Carter Products, Inc. v. Federal Trade Commission

268 F.2d 461, 1959 U.S. App. LEXIS 5525, 1959 Trade Cas. (CCH) 69,390
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 16, 1959
Docket15373_1
StatusPublished
Cited by30 cases

This text of 268 F.2d 461 (Carter Products, Inc. v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carter Products, Inc. v. Federal Trade Commission, 268 F.2d 461, 1959 U.S. App. LEXIS 5525, 1959 Trade Cas. (CCH) 69,390 (9th Cir. 1959).

Opinion

BONE, Circuit Judge.

The instant case, which has a long history, is before us on a petition by Carter for review of and to set aside a Cease and Desist Order (hereafter “Order”) of the Federal Trade Commission (hereafter “Commission”) which Order was entered in 1956 at the conclusion of about 149 hearings held before a Hearing Examiner of the Commission. These hearings were held on a complaint of the Commission which charged petitioner Carter Products, Incorporated (hereafter “Carter”) with engaging in unfair and deceptive acts and practices in violation of the Federal Trade Commission Act (hereafter the “Act”) 15 U.S.C.A. § 41 et seq. The instant litigation was instituted by the Commission’s complaint bearing date of May 28, 1943. In the earlier stages of the proceeding, the Commission dismissed its complaint (without prejudice) as to a co-defendant and the case is now before us with Carter alone seeking a review of the Order.

This litigation was previously before this court and the much narrower issues then presented were disposed of by our opinion and judgment reported in 201 F.2d 446, Carter Products, Inc. v. Federal Trade Commission. On certiorari, the Supreme Court vacated this judgment and remanded the cause to this court with directions. 346 U.S. 327, 74 S.Ct. 2, 98 L.Ed. 4. This court thereupon entered judgment as directed by the mandate of the Supreme Court.

Pursuant to our judgment remanding the cause to the Commission for further hearings, these “further hearings” were held before the Hearing Examiner for the Commission who had presided over the first and original set of hearings. At these supplemental hearings conducted in accordance with our said remand order, Doctors Case and Bollman, two of the three expert Commission witnesses whose original cross-examination by Carter this court held had been improperly curtailed and restricted, were tendered to Carter for further cross-examination. Because of the intervening death of Dr. Lockwood (one of these three Commission witnesses in the first hearing) this witness could not be tendered for cross-examination and all of the testimony and all of the exhibits based upon, or connected with, the testimony of Dr. Lockwood in the first set of hearings were stricken by the Hearing Examiner. For this reason the Lockwood part of the record in the original hearings was not before the *466 Commission for its consideration when it made and entered its formal Decision along with an entirely new set of Findings of Fact and the new Cease and Desist Order which is before us on this review. 1

Preliminary Statement

Because of the great length of the records now before us (which embrace both the original and the supplemental hearings here mentioned) 2 an important aspect of this controversy should be noted. In the mandate of the Supreme Court on its remand, this court was ordered and directed “to reinstate its prior judgment and order after amending it so that it specifically authorizes the Federal Trade Commission to open this proceeding for further evidence and a new *467 order consistent with the Court of Appeals opinion herein.” (Emphasis supplied.)

In the “prior judgment and order” of this court, thus referred to, we set aside the order of the Commission, and specifically indicated therein our reasons for this action. We held that Carter had been denied a fair hearing because the Hearing Examiner had unduly and preju-dicially restricted Carter’s right to cross-examine the three above mentioned expert witnesses who had appeared in support of the allegations of the Commission’s complaint; that the error of the examiner was his failure to permit a “broad latitude” in the cross-examination of these three witnesses. 3 So that no doubt might remain concerning the exact reason for our action, we there carefully identified the particular rulings of the Hearing Examiner which we assailed and which we concluded had caused Carter to be denied a fair hearing. 4

*468 It is also our firm conclusion that if the new order of the> Commission so authorized in our order of remand was to be truly “consistent with” our opinion (as directed by the Supreme Court) this new order would have to be bottomed on the evidence and testimony received in the original hearings (except where appropriately stricken as in the case of Dr. Lockwood) plus the “further evidence” adduced in the renewed and additional cross-examination of two of the Commission’s above noted expert witnesses in the supplemental hearings which followed the remand. If it be the view of Carter that our order of remand required a proceeding de novo, or was properly to be construed (in light of the direction from the Supreme Court) as an invitation or suggestion that the proceedings might (also) be opened for the purpose of receiving additional testimony from witnesses other than the two expert witnesses we have mentioned (Case and Bollman) we must disagree with Garter since our conclusion is to the contrary.

After Case and Bollman were further cross-examined at length in the following supplemental hearings above referred to, and on October 4, 1956, the Commission made and entered an entirely new and second set of Findings of Fact, a Conclusion of Law, its formal Decision (see footnote 1) and the Cease and Desist Order 5 which is here involved. A formal Opinion of the Commission was also filed *469 on October 4, 1956. For reference to date and place of publication of an official copy of the here noted Commission’s Cease and Desist Order, see last paragraph of footnote 5.

Applicable provisions of the Act with which we are here concerned are:

“Sec. 5(a) (1). [Section 45(a) (1) of Title 15 U.S.C.A.] * * * unfair or deceptive acts or practices in commerce, are declared unlawful.”
“Sec. 5(a) (6). [Section 45(a) (6) of Title 15 U.S.C.A.] The Commission is empowered and directed to prevent persons, partnerships, or corporations * * * from using * * * unfair or deceptive acts or practices in commerce.”

Pursuant to the order authorizing the Commission to open the proceedings for the further evidence mentioned and for entry of a new order consistent with the *470

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Bluebook (online)
268 F.2d 461, 1959 U.S. App. LEXIS 5525, 1959 Trade Cas. (CCH) 69,390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-products-inc-v-federal-trade-commission-ca9-1959.