United States v. Parkinson

240 F.2d 918
Court of Appeals for the Ninth Circuit·Decided November 21, 1956·No. No. 15032·Published·Cited by 11 cases

Opinion

JAMES ALGER FEE, Circuit Judge.

This cause was brought at the instance of Food and Drug Administration, Department of Health, Education and Welfare, in the name of the United States of America against the individuals [919]*919named as defendants, praying that these latter be restrained from introducing into interstate commerce certain misbranded drugs and requiring defendants to make restitution to purchasers thereof, present and past. The claimed misbranding related to relief from male sexual weakness and impotence and to rapid sexual rejuvenation. A temporary restraining order was granted by the trial court and later extended. Subsequently, after the grant of preliminary injunction, there was entered a judgment by which defendants were permanently enjoined and restrained from doing acts in violation of § 301(a) of the Federal Food, Drug, and Cosmetic Act1 with respect to all these drugs enumerated, “or other similar drugs, or other drugs offered for similar purposes.” This portion of the judgment was entered by consent. There was also submitted to the court by stipulation the question whether restitution could be required. The trial court, pursuant to stipulation, divided this into two questions: (1) whether the court had power under the statute to order restitution; and (2) whether restitution would be ordered in this particular case.

It is difficult indeed to see how any relief could be granted in this case. The supposition is that there were purchasers because there were allegations in the complaint of sales in interstate commerce. But no purchaser was named as a party to the action. The United States did not sue as a representative of any purchaser. There is a suggestion in the prayer only that relief be granted by way of restitution. The body of the complaint contains no allegations upon which the suggestion could be supported. There was no evidence introduced either as to identity of purchasers or as to the amount of drugs unlawfully sold. No judgment could be entered for such refunds, if found in favor of the purchasers themselves, because none was a party to the proceeding. No judgment could be entered in their behalf in favor of the United States or the agency. But, besides such technical matters, it was demonstrated that the District Court had no jurisdiction to give such relief under the statute.

In a sound and able opinion, Hon. James M. Carter, United States District Judge, analyzed the problem, reviewed the statutes and determined that the particular enactment did not confer jurisdiction upon the United States District Courts to make such an order.2 With this opinion we agree, and the conclusions thereof we affirm. The jurisdiction of the District Court must be found in the language and implications of the particular statute.

It is agreed that the history and language of the laws for control of monopolization properly permit the application by the courts of orders requiring divestiture of properties of an existing monopolist in order to prevent the continuance of the evil.3 But the statute 4 under which such relief was granted was much broader in scope than the legislation under consideration, and further divestiture requires only that defendant sell the offending properties at a price, while in the instant case it is sought to force defendant, who has received a price for property which he sold on a free market, to refund such money to be held for a purchaser who paid it willingly. The courts construed [920]*920certain language of the Price Control Act5 to compel mandatory restitution.6 But this legislation was passed and interpreted in time of a struggle for national existence. These laws are now in abeyance and they constitute a doubtful precedent for the extension of enactments such as this which are intended to represent permanent policy in peaceful times as well. These wartime regulations were tremendously unpopular and were deemed arbitrary and oppressive when they were relegated to limbo.7 An attempt by the Administrator of the Wage and Hour Division to assert the power of collecting restitution was supported by various courts improvidently.8 The Congress rebuked this attempt and in effect repealed the supporting decisions by amending the basic act expressly to forbid collection of restitution by the agency.9 Since the Fair Labor Standards Act and the Food, Drug and Cosmetic Act were passed at the same time,10 an attempt to extend provisions of the latter statute might be similarly rebuked.11 This feature would not prevent a like construction if the language intendment and history of enforcement thereof convinced us it was a pleadable position. But a diametrically opposite conclusion is forced upon us by these factors.

The Congress granted three specific powers by this Act. The first was the power to bring criminal prosecutions for violations.12 The second permitted seizure of drugs proscribed in interstate [921]*921commerce.13 The third empowered the courts to restrain violations.14 Ordinarily, grant of such specific powers would be indicia of the denial of more extensive authority.

On account of the importance of the subject, it is necessary to deal with certain arguments made upon appeal.

There is insistently urged upon us the beneficent purposes of the agency, the necessity of protection of the public and the evils of exploitation of the unwary by fraudulent claims as to drugs the use of which may be harmful. Of course, these elements were the factors which motivated the enactment of the statute. Those who drafted the law and secured passage thereof were fully cognizant of the evils at which it was aimed. Unquestionably, there was a subsidiary purpose to protect the purses of the public and to prevent the vending of alleged remedies, which at best were useless, to fatten the pockets of the exploiter. The agents of the government bring forcibly to our attention our own opinion15 where the court rightly recognized the harm of permitting the introduction into commerce of drugs of this type. They further emphasize the persistence of the individual defendants here, notwithstanding criminal convictions, decrees of restraint and seizure of drugs, in finding new drugs to exploit by false advertising in order to reap a golden harvest for a short time.

But advertisements of nostrums for restoration of “Lost Manhood” have appeared in the daily newspapers for at least fifty years in the past. The drafters of the bill and those who engineered its adoption were cognizant of the persistence of those who desired to make money by such means.

The record of the past few decades is replete with examples of the tendency of executive agencies to expand their field of operations. A passion and a zeal to crusade affects their operations. Strong public opinion may temporarily encourage excesses in zeal. The enforcement of certain measures based upon worthy causes may induce violent reactions. Examples may be found in the enforcement of laws for prohibition of intoxicants and for the rationing of goods in war. These are warning signs that zeal for the noblest causes should not be translated into uncontrolled power of suppression of the contraries. The courts are charged with the duty of compelling restraint.

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United States v. Parkinson, 240 F.2d 918 (9th Cir. 1956).

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