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

U.S. Court of Appeals3/28/1980
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Full 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;
(19) “The Supreme Court’s reasons for nonapplication of the antitrust laws in *1304 Noerr apply with greater weight to this case, which involves political opponents, not commercial competitors; and political objectives, not market place goals. For these reasons, this Court concludes that the Sherman Act does not apply to the actions of NOW in furtherance of its convention boycott campaign.” Id. at 305 (footnote omitted).

II. Scope of the Sherman Act

A. Legislative History

This court would be remiss if it did not acknowledge at the outset that the specific question this case presents has not been decided by the Supreme Court or, for that matter, by any other appellate court. 4 There is certainly language used by the Court in some of its cases that provides guidance, however, and the applicability of Noerr to the situation cannot be denied.

The first question relevant to our inquiry is whether the intent of Congress was that the Sherman Act would cover activities such as NOW has undertaken in this case. 5

The 50th and 51st Congresses were primarily concerned with business trusts and the economic power which those trusts possessed. 6 The trust concept involved the *1305 shareholders transferring their shares to a single trustee or board of trustees who would exercise complete control over the management of the trust; the shareholders received trust certificates which entitled them to a share of the profits of the trust. Since the trust did not require state sanction, as did corporations, and since the trusts were not subject to the controls and restrictions that states could impose on corporations, they were more unwieldy than corporations. 1 E. Kintner, The Legislative History of the Federal Antitrust Laws and Related Statutes 10 (1978). See generally id. at 8-13. Public hostility towards the trusts in the late 1800’s was immense and severe. Id. at 11; Letwin, Congress and the Sherman Antitrust Law: 1887-1890, 23 U.Chi.L.Rev. 221, 235 (1956).

Because a trust typically controlled the integrated levels of a particular industry, it could often control the means or sources of supply and dictate the prices or terms at which commodities would be bought, sold, or transported. Moreover, large concerns often agreed to divide markets and to fix prices, engaged in predatory pricing, and discriminated in favor of certain entities.

1 E. Kintner, supra at 11. The kind of remedy that the public desired was a law to destroy the power of the trusts, Letwin, supra at 235, and such was the purpose of the Sherman Act. But to limit the purpose to such a general one is misleading.

Clearly, by prohibiting trusts, the Congress sought to achieve the preservation of free and fair competition. See, e. g., 1 Kintner, supra at 113-18, quoting 21 Cong. Rec. 2456-58 (1890) (remarks of S. Sherman). Unfortunately, an examination of the legislative history does not clearly indicate the answer to the question we have here — whether Congress wanted to protect “free and fair” competition from political or social activities that can have the same effect upon competition as the commercial activities of a trust against a business. See, i. e., Bird, Sherman Act Limitations on Noncommercial Concerted Refusals to Deal, 1970 Duke L.J. 247 (1970); Kestenbaum, The Antitrust Challenge to the Arab Boycott: Per Se Theory, Middle East Politics and United States v. Bechtel Corp., 54 Tex. L.Rev. 1411 (1976); Comment, 30 U.Chi.L. Rev. 171 (1962). 7 Missouri does not direct us to, nor have we discovered, any legislative history that indicates an affirmative intent of Congress to do so. The few comments that we find that have some relevance to the question indicate otherwise. For example, the following exchange took place between Senator Sherman, the sponsor of the Act, and Senator George, a major opponent of the Act. 8

Mr. GEORGE. Mr. President, this is a very important subject. The bill undertakes to deal with very great evils which in the last few years have done great injury to the people of the United States. I am in favor of legislation to prevent trusts and combinations, but I want effective legislation — legislation that will crush out these combinations and trusts. * * *.

I have given some thought and some reflection to this matter, and I am extremely anxious that some bill shall receive the assent of this Congress which will put an end forever to the practice, now becoming too common, of large corporations, and of single persons, too, of large wealth, so arranging that they dictate to the people of this country what they shall pay when they purchase, and what they shall receive when they sell.

*1306 I have considered with some care the provisions of this bill. I do not believe that the effect of its provisions is accurately understood by members of this body. I propose, therefore, to make an analysis of its provisions to see, if we can, what it means, what evils it undertakes to remedy, and what remedy it provides, and how efficacious this remedy may prove to be.

In the beginning, I desire to call the attention of the Senate to the fact that the provisions of this bill are not confined to trusts, to combinations, to arrangements and agreements made between parties who are engaged in business; or, in other words, taking the language of the bill in its plain meaning, it refers to and brings within the punitory provisions of the fourth section not only arrangements and agreements between manufacturers, between sellers, between transporters, but it brings within its grasp arrangements made by any persons, though merely for moral and for defensive purposes. The bill provides—

That all arrangements, contracts, agreements, trusts, or combinations between persons or corporations made with a view, or which tend, to prevent full and free competition in the importation, transportation, or sale of articles imported into the United States shall be unlawful.

That would apply to an arrangement, to an agreement, to a combination, not of a business character, but, as I before remarked, to such as is purely moral and defensive. It does not say that all arrangements, contracts, etc., made between persons and corporations engaged in selling, transporting, importing, manufacturing, or producing the articles described in the bill shall be unlawful; but it applies to all persons whether so engaged or not. So if this bill passes as it now stands, the farmers and laborers of this country who are sending up their voices to the Congress of the United States, asking, pleading, imploring us to take action to put down trusts, these farmers and these laborers will find that they themselves in their most innocent and necessary arrangements, made solely for defensive purposes against the operations of these trusts, will be brought within the punitory provisions of this bill.

It will strike the Senate probably with some astonishment if it be ascertained that under this bill the arrangements made by the Southern farmers during the last season to prevent the consummation of the robbery of them by the jute-bagging trust are made highly criminal. Under it the farmers of the South who combine to prevent and defeat that most iniquitous and unjust combination will find that they themselves rather than the jute-bagging trust will be the subjects of severe punishment.

* $ # * *. *

Upon the formation of this bagging trust the cotton farmers of the South, many of them in their granges and in their alliances, agreed that they would not purchase jute bagging, and by that agreement to a very large extent the rich rewards anticipated by the men who formed the trust were defeated. These combinations tended to prevent full and free competition in the sale of this article. But if that is not very clear, if Senators think these arrangements of the farmers did not have the effect of preventing this full and free competition, I call their attention to another provision contained in the third section of the bill, which reads in this way:

If acts shall be done under any such arrangement, contract, agreement, trust, or combination, which have for their purpose, or which shall tend to compel the giving up or sale of any lawful business, the person, partnership, or corporation injured thereby may sue for and recover in any court of the United States of competent jurisdiction the damages sustained thereby.

The very object of this combination of Southern farmers was to break down the trust in jute bagging, to compel the men who had seized and got control of the bagging manufacture of this country to give up their business — to loose their grip upon the business of the farmers. It also very clearly violated the other provision of the bill to which I have, just called attention. The *1307 fact that the bill does not restrict these combinations, these agreements, to persons engaged in trade, engaged in transportation, engaged in importation, engaged in selling — the fact that it applies to all arrangements, all agreements, all combinations, by whomsoever made, would bring within its reach all defensive agreements made by farmers for the purpose of enhancing the price of their products. This bill, instead of preventing trusts, would have the effect of crushing out all efforts of the people to rid themselves of their injurious effects. .

Mr. SHERMAN. Do I understand my friend from Mississippi to claim that under this bill an agreement made by farmers not to buy cotton-bagging or not to buy anything else is a combination within the meaning of the act?

Mr. GEORGE. Yes, sir; directly within the meaning of the act.

Mr. SHERMAN. That is a very extraordinary proposition. There is nothing in the bill to prevent a refusal by anybody to buy anything. All that it says is that the people producing or selling a particular article shall not make combinations to advance the price of the necessaries of life. However, I simply wished to get the answer of the Senator.

Mr. GEORGE. That is the true construction of this bill which I put on it.

Mr. SHERMAN. I desire to say distinctly that that is not my idea or the idea of any one of the committee.

Mr. GEORGE. I presume it is not.

Mr. SHERMAN. Nor do I believe it is a fair construction of the bill.

Mr. GEORGE. But yet that is the legal meaning and force of the bill; and I will state to the Senate and to the Senator from Ohio that it is directly within the terms of this bill to forbid any number of persons belonging to or joining a temperance society whose object is to compel retailers of intoxicating liquors to give up their business.

Mr. SHERMAN. Where men agree that they will not drink at all, does the Senator think that is a combination in restraint of the trade of liquor-sellers?

Mr. GEORGE. What is it?

Mr. SHERMAN. The Senator, as I understand, now claims that an agreement among several people not to drink whisky or brandy is in restraint of the trade of selling whisky or brandy and is .therefore a combination within the meaning of this bill?

Mr. GEORGE. I insist that a society, making an agreement or a combination between citizens of a town anywhere in the Union not to drink, not to use in any way vinous or spirituous liquors, and to persuade others to a similar abstention, does, in the language of this bill, tend to compel persons engaged in retailing liquor in that community to give up their business, and the doing of that is expressly condemned by the third section of this bill.....

Mr. [WILLIAM M.] STEWART [R., Nev.]. If an organization for the purpose of having laws passed creating high license is formed, would not that enhance the value of the things prohibited in this bill?

Mr. GEORGE. I have considered that question. I have thought possibly that the courts might say that the right of political organization to bring about political results by legislation was not embraced within the provisions of the bill.

1 Kintner, supra at 77-79, quoting 20 Cong. Rec. 1458-59 (remarks of S. Sherman, S. George and S. Stewart) (1889).

Another conversation that has as its subject the scope of the bill is as follows:

Mr. WILSON, of Iowa. I desire to offer an amendment to come in at the end of section 1 of the bill, and as an addition to the proviso contained in that section.

The PRESIDING OFFICER. The Secretary will state the amendment proposed by the Senator from Iowa.

The CHIEF CLERK. It is proposed to add at the end of the second proviso to section 1:

Nor to any arrangements, agreements, associations, or combinations among persons for the enforcement and execution *1308 of the laws of any State enacted in pursuance of its police powers; nor shall this act be held to control or abridge such powers of the States.

The PRESIDING OFFICER. The question is on agreeing to the amendment proposed by the Senator from Iowa. .

Mr. EUSTIS. Where does the Senator propose his amendment to come in?

Mr. WILSON, of Iowa. I propose it as an addition to the proviso of section 1, and it is simply for the purpose of avoiding an effect which is likely to flow from the earlier provisions of that section. That section provides as follows:

That all arrangements, contracts, agreements, trusts, or combinations between two or more persons or corporations, or both, made with a view or which tend to prevent full and free competition in the importation, transportation, or sale of articles imported into the United States, or with a view or which tend to prevent full and free competition in articles of growth, production, or manufacture of any State or Territory of the United States with similar articles of the growth, production, or manufacture of any other State or Territory, or in the transportation or sale of like articles, the production of any State or Territory of the United States, into or within any other State or Territory of the United States: and all arrangements, trusts, or combinations between such persons or corporations made with a view or which tend to advance the cost to the consumer of any such articles are hereby declared to be against public policy, unlawful, and void.

I will state frankly my purpose in offering the amendment. Under the provisions of this section, should it become a law, every organization in such a State as Iowa, for instance, of the character of the Woman’s Christian Temperance Union, the Temperance Alliance, and other organizations intended to promote the execution of the laws of that State in respect of the manufacture and sale of intoxicating liquors would become illegal bodies and their movements subject to the terms and provisions of this bill. I know that was not intended, and yet the language, without being stripped of its power by the amendment I propose, would include all organizations of that kind. All I ask is that the subjects within the police power of the States as embraced within that legislation, of Iowa and any other State which may desire similar legislation, shall not be embraced within this provision, but that the States shall be left free in the execution of their police powers. .

I will just add to what I have said that the proviso to which I offered this as an amendment excepts from the operations of this section of the bill arrangements, agreements, or combinations between laborers, made with a view of lessening the number of hours of their labor or of increasing their wages, and it also excepts arrangements, agreements, associations, or combinations among persons engaged in horticulture or agriculture, made with a view of enhancing the price of their own agricultural or horticultural products. I think that the exception which I ask to have made by this amendment is quite as worthy of the support of the Senate as either of these.

Mr. HOAR. Allow me to ask the Senator if his amendment accomplishes his object. I understand his object is to protect combinations of persons intended to discourage the use and manufacture of intoxicating liquors.

Mr. WILSON, of Iowa. My object is to exclude them from the operation of the bill.

Mr. HOAR. I understand, to protect them from being affected by it. But the only description in his amendment is of such associations as are in aid of the execution of the laws of a State in pursuance of its police power. Now, if this bill without his amendment would render the class of persons he has described subject to the penal provision, all temperance societies whose object is to persuade mankind not to use intoxicating liquors would still remain in spite of his amendment within the purview of the bill. It seems to me he should extend *1309 his amendment a little further, because, as far as my State goes, this class of associations which he has described do not confine their efforts to the execution of the law, but their efforts are a great deal more extensive and extend tó discouraging the use or manufacture of intoxicating liquors altogether. This is what he means, and we would all vote for it.

Mr. WILSON, of Iowa. I am satisfied that my amendment will cover the purpose I have in view concerning my State. If other Senators desire something further in regard to their States, they can move it.

Mr. HOAR. I move to amend the Senator’s amendment by adding to it:

Or to discourage the use or manufacture of intoxicating liquors.
And we will take a vote on that. .

The PRESIDING OFFICER. The question is on agreeing to the amendment to the amendment.

Mr. SHERMAN. The Senator from Iowa showed me his amendment. As these organizations in Iowa are associated and organized something in the nature of a corporation, there might be some reason for believing that they possibly might fall within the meaning of the clauses of the bill. Therefore, I have no objection to his amendment, but I do not see any reason for putting in temperance societies any more than churches or school-houses or any other kind of moral or educational associations that may be organized. Such an association is not in any sense a combination or arrangement made to interfere with interstate commerce; but under the peculiar circumstances, upon the facts stated by the Senator from Iowa, I think it is very proper to make an exception of those organizations in Iowa which are really in aid of the execution of State law. I would apply it to all organizations which are using either moral or any other kind of means for the enforcement of local laws; but I do not think it is worth while to adopt the amendment of the Senator from Massachusetts, because that would include temperance societies. You might as well include churches and Sunday schools.

Id. at 250-52, quoting 21 Cong.Rec. 2658-59 (1890).

As the exchanges reveal, the conversation provides an indication —we do not set it out to show an affirmative statement of intent. Yet, the indication is that it was the competitors in commerce that Senator Sherman had in mind as the concern of his bill, not noncompetitors motivated socially or politically in connection with legislation.

We conclude that the legislative history of the Sherman Act does not reveal that Congress intended to prohibit, with the Sherman Act, activities such as NOW’s boycott; this is not inconsistent with the Supreme Court cases considering similar questions.

B. Case Law

As the district court in this case stated from the bench, “this is a unique case. It is different from any case in the law books anywhere. There simply has never been another one like it.” Consequently, and as we noted earlier, the question of whether NOW’s specific sort of activities — an economic boycott, politically motivated, to achieve a legislative goal — was intended by Congress to be within the scope of the Sherman Act, has not been specifically addressed by the Supreme Court. We can, however, find guidance in several of the Court’s opinions by noting a complete lack of an affirmative indication that such activities are covered, by taking cognizance of the Court’s passing references that indicate that the activities that were meant to be covered are competitive activities by competitors with some self-enhancement motivation, 9 and by a thorough analysis of East *1310 ern Railroad Presidents Conference v. Noerr Motor Freight, Inc., 365 U.S. 127, 81 S.Ct. 523, 5 L.Ed.2d 464 (1961).

One of the early, but still timely, Supreme Court discussions of the legislative history of the Sherman Act is found in Parker v. Brown, 317 U.S. 341, 63 S.Ct. 307, 87 L.Ed. 315 (1943) wherein the Court ruled that the scope of the Sherman Act did not extend to state action.

In the course of its discussion, the Court draws conclusions “not from the literal meaning of the words” of the Act, but from “the purpose, the subject matter, the context and the legislative history of the statute.” Id. at 351, 63 S.Ct. at 313. As the Court noted in National Society of Professional Engineers v. United States, 435 U.S. 679, 687, 98 S.Ct. 1355, 1362, 55 L.Ed.2d 637 (1978), the Sherman Act cannot mean what it says. It was the legislative history upon which the Parker Court relied—the fact that “[tjhere is no suggestion of a purpose to restrain state action in the Act’s legislative history”—in making its determination that the California raisin pro-rate program was not within the scope of the Sherman Act. Parker v. Brown, supra, 317 U.S. at 351, 63 S.Ct. at 313. Of particular importance to the Court’s discussion was the fact that an unexpressed congressional purpose to nullify or restrain a state’s control over its officers and agents should not be lightly attributed to Congress via the Sherman Act.

In the instant case, an infringement upon the people’s right to petition the government by a boycott should also not be lightly attributed to Congress. We perceive a more accurate phrasing of Congress’ concern to be not the elimination of boycotts, but elimination of boycotts used by a competitor against a competitor (or against a supplier, customer, etc.) in the business of competing. For example, in the legislative history to which the Court makes reference in Parker v. Brown, supra, 317 U.S. at 351, 63 S.Ct. at 313, 21 Cong.Rec. 2562 (1890), Senator Sherman states that the Act is meant to apply to “business combinations,” not to “voluntary associations.”

In Klor’s, Inc. v. Broadway-Hale Stores, Inc., 359 U.S. 207, 79 S.Ct. 705, 3 L.Ed.2d 741 (1959), one of the primary boycott cases considered by the Supreme Court, the Court held that the Sherman Act was meant to cover what the district court had found to be a “purely private quarrel.” In the course of its explanation, the Court discusses the boycott in terms of a business activity amongst competitors. Id. at 210-13, 79 S.Ct. at 708-710. The Court also criticizes the court of appeals for its heavy reliance on Apex Hosiery Co. v. Leader, 310 U.S. 469, 60 S.Ct. 982, 84 L.Ed. 1311 (1940) and in considering the lack of significant effect on the market as relevant in not finding a violation. While noting that there is some strong language in Apex that indicates section one Sherman Act violations must include an effect on market prices, the Court emphasizes that the defendant in Apex was a labor union and that part of the basis for the Apex decision was a recognition that the Sherman Act “is aimed primarily at combinations having commercial objectives and is applied only to a very limited extent to organizations, like labor unions, which *1311 normally have other objectives.” Klor’s, Inc. v. Broadway-Hale Stores, Inc., supra, 359 U.S. at 213 n.7, 79 S.Ct. at 710. While the statement was not necessary to the outcome of the case, the Court’s decision in Klor’s includes a signal that the focus of the Sherman Act is upon commercial-business activities, and that the organization and objectives involved can make a difference in the application of the Act.

Thus, at a minimum, in Parker, the Court tells us that the Sherman Act does not mean exactly what it says, i. e., “all combinations in restraint of trade,” and that the Act must be interpreted with the setting in which it was enacted; in Klor’s, even when considering the impact of a boycott, the Court does not use overly broad language in holding that the Sherman Act covers such activity. Instead, the Court focuses upon the business nature of the boycott, the intent of the Act to cover “business combinations with commercial objectives,” and concludes that the boycott is within the scope of the Act. 10

Other cases considered by the Supreme Court help define the scope of the Sherman Act, and in a passive manner, limit the Act to apply to commercial activities, as opposed to social or political activities. See, e. g., Apex Hosiery Co. v. Leader, supra (narrowing the scope of the Act in regard to union activities) and United States v. South-Eastern Underwriters Association, 322 U.S. 533, 553, 64 S.Ct. 1162, 1174, 88 L.Ed. 1440 (1944) (the Act does apply to insurance companies —“every person engaged in business whose activities might restrain or monopolize commercial intercourse among the states.”)

The first Supreme Court case, however, that actively deals with the type of conflict we have in the present case, is Eastern Railroad Presidents Conference v. Noerr Motor Freight, Inc., supra. Although the factual situation in Noerr differs from that of this case,—sufficiently that we must specifically address those distinctions — the overriding policy implications of Noerr are persuasive.

In Noerr, the defendant railroads had engaged in a publicity campaign with the purpose of fostering the adoption and retention of laws that would be destructive of the trucking business.

Basically, the Supreme Court held that the railroads’ campaign to get the legislature to pass laws, no matter how unethical that campaign was, was not within the scope of the Sherman Act. The Court said, inter alia, “no violation of the Act can be predicated upon mere attempts to influence the passage or enforcement of laws.” Id. 365 U.S. at 135, 81 S.Ct. at 528. Even this strict ruling sheds some light on the instant case inasmuch as NOW’s boycott was stipulated to be an attempt to influence ratification by the Missouri legislature of the proposed ERA. State of Missouri v. National Organization for Women, Inc., supra, 467 F.Supp. at 293.

It also demands that we deal with the first factual distinction between Noerr and our case, and that is the subject matter of the legislation. The legislation in Noerr directly concerned the alleged violators of the Sherman Act and the target of the alleged violation, the railroads and the truckers. The parties were intimately affected by and concerned with the legislation as the legislation would either directly hurt or help them “financially,” “economically,” and “commercially.”

The ERA is not a “financial,” “economic,” or “commercial” piece of legislation. It is a social or political piece of legislation. While *1312 it is obviously perceived by the members of NOW as beneficial, the record indicates, and it seems apparent, that the orientation of both parties, NOW and Missouri, to the ERA is not one of profit motivation. The only financial, economic or commercial matter involved here is Missouri’s concern about the financial repercussion of the boycott.

[I] Keeping in mind that what we are discussing is the applicability of the Sherman Act to the facts, and the intent of the Congress to cover such situations, the difference in the content of the legislation — if anything — makes it more clear that NOW’s efforts to influence the legislature’s action on the ERA are beyond the scope and intent of the Sherman Act. A social piece of legislation and the efforts involved in influencing the legislature’s actions on such legislation is further afield from the central focus of the Sherman Act than a commercial piece of legislation 11 and the petitioning efforts associated therewith.

Thus, considered in isolation, the subject matter of the ERA is not helpful to Missouri’s arguments. Missouri, however, argues the relevancy of the distinction in connection with its “secondary boycott” theory.

Missouri refers to NOW’s activities as a secondary boycott and argues that the district court, in not specifically finding that there was a secondary boycott, erred in its factual findings. Missouri argues that the error taints the district court’s other findings and its analysis of the legal issues. The only clue as to exactly how this taint distorts the district court’s findings is Missouri’s claim that it affected the court’s statement that if this “were not a legitimate effort to influence the legislature, this Court would be presented with a different case.” Missouri v. National Organization for Women, Inc., supra, 467 F.Supp. at 306 (emphasis added by Missouri in its brief). Missouri appears to equate legitimate efforts to influence a legislature with ethical or non-harmful efforts to influence the legislature.

The Supreme Court establishes the fallacy of this equation in Noerr. In its discussion of the railroad’s publicity campaign used to influence the legislature which, besides being unethical and harmful, was characterized as deceptive and vicious, the Court noted that the campaign was intended to and did injure the truckers in their relationship with their customers. But

[ijnsofar as that Act sets up a code of ethics at all, it is a code that condemns trade restraints, not political activity, and, as we have already pointed out, a publicity campaign to influence governmental action falls clearly into the category of political activity. The proscriptions of the Act, tailored as they are for the business world, are not at all appropriate for application in the political arena. Congress has traditionally exercised extreme caution in legislating with respect to problems relating to the conduct of political activities, a caution which has been reflected in the decisions of this Court interpreting such legislation. All of this caution would go for naught if we permitted an extension of the Sherman Act to regulate activities of that nature simply because those activities have a commercial impact and involve conduct that can be termed unethical.

Eastern Railroad Presidents Conference v. Noerr Motor Freight, Inc., supra, 365 U.S. at 140-41,

State of Missouri v. National Organization for Women, Inc. | Law Study Group