general attitude. blind ourselves equally laws, integral part, primarily concerns curb growth giant monopolies. Many ago occasion 'badly unfortunately restrained driving dealers worthy men lives spent therein, readjust altered surroundings. reduction commodity dealt dearly ruin class absorption all-powerful combination capital.' Trans-Missouri Freight Ass'n, 166 290, 323, 552, 1007. observation applies desig ed protect concerns, realizing disastrous victims proper treatment demands appreciation purpose. 45 pause long inimical nation's welfare. guard augment destruction will, erosion barriers erected flood-tide end, therefore, below BLACK, DOUGLAS RUTLEDGE join dissent. theory, had. Williston, Contracts (Rev. ed., 1938) 1786A; Restatement, Contracts, 598, Comment chapter leniency extended impossible value. uncollectible, meruit, windfall. His follows: 'Q. you Co.? Atlantic were. During can? period. Did run grocery soft drink can, large? sir. irrespective cans? Yes sir, blanket way. words distinction your indebtedness? while accruing. right.' considered alternatively latest late 1939 1940, excused payment $114,000, defending ought allegedly limited purpose, represents, Phillips, 257, unpaid. decided appeal prematurely taken. counterclaimed comput d overcharge. recovered first, claim. simply, 'This consider.' page 441, 259. overcharge, counterclaim dismissed. rest damaged therefore compensation. Case pending. 1117, example, partnership fraudulent submit collusive bids construction. disclose illegality, questionable. Court, moreover, partners separated rise Agreements persons, litigants.

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