Court Opinion

ID: 9462801
Source: CourtListenerOpinion
Date Created: 2023-08-04 22:50:46.355114+00
Date Added: 2024-06-11T17:37:47.783260
License: Public Domain

CAMPBELL, Senior District Judge

(dissenting).

The majority sees no need to “consider the claim of insufficiency of evidence nor *1199other defects in procedure . . . ” on the apparent ground that the CFTC is authorized by law to “make such investigations as it may deem necessary to ascertain the facts regarding . . . persons subject to any of the provisions of this Act”. I do not disagree that the CFTC has broad investigative powers, but I cannot endorse a view of those powers which states, in essence, that any investigative technique not specifically proscribed by law is beyond the injunctive power of the federal courts.
In the instant case, the injunction was extremely narrow — it prohibited the use of the customer list which appellant had obtained in the course of inspecting the records of American International Trading Company (AITC), unless the customer contacted had first complained to the Commission of fraudulent or deceptive acts or practices by AITC. The injunction was to remain in effect only until the United States District Court for the District of Columbia, to which the case was being transferred for reasons of venue, had had an opportunity to determine whether the use of the customer lists to contact appellee’s customers constituted an abuse of the admittedly broad investigative powers possessed by the Commission.
In my view the district court has jurisdiction to enjoin practices which constitute an abuse of an agency’s investigative powers. It follows, it seems to me, that jurisdiction also exists under which the district court may grant preliminary injunctive relief, pending a determination of whether the investigative powers of the agency are being abused.
“[I]t is well established that the issuance of a temporary injunction rests in the sound discretion of the trial court. On appeal, an order granting or denying such an injunction will not be disturbed unless there is a clear showing of an abuse of the discretion so exercised.” Progress Development Corporation v. Mitchell, 286 F.2d 222, 229 (7th Cir. 1961). Had the district judge refused to enter the injunction in this case, I would have considered his action a proper exercise of his broad discretion to grant or refuse to grant temporary injunctive relief. His election to enter the injunction until the District Court for the District of Columbia could consider the merits of appellee’s claim was, in my view, also a proper exercise of his discretion, and accordingly I would affirm.