Kennecott Copper Corporation v. Federal Trade Commission

542 F.2d 801
CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 12, 1976
Docket75-1699
StatusPublished
Cited by5 cases

This text of 542 F.2d 801 (Kennecott Copper Corporation v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kennecott Copper Corporation v. Federal Trade Commission, 542 F.2d 801 (10th Cir. 1976).

Opinions

WILLIAM E. DOYLE, Circuit Judge.

The cause is before us on this occasion on the motion of Kennecott seeking to persuade this court to modify its affirmance and order of enforcement of the FTC order requiring Kennecott to divest itself of the Peabody Coal Company which it had acquired.

It was on September 15, 1972, that we approved the order of the FTC requiring Kennecott Copper Company to divest itself of the Peabody Coal Company. On that occasion we upheld the Commission’s determination that the effect of the acquisition may be to substantially lessen competition or tend to create a monopoly. The FTC had issued its decision on May 13, 1971. In our opinion, Kennecott Copper Corporation v. FTC, 467 F.2d 67 (10th Cir. 1972), we noted that the pivotal question “in the case was whether prior to the merger Kennecott was a recognized potential entrant into the coal producing business and whether the elimination of Kennecott (as such a potential entrant) by its purchase of Peabody may have substantially lessened competition or tended to create a monopoly.” 467 F.2d at 69.

On October 13, 1972, Kennecott’s petition for rehearing was denied en banc by this court. On April 1, 1974, the Supreme Court denied Kennecott’s petition for certiorari, 416 U.S. 909, 94 S.Ct. 1617, 40 L.Ed.2d 114. On April 22, 1974, the Court denied a petition for rehearing, 416 U.S. 963, 94 S.Ct. 1983, 40 L.Ed.2d 314. As of that latter date, then, the order became final pursuant to the Clayton Act, 15 U.S.C. Section 21(g)(3). On April 1, 1974, the Commission extended until October 1, 1975, the time which governed the filing of a final order by Kennecott detailing its plans for complying with the order of divestiture. On motion of Kennecott, a stay was granted until October 14, 1975.

Kennecott has refused to accept the finality of the order. This is apparent from its numerous efforts to persuade the FTC to reopen the case and by its persistence in seeking to persuade this court that it should take some action in its behalf.

15 U.S.C. Section 21(c) provides that the judgment affirming the motion “shall be final, except that the same shall be subject to review by the Supreme Court on certiorari. * * *” Certiorari has been sought and denied. Hence under 15 U.S.C. Section 21(g)(3), the order is once again final. Kennecott would, however, have us hold that the review proceedings here are equitable and that we have a continuing jurisdiction to review our order of affirmance. Therefore, according to its further arguments, inasmuch as the economic conditions have changed drastically since entry of our order and judgment, we are obligated to reopen and reconsider the case.

The facts which they point to showing a change of condition are the fuel shortage plus the alleged fact that both the FTC and this court in affirming the Trade Commission were wrong in projections made that there would be a trend toward concentration of the coal industry. They also rely on the argument that the FTC was wrong in its prediction that there was a shortage of strong entrants into coal production and in projecting that Peabody would become an entrenched dominant firm. In essence, then, they contend that subsequent developments have proven that it was palpably unjust to compel Kennecott to divest itself [803]*803of Peabody Company, so they seek nothing less than attempted retrial or rehearing of the issues. We must reject all of these contentions.

In ordering that the FTC’s order be enforced, we considered fully FTC’s argument that Kennecott was the most likely entrant into the coal business and that the coal industry was tending toward concentration. We upheld the FTC’s finding that Kennecott’s acquisition of Peabody eliminated a substantial competitor and thereby substantially lessened competition in the industry. This was the result of a careful analysis of the issues of fact and law. For us to now deny enforcement of the provisions of the order requiring divestiture or, in the alternative, to require the Commission to reopen would not only be action outside the law since our judgment was final, it would also lack justification from a purely factual standpoint. We do not agree with Kennecott that there has been a change of circumstances since 1972 which makes divestiture unjust.

It is true that a court has inherent authority to construe and clarify its order entered following review of agency action, but such clarification could be appropriate only if the order were ambiguous or unclear. Floersheim v. Engman, 161 U.S.App. D.C. 30, 494 F.2d 949 (1973). See also Regal Knitwear Co. v. NLRB, 324 U.S. 9, 65 S.Ct. 478, 89 L.Ed. 661 (1945). Kennecott does not wish for us to clarify the judgment. It is interested in obtaining a substantial modification of it.

The case of FTC v. Dean Foods Co., 384 U.S. 597, 86 S.Ct. 1738, 16 L.Ed.2d 802 (1966), is relied on by Kennecott. There the Supreme Court’s holding was that where the FTC had issued a complaint pursuant to Section 7 of the Clayton Act against a prospective merger, the Commission had standing to seek a preliminary injunction restraining the merger pending the outcome of the action. In its opinion the Court stated that there was no basis for precluding the agency from asking the Court of Appeals to grant preliminary equitable relief in order to protect the agency’s jurisdiction, but this case is far different from the problem at bar. It is one thing to invoke the court’s authority to facilitate the agency’s performance of its duties; it is quite another thing to ask us to go outside the authority granted to us so as to interfere with or overturn the agency’s decision. Here the FTC has completed its review and has issued its order. To interfere with this would in fact and in law constitute not a protection of agency jurisdiction, but infringement of its jurisdiction.

The applicable statute, 15 U.S.C. Section 21(c), spells out when the order shall be final. The FTC Act, 15 U.S.C. Section 45, is substantially the same. From a reading of these statutes, the FTC only would have authority to reopen a case when changes in the facts or the law or the public interest necessitate a modification of the order. See H.R.Rep.No.580, 86th Cong., 1st Sess., U.S. Code Cong. & Admin.News 1959, p. 1804. The House Report cited American Chain and Cable Co., Inc. v. FTC, 142 F.2d 909 (4th Cir. 1944).

In American Chain and Cable the Commission had refused to review an order that had been reviewed by the court. It said that it did not have the power to do so at that stage.

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