General Electric Co. v. New York State Assembly Committee on Governmental Operations

425 F. Supp. 909, 1975 U.S. Dist. LEXIS 14579
CourtDistrict Court, N.D. New York
DecidedDecember 31, 1975
DocketNo. 75-CV-558
StatusPublished
Cited by3 cases

This text of 425 F. Supp. 909 (General Electric Co. v. New York State Assembly Committee on Governmental Operations) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Electric Co. v. New York State Assembly Committee on Governmental Operations, 425 F. Supp. 909, 1975 U.S. Dist. LEXIS 14579 (N.D.N.Y. 1975).

Opinion

MEMORANDUM-DECISION and ORDER

JAMES T. FOLEY, Chief Judge.

On November 17, 1975, a subpoena was served upon plaintiff the General Electric Company (hereinafter “GE”) issued by Joseph F. Lisa, as Chairman of the New York State Assembly Subcommittee on Human Rights. (“Subcommittee”). Assemblyman Lisa is also Chairman of the parent committee, the New York State Assembly Standing Committee on Governmental Operations. That subpoena, .commanded the appearance of officers of GE who were to bring documents and materials:

containing any boycott or blacklist conditions which you may have been requested to comply with, and all correspondence relating to such requests . . . and any guidelines, policies or regulations which you have adopted with respect to exporting or importing which contain any references to blacklist or boycott provisions, in your possession, custody or control.
(Order to Show Cause, Exhibit A, filed Nov. 18, 1975).

The purpose of this investigation was detailed in a resolution of the New York State Assembly on November 25, 1975, and to summarize is tojdetermine the effects of the so-called “Arab Boycott” in New York State, to educate the public accordingly, and to monitor and otherwise evaluate new legislation passed to eradicate discrimination against citizens of New York State in terms of such boycotts or blacklisting because of race, color, creed or national origin.l See Chapter 662 of the Laws of 1975 of the State of New York.

In an effort to resist complying with this first subpoena which was returnable November 19, 1975, GE by its attorneys filed an application for an Order to Show Cause and Temporary Restraining Order on November 18,1975. After a meeting and conference in my chambers in Albany with the attorneys for both parties, I signed on that date the Order to Show Cause, making plaintiff’s motion for a preliminary injunction returnable on December 1, 1975. The attorneys for the defendants consented to withhold action on the subpoena issued to GE until the motion could be heard by this Court.

By agreement of the attorneys, thereafter, this return date was adjourned to December 15, 1975, at which time oral argument was heard in open court on the issues presented. This adjournment was initiated at the request of defendants and agreed to by stipulation dated November 26, 1975. The resolution was passed on November 25, 1975, and this subpoena to GE was reissued on December 4, 1975, superseding and replacing the previous one and it was made returnable on December 17,1975. The subsequent subpoena differed in specifying that the materials and information sought would involve only that dated January 1, 1974 and later. The new subpoena contains a General Statement of the Subject of the Investigation identifying it as:

An inquiry into the effect of boycott and blacklist discriminatory practices, specifically, the so-called Arab boycott, on activities of individuals and institutions located within the State of New York. Amended Complaint, Par. 14A.

At the December 15th hearing on the motion for a preliminary injunction, Assistant Attorney General Dooley, representing as counsel all the defendants, again consented, and commendably so, to forebear from taking action on the latest subpoena or schedule hearings that might involve GE until January 5, 1976, in order to afford sufficient time for this Court to deliberate upon and decide whether the preliminary injunctive relief sought by GE should be granted or denied. Also with the consent of all parties, leave of this Court was given to the American Jewish Congress to file a brief, amicus curiae, to oppose the motion for a preliminary injunction. The appreciation of the Court is expressed for the depth and quality of the amicus brief that was [912]*912submitted in a short period of time and together with the comprehensive briefs submitted by the parties pointed up the complex constitutional issues involved.

The criteria by which this motion for a preliminary injunction must be evaluated are clearly established in this circuit:

[t]he settled rule is that a preliminary injunction should issue only upon a clear showing of either (1) probable success on the merits and possible irreparable injury, or (2) sufficiently serious questions going to the merits to make them a fair ground for litigation and a balance of hardships tipping decidedly toward the party requesting the preliminary relief.
Sonesta Int’l Hotels Corp. v. Wellington Associates, 483 F.2d 247, 250 (2d Cir. 1973); see also Gulf & Western Industries, Inc. v. The Great Atlantic & Pacific Tea Co., 476 F.2d 687, 692-93 (2d Cir. 1973); Dopp v. Franklin National Bank, 461 F.2d 873, 878 (2d Cir. 1972).

After study • of the-substantial submissions presented by both sides, it is my judgment that plaintiff has failed to show that any of these factors are satisfied to warrant the grant of a preliminary injunction, truly extraordinary in that it would stop a state legislative inquiry and hearings.

After the Order to Show Cause and Temporary Restraining Order application was signed on November 18, 1975, the plaintiff GE filed an Amended Complaint on December 10,1975. The jurisdiction alleged in the original Complaint ■ was added to by invoking 28 U.S.C. §§ 1331 and 1337 as proper jurisdictional support. There also is clarification of recent' federal revision of pertinent federal regulations.

The amended complaint is lengthy and paragraphs 15 and 18-of it detail the reasons why GE contends the purposes of the subcommittee’s inquiry are illegal and unconstitutional and also the injury that will be caused to its business interests. Five claims are set .forth in counts for the requested relief of a declaratory judgment, pursuant to 28 U.S.C. §§ 2201 and 2202, to declare the investigation by the subcommittee in violation of the Constitution of the United States and to declare the subpoena void; to enjoin the investigation with respect to the instant subpoena and with regard to the conduct of GE. The claims alleged in the numbered counts are: Count I charges the subpoena and inquiry are impermissible regulations that are disruptive of and constitute interference with the foreign policy and foreign commerce of the United States violative of the United States Constitution; Count II is to the effect that the Supremacy Clause of the United States Constitution and the Export Administration Act of 1969, as amended, preempt this field and thereby preclude this proposed State inquiry and hearings; Count III claims that the inquiry and subpoena are not related to a proper legislative purpose and this violates the due process clause of the Constitution; Count IY alleges that the State legislative action will “chill” communications of GE with others in violation of the First Amendment; Count V refers to Count III with claims that the subpoena can only be •issued for information relevant to consideration of legislation within the jurisdiction of the subcommittee.

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425 F. Supp. 909, 1975 U.S. Dist. LEXIS 14579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-electric-co-v-new-york-state-assembly-committee-on-governmental-nynd-1975.