# Reply Brief — Nogales Service Center v. Atlantic Richfield Co.

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385005_1678%3A3

## Record

- **Collection:** Supreme Court brief
- **Document type:** Reply Brief
- **Published:** January 1, 1978
- **Citation:** 439 U.S. 930

## Text

| Supreme Court, U.S.)

FILED a]
| OCT 24 197g |

ee meeeK IR. CLERK

IN THE

Supreme Court of the Anited States

OCTOBER TERM, 1978

No. 78-405

NOGALES SERVICE CENTER,
an Arizona corporation,

Petitioner,

ATLANTIC RICHFIELD COMPANY,
a Pennsylvania corporation,

Respondent.

PETITIONER’S REPLY BRIEF
ON CERTIORARI

+ -

MICHAEL J. MEEHAN
Post Office Box 2268
Tucson, Arizona 85702

Attorneys for Petitioner

MOLLOY, JONES, DONAHUE, TRACHTA
& CHILDERS, P.C.

21st Floor, Arizona Bank Plaza

Post Office Box 2268

Tucson, Arizona 85702

Sse
Washington, 0.C. e CLB PUBLISHERS’ e LAW PRINTING CO. e (202) 393-0625

(i)

TABLE OF CONTENTS

PE $59 6 0. 5. Fede Gash euascicbenn

TABLE OF AUTHORITIES

Cases.
Blumenstock Brothers Advertising Agency v. Curtis

Publishing Company, 252 U.S. 436 (1920)..... ee

Charles Dowd Box Co. v. Courtney, 368 U.S. 502,

PN Min CE hacks werk sabed nie segs oy 5

Federal Energy Administrator vy. Algonquin SNG,

Inc., 426 U.S. 548 (1976) ................0005..
Freeman v. Bee Machine Co., 319 U.S. 448 (1943)....

General Investment Co. v. Lakeshore and M.S.R. Co.,

ee a Peo a

Gold Fuel Service Co. v. Essons Standard Oil Co.,

No. 361 O.T: 1960, cert. denied, 364 U.S. ae

Kansas City, Missouri v. Federal Pacific Electric Co.,

310 F.2d 271 (8th Cir. 1962) ..............000,,

North Carolina v. Charles Pfeiser and Co., Inc., No.

75-1811, cert. denied, 429 U.S. 870..............

Overseas Motors Inc. v. Import Motors Ltd., Inc.

No. 75-494, cert. denied, 423 U.S. 987...........

United States v. City and County of San Francisco,

BOW Wem BO (TINO) ooo c ccc e sc ccsscsccscccccces

a SA SR ARGS ee

Westinghouse Electric and Manufacturing Co. v.
McGregor, No. 373 O.T. 1944, cert. denied, 323

NS wat Vo veo) nb SG 0 eos ok ccs ha evcases

IN THE

Supreme Court of the Anited States

OCTOBER TERM, 1978

No. 78-405

NOGALES SERVICE CENTER,
an Arizona corporation,

Petitioner,

ATLANTIC RICHFIELD COMPANY,
a Pennsylvania corporation,

Respondent.

PETITIONER’S REPLY BRIEF
ON CERTIORARI

ARGUMENT

The respondent ARCO would have this court believe that
State Courts are precluded from concurrent jurisdiction over
antitrust suits because “had Congress meant to provide for
[such concurrent jurisdiction] it knew how to do so”’. Brief in
Opposition, p. 5. Of course, it has stated the inverse of the
rule for determining concurrent jurisdiction. In fact, con-
current jurisdiction is the ““common phenomenon in our
judicial history” and exclusive jurisdiction is only declared,
where Congress has excluded jurisdiction of State Courts
“by express provision’. Charles Dowd Box Co. v.
‘ Courtney, 368 U.S. 502, 508 (1962).

The respondent company would have this court believe

2

that legislative history such as remarks in debate by
sponsors, floor managers, and drafters of a bill are inap-
propriate indications of the meaning of an ambiguous statute.
This contention rests upon an incomplete quotation, the
whole of which stands for something quite different than
ARCO contends. The portion omitted by ARCO is shown in
brackets:

‘These statements of the author of the Act in advocating

its adoption cannot, of course, control its construction,

where there is doubt as to its meaning, [; but they show

the condition of mining property on the public lands of
the United States, and the tenure by which it was held by

miners in the absence of legislation on the subject, and
thus served to indicate the probable intention of
Congress in the passage of the Act]. Jennison v. Kirk,

98 U.S. 453, 459, 460 (1878) (emphasis added).

Legislative history is unnecessary where the meaning of a
statute is unambiguous. In this case, Congress has said that a
private claimant ‘“‘may sue [for a violation of the Sherman
Act] in any District Court of the United States...” 15
U.S.C. §15. Just as this court held in Charles Dowd Box
Co. v. Courtney, 368 U.S. 502 (1962), 29 U.S.C. §185 that
concurrent jurisdiction was intended by Congress saying that
suit ‘may be brought in any District Court’, so, too, this
statute unambiguously intends the same result.’

'Charles Dowd Box Co. v. Courtney, 368 U.S. 502 (1962) is uniquely
instructive of the proper disposition of this case. There, the “may sue”’
statutory language was used. This Court, Mr. Justice Stewart, first
described the pertinent principles of concurrent and exclusive juris-
diction. The opinion then canvasses legislative history very similar to
that existing for the Sherman and Clayton Acts, on the question of
concurrent jurisdiction. The statute’s language was all but identical with
that at issue here. The Court recognized that the substantive law involved
was to be the unique Federal Labor Law. But the language of the statute
and the history as derived from floor managers’ debates mandated a
finding of concurrent jurisdiction. It is just this analysis that has never
been undertaken as to the Sherman Act, which we now ask the Court to
undertake.

3

But if any doubt there be, the legislative history makes
plain the intended concurrent jurisdiction. Such legislative
history has, of course, been appropriate source of the
meaning of the statute. F.g., Federal Energy Administrator
v. Algonquin SNG, Inc., 426 U.S. 548 (1976); United
States v. City and County of San Francisco, 310 U.S. 16
(1940); Kansas City, Missouri v. Federal Pacific Electric
Co., 310 F.2d 271 (8th Cir. 1962). ARCO’s argument to the
contrary, on the basis of one misleading citation, is frivolous.
Indeed, ARCO has never disagreed, through proceedings in
the trial court and at three appellate levels, that Congress
intended for the courts of the States and the United States to
have concurrent jurisdiction.’

Instead it has argued that this meaning should be ignored
and the dictum of Freeman v. Bee Machine Co., 319 U.S.
448 (1943) and Blumenstock Brothers Advertising Agency
v. Curtis Publishing Company, 252 U.S. 436 (1970) should
be blindly followed.

ARCO would have this court believe that the eight cases
cited on page 3 of its brief contradict the statutory meaning
urged by the petitioner. In fact, in seven of the eight cases the
Blumenstock or Freeman v. Bee dicta were accepted
incidentally to deciding other issues, and were not directly
litigated. In an eighth, the refusal of state court jurisdiction
was mentioned without any supporting citation or analysis.

Of the four denials of certiorari reported by ARCO on
page 3, none presented to this court the issue framed by this

Its contention, Brief, p. 5, that legislative history has been “selectively
excerpted” is puzzling. It knows that extensive additional legislative
history was presented in the courts below, from which excerpts were
included in the petition to serve merely as an example. It has never
disagreed with the legislative history presented, and its import.

case.°

This Court’s reference to exclusive federal jurisdiction for
Sherman Act claims, in Vendco Co. v. Lektro-Vend Corp.,
433 U.S. 623 (1977) was again premised, both in the
plurality opinion of Mr. Justice Rehnquist and the dissent of
Mr. Justice Stevens, upon the Freeman v. Bee Machine Co.,
supra, dicta. Vendco demonstrates the benefit of recon-
sidering the exclusive jurisdiction dicta. Had the Illinois
Court been able to consider federal antitrust violations by
way of affirmative defense or counterclaim, this court would
never have had to decide whether an injunction could issue
by the District Court, to restrain collection of the Illinois
judgment. Instead, the antitrust claims would not have been
abandoned in the state court suit, and a second round of
litigation in the District Court would have been avoided, as
would the need for this court to address the delicate and
highly technical Anti-Injunction Act issues, without sacri-
ficing the concerns of the Vendco dissenters that the antitrust
act be made fully effective.

This court said, in General Investment Co. v. Lakeshore
and M.S.R. Co., 260 U.S. 261 (1922) that 15 U.S.C. §26,
respecting jurisdiction in private antitrust actions for

oo”

3In North Carolina v. Charles Pfeiser and Co., Inc. No. 75-1801,
cert. denied, 429 U.S. 870 and Overseas Motors Inc. v. Import Motors
Ltd., Inc., No. 75-494, cert. denied, 423 U.S. 987, the issue of
concurrent jurisdiction was not raised in any way. In Westinghouse
Electric and Manufacturing Co. v. McGregor, No. 373 O.T. 1944,
certiorari was denied for lack of a final judgment. 323 U.S. 761. In Gold
Fuel Service Inc. v. Essons Standard Oil Co., No. 361 O.T. 1960, cert.
denied, 364 U.S. 882, the issue was seemingly raised by the questions
presented in the petition, but actually was argued as an attempt to modify
State Common law by incorporating Sherman Act principles; a posture
that would deprive this court of jurisdiction to review the State Court
opinion.

5

injunctive relief, reposed exclusive jurisdiction in the
Federal Courts for such actions. Like Freeman v. Bee
Machine Co., supra, and Blumenstock, supra, the opinion
of Justice Van deVanter was devoid of any analysis what-
soever, either of the language of the statute, of the legislative
history, or of the rules of construction for deciding exclusive
or concurrent jurisdiction. To be sure, many courts and
commentators have acknowledged the statements in
Blumenstock, Freeman, and General Investment Co.,
without critical analysis. Not once, however, has this court
or any court held, after canvassing the legislative history,
parsing the specific words used in the statute, and applying
the precedents on concurrent jurisdiction, that a litigant like
Service Center could not seek damages in the state courts for
violation of the Sherman Act. Yet to so hold would eliminate
the forum shopping that has occurred in this case, the
duplication of litigation that is demonstrated in this case and
in Vendco, supra, and the exclusion of State antitrust claims
from state courts that has, in fact, occurred because of the
exclusive jurisdictional rule. If Sherman Act claims may be
joined with State antitrust claims in the courts of the states,
the judgments resulting may, as often as not, ultimately be
grounded upon the State law claims; a result quite desirable
but all but impossible under the exclusive jurisdiction that is
now assumed.

This Court should grant certiorari and consider whether
the statute intended concurrent jurisdiction, and whether
both antitrust enforcement and judicial economy will be
served by concurrent jurisdiction.

MICHAEL J. MEEHAN
P.O. Box 2268
Tucson, Arizona 85702

Attorney for Petitioner
OCTOBER, 1978

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385005_1678%3A3. Public record. Not legal advice.
