Chicago Grain Trimmers Ass'n v. Murphy
| Decision Date | 17 January 1945 |
| Docket Number | No. 28095.,28095. |
| Citation | 389 Ill. 102,58 N.E.2d 906 |
| Parties | CHICAGO GRAIN TRIMMERS ASS'N v. MURPHY, Director of Labor. |
| Court | Illinois Supreme Court |
OPINION TEXT STARTS HERE
Appeal from Circuit Court, Cook County; Michael Feinberg, judge.
Francis B. Murphy, Director of Labor, made an assessment under the Unemployment Compensation Act against the Chicago Grain Trimmers Association for contributions, interest, and penalties for a period beginning in 1937 and ending in 1941. The decision was reviewed by the circuit court on certiorari and the decision of Director of Labor affirmed. From the judgment of the circuit court the Association appeals.
Reversed and remanded, with directions.
Robert Branand, Jr., of Chicago, for appellant.
George F. Barrett, Atty. Gen. (William C. Wines, of Chicago, of counsel), for appellee.
This case involves an assessment made by the Director of Labor under the provisions of the Unemployment Compensation Act against the appellant, Chicago Grain Trimmers Association, in the amount of $17,758.32 for contributions, interest and penalties for a period beginning in 1937 and ending in 1941. The decision was reviewed by the circuit court of Cook county on certiorari, and the decision of the Director of Labor duly affirmed. Appellant appeals directly to this court in accordance with the provisions of the statute.
The principal questions involved concern whether or not the Chicago Grain Trimmers Association is such a legal entity as to be an employer under the Unemployment Compensation Act, and whether or not the so-called individual members of the association are employees of the association. The appellant urges that Chicago Grain Trimmers Association is not a legal entity but merely a common enterprise of a number of individuals to arrange for their employment. The appellee contends that the association is engaged in a business as a separate legal entity, and employs individuals to do the work necessary to perform its contracts.
The Chicago Grain Trimmers Association appears to be a voluntary, unincorporated group of people using the name for their common purpose. There is no written charter agreement or rules which govern the activities of the association or the rights of its members. The business affairs are handled exclusively by William J. Mayer, who has the title of secretary and treasurer. The association is closely associated with Local No. 101 of the American Federation of Labor and the International Longshoremen's Association. The individual members of the association are grain trimmers, whose work consists of loading and unloading bulk grain in barges and ships. This labor must be performed in a careful manner in order to maintain proper balancing of the vessel, and to prevent breaking or straining of bulkheads. The association is composed of twenty-two regular members including William J. Mayer, each of whom has contributed the sum of $218 to a working capital, which sum is returned to a member when he withdraws, or is paid to his family in the case of his death. The principal purpose of the working capital fund is to enable the association to make a distribution of earnings each week, even though payment for the work has not yet been received.
In addition to the twenty-two regular members of the association, there is a group of men who have not contributed to the capital fund and who are variously known as ‘limited members' or ‘outsiders.’ These men have no interest in the capital fund but may from time to time be called in by the association to work on a grain trimming job. In such case they are compensated in exactly the same manner as the regular members.
The business affairs of the association are handled exclusively by Mayer, who rents an office in the name of the said association and carries a telephone listing in its name. A policy of workmen's compensation insurance is carried in the name of the association. It has fixed rates for handling grain on the basis of a certain charge per thousand bushels. Arrangements for the loading of grain are made between the shipowner and Mayer and the rate per thousand bushels agreed upon. Mayer then selects the men from the regular or limited members of the association to do the job. At the end of each week, Mayer, after paying any overhead expenses, makes a division of the money earned among the members who worked during the week, the division being in proportion to the amount of time worked by each man, the limited members receiving the same compensation as the regular members, Mayer receiving one share for his services as representative of the association. Any stenographic or secretarial assistance required by Mayer is paid by him personally.
Agreements in regard to grain loading are made in the name of the association by Mayer. The elevators or shipowners make payment in the name of the association, which money is deposited in the association's bank account. The master in charge of a barge or vessel has control over the manner of loading of the grain but has no authority to specify the individual or the number of men who are to perform the labor.
The shovels and other tools used by the workers were purchased by the association, which also paid the dues due the union by the union members and the work-permit fees for nonmembers. A partnership income tax return was filed by the association showing the income received and the expenses paid and the payments made to the workers.
Section 2(d) of the Unemployment Compensation Act (Ill.Rev.Stat. 1943, chap. 48, par. 218) defines ‘employing unit’ as follows: “Employing unit' means any individual or type of organization, including any partnership, association, trust, estate, * * * which has or subsequent to January 1, 1936, had in its employ one or more individuals performing services for it within this State.' Section 2(e) defines an ‘employer’ as an ‘employing unit’ which has had in its employ a specified number of individuals during a specified time. This qualification would be met under the facts in this case if the association is regarded as an employing unit and the members as employees. Section 2(f)(1) defines ‘employment’ as follows: ...
To continue reading
Request your trial
-
1550 MP Rd. LLC v. Teamsters Local Union No. 700
...to sue or be sued, acquire or hold title to real property, or enter into contracts in their own names. Chicago Grain Trimmers Ass'n v. Murphy , 389 Ill. 102, 107, 58 N.E.2d 906 (1945) ; 3 Ill. L. and Prac. Associations § 5 (Feb. 2019 Update); 6 Am. Jur. 2d Associations and Clubs § 11 (Jan. ......
-
1550 MP Rd. LLC v. Teamsters Local Union No. 700
...to the Act, an unincorporated association was legally incapable of owning property in its own name. Chicago Grain Trimmers Ass'n v. Murphy , 389 Ill. 102, 107, 58 N.E.2d 906 (1945). Defendants argue that "the Act is expressly designed to authorize unincorporated associations to enter into r......
-
Phillips v. Wellpoint Inc.
...of a company or business for the transaction of designated affairs or the attainment of some common object.''Chi. Grain Trimmers Ass'n v. Murphy, 58 N.E.2d 906, 908-09 (Ill. 1945). An Illinois Appellate Court addressed the term "association" in the context of the Illinois Securities Law. St......
-
Fields Cadillac, Inc. v. New Car Dealers Committee
...unincorporated association has no separate legal existence independent of the members who compose it. (Chicago Grain Trimmer's Association v. Murphy, 389 Ill. 102, 107, 58 N.E.2d 906; Butler Manufacturing Co. v. Department of Finance, 383 Ill. 220, 228, 49 N.E.2d 31.) Thus, the common law r......