In 1950, two antitrust actions were filed in the United States District Court for the Northern District of Illinois. Rohlfing involved 87 plaintiffs, all operators of independent retail shoe repair shops, suing six named defendants consisting of manufacturers, wholesalers, and retail mail order houses and chain operators. Shaffer involved six plaintiffs, all wholesalers of shoe repair supplies, suing six defendants including manufacturers, wholesalers of such supplies, and a retail shoe shop chain operator. Both complaints charged conspiracy to monopolize and fix prices in violation of the Sherman Act together with price discrimination under the Robinson-Patman Act. Both complaints prayed for injunctive relief, treble damages, and an accounting.
The cases proved burdensome to District Judge La Buy. In Rohlfing alone, 27 pages of the record consisted of docket entries showing that the judge had conducted many hearings on preliminary pleas and motions. The original complaint had been twice amended following orders on misjoinder and severance, 14 defendants had been dismissed with prejudice, summary judgment hearings had been held, over 50 depositions had been taken, and multiple hearings had addressed compelling testimony and production of records. Several hearings included oral argument and briefs and resulted in the filing of opinions and memoranda by the judge.
On February 23, 1955, the cases were called on a motion to reset them for trial, with Rohlfing holding the number one position below the black line on the trial list. All parties sought an early trial, though plaintiffs requested an adjournment until May. The judge observed that it had taken a long time to get the case at issue and that he had heard more motions in this case than any other. After plaintiffs estimated a six-week trial, the judge inquired whether the parties could agree to have a master hear it. The next day in chambers the judge entered orders of reference sua sponte, declaring that the court was confronted with an extremely congested calendar and that exceptional conditions existed for this reason.
The orders referred each case to a master to take evidence and report findings of fact and conclusions of law, directed the master to commence trial on a specified date, and required the parties to supply security for costs. All parties objected to the references and filed motions to vacate them. Upon the judge's refusal to vacate, petitions for mandamus were filed in the Court of Appeals for the Seventh Circuit seeking writs ordering the judge to vacate the references. The Court of Appeals unanimously concluded it possessed power to issue the writs and, by a divided court, determined that the circumstances required their issuance. The Supreme Court granted certiorari.