St. Regis Paper Co. v. United States

Background

An entity that had filed confidential Census of Manufactures reports faced orders from the Federal Trade Commission seeking information. The Commission issued orders it said were under Section 6(b) of the FTC Act, and the entity challenged whether those orders required written answers, whether its retained census reports were subject to the Commission’s investigation, and whether changes made by a district court to the agency’s investigative process affected exposure to fines under Section 10. Horace R. Lamb represented the entity; the United States was represented by the Solicitor General and other government lawyers.

Reasoning

The Supreme Court agreed to review only certain questions raised in the Second Circuit and could not hear full argument until the next Term. Because waiting could let daily forfeitures of $100 per day keep accumulating, the Court granted the entity’s motion under Section 10(d) of the Administrative Procedure Act to toll— that is, to stop—further running of those forfeitures as of the petition filing date, February 7, 1961, while the Court decides the case. The Court’s order limited its action to pausing further fines and did not decide the underlying legal disputes in this order. The Court also left liability for any forfeitures that accrued before February 7, 1961 to be decided later in the litigation.

Real world impact

The immediate effect is practical relief for the party targeted by the Commission: no new daily $100 fines will accrue after February 7, 1961 while the Supreme Court considers the questions. Fines already accrued before that date remain unresolved and could still be imposed depending on the final outcome. Other entities facing similar FTC orders may seek the same pause, but the final rules about investigations, reports, and due process will await the Court’s later decision.