Foods, Inc. v. Leffler

• Decision Date: 14 April 1976
• Docket Number: No. 2--56773,2--56773
• Citation: 240 N.W.2d 914
• Parties: 92 L.R.R.M. (BNA) 3249 FOODS, INC., d/b/a Dahl's Food Stores, Appellee, v. Tom LEFFLER et al., Appellants.
• Court: Iowa Supreme Court

Page 914

240 N.W.2d 914

92 L.R.R.M. (BNA) 3249

FOODS, INC., d/b/a Dahl's Food Stores, Appellee, v. Tom LEFFLER et al., Appellants.

No. 2--56773.

Supreme Court of Iowa.

April 14, 1976.

Robert C. Oberbillig and Robert J. Noun, Des Moines, for appellants Leffler, Valadez, Garcia, Price, Geofreddi and Negrete.

Gordon E. Allen, Des Moines, for all other appellants.

Dickinson, Throckmorton, Parker, Mannheimer & Raife by Paul R. Tyler, Des Moines, for appellee.

Considered en banc.

REES, Justice.

This appeal has its genesis in a class action brought by plaintiff, Foods, Inc., to enjoin the defendant members of the class from conducting certain activities at or near the supermarket facilities of plaintiff in Polk County. At the time of the commencement of the action, plaintiff operated nine supermarkets in the county. Plaintiff Foods, Inc., is better known as Dahl's Food Stores, and will be referred to hereinafter as 'Dahl's'. The defendants consist of the members of the Iowa Lettuce and Grape Boycott Committee and the Des Moines Lettuce and Grape Boycott Committee, and all individuals who independently or as a class aid, abet or assist in the objects and purposes of said committees. According to the defendants, the Des Moines Lettuce and Grape Boycott Committee was organized for the purposes of: (1) educating and informing the public as to the working conditions of farm workers in California and the labor dispute involving the United Farm Workers, hereinafter U.F.W., AFL-CIO, the Teamsters Union, and the lettuce and grape growers, and (2) communicating support for the U.F.W. and asking consumers to exert economic pressure on retail supermarkets which do not merchandise lettuce and table grapes bearing the union label.

The record indicates representatives of the Des Moines committee contacted Mr. Arthur Cox, president of Dahl's, with a request that the corporation purchase for resale only table grapes and lettuce bearing the U.F.W. label. The representatives of the committee informed Cox they would cause to have prepared a written agreement between Dahl's and the committee containing such provisions and would present it to Dahl's for execution. Cox rejected the request, or demand, of the committee.

On July 27, 1973, members of the committee began picketing and distributing leaflets at several Dahl's supermarkets. Some of the picketers displayed placards calling on customers not to shop at Dahl's stores. The leaflets distributed urged the public to boycott Dahl's until an agreement was reached whereby Dahl's stores would sell only U.F.W. lettuce and grapes. The leaflets also contained information regarding the committee's view of the nature of the farm workers' dispute and the goals sought by the committee and the U.F.W.

Mr. Cox testified picketing resumed the following day, and there appears to be no dispute but that some picketing and leafleting also occurred at one or more of the Dahl's stores on August 3, 5, 16 and 17. Certain of the defendants testified that on at least two of such occasions the picketers and leaflet distributors left the premises of the Dahl's stores at the request of Cox.

The record appears to indicate some of defendants' picketing activities took place directly on Dahl's property near the customer entrance/exit doors, and some took place directly adjacent to plaintiff's property on public sidewalks. There is nothing in the record to indicate that the picketing and leafleting was other than generally peaceful and orderly, although Cox testified he saw some defendants standing on Dahl's property in front of customers, making it difficult for the customers to enter or exit the store. Mr. Baker, manager of Dahl's Ingersoll Avenue store, testified that some defendants made it difficult for customers to enter the store and that vehicular traffic was backed up into public thoroughfares because of the defendants' activities. The testimony of the defendants themselves leaves no doubt but that the purpose of the picketing and the leafleting was to exert economic pressure on Dahl's to secure Dahl's agreement to sell only U.F.W. grapes and lettuce. Defendants also emphasized that education of the public to the plight of the farmworkers was another purpose of their picketing and leafleting activities.

Following the filing of the original petition by plaintiff, an order for the issuance of a temporary writ of injunction was entered on August 14, 1973, enjoining defendants from trespassing on the premises of any Dahl's supermarket, and from obstructing, by any manner or means, or interfering with, or preventing the entrance or exit of persons or vehicles to and from the supermarkets, from shouting at, disturbing or annoying persons attempting to enter the premises of any of the supermarkets, and from harassing or intimidating Dahl's employees or customers.

In its petition, plaintiff also prayed that a permanent injunction issue. Defendants moved to vacate the temporary injunction on August 16, and filed answer on August 20 to plaintiff's petition as amended. Plaintiff's petition, as amended, alleged defendants' activities constituted a willful and unlawful trespass in violation of common law and of chapter 729, The Code, 1973, and further constituted an obstruction of the free use of private property, and the making or excitement of a disturbance in violation of § 744.1, The Code, 1973. Dahl's further asserted the activities of defendants constituted an attempt to force Dahl's to enter into an agreement, contract or understanding to limit the amount or quantity of a commodity sold in Iowa, and an attempt to enter into a contract or conspiracy in restraint of trade or commerce among the several states and an attempt to monopolize, or combine or conspire with others to monopolize, a part of the trade or commerce among the several states. Defendants' motion to vacate the temporary injunction alleged, Inter alia, that their activities were protected by the First and Fourteenth Amendments to the Constitution of the United States. No such defense, however, was asserted by defendants in their answer, which constituted substantially a general denial by which defendants denied certain allegations of the petition and admitted others.

Trial of the cause began on August 20, 1973. At the close of plaintiff's evidence, defendants moved the court to dismiss Dahl's petition and to quash the previously issued writ of temporary injunction. In their motion to dismiss, defendants asserted their activities were lawful and constituted conduct protected by the First Amendment to the United States Constitution. The motion also asserted what might with some stretch of the imagination be construed to be a claim by defendants to special protection by virtue of involvement in a 'labor dispute.' Defendants assert such protection on appeal, but their only reference to labor activity in the motion to dismiss was as follows:

'We would also argue, secondly, that they (defendants) were there for a lawful activity, that is, the promulgation of better working conditions for a labor union in California.

'We would submit that their conduct and their activity was protected by the First Amendment and is protected by the laws of Iowa and that these people in doing what they are doing are attempting to better the working conditions of union members. It might be said that they are not union members, themselves, but the First Amendment does not go to who you are. It goes to what you are saying and the individuals who advocate the end and the better working conditions for these United Farm Workers Labor Union members are exercising those rights.

'We submit that the plaintiff has failed in its burden of proof for a permanent injunction against this protected and preferred First Amendment right and that the protected right of a labor union to picket and leaflet is protected by the First Amendment and the laws of Iowa, and we submit that the petition of the plaintiff should be dismissed.'

Trial court overruled defendants' motion to dismiss, and the grounds asserted therein were not thereafter reasserted during the course of the proceedings. The cause was submitted August 22, 1973, and two days later trial court made its findings of fact, reached conclusions of law, and entered its decree granting a permanent writ of injunction. This appeal ensued.

Defendants state the following issues for review:

(1) Trial court erred in finding defendants' activities were not protected by the First and Fourteenth Amendments to the Constitution of the United States and in finding defendants were not involved in a labor dispute.

(2) Trial court erred in failing to differentiate between the various supermarket locations operated by plaintiff.

(3) Trial court erred in finding the public was invited to the premises of the Dahl's stores solely for the purpose of transacting business with Dahl's or as otherwise specifically authorized by the corporation.

(4) Trial court erred in holding that defendants trespassed upon Dahl's premises, defendants' activities constituted an unlawful restraint of trade and commerce, defendants violated § 553.1, The Code, 1973, and their activities were conducted for an unlawful purpose and with an unlawful intent.

(5) Trial court erred when it 'broadly enjoined all individuals, including appellants,' from orally asking, urging or insisting that persons refuse to purchase any products from Dahl's and from carrying and displaying placards or signs near Dahl's premises.

(6) Trial court erred in finding that engaging in conversations with individuals on streets adjacent to Dahl's premises was a violation of a lawful court order.

(7) Trial court erred when it held that because Dahl's customers were 'annoyed' and 'disturbed,' that sufficient grounds existed for denying to defendants their First Amendment rights.

I. There first arises in this appeal the question as to whether defendants properly raised below their defenses of...