COLONIAL HARDWOOD FLOOR. CO. v. International Union

• Decision Date: 16 February 1948
• Docket Number: Civ. No. 3804.
• Citation: 76 F. Supp. 493
• Parties: COLONIAL HARDWOOD FLOORING CO., Inc. v. INTERNATIONAL UNION UNITED FURNITURE WORKERS OF AMERICA et al.
• Court: U.S. District Court — District of Maryland

76 F. Supp. 493

COLONIAL HARDWOOD FLOORING CO., Inc. v. INTERNATIONAL UNION UNITED FURNITURE WORKERS OF AMERICA et al.

Civ. No. 3804.

District Court, D. Maryland.

February 16, 1948.

Earle Shawe, of Baltimore, Md., and Gerard D. Reilly and Charles Edward Rhetts, both of Washington, D. C., for plaintiff.

Jacob J. Edelman and Isidor Roman, both of Baltimore, Md., Weinstock & Tauber, of New York City, and Bernard J. Flynn, U. S. Atty., of Baltimore, Md., for defendants.

CHESNUT, District Judge.

The complaint in this case is in two counts. Count 1 is based on section 301 of the recent Act of Congress known as the Labor Management Relations Act, Public Law 101, 80th Cong., c. 120, 29 U.S.C.A. § 185, passed by the House and Senate June 23, 1947 over Presidential veto.

Section 301(a) authorizes suits for violation of contracts between employer and the labor organization representing employees in an industry affecting commerce, to be brought in any district court of the United States having jurisdiction of the parties, without respect to the amount in controversy and without regard to the citizenship of the parties. Subsection (c) with respect to venue jurisdiction provides that — "district courts shall be deemed to have jurisdiction of a labor organization (1) in the district in which such organization maintains its principal office, or (2) in any district in which its duly authorized officers or agents are engaged in representing or acting for employee members." and subsection (d) provides that the service of summons upon an officer or agent of a labor organization which is accepted, constitutes service upon the labor organization.

The plaintiff is a Maryland corporation engaged in the manufacture of woodwork in the City of Hagerstown, Maryland. One of the defendants is the International Union United Furniture Workers of America (a so-called national Union). It has its principal office in New York City. The other defendant, United Furniture Workers of America, Local 472, is a local Union having its principal business offices at Hagerstown, Maryland. Annexed to the complaint is a copy of the contract between the plaintiff and the defendants. Among other provisions is elaborate and detailed procedure for settlement of grievances with arbitration if necessary. Article 4, s.1(k) provides as follows: "(k) During the life of this agreement, the Company (plaintiff) agrees that there shall be no lock-outs and the Union agrees that it will not cause or permit its members to cause nor will any member of the Union take part in any strike or stoppage of work. It is understood and agreed that the grievance procedure provided in this Article shall be the only method for settling disputes which are the subject of this agreement."

The complaint states that the contract was executed December 18, 1946, retroactive to October 15, 1946, and to continue until October 15, 1947, and from year to year thereafter unless sooner terminated; but that on August 13, 1947, the International Union gave notice of termination on October 15, 1947.

The complaint alleged that contrary to the express provision of the contract on or about October 3, 1947, the defendants caused a strike or stoppage of work at the plaintiff's furniture plant in consequence of which it sustained substantial damages.

Count 2 of the complaint is based on section 303 of the Labor Management Relations Act, 29 U.S.C.A. § 187, which, shortly stated, prohibits secondary boycotts. The count alleges the occurrence of a secondary boycott by the defendants with consequent substantial damage to the plaintiff's business. This provision of the statute has recently been applied by Judge McCormick of the Southern District of California in LeBaron v. Printing Specialties and Paper Converters Union, D.C., 75 F.Supp. 678; cf. Douds v. Metropolitan Federation, D.C. 75 F.Supp. 672.

The several grounds for the motions raise different types of questions including procedural matters and matters of substantive law with respect to construction of the contract, and matters of constitutional law. The defendants separately have filed motions to dismiss the complaint on many separate grounds. They will be considered separately and briefly at this time.

First as to the procedural matters. It is contended that there was a misjoinder of causes of action in that the first count is based on the contract and the second on tort. This is not a tenable ground for dismissing the suit under the new federal civil procedure rules.

The next objection is that the International Union is not suable in the district court of Maryland by reason of the general venue statute providing that a defendant is to be sued only in the district in which it is an inhabitant. Code 1939, art. 75, § 157. It will be noted, however, that section 301 provides a particular venue for suits brought under the Act, and permits the suit "in any district in which its (the Union's) duly authorized officers or agents are engaged in representing or acting for employee members." The complaint as originally filed did not contain this express allegation but at the hearing an amendment was permitted to incorporate it in the complaint. It is also to be noted that the marshal's return of process shows service of summons on the International Union United Furniture Workers of America by service on Michael Tyson, its agent, and copy of summons and complaint left with him November 17, 1947. There has been no motion to quash the service of summons.

It is also contended that the copy of the contract filed with the complaint does not show a formal execution of the agreement by the International Union. However, the complaint in substance alleges the existence of the contract with both defendants and the copy of the contract itself purports to have been made between the plaintiff and both defendants. The form of execution of the contract by the defendants reads as follows:

"For United Furniture Workers Local Union No. 472 Signed by Sam Fox, Int. Rep. UFWA Joseph Miller Henry Head"

Whether the contract was in fact executed by the International Union may be doubtful but should be left for determination on the evidence. For the...