# Memorandum — Washington v. General Motors Corp.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Memorandum
- **Published:** January 1, 1971
- **Citation:** 404 U.S. 811

## Text

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SUBJECT INDEX

Page

I 1

i ccensechantiateas cies tnnicdotuaces 2

4 Part I. Choice of Substantive Law .0.0..........cesccceses. 2
1. Federal Law Governs the Substantive Issues in

eS : 2

2. Plaintiffs Strike Count III. .......... uae 4

3. Count II Will Probably Not Be Reached. If It
Is, It Is Controlled by State Common Law, and
Is a Claim Pendent to Count I. ............................ 4

4. The Federal Law Questions Require Deter-
mination by This Court. .............. :

Part II. 7 to Defendants’ Supplemental
Memorandum. ...................... 8

TS: ES eae Ne Sa | Ie de RR OT

cise of Original Jurisdiction in This Case.

(Reply to Def. Supp. Mem. pp. 5-8) ................ 8
6. There Is No Right to a Jury Trial in This Case.
(Reply to Def. Supp. Mem. p. 14) : 10

7. Collateral Estoppel Will Not Impair the Right
to Jury Trial. (Reply to Def. Supp. Mem. p. 14) 12

8. This Court Can Handle This Case Efficiently
and Expeditiously With a Special Master.
(Reply to Def. Supp. Mem. pp. 13-14) ............ 13

9. The Equitable Relief Sought by Plaintiff States
Is the Most Appropriate Remedy for the Con-
tinuing Loss or Damage Caused & Defendants’
Alleged Sherman Act Violations. The Clean Air
Amendments of 1970 in No Way Detract From
the Traditional Powers of an Equity Court
Sitting in an Antitrust Case. (Reply to Def.
ee) ener ae 15

a ee ree ls

ii

Page
10. In Any Event, Defendants’ Argument Regard-

ing Relief Is Totally Premature. (Reply to Def
I I, SN TD sc cicsicinscsicesenscniinsonemsccniseoons

Part III. Recent Developments ..........................scesessee-

11. Recent Developments Confirm the Need for
Original Jurisdiction to be Exercised. ................ 20

ESE SR ROS STI SR

TABLES OF AUTHORITY

Table of Cases

Anderson v. Mt. Ciemens Pottery Co.,
328 U.S. 680, 689 (1946) .. -
Associated Press v. United States, 326 U.S. 1 (1945) ...

Beacon Theatres, Inc. v. Westover,
359 U.S. 500 (1959) sisi esto dbictiaiateaadoncs 10, 11, 12

Blonder-Tongue v. University Foundation,
402 U.S. °313. 320-27 (1974) ane sbiecunaliiuiasods

Bowles v. Carnegie-Illinois Steel Corp.,
149 F.2d 545 (7th Cir., 1945) .....

Cannon v. Texas Gulf Sulphur Co.,
323 F. Supp. 990 (S.D.N.Y., 1971) ..........

' Dairy Queen Inc. v. Wood, 369 U.S. 469-( 1962) ......

Dyker Bldg. Co. v. United States,
ek Oe oD |: ) ENERO ee

Georgia v. Pennsylvania R. Co.,
324 U.S. 439 (1949) .....

Grove Laboratories v. Bri wer & Co.,
. 103 F.2d 175 (1st Cir., 1939) ..

pie Sa) ET RR er ag fry Ss Ma eA qe: 4 oe al

iii
Page

Kennard v. Cory Brothers & Co., |
[1922] L.R. 1 Ch. 265 (C.A.) ooncecccseecoseccees 16

LaBuy v. Howes Leather Co., 352 U.S. 249 (1937) ...... 14
Lupton v. Chase National Bank of City of New York,

89 F.Supp. 393 (D.C. Neb., 1950) ......... 14
Lynne Carol Fashions, Inc. v. Cranston Print Works

Co., Inc., No. 19,599 (3d cir., Jan. 17, 1972) ........... 13
New Jersey v. New York, 345 U.S. 369 (1953) wo... 24
Ohio v. Wyandotte Chemical Corp.,

401 U.S. 493 (1971) oc eee 8, 9, 18
Oregon v. Mitchell, 400 U.S. 112 (1970) .oeecocccceeecceeeee 6
Rachal v. Hill, 435 F.2d 59 (5th Cir., 1970),

cert. denied 403 U.S. 904 (1971) ooeeccccccccccccsseceses 12, 13
United Mine Workers v. Gibbs,

383 U.S. 715, 721-729 (1966) ........ 5

United States v. Addyston Pipe and Steel Co.,
85 Fed. 271, 285 (CCA 6th, 1898) affd.
VTS U.S. 211 (1899) nec cccccccccceseeceecoscesecece.. 5

United States v. Automobile Manufacturers Ass'n,
307 F. Supp. 617 (C.D. Cal., 1969), aff'd. sub nom.
City of New York v. United States, 397 U.S.
se anti Nespas CO i TE 22

United States v. DuPont & Co., 366 U.S. 316 (1961) .... 16
United States v. Grinnell Corp., 384 U.S. 563 (1966) .... 16
United States v. Singer M anufacturing Co.,

S74 US. 174 (UGGS) nna cceccecesenceesereereeecee... 6
United States v. U.S. Gypsum Co.
333 U.S. 364, 396 (1948) ileal itedmaieatadaailes 6

Vane v. Lord Barnard,
Court of Chancery, 1716, 2 Vernon 738 ......... 16

Clayton Act, Section 16 oo..........cccccccceseeseccecceccececcenceeees 3, 6, 7

2B U.S.C., §1292(b) eececececocsccccsesseesesseonessssssssesssesseseeee 25

§YAO4 ee ecccocccccccsessessssssensnssseeeceseesessesnsmnsnesse 26

ND 2

The Clean Air Act Amendments of 1970 ...................- 17, 19
Textbooks

5A Moore, FEDERAL PRACTICE, 2904 (2nd ed., 1971) .... 14
Chafee & Re, Cases and Materials on Equity,

893 (Sth Ed., 1OQMY nanan 16
Other Authority

Attorney General's Comm. to Study Antitrust Laws,
230-231 (1955) .......... - 2
Federal Rules of Civil Procedure, Rule 52(a) ................ 14
Rule 53(e) (2) .......... 13

Chief Justice Burger, State of the Federal Judiciary,
90 §.Ct. 2381, 2383 (1970) ............... .. 10

4 Restatement of Torts, Note on Terminology,
at 680-81 (1939) eccccccccccsscsssssssssssstsssssssssersrcseseeeeeeeeee ‘16

IN THE
Supreme Court of the United States

October Term, 1971

STATE OF WASHINGTON, et al,
Plaintiffs,
v.

GENERAL Morors Corporation, et al.,
Defendants.

PLAINTIFFS’ MEMORANDUM ON CHOICE OF
SUBSTANTIVE LAW AND BRIEF IN REPLY TO
- DEFENDANTS’ SUPPLEMENTAL MEMORANDUM

Introductory Statement

The Supreme Court has directed all parties in this
action to file simultaneous memoranda on the issue: Would
federal or state law govern the substantive issues sought
to be presented for decision in original actions such as

this one?

The question of whether federal or state law is ap-
plicable was treated briefly in plaintiffs’ supplemental
memorandum of law dated February 12, 1971 (in respect

to Count III, the nuisance count) and in the brief of
sixteen states and the City of New York as amici curiae

(in respect to Count I, the alleged Sherman Act violation ).
For reasons explained in Part I, infra at p. 4, the choice of
law issue respecting Count III is now moot.

On December 24, 1971 defendants filed a supplemental
memorandum in opposition (Def. Supp. Mem.) to plain-
tiffs’ motion for leave to file complaint. Part II, beginning
at p. 8, infra, replies to that supplemental memorandum

2

Pertinent recent developments in the multidistrict motor
vehicle pollution cases, MDL No. 31, transferred to Judge
Manuel Real, Central District of California at Los Angeles,
pursuant to 28 U.S.C. § 1407 are called to this Court’s at-
tention in Part III, beginning at 20, infra.

ARGUMENT
PART I.
CHOICE OF SUBSTANTIVE LAW
1. Federal Law Governs the Substantive Issues in This
Action.

-The gravamen of plaintiffs’ complaint is Count I, charg-
ing a federal antitrust violation. Plaintiff states allege a
classic antitrust conspiracy to suppress technology and
marketing of effective motor vehicle pollution control
devices. See report of Attorney General’s Comm. to Study
Antitrust Laws, 230-231 (1955) and cases cited.

Specifically, these plaintiff states allege in their proposed
complaint (Comp.) that beginning at least as early as
1953 and continuing until at least September 1969, the
defendants combined and conspired among themselves
and with other co-conspirators to suppress and retard
research, development, manufacture and installation of
effective motor vehicle air pollution control equipment
(Comp. { 16, p. 5).

The complaint alleges certain specific actions taken in
concert and in furtherance of the alleged conspiracy
including:

1. The restriction and suppression of pollution control
technology (Comp. { 17(a), 18(a), (b)).

2. Delayed installation of “positive crank case ventila-

3

tion, both inside and outside the state of California”
(Comp. { 17(c)(1) and (2)).

3. The restriction and suppression of publicity, which in
fact includes a persistent pattern of alleged misrepresenta-
tions to governmental bodies and administrative agencies
relating to research and development efforts concerning
motor vehicle air pollution (Comp. { 17(d) ).

The conspiracy alleged and the specific acts in further-
ance of the conspiracy describe violations of the Sherman
Act.

This case arose directly out of the 1969 Justice Depart-
ment civil complaint charging defendants with the same
conspiracy alleged in plaintiffs’ proposed complaint.

The proposed complaint also includes a count alleging
common law conspiracy (Count II) and a count alleging
nuisance (Count III), in addition to the antitrust viola-
tions. However, these counts were included only to sup-
plement and support Count I.

Defendants had argued in the multidistrict proceedings
that, even if plaintiffs in these actions could establish
antitrust violations as alleged, the equitable relief sought
was beyond that permitted by Section 16 of the Clayton
Act.

Count II was added to authorize use of this Court’s
general equitable powers so that relief could be afforded
in one case in the unlikely event defendants’ narrow con-
struction of Section 16 of the Clayton Act prevailed. The
choice of law applicable to Count II, should Count II
become relevant, is discussed below.

4
2. Plaintiffs Strike Count III.

Count III was included to give additional support to the
Count I antitrust claim. While the wrong for which these

states seek relief was a conspiracy in restraint of trade,
plaintiff states recognized the possibility that the facts

might also establish another actionable wrong, namely, the
tort of nuisance. Before they had seen the evidence avail-
able to them through the multidistrict proceedings, plain-
tiffs were concerned that they might possibly fail to prove
a conspiracy in restraint of trade, but, at the same time
might establish another actionable wrong entitling them
to similar relief. For that reason, Count III was included
as a secondary claim. ¢

Nowy having had the opportunity to review documen-
tary evidence available to them under a protective order
in MDL Docket No. 31, plaintiffs are confident that the
conspiracy alleged can be proved. Rather than encumber
this case with an additional and broader nuisance claim,
they prefer to simplify the issues in deference to the urgent
need for speedy resolution and relief based only upon the
antitrust claim. Accordingly, plaintiff states hereby strike
Count III from their proposed complaint.

3. Count II Will Probably Not Be Reached. If It Is,
It Is Controlled by State Common Law, and Is a
Claim Pendent to Count I.

The principal equitable relief plaintiffs seek is a manda-
tory injunction requiring defendants, at their expense, to
retrofit all pre-1968 cars with effective pollution control
devices (Comp., Prayer J 4). Defendants’ argument, based
on a narrow and untenable reading of § 16 of the Clayton
Act, is both totally premature at this stage of the litigation,

5

and wrong. Accordingly, choice of law under Count II has
only remote and contingent significance.

Moreover, it is an easy question. Count II is a classic
pendent jurisdiction claim seeking relief under state: law
for the same acts alleged in Count I to be wrongful under
the Sherman Act. See United Mine Workers v. Gibbs, 383
U.S. 715, 721-729 (1966). See also defendants’ Brief in
Opposition at page 12.

The state law applicable is “the general doctrine of the
common law that contracts restraining competition . . .
are void.” United States v. Addyston Pipe and Steel Co.,
85 Fed. 271, 285 (CCA 6th, 1898) aff'd. 175 U.S. 211
(1899). In his opinion, Judge Taft carefully reviewed the
common law in at least 16 different states, as well as Eng-
land and Canada, regarding contracts in restraint of trade,

and concluded

.. . that the association of the defendants, however
reasonable the prices they fixed, however great the
competition they had to encounter, and however great
the necessity for curbing themselves by joint agree-
ment from committing financial suicide by ill-advised
competition, was void at common law, because in res-
traint of trade and tending to a monopoly. United
States v. Addyston Pipe and Steel Co., supra, at 291.

Thus, inclusion of Count II in no way complicates this

case. It raises no new or different facts; and it presents no
difficult question on choice of law.

4. The Federal Law Questions Require Determination
By This Court. ,

Contrary to defendants’ assertion, this is not principally
a fact case. To the extent there are factual questions, they
will turn primarily upon documentary evidence. Judge

6
Real, who has supervised the multidistrict proceedings
sinve their commencersent in April 1970, and who at-
tended a portion of the one deposition taken in the multi-
district actions to date, recently observed:

“I saw the deposition of Mr. Caris and read it all or
with that part of it, it does boil down to a document
case because that is all that came out of Mr. Caris’
deposition was basically reading documents.” Tran-
script of Proceedings, Los Angeles, California, Janu-
ary 11, 1972, p. 8
Appellate review of factual findings has always been
broader when those findings were not based upon oral
testimony.’ United States v. U.S. Gypsum Co., 333 U.S.
364, 396 (1948) (Oral testimony conflicting with contem-
poraneous documents); Grove Laboratories v. Brewer &
Co., 103 F.2d 175 (1st Cir. 1939) (depositions); Bowles
v. Carnegie-Illinois Steel Corp., 149 F.2d 545 (7th Cir.
1945) (affidavits ). The essentially documentary nature of
the evidence will greatly facilitate trial by this Court of
such limited fact issues as this case presents.

This case will not, however, turn primarily upon dis-
puted questions of fact but upon the resolution of import-
ant questions of federal law. Cf: Oregon v. Mitchell, 400
U.S. 112 (1970) (18 year old vote case).

Both here and in the multidistrict cases, including the
interlocutory appeals to the Ninth Circuit, defendants have
raised certain fundamental questions about the Sherman
and Clayton Acts. The first question, presently sub judice in
the Ninth Circuit on interlocutory appeal from an order
of Judge Manuel Real denying defendants’ motion to dis-

"1. This same point disposes of defendants’ reliance upon United States
v. Singer Manufacturing Co., 374 U.S. 174 (1963) regarding the value
of irtermediate appellate review. (Defs. Supp. Memo, p. 13).

ORI OR heat aati ater COSY ee RE OEE OAL RM SIE SUBIR NEN Rid OOF Hegre OS TOGO RRS SD Vrs Sk carrie EPAPER Su

7

miss, is whether or not plaintiff states have standing to
sue on behalf of their citizens for relief under, the federal

antitrust laws in the absence of a “commercial relation-
ship” between the victim and the perpetrator of the alleged
antitrust conspiracv.

The second question, which defendants have suggested
here, is whether or not plaintiffs can legally obtain the
injunctive relief for which they have prayed. Specifically,

defendants challenge the power of a federal court under
Section 16 of the Clayton Act to grant the retrofit Telief

sought by these plaintiffs and amici. As we shall ‘dow
below, both of these questions are prematurely raised by
defendants at this juncture.

Irrespective of that, however, these vital questions. of
federal law must ultimately reach and be resolved by this
Court, whether it accepts original jurisdiction or permits
the questions to reach this Court in the traditional appel-
late fashion.

8

PART II.

REPLY TO DEFENDANTS’ SUPPLEMENTAL
MEMORANDUM

5. Georgia v. Pennsylvania R. Co., and Ohio v. Wyan-
dotte Chemicals Corp., Support an Exercise of
Original Jurisdiction in This Case. (Reply to Def.
Supp. Mem. pp. 5-8)

In Georgia v. Pennsylvania R. Co., 324 U.S. 4:19 (1949)
the standards for exercising original jurisdiction in con-
troversies between a state and citizens of another state
were first announced as follows:

The Court in its discretion has withheld the exercise
of its jurisdiction where there has been no want of
another suitable forum to which the cause may be
remitted in the interests of convenience, efficiency
and justice. Georgia v. Chattanooga, supra; Massa-
chusettts v. Missouri, supra. 324 U.S. 464-465.

The availability of a more suitable alternative forum,
namely the courts of Ohio, was clear in Ohio v. Wyandotte
Chemical Corp., 401 U.S. 493 (1971). As this Court stated
and indeed, as counsel for the State of Ohio admitted in

oral argument:

The courts of Ohio, under modern principles of the
scope of subject matter and in personam jurisdiction,
have a claim as compelling as any that can be made
out for this Court to exercise jurisdiction to adjudicate
the instant controversy, and they would decide it
under the same common law of nuisance upon which
our determination would have to rest. 401 U.S. at 500

However, there is no alternative forum more suited to trial

of the present case.

Defendants urge that granting plaintiffs’ motion would
impose insuperable burdens on this Court and detract
from its paramount role as the supreme federal appellate

a ot

SPOR Pe Rett e Prats ye pet teers RE Tee A TENET Re EE & HO Es MRIS S

9

court. Def. Supp. Mem. p. 39. Indeed, they charge plaintiff
states with disregard for “this Court’s other manifold
responsibilties.”

But, in fact, while defendants’ approach might spare
this Court some additional effort in the short run, at the
same time, by delaying a final resolution of this matter,
defendants’ approach would actually impose far greater
burdens cn this Court and indeed on the entire federal
judicial system. If original jurisdiction is not exercised, and
if plaintiff states must pursue their remedies in the district
courts, there could be as many as 23 separate district court
trials with appellate review in all 10 circuits.?

As implicitly recognized by the Chief Justice in his two
State of the Federal Judiciary addresses, the current role
of this Court in.the federal system is not limited to func-
tioning as the supreme federal appellate court, but includes
ultimate respongibility for maintaining and assuring overall
efficiency and viability of the entire federal judicial system.
Accordingly, weighing alternative available forums against
this forum by standards of convenience, efficiency and
justice, this Court must consider the effect of its choice
upon the entire federal judicial system, not simply upon
the workload of this Court. Precisely this point was made
by Mr. Justice Harlan in Ohio v. Wyandotte Chemicals
Corp., 401 U.S. at 499, when he said: “Protecting this
Court per se is at best a secondary consideration.”

The present case is indeed unique in the history of
federal court litigation. It alleges a nationwide conspiracy
in restraint of trade, most susceptible of remedy by nation-

2. As discussed infra at 24, plaintiffs are attempting to expedite
the multidistrict litigation, but there is no assurance those efforts will
succeed.

—— . — : ee
ee Se aE arma whee aod om Prey ae

10

wide, uniform equitable relief. While monetary damages
may lie, and may be the only meaningful relief if trial
is delayed, such damages are not an adequate or the most
appropriate remedy. Plaintiffs seek clean air, not money.
The scope of this problem results from the way automo-
biles have altered our society. *

In this 20th Century, wars, social upheaval, and
the inventiveness of Man have altered individual lives
and society. The automobile, for example, did more
than change the courting habits of American youth—
it paved the continent with concrete and black top;
it created the most mobile society on earth with all
its dislocations; it led people from rural areas to
crowd the unprepared cities. Chief Justice Burger,
aon of the Federal Judiciary, 90 S.Ct. 2381, 2383

1970).

If future cases combine a national wrong with a need for
national injunctive relief as in this case, Congress may
fashion a national forum alternative to the original juris-
diction of this Court. At this juncture, however, the original
jurisdiction of this Court is the only “adequate machinery”
available for meaningful determination of this dispute
between thirty-four states and the citizens of another state.
See Georgia v. Pennsylvania R. Co., 324 U.S. at 450.

6. There Is No Right to a Jury Trial in This Case.
(Reply to Def. Supp. Mem. p. 14)

Defendants express concern in their supplemental mem-
orandum thai a non-jury trial by this Court would have
“powerful and perhaps controlling effect” upon subsequent
jury trials of damage claims in related district court actions
(Defs.’ Supp. Mem., p. 15). Defendants attempt to rely
on Beacon Theatres, Inc. v. Westover, 359 U.S. 500 (1959)

ens Se PERONEAL CO hae allt Oe et Se eg —

11

and Blonder-Tongue v. University Foundation, 402 U.S.
313, 320-27 (1971).

Exercise of original jurisdiction by this Court would
result in a single trial of the equitable relief cases brought
by 37 of the 40 governmental plaintiffs. Left to be tried
in appropriate district courts would only be a maximum
of six cases.* These are, of course, different cases from
those brought by plaintiffs and amici here.

Nobody in this case has any right to a jury trial. Simi-
larly, where a plaintiff seeks damages, a jury trial right
exists for either party. Yet, no defendant has a right toaiury -
in one plaintiff's equitable case simply because another
plaintiff has a separate case seeking damages upon similar
allegations. Nor can it be seriously argued that a defendant
has a right to delay trial of the equitable case until after
the separate damages case has been tried, especially where
such delay may render relief in the equitable case mean-
ingless.

Because separate cases by separate plaintiffs are in-
volved here, the principles underlying such decisions as
Beacon Theatres, Inc. v. Westover, 359 U.S. 500 (1959),
relied on by defendants are wholly inapplicable.‘

3. Plaintiffs in these cases are California; the City of Philadelphia,
et al.; a cropfarmer class action entitled Morgan; a Chicago consumers
class action entitled Keane; AMF Inc., a third party manufacturer; and
Sturtz, a third party inventor. The Morgan class was approved by Judge
Real and the Keune class was dismissed. The appropriateness of both
these classes is sub judice in the 9th Circuit.

4. Thus, there is no occasion to consider whether in a single case
separate trials first on equitable and then on legal counts would be
warranted under the exceptional circumstances of this litigation. Beacon
Theatres notes that there may be “imperative circumstances” where a
prior determination of an equitable claim may be permissible in the trial
court’s discretion even though that would be binding in a subsequent
jury trial on another ‘claim in the same case. 359 U.S. at 510-511; see
also Dairy Queen Inc. v. Wood, 369 US. 469, 472-473, 479 n.20

. Drmgare pwn . eee eae aCe ee a .
ena Seg SR REECE 6 mee. RTE \ Fe ae catia eae
a :

Mt PRANK Gi titan aA

12

7. Collateral Estoppel Will Not Impair the Right to
Jury Trial. (Reply to Def. Supp. Mem. p. 14)

A decree entered in this non-jury equitable case would

have. no res judicata or collateral estoppel effect in subse-

quent jury trials. This precise situation was faced in Rachal
v. Hill, 435 F.2d 59 (5th Cir. 1970), cert. denied, 403 U.S.
904 (1971), where plaintiff in an action before a jury
seeking damages under federal securities laws asserted

that defendants were collaterally estopped by the judg-

ment’in’a prior non-jury action brought by the Securities
and Exchange Commission respecting the same subject
matter.

Defendants first contended that plaintiff could not rely
upon collateral estoppel, since plaintiff was a stranger to
the S.E.C. injunction action. Secondly, defendants con-
tended that collateral estoppel could not be invoked to
deprive them of a jury trial on the liability issue.

The court rejected the first contention, following the
modern view that lack of “mutuality” does not bar appli-
cation of res judicata and collateral estoppel. But it ac-
cepted the second proposition, holding that, in light of
Beacon Theatres, the order of trial could not deprive
defendants of their right to a jury on the damage claims
against them. The court reasoned (435 F.2d at 64) that:

had Hill {the plaintiff] been a party plaintiff in the
S.E.C. injunction action and there presented his claim

for damages, the appellants would have received a
jury trial on the issue of liability. It hardly makes sense

(1962). The desperate need for a retrofit remedy to diminish continuing
air pollution pending a necessarily more distant trial on damages would,
we believe, be an “imperative circumstance” calling for a prior equitable
trial even if separate trials on legal and equitable claims brought by the
same plaintiffs were involved here. ~

13:
that Hill can now assume a position superior to that
to which he would have been entitled if he had been
a party to the prior action. SS anaat yal we hold that
the application of the doctrine of collateral estoppel
was not appropriate in view of the particular circum-
stances presented by this case... -
Rachal was followed in Lynne Carol Fashions, Inc. v.
Cranston Print Works Co., Inc., No. 19,599 (3d Cir., Jan.
17, 1972) and Cannon v. Texas Gulf Sulphur Co., 323 F.
Supp. 990.(S.D.N.Y. 1971), and we are aware of no con-
flicting‘authority.

8. This Court Can. Handle This Case Efficiently and
Expeditiously With a Special Master. (Reply to Def.
Supp. Mem. pp. 13-14)

The Constitution, statutes, court rules, and previous de-
cisions give this Court wide latitude and discretion over
the manner in which it can function appropriately as a
trial court. If this Court exercises original jurisdiction here,
a special master should be appointed to preside over the
pretrial and trial proceedings. 3

While this Court could give broad powers to such a
special master without abdicating its judicial duties, guide-
lines for use of masters by district courts could be followed
here. For example, Federal Rule of Civil Procedure
53(e)(2) states: “In an action to be tried without a jury,
the court shall accept the master’s findings of fact unless
clearly erroneous.”

In discussing the scope of review of a master’s findings,
Professor Moore states:

Since mere objections [to the master’s report] would
compel the court to review the whole case, and thus
would defeat the very purpose of reference, such

rE’
—_— FEN 8 AONE

vague and general objections should be overruled.
5A Moore, FEDERAL Practice 2994 (2nd ed. 1971).
(Emphasis added )

In fact, the clearly erroneous rule stated in Rule 53(e) (2)
has the same meaning as in Rule 52(a) relating to appel-
late review of district court findings of fact. See Anderson
v. Mt. Clemens Pottery Co., 328 U.S. 680, 689 (1946);
Dyker Bldg. Co. v. United States, 182 F.2d 85 (D.C. Cir.
1950); Lupton v. Chase National Bank of City of New
York, 89 F. Supp. 393 (D.C. Neb. 1950).

Thus, traditional standards for using a special master
provide an excellent framework whereby this Court can
expedite proceedings. The taking of evidence and deter-
mination of factual disputes can be done by the master
and reviewed by this Court on the same basis that an
appellate court normally reviews factual findings by a
trial judge, and on the same basis that this Court nor-
mally reviews findings of fact by lower courts on direct
appeals. Meanwhile, this Court would decide all critical
motions and grant or deny the ultimate relief sought.
Such an arrangement would eliminate inconsistent and
conflicting results and would expedite the final determi-
nation of this litigation by avoiding the interlocutory ap-
peals and similar delaying tactics prevalent in these cases
from their inception.

LaBuy v. Howes Leather Co., 352 U.S. 249 (1937),
relied upon by defendants, supports rather than detracts
from plaintiffs’ proposal for a master in the present case.
In LaBuy, this Court held that a district. judge, clearly
competent to handle an antitrust case, abused his judicial
powers by delegating the trial to a practicing lawyer who
was not an experienced trial judge, particularly where the

15

judge himself was already familiar with the case because
of extensive pre-trial proceedings. The Court observed
that appointment of a busy lawyer as master usually re-
sults in a delayed decision, and emphasized that complex
cases require trial judges rather than ad hoc inexperienced
substitutes.

For this reason and for the reasons stated in Part III,
plaintiffs believe that this Court shéuld select as master an
experienced trial judge, already familiar with the issues be-
cause of extensive pre-trial proceedings, and whose efforts
will contribute to expedition, not delay, of the final deci-
sion. Plaintiffs previously suggested, and now urge that
Judge Manuel Real be appointed special master by this
Court for the fair, efficient and expeditious processing this
case requires.

9. The Equitable Relief Sought by Plaintiff States Is
the Most Appropriate Remedy for the Continuing
Loss or Damage Caused by Defendants’ Alleged
Sherman Act Violations. The Clean Air Amendments
of 1970 in No Way Detract From the Traditional
Powers of an Equity Court Sitting in an Antitrust
Case. (Reply to Def. Supp. Mem. pp. 15-33)

Defendants’ argument that this case involves “political”
considerations (see Def. Supp. Memo e.g., p. 8, heading
p. 9, and p. 24) requiring “policy decisions” ( é.g., pp.
10, 21) completely and deliberately misapprehends the
nature of this lawsuit.

The principal relief sought is a mandatory injunction
requiring defendants to cause to be installed at their
expense effective antipollution control equipment on all
pre-1968 motor vehicles in the United States (Comp. p. 13
Prayer, 4). The “disputed question of the power of any

IRE <p UNG SRA IU a ama Ss ty

16

court to grant such novel equitable relief” (Def. Supp.
Mem. p. 10) is no less a question appropriate for judicial
decision than is the appropriateness of a remedy in any
other suit where Section 16 of the Clayton Act is invoked
or in which a court of equity is asked to remedy a breach
of law. The power of a federal court sitting in equity has
been applied numerous times to fashion decrees uniquely
designed to remedy wrongs caused by antitrust defendants.

Thus in United States v. DuPont & Co., 366 U.S. 316
(1961), this Court ordered complete divestiture of all
General Motors stock held by DuPont, despite adverse tax
and market consequences. At 366 U.S. 323-34 it said:

The proper disposition of antitrust cases is obviously
of great public importance, and their remedial phase,
more often than not, is crucial. For the suit has been
a futile exercise if the Government proves a violation
but fails to secure a remedy adequate to redress it.

. . . If this decree accomplishes less than that, the
Government has won a lawsuit and lost a cause.

And see United States v. Grinnell Corp., 384 USS.
563 (1966) where defendants, who leased equipment,
were directed to sell on nondiscrimnatory terms, so that the
product market would be opened to competition.

Moreover, retrofit is precisely the kind of “reparative”
mandatory injunction equity courts have historically grant-
ed. See Vane v. Lord Barnard, Court of Chancery, 1716
2 Vernon 738, also reported in Prec. Ch. 454, Gilb. Eq. 127,
and 2 Salk. 161, abstracted in CHAFEE & RE, CASES
AND MATERIALS ON EQUITY 823 (5th Ed., 1967);
Kennard v. Cory Brothers & Co. [1922] L.R. 1 Ch. 265
(C.A.); 4 Restatement of Torts, Note on Terminology, at
680-81 (1939).

oa 1 GREER CR RRR TER EREAINENEL? PEER se SNH ORY Pree: MEN IRE ese eee Se

17

Defendants’ arguments that “the national failure to ap-
Preciate the environmental implications of vehicle and
other emissions at an early date is plainly a social and politi-
cal one” is irrelevant in the extreme when plaintiff states are
charging these defendants with long-standing violations
of the Sherman Act and fraudulent concealment of those
violations. (Comp. {19, p. 9)

Defendants rely heavily on the Clean Air Act Amend-
ments of 1970 to argue that the equitable remedy sought
by plaintiffs would amount to judicial usurpation of con-
gressional responsibility. In fact, however, the Clean Air
Act amendments forcefully dramatize the sharp contrast
between the type of political decision with which Congress
was faced and to which defendants allude, and the judicial
remedy which plaintiff states seek here. As is true with
most legislation, the 1970 act was a result of political com-
promise. It was not based on a judicial finding that the
automobile manufacturers were guilty of any wrongdoing.
By contrast, the duty of this Court or any court is to de-
cide whether a particular remedy is necessary to redress
an injury proved and, if so, to consider whether it is ap-
propriate, given the nature and seriousness of the violation.
In short, contrary to defendants’ assertion, “case by case
decisions of the judiciary” (Def. Supp. Mem., p. 21) are
completely appropriate, indeed, essential, to remedy past
violations of law.

As we have pointed out previously, (Pls.’ Reply Br., p.
15; and see Amici brief, p. 15, n. 6), the federal law
establishes standards for new cars. The remedy which
plaintiff states seek deals with pre-1968 cars, namely,
those cars manufactured and sold during the period of the

18

alleged antitrust conspiracy. Thus, plaintiffs are not at-
tempting to “replace, modify or accelerate the imposition
of the standards mandated by” the 1970 act (Def. Supp.
Mem., p. 20). We only seek to have defendants produce
the cars which they “would have produced” but for the
illegal conspiracy. The discussion at pages 22 through 25
of defendants’ supplemental memorandum on sources of
air pollution and the responsibility of other polluters is
totally out of piace in this case. It is, however, indicative of
the whole thrust of defendants’ argument. Defendants
would persuade this Court that, like Ohio v. Wyandotte,
supra, this case represents an effort by the states to fight
air pollution. Indeed, in their supplemental brief they.
argue this case as if it were another version of Ohio v.
Wyandotte. Yet it is unmistakably clear from the complaint
and our arguments to date, that this is an antitrust case.
Liability depends entirely on antitrust principles and the
relief sought depends entirely on equitable powers em-
ployed to mold antitrust remedies. True, the subject matter
of the violation is motor vehicle air pollution. But this
case is an air pollution case only in the sense that another
major anti-trust case, Associated Press v. United States,
326 U.S. 1 (1945.), was a newspaper case, as the defend-
ants in that case, invoking the First Amendment, unsuc-
cessfully argued.

Defendants argue as well that this case deals with mat-
ters of “an unusually complex and technical nature” (Def.
Supp. Mem., p. 11) and “with the frontiers of an arcane
and still imperfectly understood technology” (Def. Supp.
Mem., p. 11). But plaintiffs are prepared to prove that time
and again throughout the fifteen-year history of the al-
leged conspiracy, defendants, who controlled most of the

fn: mies eta areas ‘ Ne ea ROI ee NS —

19 .

technology in the field, misled and misrepresented the
facts to various state, federal and local government agen-
cies. Until this evidence can be made public, it will be im-
possible to know whether defendants are now accurately
representing the facts to this Court or any court or even
accurately represented the facts to Congress when it en-
acted the Clean Air Amendments. of 1970.

10. In Any Event, Defendants’ Argument Regarding
Relief Is Totally Premature. (Reply to Def. Supp.
Mem. pp. 15-33)

In support of their motion to dismiss in MDL Docket
No. 31, defendants made the same argument respecting
equitable relief sought which they make here. Judge Real
disposed of that argument summarily, stating, inter alia:

Plaintiffs may fail in their proof, but until then they
should be given the benefit of employing “any avail-
able male to make good the wrong done.” Bell v.
Hood, 327 U.S. 678, 684 (1946); J. I. Case Co. v.
Borak, 377 U.S. 426, 433 (1964). Memo Order (Re
Motion to Dismiss ) p.3.

It may well be that a trial judge, after hearing the
evidence may determine that the grant of an injunc-
tion which parallels the relief of the consent decree
in action 69-75-JWC is unwarranted. But pre-judging
at this stage of the litigation, that plaintiffs may not
be able to present some peculiar need for further in-
junctive relief is not the function of this Court. The
prayers for relief are within the jurisdiction of this
Court grant given the proof of facts alleged. Whether
it is necessary or desirable is for the trial judge or
development of these cases to where they may be

subject to disposition without trial. Memo Order (Re :

Motion to Dismiss) p.4.
This reasoning applies equally here.

20
PART III.
RECENT DEVELOPMENTS

11. Recent Developments Confirm the Need for Original
Jurisdiction to be Exercised.

This original action is integrally related to the actions
pending before Judge Manuel Real in MDL No. 31. From
the beginning, the position of plaintiff states in this action
has consistently been to seek one trial of the equitable is-
sues, and one nationwide injunction in the speediest pos-
sible manner. The goals of one speedy trial and one nation-
wide injunction were and are the reasons for urging this
Court to exercise its original jurisdiction. (See Pl. Br. in
Supp. of Motion, pp. 19 and 22; Pl. Supp. Mem., p. 8; Reply
Br., p. 14.)

The remaining governmental plaintiffs equally desire a
speedy unified trial on the equitable issues and, with the
exception of California and Philadelphia, have agreed to
withdraw their claims for damages in the district court pro-
ceedings, if they can obtain that result. The positions of
California and Philadelphia are not final.

Conversely, defendants have been engaged from the out-
set in a program of proliferation and protraction. They op-
pose unified trial of the antitrust issues both here (Br. in
Opp. pp. 19-20; Def. Supp. Mem., p. 35) and in MDL
No. 31.

Defendants are equally resistant to an early trial. In their
Supplemental Memorandum (page 11) the threat of
lengthy proceedings is scarcely veiled. After observing
that “major antitrust cases usually require years of pre-
trial and trial proceedings,” they complain about how the
present case is allegedly even more complex and diff-

f

Phe er Soro fe lamet'y EEE OL ep OND IR om ON, OE, Ha i eee ee L

21

cult. The implication left about how long this case will
take is clear.

It becomes apparent, however, why these prophecies of
interminable litigation are cultivated. After criticizing re-
trofit for pre-1968 cars as an unfeasible remedy, defend-
ants observe (at page 31) that uncontrolled used vehicles
on the road are a “constantly shrinking number.” It is their
goal to delay resolution of the issues raised by these cases
until the effectiveness of retrofit and, consequently, the ex-
pense to defendants if plaintiffs obtain the equitable relief
sought will have dissipated through the passage of time.

Defendants are aware that an effective retrofit is avail-
able. A statement by Chrysler Corporation, packaged with
a retrofit device it is now marketing, states:

Combined with an engine tuneup, the device cuts

emissions on older vehicles by an average of 50% in
hydrocarbon, 50% in carbon monoxide, and about

30% in oxides of nitrogen.

Similarly, General Motors advertises a “low-cost emission
control system” for pre-1967 cars, which, together with an
engine tune-up, will reduce emissions by 50 percent. Wash-
ington Post, April, 1970.

If a speedy trial on the equitable issues is denied plaintiff
states, such devices will probably never be installed at de-
fendants’ expense on a nation-wide basis, and the injury
caused by defendants’ conspiracy will go unremedied.
Such a result will be particularly unfortunate when defend-
ants themselves have conceded that “[i]f every car pro-
duced before 1969 had [available retrofit devices], our air
would be.as pure as it was 30 years ago.” (John DeLorean,
Vice President of General Motors in charge of Chevrolet
Division, Look Magazine, p. 57, August 25, 1970).

. : . —
SS a a uinimiiii , yur Ore Tete

22

Recent developments in MDL No. 31 show that, if
certain legal hurdles are cleared, a speedy trial, specifically,
a trial starting in December 1972, on the equitable issues
only, can be achieved.

To show the significance of these recent developments in
MDL No. 31 and their direct relationship to the motion of
plaintiff states for leave to file their proposed complaint
here as an original action, a summary recapitulation of the
Motor Vehicle Air Pollution Antitrust litigation is neces-
sary.

In early 1969 the Justice Department filed a civil action
charging defendants with conspiracy to eliminate compe-
tition in research, development, manufacture and installa-
tion of motor vehicle air pollution control equipment. That
case was settled by a consent decree which simply forbade
continuance of the alleged illegal combination, despite
strenuous objections from many major public bodies that
the consent decree relief was inadequate. United States
v. Automobile Manufacturers Ass'n., 307 F. Supp. 617
(C.D. Cal. 1969), affd. sub. nom. City of New York v.
United States, 397 U.S. 248 (1970).

Following entry of that decree, a number of states and
other governmental entities filed antitrust suits similar to
Count I of the present case in federal district courts
throughout the United States.

The actions filed in the district courts by the govern-
mental entities are suits for equitable relief and treble
damages. The state plaintiffs in the district court actions
have sued both in their capacity as parens patriae and
pursuant to Rule 23 of the Federal Rules of Civil Procedure
as representatives of a class consisting of all political subdi-
visions within their state. These actions were all transferred

2 SOD EOE Scart Reine eR SUR age eeterR eR Tee REE NS (rRIoh eye Muerte — , — ——

23 |
to the United States District Court for the Central District
of California, Judge Manuel Real, as MDL No. 31, pur-
suant to 28 U.S.C. $1407.

The present activu was filed in this Court by fifteen states
on August 5, 1970. Three additional states were subse-
quently granted leave to join as plaintiffs. See 91 S. Ct.
2272. This action was brought by plaintiffs in their capa-
city as parens patriae on behalf of the citizens of their
respective states for equitable relief only. The proposed
complaint does not claim to be a class action. It does not
seek monetary damages. The sole purpose of this action
was and is to obtain equitable relief in the form of a
mandatory (reparative ) injunction for the continuing “loss
or damage” inflicted upon the citizens and property of the
plaintiff states by defendants’ antitrust conspiracy.

While plaintiffs’ motion was pending it became evi-
dent that applicable statutes of limitation might run. To
foreclose that risk, in March 1971 plaintiff states herein
filed “standby” district court actions. See telegram to Clerk
of Supreme Court dated April 15, 1971, Appendix A.
Eleven of these states filed separate antitrust actions in
their own districts. The remaining seven plus Nevada
filed one consolidated action in the Central District of
California.

These “standby” actions were added to all the other
district court actions previously transferred to Judge Real,
as MDL Docket No. 31. These MDL actions include
complaints filed by a total of thirty-four states and six
other governmental entities in twenty-three federal districts
in all ten circuits,

In August 1971 sixteen states and the City of New York |

which had all initially filed district court actions urged

2

24

this Court, as amici curiae, to assume original jurisdiction
of this case and stated their intention to seek leave to
join this action as plaintiffs if that jurisdiction is exercised.®

On January 24, 1972, all of the multi-district plain-
tiffs, including plaintiffs herein, submitted to Judge Real
a proposed program of further pretrial and trial pro-
ceedings in which they stated that the plaintiffs in all
but two of the governmental cases would drop all claims
for damages if a consolidated trial before Judge Real
on the remaining equitable claims would be scheduled
not later than December 1972. Defendants uniformly

opposed this program. ?

Plaintiffs in the present case informed Judge Real that
their need for an exercise of original jurisdiction by the
Supreme Court would no longer exist if a firm and pre-
servable consolidated trial date before Judge Real could
be set for December 1972. They further stated:

If, however, this court cannot assure a preservable
1972 trial date because of issues sub in the
Ninth Circuit, other possible interlocutory appeals or
petitions for certiorari which defendants might pur-
sue, or any other reason, then these plaintiffs, to ac-
complish their qmginal pomposs of a speedy ffial on
the equitable issues, will continue to pursue actively
their original action before the Supreme Court. That

ursuit will obviously not be designed to preclude
fate actions by this court, but rather, as we have
earlier suggested to the Supreme Court, to expedite
resolution of both this multidistrict litigation and the
original action. Toward that end, we support a De-
cember 1972 trial date by this court in any event.

One other aspect of this litigation is crucial in determin-

5. This Court has previously indicated that intervention of non-state
plaintiffs would be permitted in an original action under appropriate
circumstances. See New Jersey v. New York, 345 U.S. 369, 373 (1953).

Paik Delia hia lean iinet on ———

25
ing whether this Court should exercise its original juris-
diction. In MDL No. 31, defendants moved to dismiss the
governmental complaints based upon defendants’ inter-
pretations of the antitrust laws set forth at 6-7, supra.
Following denial of these motions, six cases were certified
for appeal pursuant to 28 U.S.C. §1292(b). Oral argument
in the Ninth Circuit occurred on January 13, 1972, where
the issues are now sub judice.

A hearing was held before Judge Real on February 17,
1972, (five days before the filing of this brief) on the
question of whether plaintiffs’ proposed program for ex-
pedited pretrial proceedings and a December 1972 trial
date should be adopted.

At the conclusion of that hearing, Judge Real adopted the
following program:®

1. He ruled that “at least until the order of the Court of
Appeals comes down” he would limit discovery and pro-
ceed with the schedule basically as proposed by plaintiffs
on the equity issues only at this time.’

2. He set a further pre-trial hearing for March 7, 1972 for
consideration of proposed notices to the classes that have
been allowed in MDL No. 31, indicating plaintiffs’ inten-
tion to withdraw their damage claims, contingent upon set-
ting a December 1972 trial date and giving class members
a right to opt out of that decision.

3. He denied the motion of plaintiffs to sever [or with-

6. Pertinent portions of the transcript of that hearing before Judge
Real held at Los Angeles, California on Thursday, February 17, 1972,
are attached as Appendix B.

7. Plaintiffs’ proposed pre-trial schedule calls for completion of first
wave discovery by June 30, 1972; and commencement of second wave
discovery on August 15, 1972; and commencement of trial on December
4, 1972.

26

draw] their damages claims, without prejudice to renew
after a hearing upon the proposed class notices, and a
determination of the class action.

4. He deferred until after resolution of the class questions
a proposal to issue an order to show cause why the actions
filed in other districts should not be transferred to the
Central District of California under 28 U.S.C. §1404.

Thus, in light of Judge Real’s ruling on February 17,
1972, the case is proceeding with a discovery program
tentatively geared to a target trial date in December 1972
on the equitable claims only.

: 2 There are, however, at least four roadblocks which must

be cleared before the December trial date becomes a real-
ity. They are: (1) the requirement of notice to the govern-
mental classes and responses by the class members; (2)
defendants’ vigorous resistance to any transfer of all equity
cases to the Central District of California under 28 U.S.C.
§1404 (Transcript of Proceedings, February 17, 1972, p. »
51.); (3) the possibility of certiorari to this Court and a re-
quest for stay of the trial date by defendants if they lose
their interlocutory appeal now sub judice in the Ninth Cir-
cuit; (4) the possibility that defendants will seek interlocu-
tory appeal or mandamus, coupled with a stay, if Judge
Real transfers pending cases to his district under 28 U.S.C.
§1404.

Moreover, even if a December 1972 trial is obtained
before Judge Real, but not under the original jurisdiction
of this Court, the possibility of protracted appeals could
delay relief at least an additional year.

aa a ena ee sna

27
CONCLUSION

The reason all governmental plaintiffs conditioned their
decision to withdraw damages claims upon a speedy
equitable trial is crucial. This conditional withdrawal of
damages is not, as defendants argue, an effort to bargain
with the trial court. Rather, it represents a difficult but
realistic decision about the most effective remedy for

- the wrong committed by defendants. This decision was
inextricably tied to the realities of automotive air pollution.

As stated by the Secretary of Health, Education and
Welfare in his March 1970 report to Congress in compli-
ance with Public Law 90-148 (The Air Quality Act of
1967), atmospheric changes caused by pollution are
occurring,

... at least in part, because the parece atmosphere
in toto is a closed system, and the natur. atmospheric
cleansing mechanisms are incapable of dealing with
the great quantity of contaminants emitted. This is in
contrast to a regional environment, where polluted

masses of air frequently are swept away by the free
movement of weather systems. Report, p. 73.

Defendants estimate that 50 million pre-1968 cars now
on the road would be subject to retrofit if plaintiffs obtain —
the relief they seek. Approximately 8 million of these pre-
1968 cars leave the road each year and that rate may
accelerate in the future. Thus, irreparable harm to the
atmosphere and to health not only continues, but the “res”
of the equitable claims is rapidly disappearing while the
harm it caused remains in the air indefinitely.

If equitable relief can be obtained during 1973, then

the equitable remedy sought will be effective, invoked
in sufficient time to reduce substantially or eliminate air

"TERR NER. crores peoNtetryay-ceRien ie ny Mere ye om aa a ii “Seg i

SS (EN a ooo SUR SERINE REA Som ENeE URTIAYS SET

28

pollution from pre-1968 vehicles. However, if defendants
succeed in delaying a trial, the relative value of retrofit
will be diminished. And at some point, as more and more
pre-1968 cars leave the road, money damages for past
injuries will be the only available remedy. If that occurs,
numerous jury trials in many district courts and appeals
to this Court through a number of circuits will probably
result.

This parens patriae action for equitable relief only,
presents none of the obstacles raised by defendants in
MDI 31. There are no problems of class notifcation and
no problems of transfer by a §1407 transferee judge to
himself under 28 U.S.C. §1404.* The other siate plaintiffs
have stated that they would intervene in this action if
original jurisdictign is exercised. By exercising that juris-
diction and appointing Judge Real master with instructions
to proceed with trial as expeditiously as possible, this Court
can eliminate the possibility of protracted jury trials, diffi-
cult legal and factual questions relating to measuring and
allocating money damages, diverse appeals, and most
importantly, this Court can preserve the possibility of the
one remedy most fitted to the wrong charged.

Respectfully submitted,
Dated February 22, 1972.

STATE OF WASHINGTON
SLADE Gorton, Attornev General

8. Judge Real, apparently seeking a way tu avoid these problems,
suggested to plaintiffs’ counsel that plaintiffs consider filing new cases in
the Central District of California as parens patriae suits for equitable
relief only. Unfortunately, as recognized by plaintiffs’ counsel, this
“solution” would raise serious, probabiy fatal, statute of limitations
questions. (Transcript of Proceedings, p. 181)

—_— REPRE AREANRTT EF EEL NES IGT GERERNINN SALI IN RI FERN OA BE UNHELY

29

Frepric C. TAusEnp,

Davin G. Kniss, Special Assistant
Attorneys General

657 Colman Building

Seattle, Washington 98104

Wi.u1aM L. Dwyer, Special
Assistant Attorney General

Hoge Building

Seattle, Washington 98104

STATE OF ILLINOIS
WILLIAM “5 ScoTT, Attorney
Gener:

Rosert S. ATxuns, Assistant
Attorney General

188 West Randolph.

Chicago, Illinois 60601

Davin C. Lanperar, Assistant
Attorney General

STATE OF ARIZONA
Gary NELson, Attorney General

MALCOLM P. STROHSON, Assistant
Attorney General

STATE OF CoLoRADO
Duke W. Dunszar, Attorney
: ageree n
OHN Moore, Deputy Attorney
General
W1.L1AM Tucker, Assistant
Attorney General

STATE OF Hawan
BERTRAM T. KANBARA, Attorney
General
GEORGE Pal, ay
Attorney Gene

STATE OF Iowa
RICHARD C. TURNER, Attorney
General

BOT LIR ENR RR. lg

SCHWEPPE, DOoLITTLE, Kruc,
TAUSEND, BEEZER & BEIERLE

Of Counsel.

POE a aeagpetas

30

STATE OF KANSAS
KENT FR1zzEL, Attorney General
RICHARD HaysE, Assistant
Attorney General

STATE OF MAINE
JaMEs S. Erwin, Attorney General

COMMONWEALTH OF MASSACHUSETTS
Rosert H. Quinn, Attorney
General
NEAL Co iccuio, Assistant
Attorney General

STATE OF MINNESOTA
Douglas M. Head, Attorney
~ General

STATE OF MIssouRI
Joun C. Danrortu, Attorney
General

STATE OF OHIO
Paut W. Brown, Attorney General
DoNnaLp WECKSTEIN, Assistant

Attorney General -

STATE OF RHODE IsLAND
- HERBERT F.. DESIMONE, Attorney
General

STATE OF VERMONT
JaMEs M. Jerrorps, Attorney
General
James D. Hansen, Assistant
Attorney General

COMMONWEALTH OF VIRGINIA
ANDREW P. MILLER, Attorney
General
ANTHONY F. Troy, Assistant
Attorney General

aN eae to eee et ee SRG x7

Oo dteaeeteecnaienemiemientteremeeaeeaineteeneemnemneeeensantiomanena nee teed es
A-1l
APPENDIX ‘A

Telegram Dated April 15, 1971

Honorable E. Robert Seaver, Clerk
Supreme Court of the United States
Washington, D. C. 20543

Dear Sir:

Re: State of ‘’ashington, et al., Plaintiffs,
v. General Motors Corporation, et al.,
Defendants, O.T. 1970, No. 45 Original

We did not receive the April 7, 1971 letter of Howard
P. Willens, attorney for defendant Automobile Manufac-
turers Association, Inc., in the above entitled matter until
April 14, 1971, it having been mailed with his letter to
the Court dated April 12, 1971 and postmarked in Wash-
ington, D. C. on April 12. We respectfully request that the
facts stated in this telegram be called to the attention of
the Court at the same time that you present the facts
stated in Mr. Willens’ letters.

Fifteen of the seventeen actions to which Mr. Willens
refers were filed in various federal district courts by the
states which are plaintiffs in the above entitled original
action during the weeks of March 8 and March 15, 1971.
These actions were all filed as “standby” actions solely
for the purpose of protecting the rights of said s‘ates
against any argument that the one year limitations period
provided by 15 U.S.C. § 16(b) had expired while the
Supreme Court was considering the states’ motion, for
leave to file a complaint in original action No. 45.

While we are of the opinion that the pendency of plain-
tiffs’ motion for leave to file the complaint would toll the

. ern ms a + PRES a
a DMITRI we , ATS essere

* | A-2
running of the pertinent statute of limitations and while
we further believe that our atguments in favor of the
Court's exercising its original jurisdiction are sound, in

_ the absence of a case precisely on point in respect to the -

statute of limitations question, we concluded that the
substantive issues presented by this litigation are too im-
portant to take any risk, no matter how minimal, that a
statute of limitations argument could be urged by ‘the
defendants if this Court moce not exercise its ori¥inal
jurisdiction. S

We further request “oe she call to the attention of the ©
Court the fact that the cases filed by the seventeen plain-

_ tiff states as “standby” actions have been filed in twelve

different federal districts. While, as counsel for the defend-
ant Automobile Manufacturers Association, Inc. points out,
each of these cases is in the process of being transferred,
pursuant to Section 1407 of the Judicial Code, to the Cen-
tral District of California for pretrial proceedings, the
eleven cases filed in districts other than the Central Dis-
trict of California will, pursuant to Section 1407, all be
returned to their original districts for trial. Thus, if the
Supreme Court refuses to exercise its original jurisdiction

in the above entitled case the butden on the total federal

judicial system of multiple trials referred to at pages 4-8

of Plaintiffs’ Reply Brief In Support Of Motion For Leave
To File Complaint are even more extensive than was the
case when that reply brief was filed.

Furthermore, as pointed out in Plaintiffs’ Reply Brief,
pages 8-10, it is by no means clear that the District Court
for the Central District of California would exercise pen-

_ dent jurisdiction of Count III, the nuisance count.

: | A-3

On behalf of the plaintiff states in the above entitled
case we request that the Court be informed that all plain-
tiff states reaffirm and renew their motion for leave to file
complaint as an original action in the above entitled mat-
ter. If the Court seeks further explanation of the filing of
the “standby” actions, we request the opportunity to file
a brief or an extended statement of reasons.

Copies of this telegram are being sent by mail to all
defense counsel and to co-counsel for Plaintiff States. —

a Fredric C. Tausend
+ _ Special Assistant Attorney Géneral
State of Washington
One of the attorneys for Plaintiff States
in Original Action No. 45

A-4

APPENDIX B
Transcript of Proceedings, February 17, 1972
“Tye Court: All right, 2:00 P.M. on March 6, 1972

for consideration of notice to the classes that have been
allowed by this Court thus far so that I have that in

_. mind, and that is to be submitted by each of the plain-

tiff representatives on the class which they represent,
the kind of notice that would indicate that there is the
proposed dismissal. General notice of the class, why, I
think we can get that done at the same time and not
waste a notice. General notice of the class, the right to
opt out and the question that there has been presented
to the Court a situation in which damage actions are
proposed to be dismissed upon the determination of a
trial date no later than December 4, 1972, or whatever
that date is—that kind of a date. So that we have in
mind what we are talking about in terms of the class.

The motion to sever, so the record will be clear, is
_ denied at this time without prejudice to the plaintiffs
after the determination of the class action and hearing
upon the proposal of the class on the notice. . . .

“THE Court: No. The proposed notice should indi-
cate that the hearing upon that notice in terms of the
declaration of the class opting out will be at a certain
time and for the dismissal of the damage actions upon
the condition that a trial date be set.

“Mr. SuHapiro: And I assume that the trial date will
be December 4, as we indicated?

“THE Court: At least that indication can be put in
the notice. Maybe at that time there may be some mod-
ification of that, but we can decide that before the
notices go out.... 3 o

“THE Court: I propose in any circumstance, Mr.
Shapiro, at least until the order of the court of appeals
comes down, to at least limit the discovery and proceed
with the schedule basically as proposed by the plain-
tiffs on the equity issue only at this time.

eo

AS

“Mr. Suapino: All right, your Honor. The only thing
I was concerned about, however, was the order to
show cause with regard to: transferring the cases here. ©
That is the only other remaining thing that has not
been touched on. ts :

_ “Tue Court: Okay. The defendants have raised a
_ question. As long as you are going to injunctive relief,
Mr. Shapiro, you might think about the fact that you
can file the cases in this district without any problem.

“Mr. SHaprro: My problem is this. I may have—
may have—this is my problem—I may have a very
serious problem with regard to that with regard to the
question of the limitations. How do I stop a case and
start it all over again? That would be a perfect
solution. :

2°

Supreme Court

Vv.

@

WALTER J. WILLIAMS
14250 Plymouth Road
Detroit, Michigan 48232
FORREST A. HAINLINE, JR.
Cross, WROCK, MILLER &
VIESON
Penobscot . Building
Detroit, Michigan 48226
Attorneys for Defendant
American Motors
Corporation
LLoyD N. CUTLER
Louis F. OBERDORFER
JAMES S. CAMPBELL
WILMER, CUTLER & PICKERING
900 - 17th Street, N.W.
Washington, D.C. 20006
JULIAN O. VON KALINOWSKI
PAUL G. BOWER
GIBSON, DUNN & CRUTCHER
634 South Spring Street
Los Angeles, California 90014
Attorneys for Defendant
Automobile Manufacturers
Association, Inc.
Tom KILLEFER
PAUL A. HEINEN
WILLIAM E. HuTH
Chrysler Corporation
840 Massachusetts Ave. -
Detroit, Michigan 482381
G. WILLIAM SHEA
PHILIP K. VERLEGER

& SHEA
. 80th Floor
8435 Wilshire Blvd.
Los Angeles, California 90010
Attorneys for Defendant
Chryslcr Corporation _

IN THE

of the United
OCTOBER TERM, 1971

STATE OF WASHINGTON, ET AL.,

GENERAL MOTORS CORPORATION, ET AL.,
| Defendants

Plain

PE “oe Court, U.S
FILED

FEB 22

Proscar SEAVER, CUB

DEFENDANTS’ MEMORANDUM ON SOURCE OF LAW

WRIGHT TISDALE, ©
Ford Motor Company
“The American Road
Dearborn, Michigan 48121
ROBERT L. STERN

_ ROGER W. BARRETT

MAYER, BROWN & PLATT
281 South LaSalle Street

- Chicago, Illinois 60604

CaRL J. SCHUCK

ERNEST E. JOHNSON
OVERTON, LYMAN: & PRINCE
550 South Flower Street
Los Angeles, California 90017

Attorneys for Defendant
Ford Motor Company

Ross L. MALONE .

ROBERT A. NITSCHKE _.
General Motors Building
Detroit, Michigan 48202

HAMMOND E. CHAFFETZ

JOSEPH DUCOEUR
KIRKLAND & ELLIS
Prudential Plaza
Chicago, Illinois 60601

MARCUS MATTSON

RICHARD F. OUTCAULT, JB.
LAWLER, FELIX & HALL
605 West Olympic Boulevard
Los Angeles, California 90015 .

Attorneys for Defendant
General Motors Corporation

McCUTCHEN, BLACK, VERLEGER—_____

| A. Source of Law

Count I
Couftt II
Count III

B. Availability of Alternative Forums

TABLE OF AUTHORITIES
Cases:

Apex Hosiery Co. V. Leader, 310 U.S. 469 (1940) ..
Arkansas v. Texas, 346 U.S. 368 (1953)
Banco Nacional de Cuba v. Sabbatino, 376 U.S.
398 (1964)
Bank of America v. Parnell, 352 U.S. 29 (1956) -.
Clearfield Trust Co. v. United States, 318 US. 363
(1943)
Erie R. Co. v. Tompkins, 304 U.S. 64 (1938)
Georgia Vv. Tennessee Copper Co., 206 U.S. 230
(1907)
Hanna Vv. Plumer, 380 U.S. 460 (1965)
Hinderlider v. La Plata River Co., 304 U.S. 92
~ (1938) |
Ivy Broadcasting Co. v. American Telephone &
Telegraph Co., 391 F. 2d 486 (2d Cir. 1968)
J. I. Case Co. v. Borak, 377 U.S. 426 (1964)
Klaxon Co. v. Stentor Mfg. Co., 3138 U.S. 487
(1941)
Ohio v. Wyandotte Chemicals Corp., 401 U.S. 4938
(1971) 6, 9, 10, 12
Parker v. Brown, 317 U.S. 341 (1943) 3
Romero v. International Terminal. Operating Co.,
358 U.S. 354, 398 ( 1959) (opinion of Brennan,
J.)
Rosado v. Wyman, 397 U.S. 397 (1970)
Silver v. New York Stock Exchange, 373 U.S. 341
(1963)
Textile Workers Union v. Lincoln Mills, 358 U.S.
448 (1957)
Texas V. New Jersey, 379 U. S. 674 (1965)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0003%3A10. Public record. Not legal advice.
