Communication Workers of America, Local 5900 v. Bridgett

• Decision Date: 26 August 1987
• Docket Number: AFL-CI,P,No. 49A02-8702-CV-53,49A02-8702-CV-53
• Citation: 512 N.E.2d 195
• Parties: 128 L.R.R.M. (BNA) 3014 COMMUNICATION WORKERS OF AMERICA, LOCAL 5900 (formerly 5709),laintiff-Appellant, v. Larry E. BRIDGETT, et al., Defendants-Appellees.
• Court: Indiana Appellate Court

Page 195

512 N.E.2d 195

128 L.R.R.M. (BNA) 3014

COMMUNICATION WORKERS OF AMERICA, LOCAL 5900 (formerly 5709), AFL-CIO, Plaintiff-Appellant, v. Larry E. BRIDGETT, et al., Defendants-Appellees.

No. 49A02-8702-CV-53.

Court of Appeals of Indiana First District.

Aug. 26, 1987.

Fred O. Towe, Fillenwarth, Dennerline, Groth & Baird, Indianapolis, for plaintiff-appellant.

Daniel F. Cummings, Cummings & Merriman, Indianapolis, for defendants-appellees.

RATLIFF, Chief Judge.

STATEMENT OF THE CASE

The Communication Workers of America, Local 5900, AFL-CIO (Union) appeals a judgment which denied the Union's attempt to collect fines imposed against Larry E. Bridgett and forty-three (43) other employees of Indiana Bell (Employees). We affirm.

FACTS

Between the 7th and 27th of August 1983, the Union conducted a strike against Indiana Bell Telephone Company as part of a nationwide telephone strike. The defendant Employees chose not to participate in the strike, crossed the picket line and continued to work and draw pay from Indiana Bell. In late August the Union filed charges against the Employees. The charges stated that the Employees were members of the union who by crossing the picket line, had violated Article XIX, section 1(c) and (e) of the Union's Constitution, which provides:

"Members may be fined, suspended or expelled by Locals in the manner provided in the Constitution for any of the following acts:

* * *

(c) Wilfully violating the constitution of the Union, Local Bylaws or Rules; ...

(e) Working without proper Union authorization, during the period of a properly approved strike in or for an establishment which is being struck by the Union or Local; ..."

Record at 384 and Volume 4, Exhibit A. A hearing was held before a union trial panel after the employees were given notice. Several of the employees were tried in abstentia and fined. The employees did not appeal the fine through the Union's internal appellate procedure.

In November of 1984, the Union filed forty-four (44) separate actions against the Employees in Marion County Small Claims Court. The cases were later removed and consolidated for trial in the Marion County Municipal Court. The Union sought to enforce the fines imposed against the Employees for the alleged violations of the Union Constitution. On July 8, 1986, a bench trial was held. The parties stipulated that the cases were consolidated for all purposes and that the evidence to be presented would be the same except for the amount of damages claimed against the individuals as fines. Record at 275. The Union presented evidence that the Employees were enrolled as members when they crossed the picket lines and worked during the strike. The Employees presented evidence that prior to the strike they resigned and were no longer card carrying members when they crossed the picket lines. Several employees testified that they resigned by tendering oral or written resignations. Others testified that when they attempted to obtain information on the proper resignation procedure they were told either that they could not resign or that the time period for resignation had passed. On October 17, 1986, the trial court entered judgment against the Union. The Union appeals this judgment.

ISSUES

Although the Union presents three (3) issues for review, the following are dispositive of the appeal:

1. Whether the trial court had jurisdiction to determine the membership status and the resignation from membership defense raised by the Employees.

2. Whether the trial court's judgment in favor of the Employees is contrary to the evidence. ²

DISCUSSION AND DECISION

Issue One

The Union argues that the trial court was without jurisdiction to determine the membership status of the Employees. Specifically, the Union argues that the doctrine of primary jurisdiction places resolution of these issues within the exclusive jurisdiction of the National Labor Relations Board (NLRB). We reject the Union's argument. Acceptance of this argument would give the Union the power to fine non-union member employees and would prevent a fair adjudication of the present controversy.

The doctrine of primary jurisdiction relied upon by the Union arises out of the United States Supreme Court's interpretation of the National Labor Relations Act (NLRA). San Diego Building Trades Council v. Garmon (1959), 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed.2d 775. In Garmon the Supreme Court held that Congress intended that matters of national labor policy be decided in the first instance by the NLRB. To protect this intent the Supreme Court provided, that as a general rule, federal courts do not have jurisdiction over activity which is "arguably subject to Sec. 7 or Sec. 8 of the National Labor Relations Act." ³ Garmon, at 245, 79 S.Ct. at 780, 3 L.Ed.2d at 783.

The general rule of primary jurisdiction, however, has not been given a broad mechanical application to bar all suits or defenses that arise in labor relations cases from being decided by the courts. Sears, Roebuck and Co. v. San Diego County District Council of Carpenters (1978), 436 U.S. 180, 188-89, 98 S.Ct. 1745, 1753, 56 L.Ed.2d 209, 220. The doctrine is limited to its primary justification which is "the need to avoid conflicting rules of substantive law in the labor relations area and the desirability of leaving the development of such rules to the administrative agency created by Congress for that purpose." Vaca v. Sipes (1967), 386 U.S. 171, 180-81, 87 S.Ct. 903, 912, 17 L.Ed.2d 842, 852; see also, Kaiser Steel Corp. v. Mullins (1982), 455 U.S. 72, 83-84, 102 S.Ct. 851, 859-60, 70 L.Ed.2d 833, 843-44; Sears, Roebuck and Co., 436 U.S. at 188-89, 98 S.Ct. at 1752-53, 56 L.Ed.2d at 219-20; William E. Arnold Co. v. Carpenters District Council (1974), 417 U.S. 12, 16, 94 S.Ct. 1069, 1072, 40 L.Ed.2d 620, 625. Therefore, unless the Congressional intent of keeping the area of labor relations uniform is placed in jeopardy, the doctrine is inapplicable.

The doctrine of primary jurisdiction does not apply to the present case. The issue which was raised by the Employees as a defense merely involves the contractual question of whether they were parties to the contract and members of the Union at the time of the strike. This issue is not one that involves an activity that is arguably protected by Sec. 7 or prohibited by Sec. 8 of the NLRA. The defense of non-membership and resignation was purely a contractual issue and merely a negative response to the Union's affirmative burden of establishing that the Employees were parties to the contract that the Union was trying to enforce. The doctrine of primary jurisdiction does not apply to preempt the court's jurisdiction to interpret and enforce contracts. Kaiser Steel, 455 U.S. at 83-84, 102 S.Ct. at 859-60, 70 L.Ed.2d at 843-44. The court interpreted the present contract to cover only members of the Union. The Constitution specifically provided that only "members" may be fined. If the Union failed to establish that the Employees were members of the Union during the days they worked behind picket lines, then the court could not enforce the fines the Union imposed under the Constitution. Thus, the trial court was required to determine the membership status of the Employees. The issue of membership status vel non is not covered by sections 7 or 8 of the NLRA, and accordingly, not preempted by the doctrine of primary jurisdiction. Therefore, the defense raised by the Employees was within the trial court's jurisdiction.

We also hold that the trial court had jurisdiction to hear the defense of membership and resignation even if the defense arguably involves an issue of unfair labor practice governed by sections 7 and 8 of the NLRA. When a labor dispute involves both a breach of contract and an unfair labor practice charge, the NLRB and the courts have concurrent jurisdiction to resolve the dispute. Kaiser Steel, at 83-84, 102 S.Ct. at 859-60, 70 L.Ed.2d at 843-44; William E. Arnold Co., 417 U.S. at 16, 94 S.Ct. at 2072, 40 L.Ed.2d at 625; Vaca, 386 U.S. at 181-83, 87 S.Ct. at 912-13, 17 L.Ed.2d at 852-53; Hotel Restaurant Employees and Bartenders Union, Local 703 v. Williams (9th Cir.1985), 752 F.2d 1476, 1478; Board of Trustees, Container Mechanics Welfare/Pension Fund v. Universal Enterprises, Inc. (11th Cir.1985), 751 F.2d 1177, 1183; Toyota Landscape Co., Inc. v. Building Material and Dump Truck Drivers Local 420 (9th Cir.1984), 726 F.2d 525, 527. This rule is especially applicable when the unfair labor practice charge is peripheral to the determination of the contract charge. Kaiser Steel, 455 U.S. at 83-84, 102 S.Ct. at 859-60, 70 L.Ed.2d at 843-44; Sears, Roebuck and Co., 436 U.S. at 188-89, 98 S.Ct. at 1752-53, 56 L.Ed.2d at 219-20; Vaca, 386 U.S. at 179-81, 87 S.Ct. at 910-12, 17 L.Ed.2d at 852-53. The critical inquiry in applying the doctrine of primary jurisdiction is whether the controversy presented to the state court is identical with that which could be presented to the NLRB. Belknap Inc. v. Hale (1983), 463 U.S. 491, 510, 103 S.Ct. 3172, 3183, 77 L.Ed.2d 798, 814. Also, the rule in Garmon is relaxed "when the state court can ascertain the actual legal significance under federal labor law by reference to compelling precedent applied to essentially undisputed facts." Garmon, 359 U.S. at 245, 79 S.Ct. at 780, 3 L.Ed.2d at 783. Thus, when the uniformity of federal labor law is not jeopardized, the courts may resolve a dispute even though it arguably is covered by sections 7 and 8 of the NLRA. Sears, Roebuck and Co., 436 U.S. at 188-89, 98 S.Ct. at 1753, 56 L.Ed.2d at 220.

Under federal labor law, the court must interpret the contract provision to determine if the provision violates the NLRA, before enforcing a fine under the contractual provision. Kaiser Steel, 455 U.S. at 83-84, 102 S.Ct. at 859-60, 70 L.Ed.2d at 843-44; Scofield v. NLRB (1969), 394 U.S. 423, 429, 89 S.Ct. 1154, 1158, 22 L.Ed.2d 385, 393. The courts cannot enforce a...