Lukens Steel Co. v. Perkins
Opinion on the Merits
On the Merits.
In 1936, Congress enacted a statute
“That all persons employed by the contractor in the manufacture or furnishing of the materials, supplies, articles, or equipment used in the performance of the contract will be paid, without subsequent deduction or rebate on any account', not less than the minimum wages as determined by the Secretary of Labor to be the prevailing minimum wages for persons employed on similar work or in the particular or similar industries or groups of industries currently operating in the locality in which the materials, supplies, articles, or equipment are to be manufactured or furnished under said contract.” [Italics supplied]
The complaint filed by appellants in the lower court alleged that on or about January 16, 1939, appellee McLaughlin, purporting to act pursuant to the statute, issued a determination — in which appellee Perkins actively participated, and which she authorized, approved and consented to — determining :
“(2) That the prevailing minimum wages for persons employed in the manufacture or furnishing of the products of the Iron and Steel Industry are the amounts indicated for each of the following localities whether arrived at on a time or piece work basis:
% # :{* í{c H*
“6. 62% cents per hour in the locality consisting of Ohio, Pennsylvania, Delaware, Mary lane, Kentucky, New Jersey, New York, Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and Maine, and that portion of the State of West Virginia comprised within the counties of Hancock, Brooke, Ohio, Marshall, Harrison, and Monongalia, and the District of Columbia.” [Italics supplied]
This determination was challenged in the lower court, and is challenged here, as void, beyond the authority of the appellees Perkins and McLaughlin to make, arbitrary and capricious, and wholly without warrant or authority of law; particularly in its employment of the word locality to describe an area consisting of thirteen states, a portion of a fourteenth, and the District of Columbia as well. The challenge is well justified and the lower court erred in dismissing the complaint. The determination in this particular is not only unwarranted but incongruous.
It is true that the word locality is one of somewhat indefinite meaning.
Popular acceptance and usage accord to the word locality connotations of common interest and understanding, such as are revealed in the following expressions: Local self-government,
It is significant that appellees cite no cases which support or suggest a meaning for the word locality comparable in geo
It is vitally significant that Congress in its effort to deal with such industrial centers — rather than with civil subdivisions — did not use a word such as region or area, which might have been susceptible of the meaning for which appellees contend. It chose instead a word of limited meaning, long and well known to those acquainted with the American tradition. If: is a settled rule of statutory construction that Congress will be presumed to have used language in its usual significance and in accordance with common understanding.
Appellees contend that to attribute to the word locality a limited — i. e., its well settled — meaning would produce difficult and objectionable problems of administration. While this may be true, it constitutes ’ no reason for disregarding the clearly expressed intention of Congress. Administrative convenience and public interest may, under some circumstances, coincide. But it is not always so. Governmental functions may involve a multiplicity of administrative details. It would no doubt be much more convenient for the Postmaster General if a few large centers could be used for the collection and distribution of mail. But in that case, as in the present, Congress has spoken in terms of governmental service to be performed on a basis of localities; with all the administrative inconvenience which may follow the carrying out of its mandates. If the language used by Congress had been obscure, then the argument .of hardship and inconvenience might be persuasive. “But considerations of this nature can never sanction a construction at variance with the manifest meaning of the legislature, expressed in plain and unambiguous language.”
Again, appellees contend that their
The rule which appellees seek to apply, as revealed by the cases upon which they rely, relates to construction and practice of long standing,
The clearly expressed purpose of the statute is that the Secretary shall determine “the prevailing minimum wages for persons employed on similar work or in the particular or similar industries or groups of industries currently operating in the locality in which the materials, supplies, articles, or equipment are to be manufactured or furnished * * *”
Appellees contend that the present suit is in fact one against the United States; that the latter is an indispensable party which, not having given its consent, cannot be sued. It is true, as a general rule, that the United States is an indispensable party in certain suits in which the judgment or decree rendered may substantially affect its interests;
The jurisdiction of the lower court in the present case depended upon the allegations of the bill of complaint.
Appellees contend, also, that their actions are not subject to judicial review and restraint because the protested determination is not an order but a mere “finding” which does not command appellants to perform an act or refrain from performing an act; specifically, that no order — based upon such finding — has been issued “directing the Appellants or anyone else to bid upon Government contracts and to agree to pay the prescribed minimum wage.” This contention is without merit. No order was required to make the determination effective. By its own terms, it was made binding and effective upon all interested persons and agencies. Thus, it was expressly provided that the “determination shall be effective and the minimum wages hereby established for the respective localities shall apply to all contracts awarded subject to Public Act No. 846, 74th Congress, on or after January 31, 1939.” [Italics supplied]
While the decision thus rendered may not be an “order” in the sense that it does not command or enjoin action,
Neither is it necessary that special legislative authorization be found in order to permit use of injunction process. As the Supreme Court recently said: “We have held that the determination of the Commission is not an corder1 reviewable under the Urgent Deficiencies Act of October 22, 1913. Shannahan v. United States, supra [303 U.S. 596, 58 S.Ct. 732, 82 L.Ed. 1039]. But we have not held that the determination of the Commission was not subject to judicial review by other procedure, a question which, as we said in the Shannahan Case, we had no occasion there to consider. Id., [303 U.S.] at page 603, 58 S.Ct. 735 [82 L.Ed. 1039]. The nature of the determination points to the propriety of judicial review. * * * Equity jurisdiction may be invoked when it is essential to the protection of the rights asserted, even though the complainant seeks to enjoin the bringing of criminal actions.”
But appellees contend that appellants have no right which can be protected by injunction; that they are no better off in this respect than would be an ordinary taxpayer.
It is not denied that appellants have a general legal right to carry on their business free from unlawful restraints,
A person need not conduct business by mail, or import tea, or graze sheep, or migrate to the United States, unless he wishes to do so, but it is his right to do so, and if he does he can be subjected to any lawful limitation imposed by Congress. Similarly, a citizen need not bid for government contracts but it is his right to do so, and if he does he, too, can be subjected, similarly, to any lawful limitation imposed by Congress.
In the present case, as in the ones last cited, the complainants “had violated no law which Congress had passed”;
Appellees contend that appellants have failed to allege facts, which show that any injury is sufficiently impending and threatening to justify the exercise of equity jurisdiction. It appears from the complaint that appellants are engaged in the production and sale of products of the iron and steel industry, within the area of fourteen states and the District of Columbia determined by appellees to constitute a locality; that they employ common ■ laborers at wages ranging from 52% to 56%
(i) The plaintiffs will be deprived of their lawful right to bid on contracts for the manufacture or furnishing to any agency of the United States, including the executive . departments of which the heads thereof are defendants named herein, of any of the products of the Iron and Steel Industry (as defined in the Determination), free of limitations other than those imposed by Congress, and will be precluded from selling to any such agency any of such products, unless the plaintiffs shall agree, in each contract for the sale to any such agency of any such products in an amount in excess of $10,000, to pay the persons employed in the performance of such contract at the rate of wages specified in the Determination. The plaintiffs will be deprived of such right, and will be required so to agree, not by any statute of the United States or by any action lawfully taken thereunder by any officer or agent of the United States, but by reason of arbitrary and capricious acts of the defendants in excess of and without warrant of, but under color of, authority conferred upon them by law.
(ii) As heretofore shown herein, the bids on substantial contracts to be awarded by or under the authority of the defendant Swanson, on which contracts or parts thereof certain plaintiffs heretofore named desire to submit bids, are to be opened on or shortly after March 1, 1939. As also heretofore shown herein, numerous other valuable and important contracts will be let by or under the authority of defendants named herein within a relatively short time after March 1, 1939. If the plaintiffs should submit bids upon any such contract, and enter into any such contracts, which include stipulations or representations in terms or to the effect that the plaintiffs will pay to persons employed by the plaintiffs in the performance of such contracts the minimum wages set forth in the Determination, the plaintiffs would be in danger of being estopped, and counsel for the plaintiffs have advised the plaintiffs that a court might hold that they were estopped, to secure a judicial determination of the invalidity of the Determination. Moreover, the penalties provided in Sections 2 and 3 of the Act, 41 U.S.C.A. §§ 36, 37, for non-compliance with any such stipulation or representation would impose upon the plaintiffs the burden of obtaining a judicial decision of the question of the validity of the Determination only upon the condition that, if unsuccessful, the plaintiffs must pay excessive penalties, have their contracts subject to cancellation, and be precluded from obtaining the award of any public contract for three years, unless the Secretary of Labor otherwise recommends. Such penalties are so severe as in effect to close all approaches to the courts and deprive the plaintiffs of any adequate remedy at law in the premises.
(iii) As has heretofore been shown, the rates of pay for wage earners employed by the plaintiffs at other than common labor base rates of the respective plaintiffs for common labor are generally ascertained by adding various differentials to such common labor base rates, respectively, and an increase in such common labor base rates will, as a practical matter, necessarily result in an increase in the rates of pay for such other persons. Furthermore, it will be impracticable, in the case of any of the plaintiffs who enter into contracts with an agency of the United States requiring an increase in the base rate of pay for persons employed in a particular plant by such plaintiff in the performance of such contract, to fail correspondingly to increase the base rate of pay for other wage earners employed by such plaintiff on other matters in such plant.
(iv) If the plaintiffs are required to pay the minimum wages fixed in the Determination, there is grave danger that they will no longer be able successfully to compete for Government contracts since large, fully integrated companies enjoying more favorable geographic locations from the standpoint of proximity to sources of supply for the raw materials used by them,
These allegations sufficiently present every requisite to- the exercise of equity jurisdiction for the protection of the rights which appellants assert.
Appellees contend that the complaint should be dismissed because appellants have not exhausted their administrative remedy.
Appellants request also a judgment under the appropriate statute
The case is therefore remanded to the District Court, which is instructed to set aside and vacate its judgment dismissing the complaint, and is directed to proceed in accordance with the opinion of this court.
Reversed.
Public Contracts Act, June 30, 1936, 49 Stat. 2036, 41 U.S.C.A. § 35 et seq.
49 Stat. 2036, 41 U.S.C.A. § 35(b).
Connally v. General Construction Co., 269 U.S. 385, 394, 46 S.Ct. 126, 70 L.Ed. 322. See Murphy v. Worcester Consol. St. Ry., 199 Mass. 279, 287, 288, 85 N.E. 507, 510; Foster v. Hart Consol. Min. Co., 52 Colo. 429, 435, 122 P. 54, 55.
State v. Tibbetts, 21 Okl.Cr. 168, 205 P. 776, 779.
Wilbur v. United States ex rel. Kadrie, 281 U.S. 206, 219, 50 S.Ct. 320, 74 L.Ed. 809; Work v. United States ex rel. Rives, 267 U.S. 175, 177, 45 S.Ct. 252, 69 L.Ed. 561; United States ex rel. Dunlap v. Black, 128 U.S. 40, 48, 9 S.Ct. 12, 32 L.Ed. 354; United States ex rel. Hall v. Payne, 254 U.S. 343, 41 S.Ct. 131, 65 L.Ed. 295; United States ex rel. White v. Coe, 68 App.D.C. 218, 220, 95 F.2d 347, 349.
Red Canyon Sheep Co. v. Ickes, 69 App.D.C. 27, 41, 98 F.2d 308, 322. See Santa Fé Pacific R. Co. v. Lane, 244 U.S. 492, 37 S.Ct. 714, 61 L.Ed. 1275; Waite v. Macy, 246 U.S. 606; Proctor & Gamble Co. v. Coe, 68 App.D.C. 246, 96 F.2d 518, certiorari denied 305 U.S. 604, 59 S.Ct. 65, 83 L.Ed. 384.
Rathbone v. Wirth, 6 App.Div. 277, 290, 40 N.Y.S. 535, 542.
Little Rock v. North Little Rock, 72 Ark. 195, 204, 79 S.W. 785, 788.
People v. Capelli, 55 Cal.App. 461, 463, 203 P. 837, 838; State ex rel. Hoover v. Hickerson, 130 Mo.App. 47, 50, 109 S.W. 108, 109.
See also: Local administration (Workman v. Mayor, D.C.S.D.N.Y., 63 F. 298, 304); local affairs (Brooklyn City R. Co. v. Whalen, 191 App.Div. 737, 740, 182 N.Y.S. 283, 285); local authorities (In re Rochester Electric Ry. Co., 123 N.Y. 351, 356, 25 N.E. 381, 382); local benefits (Rankin v. Yoran, 72 Or. 224, 230, 143 P. 894, 896); local commercial broker (Stratford v. City Council of Montgomery, 110 Ala. 619, 625, 20 So. 127, 128); local drainage (Ford v. Toledo, 64 Ohio St. 92, 97, 59 N.E. 779, 781); local habitation (Greenlee v. Marks, 62 Ind. 418, 420); local officer (People ex rel. Baird v. Nixon, 158 N.Y. 221, 227, 52 N.E. 1117, 1118); local police (State ex rel. Walsh v. Hine, 59 Conn. 50, 60, 21 A. 1024, 1025, 10 L.R.A. 83); local property (San Francisco & S. J. V. R. Co. v. Stockton, 149 Cal. 83, 90, 84 P. 771, 774); local purpose (State ex rel. Adsit v. Allen, 1 Lans., N.Y., 248, 251); local freight (Murphy v. Worcester Consol. St. Ry., 199 Mass. 279, 287, 85 N.E. 507, 510).
St. Louis Smelting & Refining Co. v. Kemp, 104 U.S. 636, 649, 26 L.Ed. 875.
Connally v. General Construction Co., 269 U.S. 385, 394, 395, 46 S.Ct. 126, 70 L.Ed. 322; State v. Tibbetts, 21 Okl. Cr. 168, 205 P. 776, 779.
Connally v. General Construction Co., 269 U.S. 385, 395, 46 S.Ct. 126, 70 L.Ed. 322.
2 Cooley’s Bl. Comm., 4th Ed. 1899, 1491 (Book IV) *350: “When, therefore, a prisoner on his arraignment has pleaded not guilty, and for his trial hath put himself upon the country, which country the jury are, the sheriff of the county must return a panel of jurors, Uteros et legales homines, de vicineto: that is, freeholders, without just exception, and of the •cisne or neighborhood; which is interpreted to be of the county where the fact is committed.” Chicago v. Knobel, 232 Ill. 112, 114, 83 N.E. 459, 460: “ * * * under the common law, in both civil and criminal cases, the jury were to be taken from the •cisne or neighborhood — from among the neighbors and equals of the litigants or the accused — and by long usage this came to mean from the body of the county”; Commonwealth v. Collins, 268 Pa. 295, 300, 110 A. 738, 739. See Callan v. Wilson, 127 U.S. 540, 549, 8 S.Ct. 1301, 32 L.Ed. 223; Clement v. United States, 8 Cir., 149 F. 305, 310, certiorari denied 206 U.S. 562, 27 S.Ct. 795, 51 L.Ed. 1189; Spencer v. United States, 8 Cir., 169 F. 562, 565.
Holmes, The Common Law (1881) 41: “The first requirement of a sound body of law is, that it should correspond with the actual feelings and demands of the community, whether right or wrong.” [Italics supplied]
Appointed by the Secretary of Labor, October 6, 1936.
Ickes v. Fox, 300 U.S. 82, 96, 57 S.Ct. 412, 81 L.Ed. 525; Ickes v. Virginia-Colorado Development Corp., 295 U.S. 639, 646, 55 S.Ct. 888, 79 L.Ed. 1627; National Remedy Co. v. Hyde, 60 App.D.C. 252, 253, 50 F.2d 1066, 1067.
Equally revealing are the following apparently inadvertent uses of the word locality and its variants, which appear in the Report: “No particular locale marks out the location of the plants paying the base rates from 50 to 55 cents. These rates, are found in localities eastward from Marion, Ohio into New England. * * * Turning now to the subject of geographical location we refer back to the table on pages 79 and 84 for a detailed listing by location of the plants in which the base rates above 54 cents are paid. It will be found that the base rates are paid in the following locations: 55.0 — -New England; near Buffalo; central Ohio and Indiana; Kansas City and St. Louis, Missouri. 56.0 — Kentucky; West Virginia; Phiadelphia; western Illinois. 56.25 — Central Ohio. 56.5 — Sparrows Point, Maryland ; Philadelphia vicinity; eastern and central Pennsylvania; northern New Jersey; Syracuse, New York; central Ohio; St. Louis vicinity. 57.0 — Philadelphia and vicinity; eastern Pennsylvania; northern New Jersey; New England. 58.0 — California; New England. 58.5 — Johnstown, Pennsylvania; central Ohio; St. Louis vicinity. 59.5 — Buffalo and vicinity; Philadelphia; central Indiana ; Chicago vicinity. 60.0 — Pittsburgh vicinity; Buffalo vicinity; Duluth; Minnesota; central Indiana; Chicago vicinity; Colorado; Utah; California; Washington. 60.5 — Central Ohio. 62.5 —Chicago and vicinity; Gary and vicinity; Michigan; central Ohio; Kentucky; Cleveland and vicinity; Youngstown and vicinity; Pittsburgh and vicinity; West Virginia; New Jersey; New England. 63.0 — Michigan. 63.5— Pittsburgh. 65.0 — California; Michigan. 70.0 — Michigan. It will be observed that none of the rates is paid exclusively in any one geographic area except in the few instances where there is only a single plant paying one of the rates. The summary of plant location in connection with the base rates shows that, each of the outstanding base rates is. paid by plants spread across the Middle-West and the East. For instance, 56.5, 58.5, 59.5, and 62.5 cents are paid in plants located in the Middle West and east of Pittsburgh. The Western plants are represented in the scale by the base rates of 58, 60, and 65 cents. These rates are also paid in the Middle West and east of Pittsburgh. While it is apparent that no portion of the wage scale can be assigned exclusively to New England, or east of Pittsburgh, or the Middle West or the West, it is a fact that in a good many localities and areas over the breadth of the country one or another of the base rates is paid to more workers than is any of the other rates. The industry is spread between the four corners of the country. The geographic limits of the industry are as wide apart as Portland, Maine; Seattle, Washington; Duluth, Minnesota; and Fort Worth, Texas. There are plants in 30 states and every section of the country has a share in the production of iron,.
Act of March 3, 1931, 46 Stat. 1494, as amended by Act of August 30, 1935, 49 Stat. 1011, 40 U.S.C.A. § 276a.
United States v. Wurts, 303 U.S. 414, 417, 58 S.Ct. 637, 82 L.Ed. 932; Old Colony Trust Co. v. Commissioner of Internal Revenue, 301 U.S. 379, 383, 57 S.Ct. 813, 81 L.Ed. 1169; De Ganay v. Lederer, 250 U.S. 376, 381, 39 S.Ct. 524, 63 L.Ed. 1042; Union Pacific R. Co. v. Hall, 91 U.S. 343, 347, 23 L.Ed. 428; Caminetti v. United States, 242 U.S. 470, 485, 486, 37 S.Ct. 192, 61 L.Ed. 442, L.R.A.1917F, 502, Ann.Cas. 1917B, 1168.
Evans v. Jordan and Morehead, 9 Cranch, U.S., 199, 203, 3 L.Ed. 704. See United States v. Fisher, 2 Cranch, U.S., 358, 386, 2 L.Ed. 304; Crooks v. Harrelson, 282 U.S. 55, 60, 51 S.Ct. 49, 75 L.Ed. 156.
Caminetti v. United States, 242 U.S. 470, 485, 37 S.Ct. 192, 61 L.Ed. 442,
Swendig v. Washington Water Power Co., 265 U.S. 322, 331, 44 S.Ct. 496, 68 L.Ed. 1036; Wisconsin v. Illinois, 278 U.S. 367, 413, 49 S.Ct. 163, 73 L.Ed. 426 (thirty years).
Brewster v. Gage, 280 U.S. 327, 336, 337, 50 S.Ct. 115, 74 L.Ed. 457.
Wisconsin v. Illinois, 278 U.S. 367, 414, 49 S.Ct. 163, 73 L.Ed. 426.
Armstrong Paint & Varnish Works v. Nu-Enamel Corp., 305 U.S. 315, 329, 59 S.Ct. 191, 83 L.Ed. 195 (opinion of Patent Office); Wisconsin v. Illinois, 278 U.S. 367, 49 S.Ct. 163, 73 L.Ed. 426 (opinion of Attorney General).
Wisconsin v. Illinois, 278 U.S. 367, 49 S.Ct. 163, 73 L.Ed. 426.
United States v. Shreveport Grain & Elevator Co., 287 U.S. 77, 84, 53 S.Ct. 42, 77 L.Ed. 175; Santa Fé Pacific R. v. Lane, 244 U.S. 492, 496, 37 S.Ct. 714, 61 L.Ed. 1275.
Houghton v. Payne, 194 U.S. 88, 100, 24 S.Ct. 590, 593, 48 L.Ed. 888; Armstrong Paint & Varnish Works v. Nu-Enamel Corp., 305 U.S. 315, 330, 331, 59 S.Ct. 191, 83 L.Ed. 195; Brewster v. Gage, 280 U.S. 327, 336, 50 S.Ct. 115, 74 L.Ed. 457; Swendig v. Washington Water Power Co., 265 U.S. 322, 331, 44 S.Ct. 496, 68 L.Ed. 1036; Louisville & Nashville R. Co. v. United States, 282 U.S. 740, 757, 759, 51 S.Ct. 297, 75 L.Ed. 672; Texas & Pacific R. Co. v. United States, 289 U.S. 627, 640, 53 S.Ct. 768, 77 L.Ed. 1410; United States v. Tanner, 147 U.S. 661, 13 S.Ct. 436, 37 L.Ed. 321.
49 Stat. 2036, 41 U.S.C.A. § 35(b).
See Webster v. Luther, 163 U.S. 331, 342, 16 S.Ct. 963, 41 L.Ed. 179.
Wright v. Vinton Branch, 300 U.S. 440, 463, 57 S.Ct. 556, 81 L.Ed. 736, 112 A.L.R. 1455, and cases there cited in note 8.
Extracts from Congressional Record, Vol. 80, Part 9, 74th Cong., 2d Sess.:
(Page 9992.)
(Page 9993.)
“Mr. Greenwood. This bill provides that they shall pay the prevailing wages in the community where the work is performed; so the bill takes care of the very proposition of which the gentleman speaks.”
(Page 10008.)
“Mr. Citron. The bill before us is in substance an extension of the Bacon-Davis Act to all Government purchases amounting to over $10,000.
*******
“The bill merely provides that the Government shall have the right to refuse the bids on all purchases over $10,000 to those * * * (4) who pay less than the prevailing rate of wages in their community, * • *."
The original bill introduced by Congressman Healey (H.R. 11554, 74th Cong., 2d Sess.) contained the following language: “ • * * minimum wages fixed under this Act shall be such wages as are fairly and reasonably commensurate with the value of the service or class of service rendered.” This language, however, was omitted from the bill as enacted. The reason therefor appears clearly from the statements of the managers on ifche floor of the House as follows:
(80 Cong.Rec. 10003.)
“Mr. Healey. That is an administrative problem. As I view it, the prevailing wage is already a fact which already exists. The Secretary’s duty is simply to inquire and ascertain what that prevailing wage is.”
(80 Cong.Rec. 10004.)
“Mr. Walter. * * * If there is any grave difference of opinion with respect to any portion of this bill it certainly comes with respect to the possibility, if you please, of the Secretary of Labor fixing wages. There is no Member of this House any more opposed to that idea than I am. I say to you frankly that I would not have voted to report such a bill, but there is nothing in this measure that gives to anyone in any executive branch any authority to fix wages. We have had no difficulty in determining what the prevailing rates of wages are under the Baeon-Davis Act. It has been a comparatively simple matter to go into each community in which Government buildings are being ‘ constructed, and determine what every particular artisan is paid in that community. The problem is the same here.”
Transcontinental & Western Air, Inc., v. Farley, 2 Cir., 71 F.2d 288, 290, certiorari denied 293 U.S. 603, 55 S.Ct. 119, 79 L.Ed. 695. See United States ex rel. Goldberg v. Daniels, 231 U.S. 218, 34 S.Ct. 84, 58 L.Ed. 191; Louisiana v. McAdoo, 234 U.S. 627, 34 S.Ct. 938, 58 L.Ed. 1506; Morrison, Jr., v. Work, 266 U.S. 481, 485, 486, 45 S.Ct. 149, 69 L.Ed. 394; Wells v. Roper, 246 U.S. 335, 337, 38 S.Ct. 317, 62 L.Ed. 755; International Postal Supply Co. v. Bruce, 194 U.S. 601, 24 S.Ct. 820, 48 L.Ed. 1134; Belknap v. Schild, 161 U.S. 10, 16 S.Ct. 443, 40 L.Ed. 599. See also, Adams v. Nagle, 303 U.S. 532, 540, 541, 542, 58 S.Ct. 687, 82 L.Ed. 999; United States ex rel. Riverside Oil Co. v. Hitchcock, 190 U.S. 316, 325, 23 S.Ct. 698, 47 L.Ed. 1074.
See Scheer v. Moody, D.C.D.Mont., 48 F.2d 327, 330, reversed on other grounds, 9 Cir., 66 F.2d 1004.
Bradley v. Fisher, 13 Wall, U.S., 335, 351, 352, 20 L.Ed. 646. See Cooper v. O’Connor, 69 App.D.C. 100, 102, 103, 99 F.2d 135, 137, 138, 118 A.L.R. 1440, certiorari denied 305 U.S. 643, 59 S.Ct. 146, 83 L.Ed. 414. Cf. Johnson v. Lankford, 245 U.S. 541, 38 S.Ct. 203, 62 L.Ed. 460.
Ickes v. Fox, 300 U.S. 82, 97, 57 S.Ct. 412, 81 L.Ed. 525; American School of Magnetic Healing v. McAnnulty, 187 U.S. 94, 23 S.Ct. 33, 47 L.Ed. 90; Waite v. Macy, 246 U.S. 606, 38 S.Ct. 395, 62 L.Ed. 892; Gegiow v. Uhl, 239 U.S. 3, 36 S.Ct. 2, 60 L.Ed. 114 (habeas corpus); Philadelphia Co. v. Stimson, 223 U.S. 605, 620, 32 S.Ct. 340, 56 L.Ed. 570; Goltra v. Weeks, 271 U.S. 536, 545, 46 S.Ct. 613, 70 L.Ed. 1074; Adams v. Nagle, 303 U.S. 532, 541, 542, 58 S.Ct. 687, 82 L.Ed. 999; Colorado v. Toll, 268 U.S. 228, 230, 45 S.Ct. 505, 69 L.Ed. 927; Lane v. Watts, 234 U.S. 525, 540, 34 S.Ct. 965, 58 L.Ed. 1440; Proctor & Gamble Co. v. Coe, 68 App.D.C. 246, 249, 250, 96 F.2d 518, 521, 522, certiorari denied, 305 U.S. 604, 59 S.Ct. 65, 83 L.Ed. 384:
“The following tests have been used to uphold the exercise of judicial restraint upon executive action under valid laws: (1) Where an officer, insisting that he has the warrant of the statute, is transcending its bounds, and thus unlawfully assuming to exercise the power of government (Philadelphia Co. v. Stimson, supra [223 U.S. 605, 32 S.Ct. 340, 56 L.Ed. 570]); (2) where an officer attempts to enlarge his power, or to usurp power (Waite v. Macy, supra [246 U.S. 606, 38 S.Ct. 395, 62 L.Ed. 892]); or (3) where his act is based upon a clear mistake of law (American School of Magnetic Healing v. McAnnulty, 187 U.S. 94, 109, 110, 23 S.Ct. 33, 47 L.Ed. 90); (4) where the action of the officer or administrative body is clearly beyond its power- and in violation of the statute (Interstate Commerce Commission v. Northern Pacific R. Co., 216 U.S. 538, 30 S.Ct. 417, 54 L.Ed. 608. See Lane v. Watts, 234 U.S. 525, 540, 34 S.Ct. 965, 58 L.Ed. 1440; Santa Fé Pacific R. Co. v. Lane, 244 U.S. 492, 497, 37 S.Ct. 714, 61 L.Ed. 1275); (5) where an officer has acted, or threatens to act, in a capricious and arbitrary manner (Commercial Solvents Corp. v. Mellon, 51 App.D.C. 146, 277 F. 548, 550, and cases there cited); (6) where the act of the officer, ‘under any view that could be taken of the facts that were laid before him, was ultra vires, and beyond the scope of his authority (and) he has no power at all to do the act complained of, he is as much subject to an injunction as he would be to a mandamus if he refused to do an act which the law plainly required him to do.’ Noble v. Union River Logging R. Co., 147 U.S. 165, 171, 172, 13 S.Ct. 271, 273, 37 L.Ed. 123; Board of Liquidation v. McComb, 92 U.S. 531, 541, 23 L.Ed. 623.”
Goltra v. Weeks, 271 U.S. 536, 544, 46 S.Ct. 613, 70 L.Ed. 1074. See Ryan v. Chicago, B. & Q. R. Co., 7 Cir., 59 F.2d 137, 144, 145; Haskins Bros. & Co. v. Morgenthau, 66 App.D.C. 178, 185, 85 F.2d 677, 684, certiorari denied, 299 U.S. 588, 57 S.Ct. 118, 81 L.Ed. 433. See also, Allen v. Regents, 304 U.S. 439, 444, 58 S.Ct. 980, 82 L.Ed. 1448.
Utah Fuel Co. v. National Bituminous Coal Comm., 306 U.S. 56, 60, 59 S.Ct. 409, 83 L.Ed. 483; Johnson v. Lankford, 245 U.S. 541, 38 S.Ct. 203, 62 L.Ed. 460.
Philadelphia Co. v. Stimson, 223 U.S. 605, 620, 32 S.Ct. 340, 56 L.Ed. 570; Ickes v. Fox, 300 U.S. 82, 97, 57 S.Ct. 412, 81 L.Ed. 525; Payne v. Central Pacific Ry., 255 U.S. 228, 236, 41 S.Ct. 314, 65 L.Ed. 598; Franklin Tp. v. Tugwell, 66 App.D.C. 42, 46, 85 F.2d 208, 212.
See American School of Magnetic Healing v. McAnnulty, 187 U.S. 94, 109, 110, 23 S.Ct. 33, 39, 47 L.Ed. 90: “The facts, which are here admitted of record, show that the case is not one which by any construction of those facts is covered or provided for by the statutes under which the Postmaster General has assumed to act, and his determination that those admitted facts do authorize his action is a clear mistake of law as applied to the admitted facts, and the courts, therefore, must have power in a proper proceeding to grant relief. Otherwise, the individual is left to the absolutely uncontrolled and arbitrary action of a public and administrative officer, whose action is unau
246 U.S. 335, 337, 338, 38 S.Ct. 317, 62 L.Ed. 755: “But the averments of the bill make it clear that defendant was without personal interest and was acting solely in his official capacity and within the scope of his duties. Indeed, it was only because of his official authority that plaintiff’s interests were at all endangered by what he proposed to do. * '• * And the case does not fall within any of the exceptions to the general rule that the United States may not be sued without its consent, nor its ■executive agents subjected to the control of the courts respecting the performance of their official duties. It cannot successfully be contended that any question of defendant’s official authority is involved; it is a mere question of action alleged to be inconsistent with the stipulation under which it purported to be taken; * * [Italics supplied],
Work v. United States ex rel. Rives, 267 U.S. 175, 177, 178, 45 S.Ct. 252, 69 L.Ed. 561; United States ex rel. Goldberg v. Daniels, 231 U.S. 218, 221, 34 S.Ct. 84, 58 L.Ed. 191.
266 U.S. 481, 486, 45 S.Ct. 149, 151, 69 L.Ed. 394: “The case at bar is unlike those in which relief by injunction has been granted against the head of an executive department, or other officer, of the government to enjoin an official act on the ground that it was not within the authority conferred, or that it was an improper exercise of such authority, or that Congress lacked the power to. confer the authority exercised.”
2 Cir., 71 F.2d 288, 291, certiorari denied, 293 U.S. 603, 55 S.Ct. 119, 79 L.Ed. 695: “The courts will * * * enjoin acts such as trespass, a step taken beyond the scope of statutory authority or jurisdiction of executive officers, but they will not interfere with matters intrusted by Congress to the discretion of the heads of executive departments of the government.” [Italics supplied]
See Adams v. Nagle, 303 U.S. 532, 542, 543, 58 S.Ct. 687, 693, 82 L.Ed. 999.
Philadelphia Co. v. Stimson, 223 U.S. 605, 620, 32 S.Ct. 340, 344, 56 L.Ed. 570; Goltra v. Weeks, 271 U.S. 536, 545, 46 S.Ct. 613, 70 L.Ed. 1074. See also, Truax v. Raich, 239 U.S. 33, 37, 36 S.Ct. 7, 60 L.Ed. 131, L.R.A.1916D, 545, Ann.Cas.1917B, 283.
The effective date was postponed until March 1, 1939.
Shannahan v. United States, 303 U.S. 596, 58 S.Ct. 732, 82 L.Ed. 1039; American Federation of Labor v. National Labor Relations Board, 70 App.D.C. 62, 103 F.2d 933, certiorari granted 60 S.Ct. 176, 84 L.Ed. —. Cf. Rochester Telephone Corp. v. United States, 307 U.S. 125, 59 S.Ct. 754, 83 L.Ed. 1147.
American School of Magnetic Healing v. McAnnulty, 187 U.S. 94, 23 S.Ct. 33, 47 L.Ed. 90.
246 U.S. 606, 608, 609, 38 S.Ct. 395, 396, 62 L.Ed. 892: “No doubt it is true that this Court cannot displace the judgment of the board in any matter within its jurisdiction, but it is equally true that the board cannot enlarge the powers given to it by statute and cover a usurpation by calling it a decision on purity, quality or fitness for consumption. Morrill v. Jones, 106 U.S. 466, 1 S.Ct. 423, 27 L.Ed. 267. United States v. United Verde Copper Co., 196 U.S. 207, 215, 25 S.Ct. 222, 49 L.Ed. 449. United States v. George, 228 U.S. 14, 21, 33 S.Ct. 412, 57 L.Ed. 712. Again, it is true that Courts will not issue injunctions against administrative officers on the mere apprehension that they will not do their duty or will not follow the law. First National Bank of Albuquerque v. Albright, 208 U.S. 548, 28 S.Ct. 349, 52 L.Ed. 614. But in this case the superior of the appellants had promulgated a rule for them to follow which is alleged to be beyond the power of the Secretary to make. It is said that the appellants are independent of the Secretary and that it is to be presumed that they will decide according to law, as they say in their answer. But if the avoidance of a direct statement as to their intent did not of itself warrant a presumption that they would obey orders, the admissions of their counsel were enough to make their intent to do so plain.”
306 U.S. 56, 59 S.Ct. 409, 83 L.Ed. 483.
Shields v. Utah Idaho Central R. R., 305 U.S. 177, 182, 183, 59 S.Ct. 160, 163, 83 L.Ed. 111; Utah Fuel Co. v. National Bituminous Coal Comm., 308 U.S. 56, 59, 60, 59 S.Ct. 409, 83 L.Ed. 483; American Federation of Labor v. National Labor Relations Board, 70 App.D.C. 62, 103 F.2d 933, certiorari granted, 60 S.Ct. 176, 84 L.Ed. —. See Philadelphia Co. v. Stimson, 223 U.S. 605, 621, 622, 32 S.Ct. 340, 56 L.Ed. 570; Truax v. Raich, 239 U.S. 33, 37, 38, 36 S.Ct. 7, 60 L.Ed. 131, L.R.A.1916D, 545, Ann.Cas.1917B, 283; Terrace v. Thompson, 263 U.S. 197, 214, 44 S.Ct. 15, 68 L.Ed. 255; Proctor & Gamble Co. v. Coe, 68 App.D.C. 246, 96 F.2d 518, certiorari denied, 305 U.S. 604, 59 S.Ct. 65, 83 L.Ed. 384, and authorities there cited.
See O’Brien v. Carney, D.C.D.Mass., 6 F.Supp. 761, 762.
306 U.S. 118, 137, 138, 59 S.Ct. 366, 369, 83 L.Ed. 543.
This list should be extended to include rights founded on constitutions or treaties which confer privileges. See Asakura v. Scattle, 265 U.S. 332, 44 S.Ct. 515, 68 L.Ed. 1041.
American School of Magnetic Healing v. McAnnulty, 187 U.S. 94, 23 S.Ct. 33, 47 L.Ed. 90; Scully v. Bird, 209 U. S. 481, 489, 28 S.Ct. 597, 52 L.Ed. 899; Philadelphia Co. v. Stimson, 223 U.S. 605, 620, 621, 32 S.Ct. 340, 56 L.Ed. 570; Lane v. Watts, 234 U.S. 525, 540, 34 S.Ct. 965, 58 L.Ed. 1440.
See International News Service v. Associated Press, 248 U.S. 215, 236, 39 S.Ct. 68, 63 L.Ed. 211, 2 A.L.R. 293; Red Canyon Sheep Co. v. Ickes, 69 App.D.C. 27, 36, 98 F.2d 308, 317: “ * * * the right to carry on a business without illegal interference causing irreparable damage is the subject of equitable protection by injunction.” See also, Louis Kamm, Inc., v. Flink, 113 N.J.L. 582, 586-590, 175 A. 62, 66, 67; Godin v. Niebuhr, 236 Mass. 350, 351, 128 N.E. 406, 407.
See 38 Op.Atty.Gen. (1937) 555, 558: “It is well established that the invitation for bids on a Government contract must be such as to permit full and free competition, * * *
See Godin v. Niebuhr, 236 Mass. 350, 128 N.E. 406; 2 Cooley, Torts, 4th Ed., 1932, § 230. Cf. Hitchman Coal & Coke Co. v. Mitchell, 245 U.S. 229, 252, 38 S.Ct. 65, 62 L.Ed. 280, L.R.A.1918C, 497, Ann.Cas.1918B, 461.
Great A. & P. Tea Co. v. Cream of Wheat Co., 2 Cir., 227 F. 46. Compare the situation when one of the parties has a monopoly. Eastman Kodak Co. v. Southern Photo Materials Co., 273 U.S. 359, 47 S.Ct. 400, 71 L.Ed. 684.
38 Op.Atty.Gen. (1937) 555, 557.
187 U.S. 94, 23 S.Ct. 33, 47 L.Ed. 90.
239 U.S. 3, 36 S.Ct. 2, 60 L.Ed. 114.
246 U.S. 606, 38 S.Ct. 395, 62 L.Ed. 892.
Ellis v. United States, 206 U.S. 246, 27 S.Ct. 600, 51 L.Ed. 1047, 11 Ann.Cas. 589; Stephenson v. Binford, 287 U.S. 251, 275, 276, 53 S.Ct. 181, 77 L.Ed. 288, 87 A.L.R. 721; Atkin v. Kansas, 191 U.S. 207, 222, 223, 24 S.Ct. 124, 48 L.Ed. 148; Heim v. McCall, 239 U.S. 175, 191, 36 S.Ct. 78, 60 L.Ed. 206, Ann.Cas.1917B, 287.
Gegiow v. Uhl, 239 U.S. 3, 9, 36 S.Ct. 2, 60 L.Ed. 114.
American School of Magnetic Healing v. McAnnulty, 187 U.S. 94, 110, 23 S.Ct. 33, 39, 47 L.Ed. 90.
Ibid. The principle enunciated in the McAnnulty case has been approved on numerous occasions by the Supreme and Federal courts. Morrison, Jr., v. Work, 266 U.S. 481, 45 S.Ct. 149, 69 L.Ed. 394; Transcontinental & Western Air, Inc., v. Farley, 2 Cir., 71 F.2d 288, 291, certiorari denied, 293 U.S. 603, 55 S.Ct. 119, 79 L.Ed. 695; United States ex rel. Riverside Oil Co. v. Hitchcock, 190 U.S. 316, 325, 23 S.Ct. 698, 47 L.Ed. 1074; Goltra v. Weeks, 271 U.S. 536, 545, 46 S.Ct. 613, 70 L.Ed. 1074; Tennessee Electric Power Co. v. Tennessee Valley Authority, 306 U.S. 118, 137, 138, 59 S.Ct. 366, 83 L.Ed. 543.
See Shields v. Utah Idaho Central R. R., 305 U.S. 177, 183, 59 S.Ct. 160, 83 L.Ed. 111; Utah Fuel Co. v. National Bituminous Coal Comm., 306 U.S. 56, 59 S.Ct. 409, 83 L.Ed. 483.
Section 2 of the statute provides that any breach of this stipulation shall render the contracting party liable to the United States for liquidated damages, including a sum equal to the amount of any deductions, rebates, refunds or underpayment of wages due to any employee engaged in the performance of the contract, and, in addition, shall render the contract subject to cancellation. Section 3 directs the Comptroller General to distribute a list to all government agencies containing the names of persons found to have breached any such representations or stipulations and, unless otherwise recommended by the Secretary of Labor, such persons may not be awarded a government contract for a period of three years. 49 Stat. 2037, 41 U.S.C.A. §§ 36, 37. See Ex parte Young, 209 U.S. 123, 145 et seq., 28 S.Ct. 441, 52 L.Ed. 714, 13 L.R.A.,N.S., 932, 14 Ann.Cas. 764; Philadelphia Co. v. Stimson, 223 U.S. 605, 622, 32 S.Ct. 340, 56 L.Ed. 570; National Remedy Co. v. Hyde, 60 App.D.C. 252, 254, 50 F.2d 1066, 1068; Terrace v. Thompson, 263 U.S. 197, 215, 216, 44 S.Ct. 15, 68 L.Ed. 255; Petroleum Exploration, Inc., v. Public Service Comm., 304 U.S. 209, 218-220, 58 S.Ct. 834, 82 L.Ed. 1294.
Myers v. Bethlehem Shipbuilding Corp., 303 U.S. 41, 50-51, 58 S.Ct. 459, 82 L.Ed. 638; Red River Broadcasting Co., Inc., v. Federal Communications Comm., 69 App.D.C. 1, 3, 98 F.2d 282, 284, certiorari denied, 305 U.S. 625, 59 S.Ct. 86, 83 L.Ed. 400: “However, it is a well-settled rule of judicial administration that no one is entitled to judicial relief until he has exhausted all prescribed, applicable, administrative remedies.” [Italics supplied] Cf. Mallory Coal Co. v. National Bituminous Coal Comm., 69 App.D.C. 166, 174, 99 F.2d 399, 407.
Declaratory Judgment Act, Jud. Code § 274d, 28 U.S.C.A. § 400.
Ætna Life Ins. Co. v. Haworth, 300 U.S. 227, 239-241, 57 S.Ct. 461, 81 L.Ed. 617, 108 A.L.R. 1000; Ashwander v. Tennessee Valley Authority, 297 U.S. 288, 325, 56 S.Ct. 466, 80 L.Ed. 688; United States v. West Virginia, 295 U.
Ætna Life Ins. Co. v. Haworth, 300 U.S. 227, 241, 57 S.Ct. 461. 464. 81 L.Ed. 617, 108 A.L.R. 1000: “And as it is not essential to the exercise of the judicial power that an injunction be sought, allegations that irreparable injury is threatened are not required.”; Nashville, Chattanooga & St. Louis Ry. v. Wallace, 288 U.S. 249, 264, 53 S.Ct. 345, 77 L.Ed. 730, 87 A.L.R. 1191.
Stephenson v. Equitable Life Assur. Soc., 4 Cir., 92 F.2d 406; Wallace v. Currin, 4 Cir., 95 F.2d 856, 861, affirmed 306 U.S. 1, 59 S.Ct. 379, 83 L.Ed. 441.
Opinion of the Court
This cause was specially set down for argument on the appellants’ (plaintiffs’) petition for an injunction against the above named appellees (defendants) restraining them from continuing in effect a determination made under date .-of January 16, 1939, by appellee McLaughlin, as Acting Secretary of Labor, pursuant to “An Act To provide conditions for the purchase of supplies and the making of contracts by the United States, and for other purposes.”, approved June 30, 1936, 49 Stat. 2036, 41 U.S.C.A. § 35 et seq. We had previously granted an injunction pendente lite, which will be continued in effect.
The case was fully argued at the hearing and has been given due consideration. Justices MILLER and VINSON are of opinion that the complaint states a valid cause of action entitling the plaintiffs to an injunction as prayed therein and, therefore, are of opinion that the District Court was in error in dismissing the complaint. The grounds of this court’s opinion will be filed shortly, and Justice EDGERTON will file a dissenting opinion. A judgment will thereupon be entered remanding the cause to the District Court, with instructions to set aside and vacate its previous order dismissing the complaint, and directing that court to proceed in accordance with the opinion of this court.
Dissenting Opinion
(dissenting) .
The first section of the Act of June 30, 1936, sometimes called the Public Contracts Act, 41 U.S.C.A. § 35, requires “in any contract made and entered into by any executive department, independent establishment, or other agency or instrumentality of the United States * * * for the manufacture or furnishing of materials, supplies, articles, and equipment in any amount exceeding $10,000,” a stipulation “that all persons employed by the contractor in the manufacture or furnishing of the materials, supplies, articles, or equipment used in the performance of the contract will be paid * * * not less than the minimum wages as determined by the Secretary of Labor to be the prevailing minimum wages for persons employed on similar work or in the particular or similar industries or groups of industries currently operating in the locality in which the materials, supplies, articles, or equipment are to be manufactured or furnished under said contract.” With respect to minimum wages in the iron and steel industry, the Secretary of Labor has divided the United States into six “localities.” One “locality” comprises Ohio, Pennsylvania, Delaware, Maryland, Kentucky, New Jersey, New York, Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and Maine, part of West Virginia, and the District of Columbia. The Secretary has determined the prevailing minimum wage in iron and steel, In that locality, to be 62% cents per hour. This minimum prevails in the Pittsburgh and Youngstown districts, where the great bulk of the steel production in the entire area is concentrated; but there are many plants east of the Pittsburgh district, and very few of these pay as much as 62% cents for common labor. Appellants, who have sold iron and steel products to the government in the past, operate plants in eastern Pennsylvania, Maryland, and Connecticut, and pay minimum wages which vary from 52% to 56% cents per hour. Appellants, contending that 14 States are not a “locality” and also that they were not accorded the hearing contemplated by the Act, filed in the court below a bill to compel the Secretary of Labor to withdraw the determination; to enjoin the Director of the Procurement Division of the Treasury Department, and the Secretaries of War, the Navy, the Treasury, the Interior, and the Postmaster General, individually and in their respective official capacities, from giving effect to the determination in the bidding upon and award of public contracts; and for a declaratory judgment that the determination is invalid.
Appellees point out that dictionaries recognize a broad sense of “locality”; that a narrow construction of the word, as applied to steel, would defeat the purpose of the act by enabling low-wage concerns to compete for government contracts with high-wage concerns in the same competitive area; and that it would also make the act nearly meaningless as applied to steel, because in a given neighborhood there is frequently only one steel' concern, which necessarily pays the wages which prevail
I think that, even if the Secretary’s construction of “locality” is not tenable, appellants’ bill was properly dismissed, for several reasons.
(1) I think the suit is in substance against the United States, and therefore not maintainable without its consent. Suits which “would operate to disturb the whole revenue system of the Government” are in effect suits against the United States. Louisiana v. McAdoo, 234 U.S. 627, 632, 34 S.Ct. 938, 940, 58 L.Ed. 1506.
The heads of six executive departments of the government are here sued in their official capacities. “That the United States is not named on the record as a party is true. But the question whether it is in legal effect a party to the controversy is not always determined by the fact that it is not named as a party on the record, but by the effect of the judgment or decree which can here be rendered.”
The appellants contend that the particular action which the Secretary of Labor has taken and the other appellees propose to take is unlawful. But it is not contended that the Secretary of Labor has no authority to make minimum wage determinations with respect to public contracts for iron and steel, or that the other appellees have no authority to make public contracts for iron and steel. The appellants, then, ask the court to regulate the discharge by the appropriate government officers of their lawful and vital function of supplying the needs of the government. This is not a case in which, if the appellants are right as to the law, the United States has no occasion to act in the premises ; there is occasion, on any view of the law, for the United States to act and for
One who seeks public employment is in a different position from one who seeks private employment. In Truax v. Raich, 239 U.S. 33, 36 S.Ct. 7, 60 L.Ed. 131, L.R.A.1916D, 545, Ann.Cas.1917B, 283, the Supreme Court held that a state statute forbidding employment of foreigners in private industry was unconstitutional; but four weeks later, in Heim v. McCall, 239 U.S. 175, 36 S.Ct. 78, 60 L.Ed. 206, Ann.Cas.1917B, 287, it held that a state statute forbidding employment of foreigners on public works was valid. The ground was that the state could freely determine whom it would employ. The privilege of seeking employment by the sovereign is not, like the privilege of seeking private employment, a constitutional right. Private employment, if obtained, results in claims which are constitutionally entitled to enforcement; but employment by the United States, if obtained, results in no enforcible claims unless the United States chooses to allow them. It is anomalous to enforce against the sovereign, without its consent, a privilege of seeking to acquire claims against it which would themselves be unenforcible without its consent. I know of no case in which it has been held that the courts may, without congressional authorization, inquire whether officers of the United States are exceeding their authority, when the only threatened damage consists in the loss of an opportunity to make money by dealing with the United States.
There are, of course, many cases in which, without the sovereign’s consent, the action of the sovereign’s officers in its behalf has been held controllable by the courts, in apparent derogation of the sovereign’s immunity. But in those cases judicial control of the defendant officers was necessary to the protection of the plaintiff’s constitutional rights or, at least, of “rights” of a well-established character, i. e., interests to the protection of which, apart from the sovereign’s immunity, the plaintiff was clearly entitled. Examples are United States v. Lee,
(2) Statutes in regard to the making of government contracts are intended for the benefit of the government, not of contractors or bidders. American Smelting & Refining Co. v. United States, 259 U.S. 75, 78, 42 S.Ct. 420, 66 L.Ed. 833. It follows that even an actual bidder, to say nothing of a prospective bidder, cannot complain of the failure of public officers to comply with statutes in regard to the
(3) If one of appellants were to be the sole bidder for any particular contract, the wage determination could do it no substantial harm; it would have only to pay the increased wage, and increase its bid proportionately. That, of course, is not the case. Appellants are subject to competition; and they anticipate that, if the alleged illegal determination is enforced, they will be injured by the competition of other concerns better able to pay the required wage. As they express it, “If the plaintiffs are required to pay the minimum wages fixed in the Determination, there is grave danger that they will no longer be able successfully to compete for Government contracts since large, fully integrated companies enjoying more favorable geographic locations from the standpoint of proximity 'to sources of supply for the raw materials used by them, proximity to the markets for their products and freight rate differentials should be able to underbid plaintiffs, if the plaintiffs must pay the same minimum wages as such competitors are now paying.” But there is no contention that it is illegal to pay, or to promise to pay, 62% cents per hour. Accordingly, the competition from which appellants anticipate injury will be lawful. And it is settled that one cannot complain of or prevent damage by lawful competition, even though the competition or its damaging character may be due to the action by officers of the United States which is attacked as lawless. Alabama Power Co. v. Ickes, 302 U.S. 464, 58 S.Ct. 300, 82 L.Ed. 374; Tennessee Electric Power Co. v. Tennessee Valley Authority] 306 U.S. 118, 59 S.Ct. 366, 83 L.Ed. 543; Louisiana v. McAdoo, 234 U.S. 627, 631, 34 S.Ct. 938, 58 L.Ed. 1506.
(4) While it is contended that one of appellants has lost one contract, the injury which appellants in general anticipate is too contingent to qualify as irreparable injury and support an injunction. Whatever happens ■ to the Determination, they may not choose to bid, may not be the lowest bidders if they do, may not be awarded a contract if they are the lowest bidders, and may not profit from a contract if they get one. Ames & Company v. Wallace, 1 S.Ct.D.C.,N.S., 238.
I think the decree of the District Court dismissing the bill should be affirmed.
So of a suit “to interfere with its management and disposition of the lands or the funds” which the United States holds in trust. Morrison v. Work, 266 U.S. 481, 485, 45 S.Ct. 149, 151, 69 L.Ed. 394. So of a suit to restrain the use in a post office of leased machines which infringe plaintiff’s patent. International Postal Supply Co. v. Bruce, 194 U.S. 601, 24 S.Ct. 820, 48 L.Ed. 1134. So of a suit to set aside an order of the Interstate Commerce Commission refusing an increase of railway mail pay. United States v. Griffin, 303 U.S. 226, 238, 58 S.Ct. 601, 82 L.Ed. 764.
Louisiana v. McAdoo, 234 U.S. 627, 629, 34 S.Ct. 938, 939, 58 L.Ed. 1506.
e.g., International Postal Supply Co. v. Bruce, 194 U.S. 601, 24 S.Ct. 820, 48 L.Ed. 1134; Louisiana v. McAdoo, 234 U.S. 627, 34 S.Ct. 938, 58 L.Ed. 1506; Wells v. Roper, 246 U.S. 335, 38 S.Ct. 317, 62 L.Ed. 755; United States v. Griffin, 303 U.S. 226, 58 S.Ct. 601, 82 L.Ed. 764.
106 U.S. 196, 1 S.Ct. 240, 27 L.Ed. 171.
209 U.S. 123, 28 S.Ct. 441, 52 L.Ed. 714, 13 L.R.A.,N.S., 932, 14 Ann.Cas. 764.
246 U.S. 608, 38 S.Ct. 395, 62 L.Ed. 892.
187 U.S. 94, 23 S.Ct. 33, 47 L.Ed. 90.
There are cases in some states to the contrary; e.g., Boren & Guckes v. Commissioners of Darke County, 21 Ohio St. 311; St. Landry Lumber Co., Ltd., v. Mayor, etc., of Town of Bunkie, 155 La. 892, 99 So. 687.
Affirmed and appeal dismissed, 65 App.D.C. 150, 81 F.2d 414.
The lack of irreparable injury is not in itself an answer to plaintiffs’ demand for a declaratory judgment. Nashville, C. & St. L. Ry. v. Wallace, 288 U.S. 249, 264, 53 S.Ct. 345, 77 L.Ed. 730, 87 A.L.R. 1191.
Reference
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