Arthur Imerman Undergarment Corp. v. LOCAL 162, ETC., Civ. A. No. 699-56.

• Decision Date: 11 October 1956
• Docket Number: Civ. A. No. 699-56.
• Parties: ARTHUR IMERMAN UNDERGARMENT CORPORATION and Matawan Undergarment Co., Inc., Plaintiffs, v. LOCAL 162, INTERNATIONAL LADIES' GARMENT WORKERS' UNION, A.F. OF L.-C.I.O.; Local 166, International Ladies' Garment Workers' Union, A.F. of L.-C.I.O., and International Ladies' Garment Workers' Union, A.F. of L.-C.I.O., Defendants.
• Court: U.S. District Court — District of New Jersey

145 F. Supp. 14

ARTHUR IMERMAN UNDERGARMENT CORPORATION and Matawan Undergarment Co., Inc., Plaintiffs, v. LOCAL 162, INTERNATIONAL LADIES' GARMENT WORKERS' UNION, A.F. OF L.-C.I.O.; Local 166, International Ladies' Garment Workers' Union, A.F. of L.-C.I.O., and International Ladies' Garment Workers' Union, A.F. of L.-C.I.O., Defendants.

Civ. A. No. 699-56.

United States District Court D. New Jersey.

October 11, 1956.

Carpenter, Bennett, Beggans & Morrissey, by Thomas L. Morrissey, Jersey City, N. J., Irwin Feldman, New York City, for plaintiffs.

Kapelsohn, Lerner, Leuchter & Reitman, by Sidney Reitman, Newark, N. J., Morris P. Glushien, New York City, for defendants.

HARTSHORNE, District Judge.

This motion to confirm an arbitration award raises the threshold question as to the power of this particular Court to confirm this award, and thereafter, if such power exists, questions as to the extent of the confirmation, both as to the parties against whom the confirmation is to be entered as a judgment, and the nature of that judgment.

The two plaintiff New Jersey corporations, together with a third South Carolina corporation, called Spartan Undies, Inc., are all under the same control and identic stock ownership, and will hereafter be designated as Imerman. The two defendant Locals affiliated with the International Ladies' Garment Workers Union, A.F.L.-C.I.O., hereafter designated as the Locals, are the recognized bargaining representatives of the employees of the above New Jersey Imermans. The International Ladies' Garment Workers Union, A.F.L.-C.I.O., hereafter designated as the International, is engaged in a dispute with South Carolina Imerman, now pending before the National Labor Relations Board, but has so far failed in its attempt to become the recognized bargaining representative of the employees of the South Carolina corporation.

On April 29, 1955 the two New Jersey Imermans and the two Locals entered into a written collective bargaining agreement which, among other things, dealt with the Imermans' "right to give out work to any contractors the employers may choose * * *" (paragraph 16) and the New Jersey Imermans did give out such work to South Carolina Imerman. However, such agreement further provided that the New Jersey Imermans should not give out such work "in the event there shall be a bona fide labor dispute between the union and any such contractors and as a result thereof the union shall have declared said contractor on strike" (paragraph 16). Since it was contended that this situation existed, a dispute arose between the New Jersey Imermans and the two Locals, involving the International also, with the establishment of a picket line and the refusal of employees of the New Jersey Imermans, members of the Locals, to cross this picket line, as well as the alleged involvement of truckers, members of other unions.

This collective bargaining agreement provided, in paragraph 23, that "any and all disputes, complaints, controversies, claims or grievances whatsoever between the Union or any employees and the employer * * * shall be adjusted * * *" by having the matter "submitted to arbitration before * * * the American Arbitration Association * * *." This arbitrator was given power to grant relief "commanding or restraining acts and conduct of the parties", his award to be "enforceable by appropriate proceedings in law or in equity." There further followed provisions that arbitration was to be the "exclusive means for the determination of all disputes" and that this provision was to be "interpreted as broadly and inclusively as possible". Accordingly, the New Jersey Imermans, the Locals, and perchance the International, though this last is a disputed fact, applied separately to the American Arbitration Association for arbitration.

The above constitute the salient features of the facts as submitted to, and found by, this Court.

Faced with a slight delay in the arbitration, and because of the claimed interference with their work, resulting to the Imermans in both New Jersey and South Carolina, the New Jersey Imermans filed a complaint in this Court against both the Locals and the International, asking for injunctive relief, both temporary and final, as well as damages, and also asking for arbitration under the above collective bargaining agreement. The violation of this agreement was there alleged as being the basis of the jurisdiction of this Court under Section 301 of the Labor Management Relations Act, 1947, as amended, 61 Stat. 156, 29 U.S.C.A. § 185. Thereunder the New Jersey Imermans moved for a temporary injunction. The Locals countered with an application for a stay of the injunction under Section 3 of the Federal Arbitration Act, 1947, 61 Stat. 669, 9 U.S.C.A. § 3. The application by the Unions was first heard, since it sought to stay any further proceedings in this Court, the sole issues thereon being whether the Unions were "in default in proceeding with such arbitration", in which event the Act provided no such stay should issue, and whether the dispute involved was arbitrable under the contract. At such hearing this Court found there was no such default and that the issues involved were arbitrable.

In view of the fact that complete diversity of the parties was lacking, and that as the complaint alleged, the sole basis of jurisdiction of this Court was for violation of the collective bargaining agreement, and in view of the further fact that the International was admittedly not an express party to such agreement, this Court, on application, dismissed the above complaint as to the International. It should perhaps be added that at this time the claim was not stressed, as it was later, that the International was itself responsible for the dispute under the agreement, on the theory that it was acting in that regard as an agent of the Locals, and therefore this Court could take jurisdiction over the International under 29 U.S.C.A. § 185(b) and (e).

Almost immediately after the above hearing the arbitration proceeded, and the arbitrator promptly rendered his "interim award" granting the New Jersey Imermans their application for "interim injunctive relief", this relief enjoining both the International and the Locals from "picketing" the plants of the New Jersey Imermans, and directing the Locals to "instruct its members who are employees at those plants to return to work forthwith". Shortly after the rendition of this award, the New Jersey Imermans applied to this Court to confirm this award — the instant motion.

On this motion the same attorney noted his appearance specially for the International and generally for the Locals in objection to this motion, these objections being based on several grounds: (1) that this Court had no jurisdiction under the express provisions of Section 9 of the Federal Arbitration Act, (2) that this Court under the Norris LaGuardia Act, 29 U.S.C.A. § 101 et seq., cannot confirm an injunctive order against a labor union affecting a strike. In addition, it was objected, as to the International, that (3) the International not being a party to the collective agreement calling for arbitration, could not be subjected to the arbitration award, (4) that this Court, having dismissed the above complaint as to the International, could not adjudicate against the International under such complaint. As to the Local, the additional objection was made (5) that since they had already complied with the injunctive relief awarded as...