Brown v. Pro Football, Inc.

116 S. Ct. 2116, 10 Fla. L. Weekly Fed. S 14, 135 L. Ed. 2d 521, 518 U.S. 231, 64 U.S.L.W. 4554, 152 L.R.R.M. (BNA) 2513, 1996 U.S. LEXIS 4047, 96 Daily Journal DAR 7174, 96 Cal. Daily Op. Serv. 4419
Supreme Court of the United States·Decided June 20, 1996·No. 95-388·Published·Cited by 99 cases

Opinions

Justice Breyer

delivered the opinion of the Court.

The question in this ease arises at the intersection of the Nation’s labor and antitrust laws. A group of professional [234]*234football players brought this antitrust suit against football club owners. The club owners had bargained with the players’ union over a wage issue until they reached impasse. The owners then had agreed among themselves (but not with the union) to implement the terms of their own last best bargaining offer. The question before us is whether federal labor laws shield such an agreement from antitrust attack. We believe that they do. This Court has previously found in the labor laws an implicit antitrust exemption that applies where needed to make the collective-bargaining process work. Like the Court of Appeals, we conclude that this need makes the exemption applicable in this case.

I

We can state the relevant facts briefly. In 1987, a collective-bargaining agreement between the National Football League (NFL or League), a group of football clubs, and the NFL Players Association, a labor union, expired. The NFL and the Players Association began to negotiate a new contract. In March 1989, during the negotiations, the NFL adopted Resolution G-2, a plan that would permit each club to establish a “developmental squad” of up to six rookie or “first-year” players who, as free agents, had failed to secure a position on a regular player roster. See App. 42. Squad members would play in practice games and sometimes in regular games as substitutes for injured players. Resolution G-2 provided that the club owners would pay all squad members the same weekly salary.

The next month, April, the NFL presented the developmental squad plan to the Players Association. The NFL proposed a squad player salary of $1,000 per week. The Players Association disagreed. It insisted that the club owners give developmental squad players benefits and protections similar to those provided regular players, and that they leave individual squad members free to negotiate their own salaries.

[235]*235Two months later, in June, negotiations on the issue of developmental squad salaries reached an impasse. The NFL then unilaterally implemented the developmental squad program by distributing to the clubs a uniform contract that embodied the terms of Resolution G-2 and the $1,000 proposed weekly salary. The League advised club owners that paying developmental squad players more or less than $1,000 per week would result in disciplinary action, including the loss of draft choices.

In May 1990, 235 developmental squad players brought this antitrust suit against the League and its member clubs. The players claimed that their employers’ agreement to pay them a $1,000 weekly salary violated the Sherman Act. See 15 U. S. C. § 1 (forbidding agreements in restraint of trade). The Federal District Court denied the employers’ claim of exemption from the antitrust laws; it permitted the case to reach the jury; and it subsequently entered judgment on a jury treble-damages award that exceeded $30 million. The NFL and its member clubs appealed.

The Court of Appeals (by a split 2-to-l vote) reversed. The majority interpreted the labor laws as “waiving] antitrust liability for restraints on competition imposed through the collective-bargaining process, so long as such restraints operate primarily in a labor market characterized by collective bargaining.” 50 F. 3d 1041, 1056 (CADC 1995). The court held, consequently, that the club owners were immune from antitrust liability. We granted certiorari to review that determination. Although we do not interpret the exemption as broadly as did the Appeals Court, we nonetheless find the exemption applicable, and we affirm that court’s immunity conclusion.

II

The immunity before us rests upon what this Court has called the “nonstatutory” labor exemption from the antitrust laws. Connell Constr. Co. v. Plumbers, 421 U. S. 616, 622 (1975); see also Meat Cutters v. Jewel Tea Co., 381 U. S. 676 [236]*236(1965); Mine Workers v. Pennington, 381 U. S. 657 (1965). The Court has implied this exemption from federal labor statutes, which set forth a national labor policy favoring free and private collective bargaining, see 29 U. S. C. § 151; Teamsters v. Oliver, 358 U. S. 283, 295 (1959); which require good-faith bargaining over wages, hours, and working conditions, see 29 U. S. C. §§ 158(a)(5), 158(d); NLRB v. Wooster Div. of Borg-Warner Corp., 356 U. S. 342, 348-349 (1958); and which delegate related rulemaking and interpretive authority to the National Labor Relations Board (Board), see 29 U. S. C. § 153; San Diego Building Trades Council v. Garmon, 359 U. S. 236, 242-245 (1959).

This implicit exemption reflects both history and logic. As a matter of history, Congress intended the labor statutes (from which the Court has implied the exemption) in part to adopt the views of dissenting Justices in Duplex Printing Press Co. v. Deering, 254 U. S. 443 (1921), which Justices had urged the Court to interpret broadly a different explicit “statutory” labor exemption that Congress earlier (in 1914) had written directly into the antitrust laws. Id., at 483-488 (Brandeis, J., joined by Holmes and Clarke, JJ., dissenting) (interpreting § 20 of the Clayton Act, 38 Stat. 738, 29 U. S. C. § 52); see also United States v. Hutcheson, 312 U. S. 219, 230-236 (1941) (discussing congressional reaction to Duplex). In the 1930’s, when it subsequently enacted the labor statutes, Congress, as in 1914, hoped to prevent judicial use of antitrust law to resolve labor disputes — a kind of dispute normally inappropriate for antitrust law resolution. See Jewel Tea, supra, at 700-709 (opinion of Goldberg, J.); Marine Cooks v. Panama S. S. Co., 362 U. S. 365, 370, n. 7 (1960); A. Cox, Law and the National Labor Policy 3-8 (1960); cf. Duplex, supra, at 485 (Brandeis, J., dissenting) (explicit “statutory” labor exemption reflected view that “Congress, not the judges, was the body which should declare what public policy in regard to the industrial struggle demands”). The implicit (“nonstatutory”) exemption interprets the labor statutes in [237]

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Brown v. Pro Football, Inc., 116 S. Ct. 2116, 10 Fla. L. Weekly Fed. S 14, 135 L. Ed. 2d 521, 518 U.S. 231, 64 U.S.L.W. 4554, 152 L.R.R.M. (BNA) 2513, 1996 U.S. LEXIS 4047, 96 Daily Journal DAR 7174, 96 Cal. Daily Op. Serv. 4419 (U.S. 1996).

116 S. Ct. 2116 (Brown v. Pro Football, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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