Securities and Exchange Commission v. Penfield Co., 11173.
Decision Date | 18 November 1946 |
Docket Number | No. 11173.,11173. |
Parties | SECURITIES AND EXCHANGE COMMISSION v. PENFIELD CO. et al. |
Court | U.S. Court of Appeals — Ninth Circuit |
Roger S. Foster, Sol., Robert S. Rubin, Asst. Sol., and W. Victor Rodin, Atty., S.E.C., all of Philadelphia, Pa., for appellant.
Morris Lavine, of Los Angeles, Cal., for appellee.
Before DENMAN, MATHEWS, and ORR, Circuit Judges.
Writ of Certiorari Granted November 18, 1946. See 67 S.Ct. 202.
This is an appeal by the Securities and Exchange Commission, hereinafter called the Commission, from an order of the district court made on the motion of the Commission which, though it held appellee Young, an officer of the Penfield Company, in contempt for failing to comply with an order to produce documents for the inspection of the Commission's examiner and fined Young $50.00, failed to enforce the disobeyed order by committing Young unless he complied. Young paid the fine. The motion and order were made in the same proceeding in which the disobeyed order was made. Penfield Co. v. Securities and Exchange Commission, 9 Cir., 143 F.2d 746. It is an appealable order. Clarke v. Federal Trade Commission, 9 Cir., 128 F.2d 542, 543.
Young did not appeal from the order holding him in contempt. That decision is final and the only question before us is the extent of the remedy to which the Commission is entitled.
Appellees contend that there is no obligation on the district court to commit Young until he has complied with the court's order because it is discretionary with that court either to fine or to imprison and that, since Young has paid the fine, the case is moot. We do not agree. We consider it at least an abuse of discretion not to grant the full relief to the Commission which the statute intended, namely, the access to the books and records in question and instead to impose the fine.
The proceeding for the required access is civil in character and refusal to commit until the order is obeyed, frustrates the remedial purpose of the legislation creating the right to secure access to the documents.1 As was said in Gompers v. Buck's Stove & Range Co., 221 U.S. 418, 450 and 442, 31 S.Ct. 492, 501, 55 L.Ed. 797, 34 L.R.A.,N.S., 874:
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Penfield Co of California v. Securities Exchange Commission
...that the District Court erred in imposing the fine and directing that Young be ordered imprisoned until he produced the documents. 9 Cir., 157 F.2d 65. The case is here on a petition for a writ of certiorari filed by Penfield Co. and Young. Neither the District Court nor the Circuit Court o......
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Duell v. Duell, 9699.
...918, 91 L.Ed. 1117, follows the Gompers decision. That case was before the Ninth Circuit sub nom. Securities and Exchange Commission v. Penfield Company, 1946, 157 F.2d 65, 66. The Securities and Exchange Commission applied to the district court for an order enforcing its subpoena duces tec......
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Woods v. Jianas, Civ. A. No. 5357.
...be made to appear that the defendant is unable to comply with the order, then he should be discharged. See Securities and Exchange Commission v. Penfield Co., 9 Cir., 157 F. 2d 65, 67. The latter case cited with approval the case of Parker v. United States, 1 Cir., 153 F.2d 66, loc. cit. 70......