United States v. Cities Service Company, Cities Service Oil Company

410 F.2d 662, 1969 U.S. App. LEXIS 12470, 1969 Trade Cas. (CCH) 72,787
CourtCourt of Appeals for the First Circuit
DecidedMay 8, 1969
Docket7216
StatusPublished
Cited by28 cases

This text of 410 F.2d 662 (United States v. Cities Service Company, Cities Service Oil Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Cities Service Company, Cities Service Oil Company, 410 F.2d 662, 1969 U.S. App. LEXIS 12470, 1969 Trade Cas. (CCH) 72,787 (1st Cir. 1969).

Opinion

COFFIN, Circuit Judge.

This is an appeal from an interlocutory order in a civil action brought by the United States under Section 7 of the Clayton Act, 38 Stat. 731 (1914), as amended, 15 U.S.C. § 18 (1958). The government alleges that acquisition by Cities Service of properties constituting the retail gasoline business of Jenney Manufacturing Company may substantially lessen competition or tend to create a monopoly. On May 1, 1968 the district court, pursuant to a stipulation, entered an order subject to further orders of the court, governing the disposition of the acquired properties pending the outcome of the case. The parties, however, were unable to agree as to whether Cities Service should be allowed to sell one of the acquired properties, the Chelsea Marine petroleum terminal, and the question was submitted to the court. The district court, after hearing, denied Cities Service’s motion for approval of the sale. 1

Initially we must decide whether a court of appeals has jurisdiction over interlocutory appeals in civil antitrust actions brought by the government.

The parties are in agreement that this court has jurisdiction. Appellant Cities Service relies chiefly on the language of 28 U.S.C. § 1292(a) (1) and the Third Circuit decision in United States v. Ingersoll-Rand Co., 320 F.2d 509 (3d Cir. 1963) for the proposition that “[s]ince there is no provision for direct appeal to the Supreme Court of the order denying the motion for an order approving the sale of the Chelsea terminal, the Court has jurisdiction over such appeal by virtue of Section 1292(a) (1).” Appellee, the United States government, more broadly argues that legislative history, despite conventional judicial assumptions to the contrary, has long supported court of appeals jurisdiction over interlocutory orders in antitrust actions.

We have therefore faced a joint and unopposed advocacy for our taking juris *664 diction. Handicapped by the lack of an adversary confrontation on this issue, we have nevertheless been obligated to seek and assess the considerations which might militate against the jurisdictional posture sought by both parties. Unfortunately, the unespoused case seems the more persuasive to us.

This is a confrontation between two statutes of hallowed history. One is the statute defining part of the appellate jurisdiction of courts of appeals, now 28 U.S.C. § 1292(a) (1), which says they shall have jurisdiction over appeals from “[ijnterlocutory orders of the district courts of the United States * * * granting, continuing, modifying, refusing or dissolving injunctions, or refusing to dissolve or modify injunctions, except where a direct review may be had in the Supreme Court.” This had its origins in section 7 of the Evarts Act of 1891, creating the courts of appeals, and has gone through a number of mutations. The other statute is the “Expediting Act”, 32 Stat. 823 (1903), as amended, 15 U.S.C. § 29 (1958), which provides that in any civil antitrust action brought by the government, “an appeal from the final judgment of the district court will lie only to the Supreme Court.”

The purposes of the two statutes are to some extent conflicting. Section 1292 represents a Congressional judgment that some interlocutory orders are of such significance that appellate review is necessary in order to prevent irreparable harm to an unsuccessful litigant. The purpose of the Expediting Act was to facilitate review by the Supreme Court of a class of antitrust cases deemed particularly important. 2 While scholars and jurists alike question the appropriateness of automatic Supreme Court review and the desirability of expedition of an entire case to the Supreme Court, it is clear that the taking by courts of appeals of jurisdiction to review interlocutory orders in government civil antitrust actions would to some extent impinge upon both aspects of the Expediting Act: the final review jurisdiction of the Supreme Court and expedition to the Supreme Court. 3

The critical question in our view, therefore, is whether there have been any indications from Congress in legislation since the passing of the Expediting Act that the operation of that Act was to be modified, for we are unwilling to assume that a clear policy was altered by indirection. We conclude that there have been no such indications. In passing the Expediting Act in 1903, Congress chose to effectuate its intent by vesting review of antitrust actions directly in the Supreme Court. In 1906, 1911, and 1925 legislative changes restored interlocutory review jurisdiction to the courts of appeals in certain classes of cases. However, at no time did Congress address itself to interlocutory appeals in antitrust actions. 4 The 1948 revision of the *665 Judicial Code (§ 1292) did no more than codify existing law. In short, we cannot assume that the Expediting Act has been partially repealed sub silentio. We are persuaded that the history of the relevant legislation supports our holding and it is to a more detailed discussion of that history that we now turn.

Cities Service contends that the 1948 revision of the Judicial Code creates a symmetrical scheme, with § 1291 saying that courts of appeals could review final judgments of district courts except where direct review of such judgments may be had in the Supreme Court, and § 1292 giving courts of appeals review of interlocutory orders unless their direct review is to be had in the Supreme Court. This indeed is what the Third Circuit held in United States v. Ingersoll-Rand, 320 F.2d 509 (3d Cir. 1963) in a thoughtful opinion by Judge Biggs.

This is persuasive, were this a matter of first impression. But what we face is not a clear slate, but rather a palimpsest of many layers of statutory changes, legislative history, and Supreme Court interpretation.

Except for Ingersoll-Rand, decisions of the Supreme Court and courts of appeals have unanimously taken the position, since United States v. California Cooperative Canneries, 279 U.S. 553, 49 S.Ct. 423, 73 L.Ed. 838 (1929), that the Expediting Act bars appeals from interlocutory orders in government antitrust cases to courts of appeals. As stated by Mr. Justice Brandéis in dictum in Canneries, “ * * * Congress limited the right of review to an appeal from the decree which disposed of all matters, see Collins v. Miller, 252 U.S. 364, [40 S.Ct. 347, 64 L.Ed.

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Bluebook (online)
410 F.2d 662, 1969 U.S. App. LEXIS 12470, 1969 Trade Cas. (CCH) 72,787, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-cities-service-company-cities-service-oil-company-ca1-1969.