State of Missouri v. National Organization for Women, Inc.

620 F.2d 1301, 1980 U.S. App. LEXIS 19133
CourtCourt of Appeals for the Eighth Circuit
DecidedMarch 28, 1980
Docket79-1379
StatusPublished
Cited by80 cases

This text of 620 F.2d 1301 (State of Missouri v. National Organization for Women, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of Missouri v. National Organization for Women, Inc., 620 F.2d 1301, 1980 U.S. App. LEXIS 19133 (8th Cir. 1980).

Opinion

STEPHENSON, Circuit Judge.

This case poses serious questions concerning the First Amendment’s right of petition and the scope of the antitrust laws. The primary question with which we must deal is the applicability of the Sherman Act to a politically motivated but economically tooled boycott participated in and organized by noncompetitors of those who suffered as a result of the boycott.

Essentially, the National Organization for Women, Inc., (NOW) organized a convention boycott against all states that had not ratified the proposed Equal Rights Amendment (ERA). 1 The impact was such that the Missouri motels and restaurants catering to the convention trade, and the Missouri economy as a whole, were suffering revenue losses. Missouri asked for injunctive relief against NOW’s activities under section 16 of the Clayton Act, 15 U.S.C. § 26, which the district court 2 denied. The court, in a well-reasoned opinion, found, primarily on the basis that NOW’s activities were political and thus not within the scope of the Sherman Act, that NOW had not violated section 1 of the Sherman Act, 15 U.S.C. § 1. Missouri v. National Organization for Women, Inc., 467 F.Supp. 289 (W.D.Mo.1979).

Because we hold that it was not the intent of Congress that the Sherman Act cover such activities, we affirm the district court.

1. Background

The district court opinion thoroughly sets out the factual circumstances of this case. 3 A skeletal summary of the facts most relevant (borrowing generously from the district court’s language) is as follows:

(1) “NOW actively engaged in an ‘economic boycott campaign’ that has been a significant part of and shared common goals with a larger convention boycott movement directed at unratified states,” id. at 293;
(2) The convention boycott takes place in what is essentially a political context;
(3) The goal and sole purpose of NOW’s economic boycott campaign is the ratification of the ERA;
(4) The motivation of NOW can be viewed from two points, both aimed directly at the legislative process:
(a) a desire to make a symbolic gesture; and
(b) a desire to attract attention and bring public visibility to the issue of ratification;
*1303 (5) NOW also intended that the adverse economic impact of the boycott on those who would otherwise profit from conventions in Missouri would cause those persons to influence their legislators to support ERA ratification;
(6) The boycott and related activities were not intended as punitive for Missouri’s past failure to ratify; and
(7) NOW was not motivated by any type of anticompetitive purpose;
(8) The participants are not in a competitive relationship with Missouri— which has suffered as a result of the boycott.
The district court concluded that:
(9) The boycott is noncommercial in that its participants are not business interests and its purpose is not increased profits;
(10) The boycott is “non-economic” as it was not undertaken to advance the economic self-interests of the participants;
(11) Assuming arguendo that the actions taken by NOW fall within the purview of the Sherman Act,
(a) NOW entered into a combination to implement a boycott of unratified states; and
(b) “the invitation to act, the presence of a strong motive for concerted action, and the knowledge that others were taking similar action are sufficient to find conspiracy under the Sherman Act.” Id. at 296.

Standing for Missouri to bring a cause of action under 15 U.S.C. § 26 was based on the fact that:

(12) “[T]he businesses of Missouri’s convention industry have suffered economic injury as a result of the boycott and are threatened with additional injury in the future,” id. at 300;
(13) “The adverse effect of the injury extends to all parts of the economy of the state,” id.;
(14) NOW’s target is the state legislature,. the supreme policy-making body of the state.
The court concluded:
(15) Missouri has standing as parens patriae as this is a case in which the state is seeking to protect the public interest.

The court cautioned, in connection with its determination of standing parens patri-ae :

(16) It must be noted that this conclusion is the result of a consideration of the economic and policy factors in this case. This opinion is not to be read as a general approval of parens patriae standing as a matter of law in any case in .which the state adduces expert testimony to show generalized economic injury due to linkage or interdependence among the various sectors of the state’s economy.

Id. at 301.

Further, in a footnote the court stated:
(17) NOW argues that “[ajcceptance of the state’s theory [of economic linkage causing damage to the general economy] would give the state standing to sue in every case where any Missouri business claims injury by reason of any tort, including violations of antitrust laws, or presumably even in ordinary breach of contract cases.” * * * The Court shares this concern and notes that the economic interdependence rationale for parens patriae standing cannot be viewed in isolation or accepted as the sole justification for state standing. To do so would carry the doctrine of parens patriae far beyond its proper bounds.

Id. at 301 n. 22.

The court also discussed the case of Eastern Railroad Presidents Conference v. Noerr Motor Freight, Inc., 365 U.S. 127, 81 S.Ct. 523, 5 L.Ed.2d 464 (1961). The court stated:

(18) “The ‘essential dissimilarity’ between the convention boycott directed at the legislatures of unratified states and agreements traditionally held violative of § 1 of the Sherman Act is of a greater magnitude in this case than that in Noerr,” id. at 304;

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Bluebook (online)
620 F.2d 1301, 1980 U.S. App. LEXIS 19133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-missouri-v-national-organization-for-women-inc-ca8-1980.