Legal Document

475 U.S. 260 106 S.Ct. 1045 89 L.Ed.2d 206 Alexandra FISHER, et al., Appellantsv.CITY OF BERKELEY, CALIFORNIA, al. No. 84-1538. Argued Nov. 12, 1985. Decided Feb. 26, 1986. Rehearing Denied April 28, See 1150, 1806. Syllabus A Berkeley, California, ordinance, enacted pursuant to popular initiative, imposes rent ceilings on residential real property in the city. The are under control of a Rent Stabilization Board. Appellant landlords brought suit California Superior Court challenging constitutionality ordinance Fourteenth Amendment grounds and seeking declaratory injunctive relief. upheld but was reversed by Appeal. In meantime, based intervening decision Community Communications Co. v. Boulder, 455 40, 102 835, 70 810 (1982), question arose as whether unconstitutional because it pre-empted Sherman Act. Supreme held that there no conflict between Held: is not being Pp. 264-270. (a) established maintained Board were unilaterally imposed city upon exclusion private control. Thus, lack element concerted action needed before they can be characterized per se violation § 1 restraint government does become within meaning simply has coercive effect parties who must obey law. And mere fact all competing comply with enough establish conspiracy among landlords. 265-267. (b) While gives tenants some power trigger its enforcement, places complete over maximum levels exclusively Board's hands. Schwegmann Bros. Calvert Distillers Corp., 341 384, 71 745, 95 L.Ed. 1035 (1951), Retail Liquor Dealers Assn. Midcal Aluminum, Inc., 445 97, 100 937, 63 233 (1980), distinguished. 267-270. 37 Cal.3d 644, 209 Cal.Rptr. 682, 693 P.2d 261 (1984), affirmed. MARSHALL, J., delivered opinion Court, which BURGER, C.J., WHITE, BLACKMUN, REHNQUIST, STEVENS, O'CONNOR, JJ., joined. POWELL, filed an concurring judgment, post, p. 270. BRENNAN, dissenting opinion, 274. Jon Smock, Sacramento, Cal., for appellants. Laurence H. Tribe, Cambridge, Mass., appellees. Justice MARSHALL Court. presented here municipality initiative 2 * June 1980, electorate entitled "Ordinance 5261-N.S., Eviction Good Cause Ordinance" (hereafter Ordinance). Section 3 Ordinance stated measure's purposes.1 "The purposes this regulate increases City Berkeley protect from unwarranted arbitrary, discriminatory, or retaliatory evictions, order help maintain diversity community ensure compliance legal obligations relating rental housing. This legislation designed address Berkeley's housing crisis, preserve public peace, health safety, advance policies regard low fixed income persons, minorities, students, handicapped, aged." App. Juris. Statement A-111. 4 To accomplish these goals, strict controls "is rented available use whole part," 5, id., at A-113. Excepted government-owned units, transient cooperatives, hospitals, certain small owner-occupied buildings, newly constructed buildings. For remaining numbering approximately 23,000, 678, 699, 261, 288 establishes base ceiling reflecting rents end May 1980. landlord may raise his only annual general adjustment appointed commissioners after he successful petitioning individual adjustment. fails register units covered adhere allowable set fined Board, sued tenants, have legally withheld him. If violations willful, face criminal penalties. 5 Shortly passage appellants, group owning claiming, inter alia, violates their rights Due Process Equal Protection Clauses Amendment, face, appeal pending, however, Court's led amici federal antitrust laws. When heard Appeal's decision, therefore chose consider plaintiffs' pre-emption claim along challenge. 6 Although fully briefed constitutes state exempt scrutiny standard supra, noted consideration issue would necessary " 'truly Act challenged regulatory scheme,' Cal.3d, 660, Cal.Rptr., 696, P.2d, 275 (quoting First American Title South Dakota Land Assn., 714 F.2d 1439, 1452 (CA8 1983), cert. denied, 464 1042, 104 709, 79 173 (1984)). Such exist, concluded, if mandated conduct prohibited either Rice Norman Williams Co., 458 654, 661, 3294, 3299, 73 1042 (1982). After reviewing two "traditional standards" consistently been used determine Act—the rules rule reason, see National Society Professional Engineers United States, 435 679, 692, 98 1355, 1365, 55 637 (1978)—the court concluded both standards, exclusive focus competition concern selfish motives actors, failed give due deference municipality's legitimate interest promoting health, welfare. 667-673, Cal Rptr., 701-706, 280-285. found standards inappropriate proceeded apply own devising, Commerce Clause cases. Applying test, 7 We probable jurisdiction limited preemption question, 471 1124, 105 2653, 86 270 (1985), now affirm, although different those relied correct noting unless actual laws established, we find traditional analysis adequate resolve here. II 8 begin appellants make 16 Clayton Act, 15 U.S.C. §§ process passed renders product illegal "contract, combination . ., conspiracy." Appellants instead that, regardless manner enactment, scheme Ordinance, conflicts preempted. 9 Recognizing function often tamper free markets, correcting failures aiding victims, "state statute anticompetitive effect," U.S., 659, S.Ct., 3298. Exxon Corp. Governor Maryland, 437 117, 133, 2207, 2217, 57 91 (1978). should struck down "only mandates authorizes necessarily cases, irresistible pressure party violate statute." 3300. 10 involved rather than municipal distinguish two. As other same acts government. See, e.g., White Massachusetts Council Construction Employers, 460 204, 103 75 (1983). Only where "irreconcilably" laws, Rice, 3298, level responsible enactment important. Legislation otherwise nonetheless survive immune Parker Brown, 317 341, 307, 87 315 (1943). ultimate source immunity State, subdivisions. 50-51, 840; Lafayette Louisiana Power & Light 389, 412-413, 1123, 1136, 364 (1978) (opinion J.). A. 11 argue across entire market units. regime, contend, clearly falls against price fixing, one settled points enforcement since earliest days Arizona Maricopa County Medical Society, 457 332, 344-348, 2466, 2473-2475, 48 (1982); States Socony-Vacuum Oil 310 150, 218, 60 811, 841, 84 1129 (1940). That prices floors invoked justify stabilization not, argue, save condemnation rule. 12 Certainly much truth appellants' argument: Had owners voluntarily banded together stabilize city, activities saved attack claims had reasonable out solicitude welfare tenants. 695, 1367; Trans-Missouri Freight 166 290, 17 540, 41 1007 (1897). Moreover, cannot denied will affect way philanthropic hypothetical trade association. What distinguishes operation benevolent landlords' cartel economic effect, 13 distinction unilateral critical Adhering language 1, always reach provision "unreasonable restraints effected 'contract, conspiracy' separate entities." Copperweld Independence Tube 467 752, 768, 2731, 2740, 81 628 (1984) (emphasis original). deemed "of considerable importance" independent activity single entity distinguished effort more fix restrain trade, Monsanto Spray-Rite Service 465 763, 1464, 1470, 775 (1984). Even firm's directly might have, liability absence agreement. Id., 760-761, 1469; Parke, Davis 362 29, 44, 80 503, 511, 505 (1960). stabilizes without action, program run afoul 1. 14 concerted-action requirement, "forms [the officials], hand, other. It also creates horizontal landlords." Reply Brief 10, n. 7. so arguing, misconstrue requirement ordinary relationship commands wish conspiracy. Similarly, provisions Under every affected unit removed properties given choose respond landlord's petition special particular ceiling, decide to. There meeting minds Tobacco 328 781, 810, 66 1125, 1139, 90 1575 (1946), quoted Monsanto, 764, 1471. freedom resist city's do any local enforced substantial sanctions. B Not actors constitute outside purview Certain "hybrid," nonmarket mechanisms merely enforce marketing decisions. 665, 3302 (STEVENS, judgment). Where thus granted "a degree power," 666, 3302, attacked Indeed, twice such hybrid (1951); (1980). Schwegmann, authorized distributor agreements fixing minimum retail contracts, retailers sold distributor's products having agreed restrictions. finding went far beyond now-repealed Miller-Tydings offered exemption 'contracts prescribing resale' specified commodities, liquor distributors violated when attempted hold retailer price-fixing terms contract refused sign. holding, "when compels follow parallel policy, demands forbids." 748. However, statute, selection left discretion distributors. petitioner-retailer case required selected, involvement suppliers setting made impossible characterize regulation State Louisiana. condemned entailed similar participation actors. challenge California's wine producers, wholesalers, rectifiers file fair contracts schedules State. producer did prices, wholesalers post resale schedule producer's brands. No state-licensed merchant could sell prices. 99, 940. found: "California's system pricing plainly maintenance holds prevent dictating charged wholesalers." 103, 942. Here again, existence compulsion turn into noted: direct review reasonableness dealers." 100, 18 quite pure Ordinance. certainly interested parties—some provisions, hands just themselves mandate C 19 cases what appears state- municipality-administered really conspiracy, concealed "gauzy cloak involvement," Midcal, 106, 943. occur even ostensibly absolute officials. indication corruption tainted Adopted hardly viewed municipality. deprived freely rents. why role alter restraint's nature.2 III 20 Because principles law, say facially inconsistent 3299. need whether, violations, state-action doctrine scrutiny. Hallie Eau Claire, 34, 1713, 85 24 (1985). 21 judgment 22 Affirmed. 23 judgment. today reaches difficult straightforward well-settled ground available. my view, action" (1943), progeny. I concur discussed opinion. 25 engages articulated policy displace regulation, removes coverage 38-39, 1716-1717, (1985); 54, 842, Hallie, embodied "delegated [municipalities] express authority take foreseeably result effects." 43, 1718. 415, 1138, J.) ("[A]n exists 'from governmental operate area, legislature contemplated kind complained of' ") (citation omitted). expressly delegated lead effects 26 history illuminating. Prior 1974, Article XI, 3, Constitution1 approve changes charters. 1972, citywide citizens approved charter amendment authorizing effectively froze 1971 levels, subject adjustments popularly elected board. Birkenfeld 129, 138, 130 465, 472, 550 1001, 1008 (1976). Legislature ratified August 2, plan effect. 1972 Cal.Stat. 3370. number constitutional statutory grounds. ensuing litigation, invalidated lacked procedural safeguards confiscatory ceilings.2 Birkenfeld, 170-172, 494-496, 1030-1032. another adopted case. provided protections lacked, subsequently survived court. 679-691, 710-719, 289-298 27 replaces legislature. grant sufficed 42, follows legislature's ratification exemption. ibid.; 55-56, 842-843. remains intact. 28 contend not. First, invalidating provision, canceled provision. bad 159-164, 487-490, 1023-1026 (finding enacting permissible exercise police power); Note, 65 Calif.L.Rev. 304, 305 (1977) ("Birkenfeld offers cities judicial equivalent enabling act"). Rather, stands proposition couple procedures adjusting avoid levels. 167-173, 492-497, 1028-1033. basic impose unaffected. 29 Second, declared neutrality respecting 55, 842 (clear articulation satisfied State's position actions anticompetitive"). argument rests 1980 comprehensive planning zoning states: 30 "Nothing article shall construed repeal exist restrictions sale property." Cal.Govt.Code Ann. 65589(b) (West 1983) added). 31 By leaves intact cities' preexisting adopt provisions. clear defined amendment. 32 reasons, our decisions Boulder. ratifying amendment, rescinded authorization. 33 view merits decided 34 dissenting. 35 Since wrestled prohibit governments imposing trade. Laws itself sovereign capacity, state-authorized furtherance implementation affirmatively expressed policy. 52, Today, state-authorized, furthers implements today's discards 40 years carefully considered precedent, respectfully dissent. 36 Ordinance) fixes Berkeley. 38 "may statute. violation." case, declaring charge, irresistibly pressures "facially conflict[s] mandate[s] [price fixing], long regarded Act." 659-660, 3298-3299 39 recognizes Ante, 266. Despite this, "unilaterally" combination, read require proof prerequisite pre-emption. Certainly, nothing said supports narrow pre-emption.1 Our statutes eliminated relevant market. wholesaler sought enjoin wines producers. focused competition, wine-pricing constituted squarely Just compelled charge "holds charged" "[S]uch vertical destroys [landlords] 'formed endeavored agreement each other.' Ibid. Dr. Miles John D. Park Sons 220 373, 408, 376, 502 (1911)). point. amounted maintenance, paraphrase city] "[W]hen forced abandon driven compact spirit proviso forbids 'horizontal' fixing." 42 accepted issue, functional "combination" officials, other—a operates contrary result, states conclusion—that "[a] law." 267. doesn't explain so—it baldly asserts "[t]he best apparently interpret forbid privately arranged schemes. ante, 267-269. interpretation misguided. 43 declares resulting Understandably, wording draw "basic distinction" "[i]ndependent proscribed" 761, 1469, until held, indeed suggested, government-imposed action. "had law" 1.2 44 allowed ultimately understand conclusion collective Cf. 1469. force compel forbids—to Regardless "agree" charged, circumstances "exclude possibility [city landlords] acting independently." eliminates "agreement" ever could, further, argues, distorts analysis." 264. 45 Ultimately, holding constrained excludes broad range flies Congress municipalities. (1978); cf. 35(a) (1982 ed., Supp. II) (immunizing damages laws). "In light serious dislocation place parochial interests above Nation's goals reflected [have been] especially unwilling presume intended exclude reach." Lafayette, 1136 (plurality opinion). reflects Congress' intention embody federalism principle possess significant measure sovereignty Constitution. But contains limitation: Ours 'dual government,' Parker, 351, 313 added), cities." 53, 842. Of course, foreclose municipalities measures interest, implemented monopoly service. 841. standard. 46 Appellees suggest three considerations support enact measures: (1) amendment; (2) 1001 (1976), (3) state-law obligation provide affordable None appellees' position. 47 concurrent resolution houses legislature.3 doubts purely pro forma approval qualify Cantor Detroit Edison 428 579, 96 3110, 49 1141 event, afford claimed current while conferring "make local, police, sanitary, ordinances regulations laws." 140, 473-474, 1009-1010. grants engage "Acceptance wholly eviscerate concepts 'clear affirmative expression' precedents require." 56, 843. Third, law requires needs segments community." Cal.Govt. Code 65580(d) 1983). But, appellees "foreseeable result" obligations, neutral respect controls. Govt. provides "nothing controls." Cal.Health Safety 50202 Supp.1986) ("[N]othing division authorize imposition controls"). anticompetitive." 843 Plainly, liability. 50 Finally, severely restrict variety interest. "But wisdom longstanding congressional commitment markets open agree argument, amend Pending like 1982, pending Appeal, "Tenants' Rights Amendments 1982," revising sections Like amended, 693, 270, (1984); reference herein 1982 version Though pressed point vigor suggested monopolization engaged sector" using depress prelude taking them over. Tr. Oral Arg. 14-15. claim, note inquiry demanded allegations goes scope facial 3(a), Constitution read: "For government, county majority vote electors voting question. effective Secretary revised, repealed manner. charter, revision, thereof published official statutes. legislative enactments." amendments 137, 471, 1007, permitted across-the-board unit-by-unit basis, hearing whose raised. limitation "put [rent board] strait jacket," "unnecessarily preclude[d] reasonably prompt meritorious petitions 171, 172, 495, 496, 1031, 1032. effect." distillers distribution nonprice Continental T.V., Inc. GTE Sylvania 433 36, 97 2549, 53 568 (1977), pre-empted. 3299; Joseph E. Seagram Sons, Hostetter, 384 35, 1254, 336 (1966). contrast, Unlike restraints, traditionally (1911). 268-269. characterizes "hybrid, decisions." charge. True, parties, largely supervision 105, 943; neither drew "unilateral" "hybrid" restraints. invalid products, forbids. 748; "distinction" ignores deleterious competitive administrative body parties. results violative At time, amendments. amended eliminate requirement.

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