United States v. W. T. Grant Co.

Mr. Justice Clark delivered the opinion of the Court.

For the first time since the enactment of the Clayton Act in 1914 the Court is called upon to consider § 8’s prohibitions against interlocking corporate directorates.[1] The Government appeals from judgments dismissing civil actions brought against Hancock and three pairs of corporations which he served as a director, W. T. Grant Co. and S. H. Kress & Co., Sears Roebuck & Co. and Bond Stores, Inc., and Kroger Co. and Jewel Tea Co., Inc. Alleging that the size and competitive relationship of each set of companies brought the interlocks within the reach of § 8, the complaints asked the court to order the particular interlocks terminated and to enjoin future violations of § 8 by the individual and corporate defendants. Soon after the complaints were filed, Hancock resigned from the boards of Kress, Kroger and Bond. Disclosing the resignations by affidavit, all of the defendants then moved to dismiss the actions as moot. Treated as motions for summary judgment,[2] they were granted by the District Judge. He concluded that there is not “the [*631] slightest threat that the defendants will attempt any future activity in violation of Section 8 [if they have violated it already] . . . .” 112 F. Supp. 336, 338. The Government brought this direct appeal under § 2 of the Expediting Act, 32 Stat. 823, as amended, 62 Stat. 989, 15 U. S. C. (Supp. V) § 29, contending that the cases were not rendered moot by Hancock’s resignations and that it was an abuse of discretion for the trial court to refuse any injunctive relief.

Appellees suggest, without arguing the point in extenso, that the judgment should be affirmed because § 11 of the Clayton Act vests exclusive § 8 enforcement powers in the Federal Trade Commission.[3] Section 11 does authorize the Commission to enforce § 8. But any inference that administrative jurisdiction was intended to be exclusive falls before the plain words of § 15: “The several district courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this [*632] Act . . . 38 Stat. 736, 15 U. S. C. § 25. And the cases have spoken of Congress’ design to provide a scheme of dual enforcement for the Clayton Act. United States Alkali Export Assn. v. United States, 325 U. S. 196, 208 (1945); Standard Oil Co. v. United States, 337 U. S. 293, 310, note 13 (1949). Appellees’ failure to press the point denotes its merits. The District Court properly entertained the suits.