Legal Document

332 U.S. 392 68 Supreme Court Reporter 12 92 L.Ed. 20 INTERNATIONAL SALT CO., Inc.,v.UNITED STATES. Number 46. Argued Oct. 16, 1947. Decided Nov. 10, Appeal from the District of United States for Southern New York. Mr. Lemuel Skidmore, York City, appellant. Robert L. Stern, Washington, D.C., appellee. Justice JACKSON delivered opinion Court. 1 The Government brought this civil action to enjoin International Salt Company, appellant here, carrying out provisions leases its patented machines effect that lessees would use therein only International's salt products. restriction is alleged violate § Sherman Act,1 and 3 Clayton Act.2 Upon appellant's answer admissions fact, moved summary judgment under Rule 56 Rules Civil Procedure, 28 Code Annotated KF65 U5 following section 723c, upon ground no issue as a material fact was presented that, on admissions, followed matter law. Neither party submitted affidavits. Judgment granted3 appeal taken directly Court.4 2 It established by pleadings or Company engaged in interstate commerce salt, which it country's largest producer industrial uses. also owns patents two utilization One, 'Lixator,' dissolves rock into brine used various processes. other, 'Saltomat,' injects tablet form, canned products during canning process. principal distribution each these which, among other things, require purchase all unpatented tablets consumed leased machines. Appellant had outstanding 790 an equal number 'Lixators,' were standard form containing tying clause5 provisions; 50 somewhat varied terms, but 4 contained clause. 73 96 'Saltomats,' restrictive clause.6 In 1944, sold approximately 119,000 tons about $500,000, confer limited monopoly invention they reward. From them derives right restrain others making, vending using But of, trade in, salt. By contracting close market against competition, has restraint afford immunity anti-trust laws. Morton company versus G.S. Suppiger Co., 314 488, 788, 62 402, 86 363; Mercoid Corporation Mid-Continent Investment 320 661, 64 268, 88 376; Minneapolis-Honeywell Regulator 680, 278, 396. 5 contends, however, unauthorized because precluded trial issues whether unreasonable within Act substantially lessened competition tended create Act. We think admitted facts left genuine issue. Not price-fixing unreasonable, per se, Socony-Vacuum Oil 310 150, 60 811, 84 1129; Trenton Potteries 273 392, 47 377, 71 700, American Law Reports 989, foreclose competitors any substantial market. Fashion Originators' Guild America Federal Trade Commission, Cir., 114 Reporter, 2nd Series 80, affirmed, 312 457, 668, 61 703, 85 949. volume business affected contracts cannot be said insignificant insubstantial tendency arrangement accomplishment seems obvious. Under law, agreements are forbidden 'tend monopoly,' immaterial creeping one rather than proceeds at full gallop; nor does law await arrival goal before condemning direction movement. 6 'Lixator' saved unreasonableness provided if competitor offered grade lower price, lessee should free buy open market, unless furnish price; 'Saltomat' entitled benefit general price reduction lessor's tablets. provision does, course, measure protection lessee, not avoid stifling agreement competition. times priority prices. A have undercut hope capturing while could hold merely meeting do concession relieves contract being trade, albeit less harsh result absence such provision. obviously legal significance since gives nothing more going price. All purchases must event product. 7 urges remained obligation repair maintain machines, reasonable confine their own high quality assured satisfactory functioning low maintenance cost. average sodium chloride content 98.2%. Rock producers, said, 'does run consistent many instances runs 95% chloride.' This greater percentage insoluble impurities allegedly disturbs machine. similar claim pleaded 'Saltomat.' 8 Of lessor may impose restrictions designed good faith minimize burdens assure operation. assume, argument, functions best 98.2%, might required specification quality. pleaded, argued, machine allergic produced except International. If produce specifications use, thing; times, least, offer They are, shut limits it, terms quality, particular vendor. machinery disguised restraints though set standards suppliers meet. Cf. Business Machines States, 298 131, 701, 80 1085. 9 objections judgment. clause been insisted leases, always enforced when included. justify here. 10 strongly objects sixth paragraph decree.7 denies necessity true record discloses threat discriminate after pronounced. suggests we modify accept proposed alternative provision8 says urged Court, rejected it. show what proceedings between rendering court's signing decree. 11 specific objection raised find necessary some sections country reduce rental rates order compete with those others. itself9 permits charged discrimination he lowered his meet Obviously, intending prevent disable offering Government, too, oppose permitting meet, faith, equally need arose. short contention never threatened decree entered case future illegal feels invalidating objectionable end additional provisions, stand court same position who violated all—that injunction go farther violation violation. agree consequences proved violations so limited. already wedged itself methods obliged contrary common experience, violator antitrust laws will relinquish fruits completely requires him do. And advantages hand held subtle informed, difficult prove, first place, win When purpose appears clear untraveled roads worn closed. usual ways prohibited blocked proven transgressor burden put bring proper claims relief attention. desirable, interests both litigants, possible, core relief, outward limits, parties known duties unintended contempts occur. 13 framing decrees take place Appellate Courts.10 invested large discretion model judgments fit exigencies case. Crescent Amusement 323 173, 185, 65 254, 260, 89 650; National Lead 319, 67 1634. equity suit, served punishment past transgression, practices. public interest suits effectively pry closed defendants' restraints. accomplishes won lawsuit lost cause. 14 retained jurisdiction, judgment, 'enabling apply time further orders directions appropriate construction judgment' 'for amendment, modification termination provisions. * *' judicial administration strike VI hypothetical situation purposely way remedy situations arises. factual basis appear evidentiary argumentative us. Nor impressed multitude separate applications. Once concrete problem doubt able fashion repetitious applications vexatious litigants. leave application below deny present state record, without prejudice. 15 affirmed. 16 FRANKFURTER, whom REED BURTON, join, dissenting part. 17 Agreeing wholeheartedly Court's main issue, & N Dec. Immigration Nationality Decisions am unpersuaded justification retaining Paragraph VI1 18 Inasmuch holder dispose comers uniform undoubtedly deprives right. theoretical Practical considerations make important act customers. conceded bar this. No doubt, condemns practices violative Act, duty effective stop condemned. respects wisdom burning even part house roast pig. Ordinarily, therefore, acts found done legislation, adequate relief. See York, Haven Hartford R. Interstate Commerce 200 361, 404, 26 272, 282, 515; Standard Jersey 221 1, 77, 31 502, 522, 55 619, 34 L.R.A.,N.S. 834, Ann.Cas.1912D, 734; Labor Relations Board Express Publishing 426, 435—437, 693, 699, 930. Reflecting dictates fairness, ban intrinsically legitimate practical purposes tied illegitimate, circumstances makes assume pursuit cover doing forbidden. 19 argues, effect, compel observe uniformity removes temptation favorable treatment customer buys precisely aim decree—it prohibits extension patent requiring condition acquisition non-patented presupposition disobey explicitly forbids, withdrawal otherwise fix employed precautionary screw down disobeying Surely ought add prohibition illicit licit practically intertwined there believing surreptitiously misused accomplish illicit. There re-enforcement litigant, shown ben recalcitrant underhanded, obey power contempt enforce obedience. suggested obedience entertained unnecessary conduct. But, surely, thing conduct wholly different thereto theory thereby persist illegality removed. us suggest likely continuance affirmance, becomes remembered saw move pleadings. pure question validity face. chose try lay bare, often cases, fair unfair inextricably blended. lawful fall unlawful. Having invited bare bones raise clauses, remedies beyond ways. can justified indication here none, shows devious temper needs hobbled withdrawing 21 comparable situations, where Commission come review, sought protect rights indulged authorized needlessly destructive. baby thrown bath. Royal Milling 288 212, 53 335, 77 706, Jacob Siegel 327 608, 66 758, 90 888. Accordingly, review remit reconsideration Commission. Since federal presumably presents support VI, 22 molding cases normally district courts. scope unduly cut off recasting (It worth availability role master chancery help mold statutes apparently suit like present, asked testimony taken. 38 Statutes-at-Large 717, 722, KF62 47, 47.) remand roundabout saying favor purchaser intention want convey meaning ambiguously.2 23 As stands, see how lawyer advise vary prices customers localities reason That placed undue sting 'specific.' course courts litigants possible. desideratum explicitness dispense requirement condemned illegality. draw specific. 209, 1. 730, 3, 14, 14. F.R.D. 302. Probable jurisdiction noted April 28, 'It mutually agreed Lixate Process Dissolver shall installed expense Lessee maintained kept term lease Lessee; dissolving converting grades purchased Lessor conditions hereafter upon, provided: 'If suitable made, give opportunity provide competitive quoted, fail unable so, Lessee, continued payments herein privilege equipment until price.' provides follows: 'Should pay promptly aforesaid rental, discontinue purchasing Lessor, breach lease, right, 30 days' written notice remove possession Lessee.' Tablet Depositor(s) lease; conjunction Tablets manufactured agent, hereinafter Provided: Lessor's provides: '* requirements premises and/or Defendant directed sell license Lixator Saltomat then defendant embodying inventions covered referred II hereof, applicant non-discriminatory conditions; (a) available (b) offering, offer, sale renting selling licensing machines; (c) Such made cash payment security person having credit rating, (d) royalty differ types sizes long size type modifications existing contracts. Any now relating elect retain enter accordance paragraph. enjoined 'from refusing sell, person, firm corporation, discriminating sale, prospective buyer, licensee dealt intends proposes deal Salt.' 49 1526, 13(b), 13(b). authorized, required, call assist cases. 7, 47. seem Congress intended simple practice court. indicates economic enterprise well violations. VI. Machines, enjoining

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