# Petition — FTC v. Standard Oil Co. of Cal.

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URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385006_2172%3A1

## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1980
- **Citation:** 449 U.S. 232

## Text

‘ ” Gunre; ut, Ue
4 FILED
79-900
K. : DEC 10 i979
CHAR fez 1A, JR., CLERR

OCTOBER TERM, 1979
FEDERAL TRADE COMMISSION, ET AL., PETITIONERS
v.

STANDARD OIL COMPANY OF CALIFORNIA

PETITION FOR A WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS FOR
THE NINTH CIRCUIT

WADE H. MCCREE, JR.
Solicitor General

ALICE DANIEL
Assistant Attorney General

ELLIOTT SCHULDER
Assistant to the Solicitor General
Department of Justice
Washington, D.C. 20530
MICHAEL N. SOHN
General Counsel

HOWARD E. SHAPIRO
Deputy General Counsel

WARREN S. GRIMES
Attorney
Federal Trade Commission
Washington, D.C. 20580

Page
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Reasons for granting the petition .................... 8
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CITATIONS
Cases:
Atlantic Refining Co. v. FTC, 381 U.S.

SUT | « cccceeasieenepcciaeldnaaeneealagaiannlade 14
Barlow v. Collins, 397 U.S. 159 20222022222.- 12
Bordenkircher v. Hayes, 434 U.S. 357 ...... 15
Califano v. Sanders, 430 U.S. 99 .............. 18, 21
Chamber of Commerce v. FTC, 280 Fed.

NIL alee Meme dns Re 5H SZ 20
Citizens To Preserve Overton Park v.

Fete, GOL UG. Cae vicintctecsne 6, 11
City of Tacoma v. Taxpayers of Tacoma,

SOT Ud. TRO side 18

Costello v. United States, 350 U.S. 359 .... 13

pat

Cases—Continued Page
Dunlop v. Bachowski, 421 U.S. 560 .......... 12
Ewing v. Mytinger & Casselberry, 339

Ast hs Se a in cao 18
FPC v. Metropolitan Edison Company, 304

a, isl Aca cetnaccieicd 18, 20
PIU ¥. Klesner, 260 U.S. 19 ............2...:.. 16, 19
FTC v. Sperry Hutchinson Co., 405 U.S.

Tis seaassiniegalint 14
FTC v. Universal-Rundle Corp., 387 U.S.

BE inemescrenis atch chcid tec petaiseilaneiniacascesones 14, 19
Mathews v. Eldridge, 424 U.S. 319 .......... 21
McGee v. United States, 402 U.S. 479 ...... 20

McKart v. United States, 395 U.S. 185 .... 20
Moog Industries, Inc. v. FTC, 355 USS.

RESTLESS ESSERE aU ay EO Ree 14, 15
Morris v. Gressette, 482 U.S. 491 -.......... 12
Myers v. Bethlehem Shipbuilding Corp.,

a anid aarniins 17, 21
NLRB v. Sears, Roebuck & Co., 421 U.S.

LESS Sd ee ee On 15
Parisi v. Davidson, 405 U.S. 34 -20222222-2----- 20
Petroleum Exploration, Inc. v. Public

Service Comm’n, 304 U.S. 209 -............. 21
Pillsbury Co. v. FTC, 354 F.2d 952 -........ 4
Renegotiation Board v. BannerCraft Co.,

SSE ESS RGU RNY WC 20
Schilling v. Rogers, 363 U.S. 666 -............. 12
Southern Ry. v. Seaboard Allied Milling

Corp., No. 78-575 (June 11, 1979)......8, 11, 12
Thermal Ecology Must Be Preserved v.

ME MN OO oa seh peensenenncoceene 19

United States v. Calandra, 414 U.S. 338.... 13
United States v. Morgan, 313 U.S. 409.... 9,16

Ill

Cases—Continued Page
United States v. Morton Salt, 388 U.S.

I ia ae 14
Vaon'v, Spek, SH UB. 174 2. 15
Whitney National Bank v. Bank of New

OUR, BAe SI GEE ces Se 17

Statutes and rule:
Administrative Procedure Act, 551 et

seq.:

RRR TIE dahcerctesasciacophacodacitioaieaetiae 3
5 U.S.C. 701(a) (2) ........ 2, &, 7, S, 41, 12, 16
Dee eee tka 2, 6, 8, 9,17, 18
RG WI iisiekchsensinnmnceasiveptabisiadeecdasips 19
BE 5 He, Semen anniek. meee RRO N Om 3
Clayton Act, 15 U.S.C. 21(b) .......000...-..... 10
Federal Trade Commission Act, 15 U.S.C.
41 et seq.:
pS AE RE OUR R ae Me Cee Sree: 2, 3,14
i I ME iit sacieseneesinlncailoncibagibics 3
1m UR. SO 2c. 3, 6, 11, 12, 13, 19
Fe GM IE Uiatditictents cosine 17, 19
Be rs I dictcdsincintsnccepdNndccetmacaieae 10
Ae aes PIE iapiieletaniistaniecsicoiheaeiad ns 10
Fur Products Labeling Act, 15 U.S.C.
RMI ine eee (eR CISER ep Onee SVU PED POON ERIS 10

Textile Fiber Products Identification Act,
15 U.S.C. 70 e¢ seq.:

IV

Statutes and rule—Continued Page
Wool Products Labeling Act, 15 U.S.C. 68
et seq.:
RS cay” |) a beeeh eae Rel s Mae 10
OR 10
pT SE aN DE ETAEES SECO COLT ON RTECS 10
gh _EARISERCRSSEIESIE with the Administrative Procedure Act, which
exempts from court review matters committed by law
to agency discretion,® and with the continued effec-
tiveness of administrative law enforcement generally.
Further, such probing into the Commissioners’ men-

issuance of the Standard Oil complaint seven days
later. This portion of the opinion might be read as
questioning whether seven days is enough time for
the Commissioners properly to weigh the staff’s input
and make a determination.

8. The opinion emphasizes the FTC’s failure to submit a
list of witnesses when requested by the ALJ, suggest-
ing that the district court should be impressed by the
number of facts—or the lack of them—that the FTC
had on hand when it made its decision to issue a
complaint.

5 Hills Bros. v. Federal Trade Commission, 9 F.2d 481,
483-84 (9th Cir.), cert. denied, 270 U.S. 662 (1926) ; Mont-
gomery Ward v. Federal Trade Commission, 379 F.2d 666,
672 (7th Cir. 1967) (determination under Section 5 of FTC
Act that proceeding would be in the public interest is a
matter committed to agency discretion).

65 U.S.C. § 701 (a) (2):

This chapter applies, according to the provisions thereof,
except to the extent that—

* * * * *

(2) agency action is committed to agency discretion by
law.

See also Action on Safety and Health v. Federal Trade Com-
mission, 498 F.2d 757, 760-62 (D.C. Cir. 1974).

4la

tal processes is precisely the sort of inquiry forbidden
by United States v. Morgan, 313 U.S. 409 (1941).’

In sum, the Standard Oil decision threatens to up-
set the proper balance between individual rights and
effective law enforcement efforts by all administra-
tive agencies. Under the present system of adminis-
trative law and judicial review, enforcement pro-
grams are not subject to premature and disabling
judicial intervention, except in circumstances where

7In Morgan, the Secretary of Agriculture, acting pursuant
to statutory authority, had established maximum prices for
trading in the Kansas City Stockyards. Upon review, the
lower court authorized the entities challenging the maximum
pricing scheme to take the Secretary’s deposition. He was
questioned at length regarding the process by which he
reached his conclusions, including the manner and extent of
his study of the record and his consultations with subordi-
nates. The Supreme Court condemned this excursion in
strong terms:

“But the short of the business is that the Secretary
should never have been subjected to this examination.
‘The proceeding before the Secretary has a quality re-
sembling that of a judicial proceeding.’ Morgan v. United
States, 298 U.S. 468, 480. * * * We have explicitly held
in this very litigation that ‘it was not the function of the
court to probe the mental processes of the Secretary’ 304
U.S. 1,18.” 313 U.S. at 442.

In Citizens to Preserve Overton Park v. Volpe, 401 U.S. 402,
420 (1971), the Court held that, despite Morgan, examina-
tion of administrative officials is proper in certain limited
circumstances. But, in Overton Park, the Court was pre-
sented with a clear and objective set of factors which the
administrator should have considered in making his decision.
Overton Park thus has no application to the present case,
where the “reason to believe” decision is committed entirely
to the agency’s discretion.

42a

respondents would otherwise suffer irreparable in-
jury. The Ninth Circuit’s opinion, however, would
greatly increase the interruptions in administrative
processes and tip the balance unreasonably toward
delay. Federal agencies conduct hundreds of adminis-
trative proceedings every year. These agencies can-
not function effectively if a substantial number of
these proceedings are to be interrupted for premature
review, or if Commissioners are constantly required
to articulate for the courts the mental impressions
that went into formulating their decisions to prose-
cute.

43a

We trust you share our concern over this unfor-
tunate opinion, and we hope you will give prompt
and favorable consideration to the FTC’s request.
Please feel free to make whatever use of this letter
you deem appropriate.

Sincerely,

/s/

/s/

/s/

Ralph C. Ferrara /s/ Brien Kehoe

RALPH C. FERRARA BRIEN KEHOE
General Counsel General Counsel
Security and Federal Maritime
Exchange Commission
Commission
/s8/ Norton J. Come
Andrew S. Krulwich NORTON J. COME
ANDREW S. Acting General
KRULWICH Counsel
General Counsel National Labor
Consumer Product Relations Board
Safety
Commission
Robert R. Bruce

ROBERT R. BRUCE

General Counsel

Federal Communica-
tions Commission

WU. S. GOVERNMENT PRINTING OFFICE; 1979 g06414 155

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385006_2172%3A1. Public record. Not legal advice.
