320 U.S. 277 (1943), 5, United States v. Dotterweich

Docket Nº:No. 5
Citation:320 U.S. 277, 64 S.Ct. 134, 88 L.Ed. 48
Party Name:United States v. Dotterweich
Case Date:November 22, 1943
Court:United States Supreme Court

Page 277

320 U.S. 277 (1943)

64 S.Ct. 134, 88 L.Ed. 48

United States



No. 5

United States Supreme Court

Nov. 22, 1943

Argued October 12, 1943




Upon review of the conviction of a corporate officer on informations charging the corporation and him with shipping in interstate commerce adulterated and misbranded drugs in violation of § 301 of the Federal Food, Drug, and Cosmetic Act, held:

1. The provision of § 305 of the Act, that, before reporting a violation to the United States Attorney, the Administrator shall give to the person against whom such proceeding is contemplated a notice and an opportunity to present his views, does not create a condition precedent to a prosecution under the Act. P. 278.

2. It was open to the jury to find the officer guilty though failing to find the corporation guilty. P. 279.

3. Where there is no guaranty such as under § 303(c) of the Act affords immunity from prosecution, that section cannot be read as relieving corporate officers and agents from liability for violation of § 301 . P. 283.

4. The District Court properly left to the jury the question of the officer's responsibility for the shipment, and the evidence was sufficient to support the verdict. P. 285.

131 F.2d 500, reversed.

Certiorari, 318 U.S. 753, to review the reversal of a conviction for violation of the Federal Food, Drug, and Cosmetic Act.

Page 278

FRANKFURTER, J., lead opinion

MR. JUSTICE FRANKFURTER delivered the opinion of the Court.

This was a prosecution begun by two informations, consolidated for trial, charging Buffalo Pharmacal Company, Inc., and Dotterweich, its president and general manager, with violations of the Act of Congress of June 25, 1938, c. 675, 52 Stat. 1040, 21 U.S.C. §§ 301-392, known as the Federal Food, Drug, and Cosmetic Act. The Company, a jobber in drugs, purchased them from their manufacturers and shipped them, repacked under its own label, in interstate commerce. (No question is raised in this case regarding the implications that may properly arise when, although the manufacturer gives the jobber a guaranty, the latter, through his own label, makes representations.) The informations were based on § 301 of that Act, 21 U.S.C. § 331, paragraph (a) of which prohibits "[t]he introduction or delivery for introduction into interstate commerce of any . . . drug . . . that is adulterated or misbranded." "Any person" violating this provision is, by paragraph (a) of § 303, 21 U.S.C. § 333, made "guilty of a misdemeanor." Three counts went to the jury -- two, for shipping misbranded drugs in interstate commerce and a third for so shipping an adulterated drug. The jury disagreed as to the corporation, and found Dotterweich guilty on all three counts. We start with the finding of the Circuit Court of Appeals that the evidence was adequate to support the verdict of adulteration and misbranding. 131 F.2d 500, 502.

Two other questions which the Circuit Court of Appeals decided against Dotterweich call only for summary disposition to clear the path for the main question before us. He invoked § 305 of the Act requiring the Administrator, before reporting a violation for prosecution by a

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United States attorney, to give the suspect an "opportunity to present his views." We agree with the Circuit Court of Appeals that the giving of such an opportunity, which was not accorded to Dotterweich, is not a prerequisite to prosecution. This Court so held in United States v. Morgan, 222 U.S. 274, in construing the Food and Drugs Act of 1906, 34 Stat. 768, and the legislative history to which the court below called attention abundantly proves that Congress, in the changed phraseology of 1938, did not intend to introduce a change of substance. 83 Cong.Rec. 7792-94. Equally baseless is the claim of Dotterweich that, having failed to find the corporation guilty, the jury could not find him guilty. Whether the jury's verdict was the result of carelessness or compromise or a belief that the responsible individual should suffer the penalty instead of merely increasing, as it were, the cost of running the business of the corporation, is immaterial. Juries may indulge in precisely such motives or vagaries. Dunn v. United States, 284 U.S. 390.

[64 S.Ct. 136] And so we are brought to our real problem. The Circuit Court of Appeals, one judge dissenting, reversed the conviction on the ground that only the corporation was the "person" subject to prosecution unless, perchance, Buffalo Pharmacal was a counterfeit corporation serving as a screen for Dotterweich. On that issue, after rehearing, it remanded the cause for a new trial. We then brought the case here, on the Government's petition for certiorari, 318 U.S. 753, because this construction raised questions of importance in the enforcement of the Federal Food, Drug, and Cosmetic Act.

The court below drew its conclusion not from the provisions defining the offenses on which this prosecution was based (§§ 301(a) and 303(a)), but from the terms of § 303(c). That section affords immunity from prosecution if certain conditions are satisfied. The condition relevant to this case is a guaranty from the seller of the innocence of

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his product. So far as here relevant, the provision for an immunizing guaranty is as follows:

No person shall be subject to the penalties of subsection (a) of this section . . . (2) for having violated section 301(a) or (d) if he establishes a guaranty or undertaking signed by, and containing the name and address of, the person residing in the United States from whom he received in good faith the article to the effect, in case of an alleged violation of section 301(a), that such article is not adulterated or misbranded within the meaning of this Act, designating this Act. . . .

This Circuit Court of Appeals found it

difficult to believe that Congress expected anyone except the principal to get such a guaranty, or to make the guilt of an agent depend upon whether his employer had gotten one.

131 F.2d 500, 503. And so it cut down the scope of the penalizing provisions of the Act to the restrictive view, as a matter of language and policy, it took of the relieving effect of a guaranty.

The guaranty clause cannot be read in isolation. The Food and Drugs Act of 1906 was an exertion by Congress of its power to keep impure and adulterated food and drugs out of the channels of commerce. By the Act of 1938, Congress extended the range of its control over illicit and noxious articles and stiffened the penalties for disobedience. The purposes of this legislation thus touch phases of the lives and health of people which, in the circumstances of modern industrialism, are largely beyond self-protection. Regard for these purposes should infuse construction of the legislation if it is to be treated as a working instrument of government, and not merely as a collection of English words. See Hipolite Egg Co. v. United States, 220 U.S. 45, 57, and McDermott v. Wisconsin, 228 U.S. 115, 128. The prosecution to which Dotterweich was subjected is based on a now familiar type of legislation whereby penalties serve as effective means

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of regulation. Such legislation dispenses with the conventional requirement for criminal conduct -- awareness of some wrongdoing. In the interest of the larger good, it puts the burden of acting at hazard upon a person otherwise innocent but standing in responsible relation to a public danger. United States v. Balint, 258 U.S. 250. And so it is clear that shipments like those now in issue are

punished by the statute if the article is misbranded [or adulterated], and that the article may be misbranded [or adulterated] without any conscious fraud at all. It was natural enough to throw this risk on shippers with regard to the identity of their wares. . . .

United States v. Johnson, 221 U.S. 488, 497-498.

The statute (§ 303) makes "any person" who violates § 301(a) guilty of a "misdemeanor." It specifically defines "person" to include "corporation." § 201(e). But the only way in which a corporation can act is through the individuals who act on its behalf. New York Central & H. R Co. v. United States, 212 U.S. 481. And the historic conception of a "misdemeanor" makes all those responsible for it equally guilty, United States v. Mills, 7 Pet. 138, 141, a doctrine given general application in § 332 of the Penal Code, 18 U.S.C. § 550. If, then, Dotterweich is not subject to the Act, it must be solely on the ground that individuals are immune when the "person" who [64 S.Ct. 137] violates § 301(a) is a corporation, although, from the point of view of action, the individuals are the corporation. As a matter of legal development, it has taken time to establish criminal liability also for a corporation, and not merely for its agents. See New York Central & H. R. Co. v. United States, supra. The history of federal food and drug legislation is a good illustration of the elaborate phrasing that was in earlier days deemed necessary to fasten criminal liability on corporations. Section 12 of the Food and Drugs Act of 1906 provided that

the act, omission, or failure of any officer, agent, or other person

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acting for or employed by any corporation, company, society, or association, within the scope of his employment or office, shall in every case be also deemed to be the act, omission, or failure of such corporation, company, society, or association as well as that of the person.

By 1938, legal understanding and practice had rendered such statement of the obvious superfluous. Deletion of words -- in the interest of brevity and good draftsmanship1 -- superfluous for holding a corporation criminally liable...

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