Porter v. Lajeunesse

68 F. Supp. 243, 1946 U.S. Dist. LEXIS 2139
CourtDistrict Court, D. Massachusetts
DecidedOctober 17, 1946
DocketCivil Action No. 5384
StatusPublished

This text of 68 F. Supp. 243 (Porter v. Lajeunesse) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porter v. Lajeunesse, 68 F. Supp. 243, 1946 U.S. Dist. LEXIS 2139 (D. Mass. 1946).

Opinion

WYZANSKI, District Judge.

In this action the Administrator of the Office of Price Administration seeks a judicial order suspending defendant’s license [issued under the Administrator’s Licensing Order No. 1 (8 F.R. 13240)] to sell meat and certain other commodities at retail. The Administrator relies upon the provisions of § 205 (f) (2) of the Emergency Price Control Act of 1942, 56 Stat. 23, as amended by § 13 of the Price Control Extension Act of July 25, 1946, c. 671, 50 U.S.C.A.Appendix, § 925 (f), the terms of which are printed in the margin.1

§ 205 (f) imposes upon this Court the duty to determine first whether defendant after having received a warning notice has violated the Emergency Price Control Act, and second whether the violation in question was wilful or the result of a failure to take practicable precautions; and, if such determinations are [245]*245in the affirmative, the further duty to issue an order suspending defendant’s OPA license for a period not more than 12 months.

Defendant has moved to dismiss the proceeding on the ground that this Court lacks jurisdiction because § 205 (f) (2) calls upon this Court to exercise functions which are essentially legislative or administrative and which are therefore beyond the capacity of this Court under Article III of the United States Constitution. Reliance is placed upon the familiar doctrine that a Court established solely under Article III of the United States Constitution can exercise only judicial and never administrative functions. Stated in another way, defendant’s view is that a proceeding for the revocation or suspension of a license is inherently administrative and cannot be subsumed under the classification of judicial “cases” and “controversies” to which by Article III of the United States Constitution this Court is limited.

But that view is unsound as shown by an analysis of the essential nature of a suspension proceeding and as shown by an examination of the authorities.

A proceeding to suspend or revoke a license involves two types of questions. The first type raises issues of fact; for example, has the licensee violated the terms of his license, and, if so, was his violation deliberate and avoidable by taking practicable precautions? Such questions of fact do not differ from those tried every day in the courts. The second type of question relates to the appropriate remedy where the facts have disclosed violations of law. In cases arising under § 205 (f) (2) the question of the appropriate remedy is narrowed by the statute to one inquiry; that is, during what part of the ensuing year shall a deliberate second offender be denied the right to carry on his business. Such a question invites the exercise of a judicial discretion even more limited than that exercised by a judge when he decides whether to issue an injunction and, if so, how broad an injunction, against a respondent in an equity case who has been found to have violated a regulation or law. Indeed such a question calls for consideration of only such factors as were involved in cases arising under the so-called padlocking provisions of Section 22 of the former National Prohibition Act of October 28, 1919, c. 85, 41 Stat. 305, 314, 27 U.S.C.A. § 34. In such cases, as Murphy v. United States, 272 U.S. 630, 47 S.Ct. 218, 71 L.Ed. 446, and Grosfield v. United States, 276 U.S. 494, 48 S.Ct. 329, 72 L.Ed. 670, 59 A.L.R. 620, illustrate, United States Courts were empowered to order, and did order, that premises which had been used for the unlawful manufacture or sale of liquor should not be occupied or used for one year thereafter. To be sure, those liquor cases were examples of injunctions against operating premises and this case is an example of an injunction against operating a business, but the difference is of no significance in considering whether the proceeding is a “case” or “controversy.”

The analysis that I have just made of the characteristics of a proceeding for the revocation or suspension of a license is fully supported by Ernst Freund, Administrative Powers Over Persons and Property, pp. 117-128. At page 121 Professor Freund says:

“Quite commonly the ground of revocation [of a license] is an illegal act or conduct, or a violation of some specific requirement, not amounting to a crime: a contravention to rules or orders or terms of licenses, or fraud; in case of insurance companies, misleading statements, violation of standard provision requirements, failure to maintain reserves, or non-payment of taxes; in case of associations, the pursuing of forbidden objects. These are facts capable of being adjudicated by a court, and the revocation proceeding might therefore be judicial; in most cases, however, the proceeding is administrative, although not infrequently with provision for judicial review.”

Historically, judicial determinations of this type of controversy go back at least to the reign of Queen Anne. In a statute enacted in the province of Massachusetts, St. 1710-1711, p. 266 (9 Anne c. 8,) cited in [246]*246Sawyer v. State Board of Health, 125 Mass. 182, 187, 188, it was provided that a court and jury should decide cas.es involving the revocation of slaughterhouse licenses on account of alleged abuses of the licenses. The quaint language of the law provided :

“When and so often, from time to time, as it shall appear any house or place assigned or to be assigned to and for the exercising of either of the aforesaid trades or mysteries, to become a nuisance by reason of offensive and ill stenches proceeding from the same, or otherwise hurtful to the neighborhood, it shall and may be lawful, to and for the court of general sessions of the peace within the county, to cause inquiry to be made thereinto by a jury, and to suppress such nuisance by prohibiting and restraining the further use thereof for the exercise of either of the aforesaid trades or mysteries, under a fine,” &c.

The example just cited is to be sure the case of the revocation of a license on the ground that the licensee is alleged to have become a public nuisance. But though the ground differs from a case like the present where the licensee is alleged to have violated the terms of his license and to have committed a crime by disobeying an OPA regulation, it can hardly be maintained that the former ground does and the latter ground does no.t present a justiciable controversy.

Of course, the conclusion that questions of revocation or suspension of a license may be treated by the legislature in one statute as “cases” or “controversies” suitable for adjudication by a judge in no way implies that they may not be treated by the legislature in another statute as administrative problems suitable for resolution by an agency in the executive branch of the government. The questions are ordinarily susceptible of treatment in either manner, according to the choice of. the legislators; and it so happens that in the majority of federal statutes Congress has selected the second of the two possible courses. See Landis, The Administrative Process, p. 117.

A word must be said about two cases upon which defendant places some reliance.

Federal Radio Commission v. General Electric Co., 281 U.S. 464, 50 S.Ct. 389, 74 L.Ed.

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Related

Murphy v. United States
272 U.S. 630 (Supreme Court, 1926)
Grosfield v. United States
276 U.S. 494 (Supreme Court, 1928)
Federal Radio Commission v. General Electric Co.
281 U.S. 464 (Supreme Court, 1930)
Sawyer v. State Board of Health
125 Mass. 182 (Massachusetts Supreme Judicial Court, 1878)
Administrator of Office of Price Administration v. Chook
68 N.E.2d 662 (Massachusetts Supreme Judicial Court, 1946)
Bowles v. L. D. McClean Co.
61 F. Supp. 454 (N.D. California, 1945)
Bowles v. Dietter
61 F. Supp. 880 (D. Connecticut, 1945)

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Bluebook (online)
68 F. Supp. 243, 1946 U.S. Dist. LEXIS 2139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porter-v-lajeunesse-mad-1946.