Milliken & Co. v. Federal Trade Commission

565 F. Supp. 511, 1983 U.S. Dist. LEXIS 17076
CourtDistrict Court, D. South Carolina
DecidedMay 10, 1983
Docket79-126-5
StatusPublished
Cited by10 cases

This text of 565 F. Supp. 511 (Milliken & Co. v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milliken & Co. v. Federal Trade Commission, 565 F. Supp. 511, 1983 U.S. Dist. LEXIS 17076 (D.S.C. 1983).

Opinion

ORDER ON DEFENDANTS’ MOTIONS TO TRANSFER UNDER 28 U.S.C. § 1406(a) & 28 U.S.C. § 1404(a). NATURE OF PROCEEDING

HEMPHILL, Senior District Judge.

Defendants, by Motion(s) originally filed September 17, 1981, attack the venue 1 of this case as improperly laid (28 U.S.C. § 1406(a)) 2 in the District of South Carolina, and, alternatively, seeks discretionary (for the convenience of parties and witnesses, in the interest of justice) transfer under provisions of 28 U.S.C. § 1404(a). 3 This is the latest in a series of legal maneuverings which, commencing with the filing of the complaint on January 19, 1979, pits the tax paying industry — plaintiff against the ambitions of a government bureaucracy. 4 The critical issue involves the making public of certain marketing information precious to plaintiff’s business practices. The vehicle which plaintiff pictures as the devouring monster is Federal Trade Commission Form LB named the LINE OF BUSINESS FORM, an annual report, a six (6) page questionnaire dependent on the Commission rulings as to other procedures pending before that body. On March 23, 1981, the Court filed its Order approving a stipulation protecting data used by plaintiff in Carpet Sales Estimation Procedures, and providing for in camera inspection, etc. On August 28,1981, the Court ordered jurisdiction to remain with the hearing judge to prevent time-loss in orientation of a new member of the court. By Order filed September 1, 1981, the Court approved a stipulation and injunction, sealed by the Court, and providing other procedures incident to publication of both 1974 and 1975 LB Forms.

On September 17, 1981, defendants made a Motion to Transfer the case for lack of venue. This was heard November 16, 1981, and various memoranda and affidavits supporting opposition were thereafter filed. *513 On May 3, 1982, October 19, 1982 and December 16, 1982, the Court received various supplemental memoranda in support of the Motion to Transfer. Plaintiff’s response was filed January 5, 1983. Subsequently, defendant withdrew a part of the Motion ías to 1406(a)).

FINDINGS AS TO VENUE

Beginning in 1974, defendant Federal Trade Commission (“FTC”) and plaintiff (“Milliken”) have been involved in this dispute begat by FTC’s communicated intention to publish certain financial data from the LB Forms required of Milliken, which consistently has taken the position that the publication would endanger the competitive status which Milliken, a privately owned company with its principal place of business in Spartanburg, South Carolina, has apparently guarded carefully. Milliken’s stated belief is that publication would violate FTC’s orders and rules, numerous federal statutes, and the fourth and fifth amendments of the Constitution. Milliken first attempted to assert its rights before the FTC and, since February 1979, before this Court. Whether the merits of this controversy are ripe for decision does not appear in the record at this time.

After abandonment of the Hallmark 5 argument (based on erroneous assumptions/representations to this Court), defendant seeks to rely on 15 U.S.C. § 57b-2(c) 6 which provides:

(c)(1) All information reported or otherwise obtained by the Commission which is not subject to the requirements of subsection (b) of this section shall be considered confidential when so marked by the person supplying the information and shall not be disclosed, except in accordanee with the procedures established in paragraph (2) and paragraph (3).
(2) If the Commission determines that a document marked confidential by the person supplying it may be disclosed because it is not a trade secret or cominereial or financial information which is obtained from any person and which is privileged or confidential, within .the meaning of section 46(f) of this title, then the Commission shall notify such person in writing that the Commission intends to disclose the document at a date not less than 10 days after the date of receipt of notification.
(3) Any person receiving such notification may, if he believes disclosure of the document would cause disclosure of a trade secret, or commercial or financial information which is obtained from any person and which is privileged or confidential, within the meaning of section 46(f) of this title, before the date set for release of the document, bring an action in the district court of the United States for the district within which the documents are located or in the United States District Court for the District of Columbia to restrain disclosure of the document. Any person receiving such notification may file with the appropriate district court or court of appeals of the United States, as appropriate, an application for a stay of disclosure. The documents shall not be disclosed until the court has ruled on the application for a stay. [Emphasis Added].

This Court refuses to accept this language as sufficient or intended to overrule the time-proven provision of 28 U.S.C. § 1391(e) 7 or 28 U.S.C. § 1404(a). The provision in the 1980 amendment (57b — 2(c)) is permissive, and no language is employed to dictate that the venue shall be in the Dis *514 trict of Columbia. The Commission argues that it is an “independent federal agency, 8 with headquarters in Washington, D.C.” This does not persuade this Court that it is other than an administrative body created by statute (of the United States), and “has only such duties and powers, as are given it, by expression of fair implication therefrom, by statute.” Chamber of Commerce v. Federal Trade Commission, 13 F.2d 673, 683 (8th Cir.1926). It is subject to the law as any other person, firm, corporation or governmental bureaucracy. As was stated by a three-judge court in Florida East Coast Railway Company v. United States, 259 F.Supp. 993, 997 (M.D.Fla.1966), aff’d. 386 U.S. 544, 87 S.Ct. 1299, 18 L.Ed.2d 285:

The Commission may, be one or more of its members, or by such examiners as it may designate, prosecute any inquiry necessary to its duties in

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Bluebook (online)
565 F. Supp. 511, 1983 U.S. Dist. LEXIS 17076, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milliken-co-v-federal-trade-commission-scd-1983.