Glickman v. Wileman Brothers & Elliott, Inc.

521 U.S. 457, 117 S. Ct. 2130, 138 L. Ed. 2d 585, 11 Fla. L. Weekly Fed. S 117, 1997 Colo. J. C.A.R. 1298, 25 Media L. Rep. (BNA) 1801, 97 Cal. Daily Op. Serv. 4916, 97 Daily Journal DAR 8010, 65 U.S.L.W. 4597, 1997 U.S. LEXIS 4036
CourtSupreme Court of the United States
DecidedJune 25, 1997
Docket95-1184
StatusPublished
Cited by179 cases

This text of 521 U.S. 457 (Glickman v. Wileman Brothers & Elliott, Inc.) 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
Glickman v. Wileman Brothers & Elliott, Inc., 521 U.S. 457, 117 S. Ct. 2130, 138 L. Ed. 2d 585, 11 Fla. L. Weekly Fed. S 117, 1997 Colo. J. C.A.R. 1298, 25 Media L. Rep. (BNA) 1801, 97 Cal. Daily Op. Serv. 4916, 97 Daily Journal DAR 8010, 65 U.S.L.W. 4597, 1997 U.S. LEXIS 4036 (1997).

Opinions

Justice Stevens

delivered the opinion of the Court.

A number of growers, handlers, and processors of California tree fruits (respondents) brought this proceeding to challenge the validity of various regulations contained in marketing orders promulgated by the Secretary of Agriculture. The orders impose assessments on respondents that cover the expenses of administering the orders, including the cost of generic advertising of California nectarines, plums, and peaches. The question presented to us is whether the requirement that respondents finance such generic advertising [461]*461is a law “abridging the freedom of speech” within the meaning of the First Amendment.

I

Congress enacted the Agricultural Marketing Agreement Act of 1937 (AMAA), ch. 296, 50 Stat. 246, as amended, 7 U. S. C. § 601 et seq., in order to establish and maintain orderly marketing conditions and fair prices for agricultural commodities. § 602(1). Marketing orders promulgated pursuant to the AMAA are a species of economic regulation that has displaced competition in a number of discrete markets; they are expressly exempted from the antitrust laws. § 608b. Collective action, rather than the aggregate consequences of independent competitive choices, characterizes these regulated markets. In order “to avoid unreasonable fluctuations in supplies and prices,” § 602(4), these orders may include mechanisms that provide a uniform price to all producers in a particular market,1 that limit the quality and the quantity of the commodity that may be marketed, §§ 608c(6)(A), (7), that determine the grade and size of the commodity, § 608c(6)(A), and that make an orderly disposition of any surplus that might depress market prices, ibid. Pursuant to the policy of collective, rather than competitive, marketing, the orders also authorize joint research and development projects, inspection procedures that ensure uniform quality, and even certain standardized packaging requirements. §§ 608c(6)(D), (H), (I). The expenses of administering such orders, including specific projects undertaken to serve the economic interests of the cooperating producers, are “paid from funds collected pursuant to the marketing order.” §§ 608c(6)(I), 610(b)(2)(ii).

Marketing orders must be approved by either two-thirds of the affected producers or by producers who market at [462]*462least two-thirds of the volume of the commodity. § 608c(9)(B). The AMA A restricts the marketing orders “to the smallest regional production areas . . . practicable.” § 608c(11)(b). The orders are implemented by committees composed of producers and handlers of the regulated commodity, appointed by the Secretary, who recommend rules to the Secretary governing marketing matters such as fruit size and maturity levels. 7 CFR §§ 916.23, 916.62, 917.25, 917.30 (1997). The committees also determine the annual rate of assessments to cover the expenses of administration, inspection services, research, and advertising and promotion. §§ 916.31(c), 917.35(f).

Among the collective activities that Congress authorized for certain specific commodities is “any form of marketing promotion including paid advertising.” 7 U. S. C. § 608c(6) (I).2 The authorized promotional activities, like the marketing orders themselves, are intended to serve the producers’ common interest in disposing of their output on favorable terms. The central message of the generic advertising at issue in this case is that “California Summer Fruits” are wholesome, delicious, and attractive to discerning shoppers. See App. 530. All of the relevant advertising, insofar as it is authorized by the statute and the Secretary’s regulations, is designed to serve the producers’ and handlers’ common interest in promoting the sale of a particular product.3

[463]*463II

The regulations at issue in this litigation are contained in Marketing Order 916, which regulates nectarines grown in California, and Marketing Order 917, which originally regulated peaches, pears, and plums grown in California.4 A 1966 amendment to the former expressly authorized generic advertising of nectarines, see 31 Fed. Reg. 8177, and a series of amendments, beginning in 1971, to the latter authorized advertising of each of the regulated commodities, see 36 Fed. Reg. 14381 (1971); 41 Fed. Reg. 14375, 17528 (1976).5 The advertising provisions relating to pears are not now being challenged, thus we limit our discussion to generic advertising of California nectarines, plums, and peaches.

Respondent Wileman Bros. & Elliott, Inc., is a large producer of these fruits that packs and markets its own output as well as that grown by other farmers. In 1987, after encountering problems with some fruit varieties under the maturity and minimum size standards in the orders, it refused to pay its assessments and filed a petition with the Secretary challenging those standards. In 1988, it filed a second petition challenging amendments to the maturity standards as well as the generic advertising regulations. The Administrative Law Judge (ALJ), in two separate decisions that are explained in a total of 769 pages, ruled in favor of Wileman on the Administrative Procedure Act (APA) issues, without resolving respondents’ First Amendment claims. App. to

[464]*464Brief in Opposition 393a.6 In a comparably detailed decision, the Judicial Officer of the Department of Agriculture entirely reversed the ALJ. Wileman, along with 15 other handlers, then sought review of the Judicial Officer’s decision by filing this action in the District Court pursuant to 7 U. S. C. § 608c(15)(B). A number of enforcement actions brought by the Secretary to collect withheld assessments were consolidated with the review proceeding. Acting on cross-motions for summary judgment, the District Court upheld both marketing orders and entered judgment of $3.1 million in past due assessments against the handlers.

In the Court of Appeals the handlers challenged the generic advertising provisions of the orders as violative of both the APA and the First Amendment. The court rejected the statutory challenge, concluding that the record contained substantial evidence justifying both the original decision to engage in generic advertising7 and the continuation of the program. It explained:

[465]*465“The Nectarine Administrative Committee and the Peach Commodity Committee engage in a careful process each year prior to and during their annual spring meetings in approving the advertising program for the upcoming season. Prior to the full committee meeting, the Subcommittee on Advertising and Promotion meets to review in detail the program developed by its staff. The staff in turn uses monthly reports on price trends, consumer interests, and general market conditions in the formation of the proposed advertising program.

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521 U.S. 457, 117 S. Ct. 2130, 138 L. Ed. 2d 585, 11 Fla. L. Weekly Fed. S 117, 1997 Colo. J. C.A.R. 1298, 25 Media L. Rep. (BNA) 1801, 97 Cal. Daily Op. Serv. 4916, 97 Daily Journal DAR 8010, 65 U.S.L.W. 4597, 1997 U.S. LEXIS 4036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glickman-v-wileman-brothers-elliott-inc-scotus-1997.