# 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

ii

TABLE OF AUTHORITIES—Continued

Texas V. Pankey, 441 F. 2d 226 (10th Cir. 1971) .....
United Mine Workers v. Gibbs, 3838 U.S. 715
(1966)

United States v. Brosnan, 363 U.S. 287 (1960) ......

United States v. Frankfort Distilleries, Inc., 324
U.S. 2938 (1945)
United States v. Standard Oil Co., 382 U.S. 301
(1947) .
United States v. Yazell, 8382 U.S. 341 (1966) ........
Wallis v. Pan American Petroleum Corp., 884 U.S.
63 (1966)
West Virginia ex rel. Dyer v. Sims, 841 U.S. 22
CRE? wc
Wheeldin v. Wheeler, 8373 U.S. 647 (1968) 0.00.0...

Statites:

Act of October 20, 1965, Public Law No. 89-272,

79 Stat. 992 ....
United States Code, Title 15, § 1
United States Code, Title 15, § 26 ...

United States Code, Title 28, § 1881... 3, 10,

United States Code, Title 28, § 1652

United States Code, Title 42, § 1857 et seq. -......... 4,

Miscellaneous:

me MeRpEEE

Hart, The Relations Between State and Federal
Law, 54 Colum. L. Rev. 489 (1954)
Mishkin, The Variousness of “Federal Law’: Com-
petence and Discretion in the Choice of National
and State Rules for Decision, 105 U. Pa. L. Rev.
797 (1957)
Note, The Federal Common Law, 82 Harv. L. Rev.
1512 (1969)
S. Rep. No. 408, 90th Cong., Ist Sess. (1967) ........
S. Rep. No. 91-1196, 91st Cong., 2d Sess. (1970) ....
Wechsler, The Political Safeguards of Federalism:
The Role of the States in the Composition and
Selection of the National Government, 54 Colum.
L. Rev. 543 (1954)...
C. Wright, Law of Federal Courts § 60 (2d ed.
1970)

EMSS ELE EOL EBT ME LOI OLY IP RATNER HO eat PAPE ee RON RES

Page
. 10,14

12, 18

11

8

2

18, 14
5

10, 11

11
11

14

IN THE

Supreme Court of the United States

OCTOBER TERM, 1971

No. 45 Original

STATE OF WASHINGTON, ET AL.,
Plaintiffs,
Vv.

GENERAL MOTORS CORPORATION, ET AL.,
Defendants.

DEFENDANTS’ MEMORANDUM ON SOURCE OF LAW

On January 18, 1972, this Court by telegram directed
the parties in Nos. 45, 49 and 50 Original to file memo-

randa on the following issue:

“Would federal or state law govern the substantive
issue sought to be presented for decision in original
actions such as this one?”

This memorandum is submitted in answer on behalf of
defendants."

1 The parties and amici in this proposed action have previously
filed a number of briefs supporting or opposing filing of the com-
plaint. On August 5, 1970, plaintiffs filed their Motion for Leave
to File Complaint and Brief in Support (“Br. In Supp.”). Defend-
ants’ Brief in Opposition (“Br. In Opp.”) was filed on October 6,
1970. Plaintiffs thereafter filed a Reply Brief (“Reply Br.”) on
November 2, 1970, and a Supplemental Memorandum of Law
(“Supp. Mem. of Law”) on February 12, 1971. On August 81, 1971,
an amicus brief was filed by sixteen States and the City of New

2

Plaintiffs’ proposed complaint in this Court consists of
three counts, alleging a violation of the federal antitrust
laws (Count I), a “common law” conspiracy to restrain
trade (Count II), and creation or maintenance of a pub-
lic nuisance (Count III). Plaintiffs have consistently
urged that Counts I and II present federal claims, and in
their Supplemental Memorandum of Law (at 3-5) ap-
parently contend that Count III does so as well. As our
earlier briefs herein have indicated, the antitrust claim
stated in Count I is governed by federal law, but Counts
II and I1I]—which we believe to be merely make-weight
attempts to induce the Court to accept jurisdiction—are
necessarily governed by state law. Regardless of the
source of law applicable to Counts II and III, however,
defendants submit that lower federal and state courts are
available as forums to try these claims, and consequently
this Court should decline to accept original jurisdiction
over them.

In the first part of this memorandum we develop more
fully our view of the source of law governing each of
the counts of plaintiffs’ complaint. In the second part we
examine the bearing of the source of law question on the

availability of lower federal and state court forums and
_ the issue as to whether this Court should accept juris-
diction in this case.

A. Source of Law

Count I

Plaintiffs allege in. their complaint that Count I is
brought under Section 16 of the Clayton Act, 15 U.S.C.
“$26, to restrain the defendants from violating Section 1

York. On December 23, 1971, defendants filed a Supplemental
Memorandum in Opposition (“Supp. Mem.”). Although none of
these briefs: was directed principally to the question of source of
law, both plaintiffs and defendants have discussed that question
previously, and reference to these prior discussions will be made in
this memorandum where appropriate.

ca A een te trated ae cn fe cee SP

3 ?

of the Sherman Act, 15 U.S.C. §1 and to obtain certain
mandatory injunctive relief. Complaint, Count I, para. 2.
The claim is clearly a federal one? —

Count II

According to plaintiffs, Count II of their proposed com-
plaint alleging a “common law conspiracy” was

“brought under this Court’s general equitable powers
granted by Article III, Section 2, of the United States
Constitution, independent of the Sherman and Clay-
ton Acts, to eliminate and remedy conspiracies in
restraint of trade... .” Complaint, Count II, para.
2.

Plaintiffs evidently attempt in Count II to state a federal
common law claim cognizable in the federal courts.
Count II apparently invokes a body of judge-made law
of trade restraints, totally separate from the Sherman
and Clayton Acts and establishing both primary and re-
medial rights and duties. But if such ‘a body of non-
statutory antitrust law exists at all, it is clearly not fed-
eral law.

When Congress enacted the Sherman Act in 1890 and
condemned “[e]very contract, combination in the form of
trust or otherwise, or conspiracy, in restraint of trade,”
15 U.S.C. §1, it “left no area of its constitutional power
unoccupied; it ‘exercised all the power it possessed.’ ”

? Although federal law governs Count I, defendants believe that
numerous questions involving the effect of various state emissions
control laws and regulatory actions will be raised both in deter-
mining whether defendants’ cooperative program violated the anti-
trust laws and in considering whether or what equitable relief can
appropriately be granted. Cf. Parker v. Brown, 317 U.S. 341
(1943) ; Silver v. New York Stock Exchange, 373 U.S. 341 (1963).

’ The two virtually identical district court complaints filed on
behalf of eight of the plaintiffs here allege that the jurisdictional
basis of this claim is 28 U.S.C. § 1881. See Defendants’ Supp.
Mem., p. 34 n.44.

acim I PION ; : Nk. te

4

United Stctes v. Frankfort Distilleries, Inc., 824 U.S. 298, .
298 (1945,, quoting Apex Hosiery Co. v> Leader, 310 U.S.
469, 495 (i940). From that point on, judicial develop-
ment.of the federal law of trade restraints has necessarily
been a matter of statutory interpretation, not of common
law. Any common law of conspiracy in restraint of trade
that is “independent of the Sherman and Clayton Acts”
must therefore be state law. As we will now show, the
‘general presumption against federal common law rein-
forces this conclusion,

Count III

In Count III of their complaint, captioned “Public
Nuisance,” plaintiffs allege that emissions from motor ve-
hicles manufactured by defendants “cause severe dam-
age to the flora and fauna of Plaintiff States” (Com-
plaint, Count ITI, para, 9), and that the manufacture and
sale of motor vehicles “as presently engineered and de- -
signed . . . constitute a public nuisance contrary to the
public policy of the Plaintiff States, as well as the federal
government.” * Plaintiffs do not allege in Count III that
defendants have violated the provisions of any federal
law or regulation, and in their briefs they urge that
“Count III does not involve a federal question for pur-
poses of giving jurisdiction to any federal district court
....” Plaintiffs’ Br. in Supp., p..16; and see Plaintiffs’
Reply Br., pp. 10 & n.4, 12.5

On the other hand, while plaintiffs have made no alle-
gation in their complaint that “the air that lies within
their domain” (Complaint, Count III, para. 3) is polluted

*As a statutory reference to the federal policy, plaintiffs cite
“42 U.S.C., § 1857(4) (8).” Although we can find no statute with
this number, the reference is apparently to general congressional
findings and purposes of the Clean Air Act, which we discuss
infra pp. 10-11.

°In their virtually identical district court complaints, eight of
the present plaintiffs allege pendent jurisdiction over Count ITI.
Defendants’ Supp. Mem., pp. 7-8, 34 n.44.

During the district court pretrial hearing of February 17, 1972
(see note 12 on page 12), Fredric C. Tausend, Special Assistant

2p SURES OF ee See pe LO - “fy Seat ope \ APRESS, Reals a a Fi . : FA i te oS)

— ——_— ‘ HMO LALOR NE SLA EG IT TR RE OHNE ER LEE a NE

by emissions from motor vehicles operated outside of, or
across, their respective state borders, they nonetheless as-
sert in their Supplemental Memorandum of Law that the
emissions from motor vehicles manufactured by the de-
fendants constitute a “national nuisance” and that Count
III is therefore governed by “an interstate or national
common law.” Plaintiffs’ Supp. Mem, of Law, pp. 8-5.
In urging that Count III states a claim under “interstate
common law,” plaintiffs rely on the fact that this Court
has from time to time fashioned and applied a federal
common law in original actions between States. Jd., p. 3.
They further assert that this Court applied federal com-
mon law in at least.one suit by a State against the citi-
zens of another State, namely, Georgia v. Tennessee Cop-
per Co., 206 U.S. 280 (1907).° Jd., p. 4.

Plaintiffs’ line of argument entirely misapprehends the
principles established by this Court to determine whether
“federal common law” or state law is applicable in ac-
tions brought in the Supreme Court and other federal
courts. This Court’s decisions demonstrate that under the
regime of Erie R. Co. v. Tompkins, 504 U.S. 64 (1988),
any common law applied in actions in the federal courts
must be state common law, unless it can be demonstrated
that the effectuation of a federal constitutional or statu-
tory policy requires that one or more of the issues in the
action be determined exclusively by federal common law.
Moreover, the basic constitutional presumption in favor of
State competence elucidated in the Erie decision ® is rein-

Attorney General for the State of Washington, counsel of record for
plaintiff States here and for. eight States in their district court
complaints, stated as follows:

“We don’t think this is a nuisance action, as Mr. Verleger sug-
gests. We are now convinced and think that it is an antitrust
action, and so we have now stricken Count Three.” Transcript,
p. 116.

* The presumption in favor of the application of State law, and
against the application of federal common law, is expressed in
the Rules of Decision Act, 28 U.S.C. §1652. The constitutional
sources of the presumption are ably explored in Hart, The Relations

6

forced here by the only federal policy implicated by Count
III of plaintiffs’ Complaint—Congressional declaration in
the Clean Air Amendments of 1970 that the problem of
emissions from vehicles already in use should be dealt
with by.the States, and not by the federal government.
This policy obviously strengthens, rather than rebuts, the
Erie presumption in favor of the application of state law
‘o plaintiffs’ “nuisance” claim. |

A correct analysis of the question of what law applies
to Count III must begin with the recognition that it is the
nature of the interests involved—State or federal—and
not the identity of the parties—United States, State or
private—that primarily determines the source of applica-
ble law. “[E]nclaves of federal judge-made law which
bind the States” have been created where “necessary to
protect uniquely federal interests,” Banco Nacional de
Cuba v. Sabbatino, 376 U.S. 398, 426 ( 1964), and these
federal interests may be present, along with State inter-
ests, in actions involving a variety of parties. Thus is-
sues both of “federal common law” and of state law have
arisen in actions between private parties ( c.g., Bank of
America vy, Parnell, 352 U.S. 29 (1956) ), in actions be-
tween States (compare Texas v. New Jersey, 379 U.S.
674 (1965), with Arkansas Vv. Texas, 346 U.S. 368
(1953) ) and in actions involving the United States (com-
pare Clearfield Trust Co. v. United States, 318 U.S. 368
(1943), with United States v. Yazell, 382 U.S. 341
(1966) ). None of the few post-Erie decisions of this
Court involving an action between a State and a citizen
of another State has involved the application of “federal
common Jaw.” And last Term in Ohio v. Wyandotte

Between State and Federal Law, 54 Colum. L. Rev. .489, 497-98,
525-39 (1954); Wechsler, The Political Safeguards -of Federalism:
The Role of the States in the Composition and Selection of the Na-
tional Government, 54 Colum. L. Rev. 543, 544-45 (1954) ; Mishkin,
The Variousness of “Federal Law”: Competence and Discretion in
the Choice of National and State Rules for Decision, 105 U. Pa. L.
Rev. 797, 810-14 (1957 ds

5 ee ro a a ee SPEDER ESAT 2 neo TREN TR NRE UNS RE TE ES NREL a en ea a SR i

7

Chemicals Corp., 401 U.S. 493 (1971), the applicability
of federal law was expressly rejected.’

In Erie the Court laid down the basic principle for
determining the source of applicable law i. all kinds of |
actions in the federal courts:

“Except in matters governed by the Federal Consti- —
tution or by acts of Congress, the law to be applied
in any case is the law of the state.... There is no
federal general common law.” 304 U.S. at 78.

In Hinderlider v. La Plata River Co., 804 U.S. 92 (1938),
decided the same day as Erie, and in subsequent deci-
sions, the Court has frequently been required to develop
or approve “federal judge-made law.” But unlike “the
free-wheeling days antedating Erie,” Wheeldin v. Wheel-
er, 373 U.S. 647, 651 (1963), the instances where federal
common law is created have been restricted to situations
in which federal interests, as expressed in the Constitu-
tion or in federal statutes, have required that a uniform
federal rule displace state law as the basis of decision.

Thus, because the logic of the Constitution excludes

' state competence in these areas, federal judge-made law
has been held to govern such matters of potential con-
flict between States as the construction of interstate com-
pacts, West Virginia ex rel. Dyer v. Sims, 341 U.S. 22, 28
(1951), interstate boundary disputes, and the apportion-
ment of interstate waters. Hinderlider v. La Plata River
Co., supra. Similarly, since States have no foreign rela-
tions responsibility under the Constitution, federal com-
mon law governs determinations of the validity of acts of
a foreign government. Banco National de Cuba v. Sab-
batino, supra, Federal interests expressed in acts of Con-
gress have likewise from time to time necessitated the

" Because Georgia v. Tennessee Copper Co., supra, antedates Erie, .
the source of law problem was not perceived as an important con-
stitutional question, and there is little point in examining the de-
cision for indications as to what law the Court thought it was
applying. For what it is worth, however, passages such as the

enemas EE RI

8

formulation of a “federal common law” to displace state —
law. See, e.g., Clearfield Trust Co. v. United States,
supra; United States v. Standard Oil Co., 382 U.S. 301
(1947) ; Textile Workers Union v. Lincoln Mills, 353 U.S.
448 (1957); Hanna v. Plumer, 380 U.S. 460 (1965).

Conversely, the Erie mandate of respect for State in-
terests has dictated a conservative approach to parties’
assertions that a federal interest is present requiring the
application of federal common law. As this Court noted
in Wallis v. Pan American Petroleum Corp., 884 U.S.
68, 68 (1966) :

“In deciding whether rules of federal common law
should be fashioned, normally the guiding principle
is that a significant conflict between some federal
policy or interest and the use of state law in the
premises must first be specifically shown. It is by no
means enough that, as we may assume, Congress -
could under the Constitution readily enact a com-
plete code of law governing [such] transactions .

Moreover, even where a federal interest has been shown,
there are “other questions relevant to invoking federal
common law, such as the strength of the state interest in
having its own rules govern,” and “the feasibility of
creating a judicial substitute.” Id. See also United States
v. Brosnan, 368 U.S. 237 (1960); Klazon Co. v. Stentor
Mfg. Co., 318 U.S. 487 (1941).

The Court’s approach of keeping the application of
federal common law confined ‘e situations which are
relatively “few and restricted,” Wheeldin v. Wheeler,
supra, 378 U.S. at 651, rests on several practical consid-

following suggest strongly that it was Georgia's laws which con-
demned the copper company’s activities:
“(Georgia] has the last word as to whether its mountains
shall be stripped of their forests and its inhabitants shall
breathe pure air. It might have to pay individuals before it
could utter that word, but with it remains the final power.”
206 U.S. 287.

9

erations of federalism, as wel’ as on the requirements of
the Constitution. Manifestly, it is desirable in most areas
of substantive law that the States be permitted, where
possible, to experiment with different legal rules and to
tailor those rules to meet their own local needs. Rules of
federal common law, however, must be uniform through-
out the federal union, and under the Supremacy. Clause
they displace state laws inconsistent with them, in state
courts as well as in federal courts. See Hinderlider v.
La Plata River Co., supra; Banco Nacional de Cuba v.
Sabbatino, supra. Moreover, the development of a work-
able mutually consistent body of common law rules in a
given field is a burden that can best be carried by the
courts before which cases in that field are regularly
heard. See Note, The Federal Common Law, 82 Harv. L.
Rev. 1512, 1519 (1969). Thus, for example, the “ap-
plication of state laws concerning taxes, motor vehicles,
decedents’ estates, business torts, government contracts,
and so forth,” Ohio v. Wyandotte Chemicals Corp., supra,
401 U.S. at 497 (emphasis supplied), typically occurs in
state courts, and it is the state courts which therefore
should normally develop and apply such common law
rules as are required in these fields. Jd.

In light of these principles, the conclusion is inescap-
able that Count III should be adjudicated under state law
(specifically, under the laws of each of the States seeking
to abate the alleged “nuisance” created by motor vehicles
manufactured by defendants), subject, of course, to any
defenses available to the manufacturers based on the pre-
emptive effect of federal air pollution legislation. No
provision of the Constitution or any federal statute re-
quires this Court to develop a federal common law of
motor vehicle emissions to override the police power of

®For reasons to be stated shortly, p. 10 & n.11, infra, the
applicability of state law to the vehicle manufacturers is limited, so
far as vehicle emissions are concerned, by the existence of federal
statutory and administrative regulation of emissions from newly-
manufactured cars.

Desbie, De Bes AP PRS AR IRS uae tuys K eT Fre é SUT O19 at DERE Fea
— RAN HAE AORN REN aN iia

10:

the States in this field. No interstate conflict is suggested,
and no reason appears for totally denying State power
over motor vehicle emissions. Indeed, since the effect of
vehicle emissions varies widely from State to State, and
within each State as well, depending on local air condi-
tions, population density and other variables,® this is a
perfect example of a field in which local solutions and local
experimentation ought not to be displaced by federal
judge-made law.*°

Any doubt on this score is dispelled by the fact that
Congress has reached the same conclusion. As we have
noted both in our original Brief In Opposition, pp. 22-24,
and in our Supplemental Memorandum, pp. 26-28, Con-
gress has made the States responsible for bringing local
air into compliance with regional air quality standards,
42 U.S.C. §§ 1857c-2, -5 (1970), and as part of this regu-
latory scheme, it has expressly reserved to the States the
power to regulate vehicle emissions (except for emission

® See Defendants’ Supp. Mem., pp. 28-29 and n.37.

10 The decision of the Tenth Circuit Court of Appeals in Texas
v. Pankey, 441 F.2d 236 (10th Cir. 1971), deserves only brief
comment. In Pankey a federal district court dismissed for lack of
diversity or other jurisdiction a suit by the State of Texas to
enjoin New Mexico citizens from using pesticides which allegedly
polluted the water supplies of Texas municipalities. The Court
of Appeals reversed and authorized the district court to commence
the creation of an entire body of federal judge-made law.

In light of the general principles discussed above, defendants be-
lieve that the Pankey decision is clearly wrong in holding that the
claim pleaded arose under federal common iaw. Indeed, in the
Wyandotte case—handed down a month after Pankey—this Court
held that a claim essentially identical to that in Pankey, “if other-
wise cognizable in. federal district court, would have to be adjudi-
cated under state law” and that there would be no “federal question
jurisdiction . . . under 28 U.S.C. § 1381.” 401 U.S. at 498-99 n.3.
In any event, the Pankey court’s holding on source of law is
distinguishable from the instant case where, as we will show
presently, Congress has now imposed federal emission control reg-
ulation on manufacturers of new vehicles and has expressly left
to the States—and not federal judiciary—the making of law
applicable to emissions from motor vehicles currently in use. “~~

11

~ controls on newly-manufactured vehicles), 42 U.S.C.
§ 1857f-6a(c) (1970); S. Rep. No. 408, 90th Cong., 1st
Sess. 34 (1967). The Congressional decision to leave used
‘car emissions to State control is buttressed by a finding
that the problem is not manageable at the federal level.
S. Rep. No. 91-1196, 91st Cong., 2d Sess. 13-14 (1970).
Since Congress has declined to exercise its legislative
power over vehicles already in use and has left the mat-
ter to the States, it would be most inappropriate for this
Court to regulate emissions from vehicles in use by in-
voking judge-made federal common law.

B. Availability of Alternative Forums
Irrespective of the applicable source of law, lower fed-
eral and state courts are available as forums to hear all
of plaintiffs’ claims, and consequently no reason exists for
this Court to accept original jurisdiction in this case.

With regard to Count I, the availability of alternative
forums is obvious. As defendants have pointed out pre-
viously, there are numerous federal district court forums
in which plaintiffs can maintain this claim, forums which
these same plaintiffs and other States have previously
found adequate in other cases States have brought under
the federal antitrust laws. Indeed all the plaintiffs in

“

11 Emissions from new vehicles have been subjected to direct fed-
eral control since 1965. Act of October 20, 1965, Public Law No.
89-272, 79 Stat_992. See discussion in Defendants’ Supp. Mem., pp.
18-20. State regulation of emissions from new vehicles before they
are sold and become “used” is expressly preempted, 42 U.S.C.
§ 1857f-6a(a), as to all States except California, for which waivers
of preemption may be granted under specified circumstances. 42
U.S.C. § 1857f-6a(b). Accordingly, plaintiff States cannot assert
any “nuisance” claim, state or federal, against manufacturers for
selling new vehicles that were subject to the federal emissions
Standards, since such a claim amounts to nothing more than an
effort by the States-retroactively to regulate emissions from newly-
manufactured vehicles. ;

-12

this proposed action have filed complaints against defend-
ants in federal district courts containing the same anti-
trust claims and including the same prayers for relief
as the complaint sought to be filed herein (es well as a
prayer for damages), and alleging that the district
courts have jurisdiction over these claims (as well as
over Counts II and III). See Defendants’ Supp. Mem.,
pp. 33-35. These complaints have all been consolidated
by the Multidistrict Litigation Panel for pretrial proceed-
ings in the Central District of California.”

Other forums than this Court are readily available to
hear Count II of plaintiffs’ complaint as well. Plaintiffs
have incorporated into Count II all of the factual allega-
tions of Count I and have stated that “[t]he evidence
which would be introduced to prove Count II is identical
to that needed to prove Count I.” Plaintiffs’ Supp. Mem.
of Law, p. 2. If this is so, plaintiffs’ common law con-
spiracy claim can be heard not only in the plaintiffs’ own
state courts (which, as this Court held in Ohio v. Wyan-
dotte Chemicals Corp., supra, provide an adequate forum
for trying state common law claims) but also in a fed-
eral district court. Having jurisdiction over the federal
statutory antitrust claim, the district court would also
have pendent jurisdiction over the state common law
claim of Count II under the criteria laid down in United

2 The plaintiff States have now joined with other public body
plaintiffs below in a proposal to the district court that they would
amend their complaints to drop their damage cliams if the court
would set a trial date of December 1972 for the remaining equitable
claims of the public body plaintiffs. At a pretrial hearing on Feb-
ruary 17, 1972, the court deferred final action on this proposal, pend-
ing further consideration after the issuance of notices to the mem-
bers of the governmental classes pleaded by the plaintiff States and
other public bodies in the district court complaints, notifying them
of the class action proceedings and informing them of the pro-
posal. The court has scheduled a further pretrial conference for
March 7, 1972, to consider the form of the proposed notices.

13

Mine Workers v. Gibbs, 888 U.S. 715 (1966). See De
fendants’ Supp. Mem., p. 8 n.5.%

Lower federal and state courts also provide available
forums in which plaintiffs can bring suit on the theory
embodied in Count III of their present complaint regard-
less of the applicable source of law.

If this Court agrees with defendants that Count III
presents a state claim, then plaintiffs will be able either
to raise it in federal district court as ancillary to Counts
I and II or to bring a separate action upon it in their
own State courts. If the factual basis of Count III is
sufficiently similar to Counts I and II that the plaintiffs
should “be expected to try them all in one judicial pro-
ceeding,” United Mine Workers v. Gibbs, supra, 383 U.S.
at 725, the district court could properly exercise its
pendent jurisdiction over Count III. See Defendants’
Supp. Mem., pp. 7-8. On the other hand, if the claims in
Count III are so different that pendent jurisdiction would
not exist, there is no reason why this Court should make
itself available as a tribunal simply to enable plaintiffs to
join the antitrust and nuisance claims in one action, and
plaintiffs should be required to bring their antitrust claim
in the federal courts and their “nuisance” claims in their
own State courts.

**In their most recent brief that defendants have seen, plaintiffs
have described Count II as

“a contingent or supportive claim, included as a hedge against

- @m argument ... that the equitable relief available under

Section 16 of the Clayton Act is less broad than the powers

- an equity court at common law.” Plaintiffs’ Supp. Mem. of
a 2,

To the extent plaintiffs’ claim can be read as requesting a private,
non-statutory remedy for violation of substantive rights under
the federal antitrust statutes, then it presents a federal question
cognizable in the district courts under 28 U.S.C. § 1331. Cf. J. J.
Case Co. v. Borak, 877 U.S. 426 (1964). The question of whether
such a remedy exists can and should be answered in the first in-
stance by the federal district courts in the pending lower court
actions.

14

Should this Court accept plaintiffs’ argument that Count
III presents a federal claim, then a federal district court
should have jurisdiction to hear it under 28 U.S.C. § 1831
(a). See, eg., Texas v. Pankey, 441 F.2d 286 (10th Cir.
1971); Ivy Broadcasting Co. v. American Telephone &
Telegraph Co., 391 F.2d 486, 492-93 (2d Cir. 1968);
Romero v. International Terminal Operating Co., 358
U.S. 354, 393 (1959) (opinion of Brennan, J.); C.
Wright, law of Federal Courts § 60, at 250 (2d ed.
1970). Moreover, even if a claim based entirely on “fed-
eral common law” could be held not to “arise under” the
laws of the United States within the meaning of 28 U.S.C.
§ 1331(a), such a claim, if presented in Count III, still
might well be joined in the district court with Count I
as a pendent claim. In such a situation the issue pre-
sented would be “so essentially one ‘of federal policy that
the argument for exercise of pendent jurisdiction is par-
ticularly strong.’” Rosado v. Wyman, 397 U.S. 397, 404
(1970). —

In sum, regardless of the source of law applicable to
‘the three counts of plaintiffs’ complaint, lower federal
and state courts afford available forums in which plain-
tiffs can bring their suit. Accordingly, the source of

t

15

}
law issue is no reason for this Court to accept original

jurisdiction in this case.

Respectfully submitted,

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, Ine.
TOM KILLEFER
PAUL A. HEINEN
WILLIAM E. Huta
Chrysler Corporation
340 Massachusetts Ave.
Detroit, Michigan 48231
G. WILLIAM SHEA
PHILIP K. VERLEGER
MCCUTCHEN, BLACK, VERLEGER
& SHEA
80th Floor
8435 Wilshire Blvd.
Los Angeles, California 90010
Attorneys for Defendant
Chrysler Corporation

WRIGHT TISDALE
Ford Motor Company
The American Road
Dearborn, Michigan 48121
ROBERT L. STERN
ROGER W. BARRETT
MAYER, BROWN & PLATT
231 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, JR.
LAWLER, FELIX & HALL
605 West Olympic Boulevard
Los Angeles, California 90015
Attorneys for Defendant
General Motors Corporation

Bote Goel. See

No. 45 Original

Feb. 26, 1972 = Special appendix
(reporter's transcript) to
Plaintiffs' memo. on choice of
subst. law and brief in reply
to Defentants' supplemental
memorandum filed. NOT PRINTED.
(See correspondence folder.)

IN THE
Supreme Court of the United States

OcToBER TERM, 1971
No. 45 Original

STATE OF WASHINGTON, et al., Plaintiffs,
Vv.
GENERAL Motors Corporation, et al., Defendants.

Plaintiffs’ Motion for Leave To File a Supplemental
Memorandum After Argument

’ Pursuant to the provisions of Rule 9(2) and (6)
- and Rule 41(5) and (6) of the Rules of this Court,
plaintiffs hereby move for leave to file a supple-
mental memorandum after argument in light of this
Court’s decision in Hawaii v. Standard Oil Co. (No.
70-49, decided March 1, 1972). )

By clarifying the rules regarding actions brought
_ by states under the antitrust laws on behalf of them-
_ selves and their citizens, the Hawaii case has a direct

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386414_0003%3A11. Public record. Not legal advice.
