Ex Parte Bakelite Corp'n.

279 U.S. 438, 49 S. Ct. 411, 73 L. Ed. 789, 1929 U.S. LEXIS 342
CourtSupreme Court of the United States
DecidedMay 20, 1929
Docket17, Original
StatusPublished
Cited by282 cases

This text of 279 U.S. 438 (Ex Parte Bakelite Corp'n.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ex Parte Bakelite Corp'n., 279 U.S. 438, 49 S. Ct. 411, 73 L. Ed. 789, 1929 U.S. LEXIS 342 (1929).

Opinion

Mr. Justice Van Devanter

delivered the opinion of the Court.

This is a petition for a writ of prohibition to the Court of Customs Appeals prohibiting it from entertaining an appeal from findings of the Tariff Commission in a proceeding begun and conducted under § 316 of the Tariff Act of 1922, c. 356, 42 Stat. 858, 943; §§ 174-179, Title 19, U. S. C. A rule to show cause was issued; return was made, to the rule; and a hearing has been had on the petition and return.

Section 3Í6 of the Tariff Act is long and not happily drafted. A summary of it will suffice for present purposes. It is designed to protect domestic industry and trade against “ unfair methods of competition and unfair acts in the importation of articles into the United States, and in their sale after importation. To that end it empowers the President, whenever the existence of any such unfair methods or acts is established to his satisfaction, to deal with them by fixing an additional duty upon the importation of the articles to which the-unfair practice relates, or, if he is satisfied the unfairness is extreme, by directing that the articles be excluded from entry.

The section provides that, “ to assist the President ” in making decisions thereunder, the Tariff Commission shall investigate allegations of unfair practice, conduct hearings, receive evidence, and make findings and recommendations, subject to a right in the importer or con *447 signee, if the - findings be against him, to appeal to .the .Court of Customs Appeals on questions of .law affecting the findings. There is also a provision purporting to subject the decision of that court to review by this Court upon certiorari. Ultimately the commission is required to transmit its findings and recommendations, with a transcript of the evidence, to the President so that he may consider the matter and act thereon.

A further provision declares that any additional duty ' or any refusal of entry under this section shall continue in effect until the President shall find and instruct the. Secretary of the Treasury that the conditions which led to the assessment .of such additional duty or refusal of entry no longer exist.”

The present petitioner, the Bakelite Corporation, desiring to invoke action under that section, filed with the Tariff Commission a sworn complaint charging unfair methods and acts in the importation and subsequent sale of certain articles and alleging a resulting injury to its domestic business of manufacturing and selling similar articles. The commission entertained the complaint, gave public notice thereof ana conducted a hearing, in which interested importers appeared and presented evidence claimed to be in refutation of the charge. The commission made- findings sustaining the charge and recommended that the articles to which the unfair practice related be' excluded from entry. The importers appealed to the Court of Customs Appeals, where the Bakelite Cor-' poration challenged the court’s jurisdiction on constitutional grounds. ■ . The court upheld its jurisdiction and announced its purpose to entertain the appeal. Thereupon the Bakelite Corporation presented to this Court its petition for a writ of prohibition. Pending a decision on the petition further proceedings on the appeal have.been suspended. '

*448 The grounds'on which the jurisdiction of the Court of Customs Appeals was challenged in that court, and on which a writ of prohibition is sought here, are:

1. That the Court of Customs Appeals is an inferior court created by Congress under section 1 of Article III of the Constitution, and as such it can have no jurisdiction of any proceeding which is not a case or controversy within the meaning of section 2 of the same Article.

2. That the proceeding presented by the appeal from the Tariff Commission is not a case or controversy in the sense of that section, but is merely an advisory proceeding in aid of executive action. .

The Court of Customs Appeals considered these grounds in the order just stated and by its ruling sustained the first and rejected the second. 16 Ct. Cust. Appls. 191, 53 Treasury Decisions 716.

In' this. Court counsel have addressed arguments not only to .the two questions bearing on the jurisdiction of the Court of Customs Appeals, but also to the question whether, if that court be exceeding its jurisdiction, this Court has power to issue to it a writ of prohibition to arrest the unauthorized proceedings.

The power of this Court to issue writs of prohibition never has been clearly defined by statute 1 or by decisions. 2 And the existence of the power in a situation like the present is not free from doubt. But the doubt need not be resolved now, for, assuming that the power exists, there is here, as will appear later on, no tenable basis for exercising it. In such a case it is admissible, and is common practice, to pass the question of power and to deny the writ because without warrant in other respects. 3

*449 While Article III of the Constitution declares, in section 1, that the judicial power of the United States shall be vested in one Supreme Court and in “ such inferior courts as the Congress may from time to time ordain and establish,” and prescribes, in section 2, that this power shall extend to cases and controversies of certain enumerated classes, it long has been settled that Article III does not express the full authority of Congress to create courts, and that other Articles invest Congress with powers in the exertion of which it may create inferior courts and clothe them with functions deemed essential or helpful in carrying those powers into execution. But there is a difference between the two classes of courts. Those established under the specific power give'n in section 2 of Article III are called constitutional courts. They share in the exercise ofthe judicial power defined in that section, can be invested with no other jurisdiction, and have judges who hold office during good behavior, with no power m Congress to provide otherwise. On the other hand, those created by Congress in the éxertion of other powers are called legislative courts. Their functions always are directed to the execution of one or more of such powers and are prescribed by Congress independently of section 2 of Article III; and their judges hold for such term as Congress prescribes, whether it be a fixed period of years or during good behavior.

The first pronouncement on the subject by this Court was in American Insurance Co. v. Canter, 1 Pet. 511, where the status and jurisdiction of, courts created by Congress for the Territory of Florida were drawn in ques *450 tion. Chief Justice Marshall, speaking forthe court, said, p. 546:

“ These Courts, then, are not constitutional Cpurts, in v^hich' the judicial power conferred by the Constitution on the general government can be deposited. They are incapable of receiving it.

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Bluebook (online)
279 U.S. 438, 49 S. Ct. 411, 73 L. Ed. 789, 1929 U.S. LEXIS 342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ex-parte-bakelite-corpn-scotus-1929.