RENEGOTIATION OF WAR CONTRACTS-EXHAUSTION OF ADMINISTRATIVE REMEDIES

Plaintiff sought to enjoin the Chairman of the United States Maritime Commission from enforcing the War Contracts Renegotiation Act against its contracts with the British Ministry of War on the ground that they were outside the scope of the act, and attempted to obtain a declaratory judgment to this effect. Prior to this proceeding the plaintiff had been given notice and had been requested to attend a conference. He filed an objection to the authority of the Maritime Commission which, in turn, contended that the United States was responsible for payment under the contract and that the administrative remedies had not been exhausted. On these grounds the district court dismissed the complaint.

The circuit court of appeals reversed the lower court. Held, reversed. The federal court was without jurisdiction to enjoin and determine the rights of the parties since the statutory remedy had not been exhausted. Macauley v. Waterman Steamship Co., (U.S. 1946) 66 S.Ct.

712.