Clinton v. Hueston, 19180.

• Decision Date: 19 November 1962
• Docket Number: No. 19180.,19180.
• Parties: James W. CLINTON and James C. Stapleton, Appellants, v. Dewey J. HUESTON et al., Appellees.
• Court: U.S. Court of Appeals — Fifth Circuit

308 F.2d 908 (1962)

James W. CLINTON and James C. Stapleton, Appellants, v. Dewey J. HUESTON et al., Appellees.

No. 19180.

United States Court of Appeals Fifth Circuit.

October 10, 1962.

Rehearing Denied November 19, 1962.

Otto E. Simon, Allan R. Cameron, Mobile, Ala., Moore, Simon & Layden, Mobile, Ala., of counsel, for appellants.

Willis C. Darby, Jr., Kilborn, Darby & Kilborn, Mobile, Ala., for appellees.

Before CAMERON and JONES, Circuit Judges, and DeVANE, District Judge.

JONES, Circuit Judge.

A suit was brought in the Circuit Court of Mobile County, Alabama, seeking an injunction, an injunction pendente lite, and a receiver pendente lite. A temporary injunction was issued by the Alabama court. The cause was removed to the United States District Court and that Court, upon motion, dissolved the state court's injunction and denied a motion to remand. This appeal challenges the district court's order dissolving the injunction and refusing to remand the cause. The initial issue for our determination is the jurisdictional one. There is no diversity of citizenship but, it is insisted, there is a federal question.

The appellants, James W. Clinton and James C. Stapleton, filed their sworn bill of complaint in the state court on behalf of themselves and other members of Marine Engineers Beneficial Association No. 14, AFL-CIO, and named as defendants Dewey J. Hueston, who is business manager and secretary-treasurer of Local 14, Wright B. Slaughter, who is president of Local 14, and Local 14, a labor organization. The complaint alleged that the plaintiffs were members of Local 14, which was chartered by the National Marine Engineers Beneficial Association, AFL-CIO, herein called National; that there have been disputes between Local 14 and National and that Slaughter and others have instituted legal actions against National without exhausting remedies existing under National's constitution and by-laws and will continue to do so, thereby wasting the funds of Local 14, unless restrained. It was asserted that National had filed charges against Hueston asserting that he, in violation of National's constitution, had filed with it reports understating the membership of Local 14, paid National a per capita tax on less than the full membership of Local No. 14, and collected from the members of Local 14 an unauthorized assessment which he falsely designated as a National tax. In the complaint it was said that National had filed against the local on the same charges as it had made against Hueston as its business manager. If these charges against Local 14 and Hueston are true, say the plaintiffs, National may cancel the charter of Local 14 and the plaintiffs will be unable to get work. There is an allegation that Hueston has been collecting from the members an unauthorized assessment of $10.00, for which he refuses to account. In more detailed statements, the plaintiffs charged that Hueston reported to National a membership of 207, but in his report to the Secretary of Labor filed under the Landrum-Griffin Act he showed that Local 14 had 271 members, thus making false reports to National. The plaintiffs averred that Hueston failed to keep proper records of his collections from members and that his records do not comply with the Landrum-Griffin Act, thus jeopardizing the charter of Local 14. The assets of Local 14, according to the complaint, have a value in excess of $50,000. Finally, the plaintiffs assert, Hueston fails and refuses to maintain an open and impartial job register. The prayer of the complaint is for (a) a temporary injunction against further litigation with National and using funds of Local 14 for fees and expenses of litigation, (b) the appointment of a receiver for Local 14 to preserve its assets, have its books audited and to operate its business, (c) an order directing all persons having assets of Local 14 to pay them over to the receiver and enjoining the officers and members of Local 14 from interfering with the receiver, and (d) on final hearing making the injunction permanent and holding Hueston and Slaughter liable for any discrepancies in the funds of Local 14 that might be shown to exist.

The Alabama Court issued a temporary injunction as sought by the complaint and directed that a receiver pendente lite be appointed. On April 25, 1961, the day following the issuance of the injunction, the defendants filed a petition for removal to the United States District Court for the Southern District of Alabama. On the same day they filed in the Federal Court a motion to dissolve the injunction which had issued out of the state court. On April 27, 1961, the plaintiffs filed their motion to remand the cause to the Alabama Court. At the hearing on the motion to dissolve and on the motion to remand testimony was taken before the court. The court denied the motion to remand and dissolved the injunction. An interlocutory appeal has been authorized.

If the district court would have had original jurisdiction of the action it could be removed from a state court. 28 U.S.C.A. § 1441. District courts are given original jurisdiction where the matter in controversy exceeds $10,000 and arises under the Constitution, laws or treaties of the United States. 28 U.S. C.A. § 1331(a). This Court has considered the manner by which removal jurisdiction in a...