Legal Document

451 U.S. 704 101 Supreme Court Reporter 2102 68 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 558 or Haw. Hawai‘i KFH45 A2 Atlantic ARTISTS & ASSOCIATES, INC., et al., Petitioners,v.ACTORS' EQUITY ASSOCIATION al. Number 80-348. Argued March 23, 1981. Decided May 26, Syllabus Respondent union, which represents most of the stage actors and actresses in States, has entered into collective-bargaining agreements with virtually all major theatrical producers throughout country, fixing minimum (scale) wages other conditions employment for those represented by union. Because abuses agents who, as independent contractors, negotiated contracts producers, particularly to extraction high commissions tending undermine collectively bargained rates compensation, union 1928 unilaterally established a licensing system regulation agents, prohibiting members from using an agent who not obtained license The essential elements have remained unchanged. To obtain license, must agree comply regulations which, inter alia, prohibit on scale portions received actor actress producer, limit excess pay, require payment franchise fees. Petitioners, refused licenses, instituted this action, contending that union's violated §§ 1 2 Sherman Act. After trial, District dismissed complaint, finding agency was protected liability antitrust exemptions unions their arising under Clayton Act Norris-LaGuardia Appeals affirmed, determining central feature franchising system—the exaction agreement commissions—was immune challenge. court suggested if exactions fees exceeded costs administering its system, they could legally be collected; but despite lack any cost evidence at concluded were sufficiently low remand point would serve useful purpose. Held : 1. Labor acting self-interest combination nonlabor groups enjoy statutory exemption liability, does apply when combines "nonlabor group," persons are "parties labor dispute" within meaning versus Hutcheson, 312 219, 61 463, 85 L.Ed. 788. Here, did involve between groups." record amply supports conclusion there no determination whether agreed become franchised group" depends "job wage competition some economic interrelationship affecting legitimate interests contractors." Musicians Carroll, 391 99, 106, 88 1562, 1567, 20 460. peculiar structure theater industry, where it is customary secure through whose calculated percentage member's wage—thus making impossible defend even integrity without fees—the exemption. Agents must, therefore, considered "labor controversy plainly defined also clearly designed promote self-interest. Pp. 713-722. 2. However, justification based only suggestion general terms related basic purposes regulations—is inadequate warrant permissible component exempt regulatory system. 722. 622 Federal Reporter, 2nd 647, affirmed part, reversed remanded. Howard Breindel, New York City, petitioners. Jerome baron Lurie, respondents. Laurence Gold, Washington, D. C., AFL-CIO amicus curiae, special leave Court. Justice STEWART delivered opinion respondent Actors' Equity Association (Equity) representing vast majority States. It enters specify whom represents. petitioners place jobs producers. Second Circuit held respondents'1 reason laws, 647.2 We granted certiorari consider availability circumstances presented case. 449 991, 526, 66 288. * 3 national since early century. Currently approximately 23,000 actresses, off Broadway, (called "scale"); free negotiate more favorable than minima. 4 Theatrical contractors solicit clients. do participate negotiation If succeeds obtaining client, he receives commission client's earnings. operate City licensed agencies regulated Department Consumer Affairs pursuant law, provides maximum may charge his client 10% compensation. 5 In 1928, concerned unemployment vulnerability agents,3 including tended agents. permitted deal licenses thereby meet representation prescribed Equity. Those dealt nonlicensed subject discipline. 6 immediately challenged.4 Edelstein Gillmore, 35 723, lawful effort improve members. written Judge Swan joined Augustus N. Hand,5 said: 7 "The evils unregulated (using term broadly include personal representative) set forth defendants' affidavits corroborated common knowledge. . Hence requirement that, condition writing new business Equity's members, old made conform standards, seem us justify inference primary purpose infliction injury upon plaintiff, representatives similar situation, rather protection supposed insist better impartial service, uniform cheaper rates, managers. Undoubtedly defendants intend compel plaintiff give up rights existing standards Equity, but, already indicated, motive so doing benefit themselves fellow struggle. financial loss incidental purpose." Id., 726 (emphasis added).6 8 unchanged 1928.7 A member prohibited, pain discipline, not, mechanism "franchise"), regulations. important requires renounce right take contract wages.8 extent includes provisions will sometimes receive pay—for rehearsals "chorus" employment, example—and more, deny contract. Licensed precluded taking out-of-town expense money paid Moreover, limited pay,9 allow terminate successful procuring specified period.10 Finally, required pay fee $200 initial franchise, $60 year thereafter each agent, $40 sub-agent working office another. These deposited treasury segregated funds. 9 1977, after dispute Artists Representatives Associates (TARA)—a trade association see n. 7, supra —a group petitioners, resigned TARA because TARA's decision abide informed accept regulations, franchises. lawsuit 1978, Act, 26 Statutes-at-Large 209, amended, 15 Code KF62 B 10 found, bench creation maintenance fully accordingly petitioners' complaint. 478 F.Supp. 496 (SDNY). Among factual conclusions, trial found play critical role securing actresses: 11 "As matter industry practice, seek productions Testimony case convincingly same access opportunity seriously part agent. Even principal interviews, interview want roles, eliminate need greater chance gaining audition client. 12 13 "Testimony confirmed integral industry; significantly lesser chances employment." 497, 502. 14 "no suggest existence conspiracy illegal producers," "[t]he Actors employed protecting members." 499. unanimously judgment determined threshold issue was, 232, 466, 788, involved "non-labor groups" dispute." F.2d, 648-649. did, reasoned, apply. 16 First, had been erroneous agreement, explicit tacit, establish police Ibid. Next, turned relationship franchised, order determine divest Relying 460, substantial "economic inter-relationship" "the [could] among agents." 650, 651. Accordingly, elimination area self-interest, applicable.11 17 deciding certain types work—was challenge, challenge exacted argued necessary expenses show justified actually levied. true costs, collected, such unconnected goals policy Despite however, appellate reasoned "would II 18 combinations collective workers, possess power control character industry. inherent tension policy, seeks maximize competition, encourages cooperation workers employment.12 years following passage courts enjoined strikes unlawful restraints conduct objectives deemed "socially economically harmful." Duplex Printing Press company Deering, 254 443, 485, 41 172, 183, 65 349 (Brandeis, J., dissenting).13 response these practices, Congress acted, first 38 731, later 47 70, immunize disputes 19 Section § 17, declares human "is commodity article commerce," immunizes organizations "lawfully carrying out" "legitimate object[ives]." prohibits injunctions against employee activities, boycotts, undertaken employees' occur course "concerning employment," states none acts can "held [a] violatio[n] law States." 29 52. This re-emphasized expanded federal-court single organized employees engaged enumerated activities,14 specifically forbids notwithstanding claim conspiracy. While Act's bar explicitly phrased interpreted statement congressional use laws vehicle interfere disputes.15 liability. describing responses judicial interference activity, id., 229-230, S.Ct., 464-465, declared 21 "[s]o long combine non-labor groups, licit illicit [of Act] distinguished regarding wisdom unwisdom, rightness wrongness, selfishness unselfishness end particular activities means." 466 (footnote omitted). 22 explained derives definition dispute," 14, supra, "reasserted original infusing immunized redefined Act." U.S., 236, 468. Thus federal injunction over "§ removes allowable taint being 'violation States,' [Act]." Ibid.16 23 group." 466. immunity forfeited one employers restrain trade. Allen Bradley Electrical Workers, 325 797, 1533, 89 1939, example, combined manufacturers erect sheltered local market "to men [the market], public prices above competitive level." 809, 1539.17 indicated efforts would, standing alone, ibid., acted unilaterally, denied.18 "intended outlaw monopolies. monopoly less participates, participation violation 811, 1540.19 24 properly recognized groups," 649 (quoting 466).20 And court's producers21 create maintain supported record. 25 difficult problem answer question best understood light There, four orchestra leaders, American Federation Musicians, brought action challenging unilateral regulating "club dates," one-time musical engagements. enforced closed shop; leaders engage number "sidemen," instrumentalists; engagements;22 higher traveling orchestras; booking Without disturbing nonetheless parties thus involvement scheme "labor" "nonlabor" groups. applicable test 1567. 27 upheld restrictions job "other interrelationship" branch disjunctive quoted above. met " 'at least intimately bound wages' price floors." 113, 1570 Teamsters Oliver, 362 605, 606, 80 923, 926, 1740). noted adopted, "charged exorbitant fees, booked engagements musicians below scale."23 Contract 28 challenged very Carroll case.24 features identical: (1) honor fiduciary obligations avoiding conflicts interest, (2) excessive commissions, (3) book paying minimum.25 developed occupy relevant market.26 stands directly jobs, powerful position evade structure. work intermittent, agents' wage, makes fees.27 "brought [because are] assure paid. ." 112, 1570. They "embody direct frontal attack thought threaten structure." 358 283, 294, 79 297, 303, 312. Act: "representation negotiating, fixing, maintaining, changing, seeking arrange regardless disputants stand proximate relation employer employee." 113(c). 30 perform function—the sale labor—that nonentertainment industries performed exclusively unions. effect, operates substitute maintaining hiring hall representative employment.28 31 this, regulates, formulation presence group—whether 'some .,' 1567 opinion)—necessarily resolves issue. Defendant 32 remains levies franchises inadequate. Conceding sanction agents,29 suggests, terms, somehow regulations: upholding scale, promotion fair jobs. But assuming cover simply another way saying subsidized—and dues perhaps increased offset revenue source.30 impose believe affected.31 III 33 For reasons stated, remanded proceedings consistent opinion. 34 ordered. BRENNAN, THE CHIEF JUSTICE MARSHALL join, concurring dissenting part. 36 N Dec. Immigration Nationality Decisions join Part II-D Court's That holds respondents' "permissible system." Ante, Rather, $12,000 collected annually "incommensurate full-time administer system," 651 (CA2 1980), "unconnected labor," ibid. 37 justifies suggesting increase lost invalidation "there union's] affected," violate laws. raise dues, here conceded fee. find somewhat incongruous incident overall constitutes impermissible regulation, incongruity highlighted similarity halls itself acknowledges: "Equity's 721. disregards concluding "directly benefit" 722, 31. reaches incorrectly actors, be. surely orderly protective pairing actors. means ultimately commissions; much source livelihood 39 commensurate amount sought, affirm holding Appeals. Donald Grody executive secretary sources labor's 731 738, 52, 4, 5, 71, 73, 104, 105, 113. Such still remains, acute professional reputations, always constituted overwhelming grounded allegations common-law tortious relationships. Manton dissented contemporary descriptions generally Harding, Revolt (1929). See Rules Actors, N.Y. Times, Sept. 24, Page 20, col. 3; Republic, Oct. 263. Cf. Ribnik McBride, 277 350, 359-375, 48 545, 547-552, 72 913 (Stone, Holmes Brandeis, JJ., dissenting) (general agencies, times widespread unemployment). McBride overruled Olsen Nebraska, 313 862, 1305. this. undergone revision details, largely result negotiations (TARA), until shortly before litigation began voicing concerns regard Until voluntary resignation late TARA. now National Talent (NATR). Unlike TARA, functions field, NATR fields motion pictures television. fields, closely analogous maintained Screen Guild Television Radio Artists. history described present 496, 498 minimum, "scale" varies. August weekly salary $335 Broadway performances, $175 performances Broadway. Scale parties. When reputation sufficient demand hopes develop continually remunerative performer's grows, ever salary. No represent wish represent. view necessarily often little "order taker," able collect duration answering producer's telephone call. Indeed, obtains argues restriction incentive many possible—and them well whenever might "non-statutory" 649, Connell Construction Plumbers Steamfitters, 421 616, 622, 95 1830, 1835, 44 418. 19, infra. Meltzer, Unions, Collective Bargaining, Antitrust Laws, U.Chi.L.Rev. 659 (1965); Winter, Bargaining Competition: Application Standards Union Activities, 73 Yale L.J. (1963). Leslie, Principles Antitrust, Va.L.Rev. 1183 (1980). 12, 30-38. As context dispute. defines "any concerning Milk Wagon Drivers Lake Valley Farm Products, Inc., 311 91, 103, 122, 128, 63, stated: "For hold, face Act], jurisdiction grant cases growing out disputes, merely alleged violations involved, run counter plain mandate reverse Congress." Apex Hosiery Leader, 310 469, 60 982, 84 1311. Term preceding Hutcheson decided, "commercial competition," 499, 510-511, 994, 995, 1001—or monopolize supply, prices, allocate product distribution—and liable further own market. Hunt Crumboch, 821, 1545, 1954, decided day Bradley, ruled boycott truck hauler secondary pressure purchasers hauler's services contracts, absence competitors. 824, 1546; 677, 74. Mine Workers Pennington, 381 657, 1585, 626, grounds unrelated effect sheltering markets, "nonstatutory" shield vital wages, hours, conditions. See, e. g., Meat Cutters Jewel Tea Co., 676, 1596, 640. nonstatutory follows 1835: proper accommodation favoring bargaining NLRA markets union-employer accorded sanctions. strong success organizing standardizing affect employers, never achieved therefore acknowledged tolerance lessening differences conditions." Neither nor independently respondents claims. 11, supra. Of course, party refuge bona fide organization, contractor entrepreneur. 371 94, 83 162, 150; Columbia River Packers Assn. Hinton, 315 143, 62 520, 86 750. Pacific KF135 P2 Areeda Turner, Law 229c, Pages 195-198 (1978). There about status organization. Employers almost although exception recognized, himself employees. 460 (orchestra both lead instrument). consisted sidemen, "leader's fee," twice sidemen's orchestras four, additional 8% social security, insurance, expenses. addition, leader appear designated subleader, performed, leader's 1.5 subleader. second prong met, i. e., "self-interest." given various findings cope protect scales conditions, 108, 109, 110, 1568, 1569, 1570, sub silentio. Several practices entrepreneurs 63; (Oliver ); 1740 ). Drivers, attempted organize "vendors" supplied milk retail stores. feared "vendor system" escape assumption union-imposed Oliver I, invoked state prescribe truckdrivers, rental drivers owned trucks. driver-owners, included entrepreneurial "wage" driving, undercut charging effectively subscale component. stated embod[ied] contract." 303. II, 924 (after court). "in entirety," 114, 1571, drew parallels "[a]pparently, existed too. (2d Cir. 1929) (actors)." AFM, 241 865, 892 argue indistinguishable "numerous [other] supply products members" landlords, grocers, accountants lawyers. clear differ two respects: employment. actress, discretionary expenditure disposable income, inevitable concomitant F.Supp., 881-882; 6, 319-325. cannot added). Wage prevented rule precluding compete willing cede imposed law. industries, referral systems, typically temporary separate project sites fixed locations. By halls, attempt kickbacks, insure fairness regularity 1947 Senate Report, Senator Taft explained: should make agency. frequently notice vacancies, normal events sent him hall." S.Rep. 1827, 81st Cong., Sess., (1947), NLRB, 365 667, 673-674, 81 835, 838-839, 11. Relations Board demands mandatory bargaining, activity. Houston Chapter, Associated General Contractors, 143 N.L.R.B. 409, enf'd, (CA5); NLRB Tom Joyce Floors, 353 768, 771 (CA9). 672-673, 837-838, 840. 881. have, fact, extract manner fund. offer analogy support collection context, argue, citation, reasonable union-run hall. correct, persuasive. Assuming imposed, borne entities provide them. expressed filed today beneficiaries undoubtedly surprise lawsuit. Post, 724.

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