INTERNATIONAL LONGSHOREMEN'S, ETC. v. Juneau Spruce Corp.

• Decision Date: 08 June 1951
• Docket Number: No. 12527.,12527.
• Citation: 189 F.2d 177
• Parties: INTERNATIONAL LONGSHOREMEN'S & WAREHOUSEMEN'S UNION et al. v. JUNEAU SPRUCE CORPORATION.
• Court: U.S. Court of Appeals — Ninth Circuit

189 F.2d 177 (1951)

INTERNATIONAL LONGSHOREMEN'S & WAREHOUSEMEN'S UNION et al. v. JUNEAU SPRUCE CORPORATION.

No. 12527.

United States Court of Appeals Ninth Circuit.

May 5, 1951.

Rehearing Denied June 8, 1951.

Gladstein, Andersen & Leonard, George R. Andersen, Norman Leonard and Allan Brotsky, all of San Francisco, Cal., William L. Paul, Jr., Juneau, Alaska, for appellants.

Hart, Spencer, McCulloch, Rockwood & Davies, Manley B. Strayer and James P. Rogers, all of Portland, Or., Faulkner, Banfield & Boochever, Juneau, Alaska, for appellee.

Before STEPHENS, BONE and POPE, Circuit Judges.

BONE, Circuit Judge.

Appellee and plaintiff below, Juneau Spruce Corporation, hereafter sometimes referred to as "Juneau" is a corporation organized under the laws of the Territory of Alaska having its principal place of business at Juneau, Alaska. Appellant, International Longshoremen's and Warehousemen's Union (hereafter sometimes referred to as "International") and appellant, International Longshoremen's and Warehousemen's Union, Local 16 (hereafter sometimes referred to as "Local 16") are labor organizations claimed by appellee to be within and subject to the provisions of the so-called Taft-Hartley Act. 29 U.S.C.A. § 141 et seq. Local 16 is chartered by and affiliated with "International."

Appellee's complaint generally alleged and charged that the instant cause of action arose under the laws of the United States regulating commerce, more particularly under Section 303 of the Labor-Management Relations Act, 1947, commonly referred to as the Taft-Hartley Act.¹ It averred that appellee is an Alaska corporation in good standing; that International was a labor organization engaged in directing, representing, and acting for its members and local unions in the Territory of Alaska, in the Province of British Columbia, Dominion of Canada and in various ports of the West Coast of the United States, that is in ports in the States of Washington, Oregon and California; that Local 16 was at all times material to the action a labor organization chartered by and affiliated with International with its headquarters in the city of Juneau, Alaska and engaged in representing its members in and about that city; that at all times material to the action appellee conducted lumber manufacturing operations in places in Alaska; that logs owned and controlled by the company are manufactured into lumber products at appellee's mill in Juneau; that appellee maintains retail lumber yards in Juneau and Fairbanks in the Territory of Alaska at which yards it sells a portion of the lumber manufactured at its Juneau mill as well as other materials in commerce commonly sold in retail lumber yards, all of said other articles being purchased in the United States and transported to said lumber yards; that appellee sells the majority of the lumber and lumber products produced at its Juneau mill to customers in many states of the United States, shipping said lumber and lumber products so sold to said customers by water to West Coast ports in the United States and Canada and from said ports by railroad to its customers located as aforesaid; that appellee is unable to receive or ship products in the operation of its business except by water, in whole or in part; that the loading and unloading of appellee's barges at its mill in Juneau is an essential part of the manufacture and sale of appellee's lumber and lumber products.

Appellee's complaint further averred that at all times material to the action a labor organization, to wit, International Woodworkers of America, Local M-271 has at all times mentioned in the complaint represented and now represents all of appellee's employees at its mill and retail yard in Juneau except appellee's clerical and supervisory employees and that appellee has at all times mentioned in the complaint recognized and bargained with said Local M-271 as such representative; that at all times mentioned in the complaint there has been and now is in effect a collective bargaining agreement between appellee and Local M-271 wherein appellee recognized the right of Local M-271 to bargain for appellee's employees at its Juneau operations; that on or about April 10, 1948 and until the time of filing the complaint defendant-appellants have unlawfully engaged in and induced and encouraged appellee's employees at Juneau, Alaska and employees of other employers, to engage in a concerted refusal in the course of their employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials, or commodities of appellee, or to perform any services for appellee.

Appellee's complaint further averred generally that an object of appellants in their activities above noted has been, and is, to force and require appellee to assign the work of loading its barges with its lumber to members of Local 16 rather than to other persons including members of Local M-271 to whom said work had theretofore been assigned; that neither of appellants herein has been certified by the National Labor Relations Board as the bargaining representative for employees performing such work.

Appellee's complaint further averred that as a direct and proximate result of the picketing and coercive statements of appellants and of the communication of the fact of said picketing to other labor organizations in ports of the United States and Canada, and elsewhere, all of which activities have been carried on since April 10, 1948 and are now continuously carried on, appellee's employees at its Juneau mill refused to work for a long period of time and appellee was forced to close said mill as a result thereof; that sufficient employees returned to work on or about July 18, 1948 to enable appellee to operate said mill until October 11, 1948, but at greatly increased cost to appellee; that because of the activities of appellants aforesaid, appellee has been unable to ship its lumber from its mill to customers as a result of which appellee was again forced to close its mill on October 11, 1948; and that because of the said activities of appellants, appellee has been and is unable to transport materials to its retail yards in Alaska.

The foregoing charges are followed by an allegation that appellee was damaged by appellants' said activities in the sum of $1,025,000 and appellee has been forced to employ attorneys for the maintenance and prosecution of this action and will incur fees for such services in a minimum reasonable amount of $10,000. The prayer of the complaint is for recovery of these sums and for appellee's costs and disbursements in the action.

Appellants entered general denials of the material averments of appellee's complaint and set up certain affirmative defenses. Local 16 admitted that appellee is engaged in commerce within the meaning of Section 2, subsections 6 and 7 of the Act and that Local 16 is a labor organization within the meaning of Section 2, subsection 5 of the Act.

As an affirmative defense Local 16 alleged that ever since appellee commenced its operations, it has been and now is a party to a collective bargaining agreement which Local 16 had with all employers engaged in business along the waterfront in Juneau, Alaska, such employers being commonly known as "The Waterfront Employers' Association of Juneau, Alaska"; that said collective bargaining agreement provided that said waterfront employers agreed to hire for longshore work members of Local 16, and that under and by virtue of said agreement members of Local 16 have been "employees" of appellee since appellee commenced business operations; that on or about October 23, 1947, with the full knowledge and acquiescence and consent of Local M-271, appellant, Local 16 then and subsequently asserted to appellee that it would picket the operations of appellee at its Juneau mill because appellee was violating the contract Local 16 had with the said Waterfront Employers' Association of Juneau, Alaska unless appellee agreed to abide by said contract and reduce the terms thereof to writing; that on April 10, 1948 Local 16 engaged and continued in peacefully picketing the operations of appellee at its mill in Juneau, Alaska through 1948 to induce appellee to comply with the contract between Local 16 and the said Waterfront Employers' Association of Juneau.

By way of reply to the affirmative defense above referred to appellee specifically denied that Local 16 had been or was a party to the collective bargaining agreement with all employers engaged in business along the waterfront in Juneau and further denied that members of Local 16 have been employees of appellee by virtue of said agreement. Appellee further denied that it was or had been a party to the collective bargaining agreement asserted by Local 16 to exist between Local 16 and the said Waterfront Employers' Association of Juneau, Alaska. Other denials by appellee put in issue all of the material allegations set forth in the affirmative defense of Local 16.

Evidence (partly undisputed) was presented to the jury from which it could properly infer and conclude that the following facts relating to the dispute between the parties had been established as true. Early in 1947 appellee purchased from Juneau Lumber Mills, Inc. certain of the physical assets belonging to the latter company, including a sawmill at Juneau, Alaska. Appellee commenced operations at the purchased sawmill property in May of that year. Appellee's principal sale of lumber was to the Army Engineers who took delivery of the lumber at appellee's dock. In September, 1947 the Army Engineers cancelled their purchase contract. Appellee sought a new outlet for its products and acquired certain barges (the loading work of which is here in dispute) for use in shipping lumber to ports in the United States and Canada. The barges were also to serve as an auxiliary "storage space" for lumber. When it purchased the aforesaid mill assets the appellee provided and...