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CALIFORNIA V. FPC, 369 U. S. 482 (1962)

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U.S. Supreme Court

California v. FPC, 369 U.S. 482 (1962)

California v. Federal Power Commission

No. 187

Argued March 1, 1962

Decided April 30, 1962

369 U.S. 482


One natural gas company acquired nearly all of the stock of another, and the Federal Government commenced an action in a Federal District Court to have the acquisition of stock declared to be in violation of § 7 of the Clayton Act and to require divestiture. Shortly thereafter, the company which had acquired the stock applied to the Federal Power Commission under § 7 of the Natural Gas Act for authority to merge the assets of the two companies. The Commission authorized the merger of assets while the antitrust action was still pending in the District Court. The Court of Appeals sustained the Commission's action.

Held: the Commission should not have proceeded to a decision on the merits of the merger application when there was pending in the courts a suit challenging the validity of that transaction under the antitrust laws. It should have awaited the decision of the courts. Pp. 369 U. S. 483-490.

111 U.S.App.D.C. 226, 296 F.2d 348, reversed. chanroblesvirtualawlibrary

Page 369 U. S. 483

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