James Julian, Inc. v. Raytheon Co.

• Decision Date: 25 September 1980
• Docket Number: Civ. A. No. 80-30.
• Citation: 499 F. Supp. 949
• Parties: JAMES JULIAN, INC., Plaintiff, v. RAYTHEON COMPANY, Raytheon Service Company, Dean E. Bensley, Building and Construction Trades Council of Delaware, Frank DiMauro, Operating Engineers Local 542, Albert W. Spanich, Iron Workers No. 451, Edward F. Peterson, Metropolitan District Council of Philadelphia and Vicinity, United Brotherhood of Carpenters and Joiners of America, and Wharf and Dock Builders and Pile Drivers Local Union No. 454 of the United Brotherhood of Carpenters and Joiners of America, Defendants.
• Court: U.S. District Court — District of Delaware

499 F. Supp. 949

JAMES JULIAN, INC., Plaintiff, v. RAYTHEON COMPANY, Raytheon Service Company, Dean E. Bensley, Building and Construction Trades Council of Delaware, Frank DiMauro, Operating Engineers Local 542, Albert W. Spanich, Iron Workers No. 451, Edward F. Peterson, Metropolitan District Council of Philadelphia and Vicinity, United Brotherhood of Carpenters and Joiners of America, and Wharf and Dock Builders and Pile Drivers Local Union No. 454 of the United Brotherhood of Carpenters and Joiners of America, Defendants.

Civ. A. No. 80-30.

United States District Court, D. Delaware.

September 25, 1980.

COPYRIGHT MATERIAL OMITTED

John Van Brunt, Jr., Wilmington, Del., for plaintiff; John W. Pelino, Edward J. O'Malley and Howard A. Rosenthal, Pelino & Lentz, P.C., Philadelphia, Pa., of counsel.

Edmund N. Carpenter, II, Richard G. Elliott, Jr., and Stephen E. Herrmann, Richards, Layton & Finger, Wilmington, Del.; for defendants Raytheon Co., Raytheon Service Co. and Dean E. Bensley.

Sheldon Sandler, Bader, Dorsey & Kreshtool, Wilmington, Del., for defendants Building Trades Council of Delaware and Frank DiMauro; Richard B. Sigmond, Meranze, Katz, Spear & Wilderman, Philadelphia, Pa., of counsel.

Robert B. Coonin, Knecht, Greenstein, Schagrin & Berkowitz, Wilmington, Del., for defendants Operating Engineers Local 542 and Albert W. Spanich; Jack J. Bernstein, Adler, Barrish, Daniels, Levin & Creskoff, Philadelphia, Pa., of counsel.

Harvey B. Rubenstein, Wilmington, Del., for defendants Iron Workers Local 451 and Edward F. Peterson.

Clifford B. Hearn, Balick & Hearn, P.A., Wilmington, Del., for defendants Metropolitan District Council of Philadelphia and Vicinity and Wharf & Dock Builders Local 454; Thomas W. Jennings, Philadelphia, Pa., of counsel.

OPINION

MURRAY M. SCHWARTZ, District Judge.

In this action, plaintiff James Julian, Inc. ("Julian") seeks injunctive relief and damages against several labor organizations, individual union officers and Raytheon Company ("Raytheon") and Raytheon Service Company ("RSC") under sections 1 and 2 of the Sherman Antitrust Act (15 U.S.C. §§ 1, 2), section 303 of the Labor Management Relations Act (29 U.S.C. § 187), and state tort law. The union defendants have moved to dismiss Counts I, II and VI for failure to state a claim upon which relief can be granted and for lack of subject matter jurisdiction.¹ For the reasons set forth below, the defendants' motion will be denied except with respect to Count I which will be granted at the end of 20 days unless in the interim Julian amends its complaint so as to allege sufficiently jurisdictional requisites. All other grounds for defendants' motions to dismiss will be denied.

I. INTRODUCTION

The defendants recognize the heavy burden facing them on their motions to dismiss. In the consideration of Rule 12(b)(6) motions to dismiss for failure to state a claim upon which relief can be granted, plaintiff is entitled to have all well pleaded allegations taken as true and the Court is to draw all reasonable inferences arising therefrom in favor of the plaintiff. Cruz v. Beto, 405 U.S. 319, 92 S.Ct. 1079, 31 L.Ed.2d 263 (1972) (per curiam); Conley v. Gibson, 355 U.S. 41, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957); Bogosian v. Gulf Oil Corp., 561 F.2d 434 (3d Cir. 1977), cert. denied, 434 U.S. 1086, 98 S.Ct. 1280, 55 L.Ed.2d 791 (1978). Similarly, when considering motions to dismiss for lack of subject matter jurisdiction under Rule 12(b)(1), where, as here, the motions attack the complaint on its face, the Court must take the allegations of the complaint as true. Mortensen v. First Federal Savings and Loan Association, 549 F.2d 884, 891 (3d Cir. 1977).

II. PLAINTIFF'S ALLEGATIONS

The salient allegations of plaintiff's complaint (Doc. No. 1) are as follows. Julian, a Delaware corporation with its principal office and place of business in Wilmington, is engaged in the construction business, particularly, highways, utilities and other public works, both within and without the State of Delaware. Since 1961, Julian's employees have been represented by United Mine Workers District 50, now Local 15253 of the United Steel Workers of America ("USWA"), and are employed under an effective collective bargaining agreement between Julian and USWA, a fact known to the defendant unions. (¶¶ 3, 15, 16).

Sometime in 1976, Julian was approached by RSC, a Delaware corporation with its principal office and place of business in Massachusetts, with respect to RSC's efforts to secure a contract from the Delaware Solid Waste Authority (the "Authority") to design and construct a solid waste disposal plant to be located south of Wilmington, Delaware. In response to RSC's solicitation, Julian entered into a letter of intent dated September 29, 1976, with respect to a proposal to be submitted by RSC to the Authority whereby RSC was to perform the design work with Julian performing the major portions of the construction work on the project. This letter of intent reflected an agreement between RSC and Julian that Julian would use specialty subcontractors on the project only to perform the electrical and mechanical work, with all other work to be performed by Julian. (¶¶ 5, 18, 19, 20).

On November 8, 1978, without informing Julian, Raytheon, a Delaware corporation with its principal office and place of business in Massachusetts, and RSC participated in a meeting with "representatives of the Trades Council and thirteen of its member trade unions including Local 542, the Iron Workers and the Wharf and Dock Builders. Defendants Spanich, Local 542's business agent, and Peterson, the Iron Workers president, also attended this meeting." (¶ 29). At that meeting, representatives of the Trades Council or one or more of its member unions, and specifically defendant Spanich, objected to any work being given to Julian and insisted instead that all work on the project be given to contractors whose employees were represented exclusively by the Trades Council or its member unions. These union representatives further advised Raytheon and RSC that they would disrupt and otherwise prevent or delay completion of the project if any work were given to Julian. (¶ 30).

On November 29, 1978, Raytheon and RSC attended a second meeting with representatives of the Trades Council and its member unions, including Local 542 and its business agent, defendant Spanich, in an effort to secure an understanding with the Trades Council and Local 542 which would satisfy the unions' objections to Julian performing work on the project. At that meeting, the Trades Council and Local 542 reiterated their threats to disrupt the project if RSC proceeded to subcontract work to Julian or allow Julian to perform work on the project. Shortly after these meetings, negotiations between RSC and Julian with respect to the project intensified. Neither during these negotiations nor at any time prior to the execution of a contract between Julian and RSC did RSC inform Julian that it had attended meetings with the union or disclose that the Trades Council and its member unions had expressed to RSC their opposition to performance of the work by Julian. (¶¶ 31-34).

Subsequent to the execution of its contract with the Authority, RSC, without the knowledge or consent of Julian and contrary to the letter of intent, negotiated a subcontract with Raymond International Builders, Inc. ("Raymond"), whereby the latter was to perform all required piling work for a total price which was approximately $300,000 less than the amount which RSC was prepared to pay to Julian for the same work. RSC thereafter insisted, over Julian's objection, that Julian enter into the subcontract with Raymond that had been negotiated by RSC. At all times hereinafter mentioned, certain of Raymond's employees were represented by Local 542 and certain others by the Wharf and Dock Builders. (¶¶ 37, 38, 40).

Julian commenced work on the project on June 18, 1979. On June 26, consistent with its prior advice to Raytheon and RSC, and the understandings reached at the November 1978 meetings, Local 542, acting on behalf of and in concert with the Trades Council and its member unions, descended upon the construction site with approximately 200 persons, armed with clubs and rocks. These persons initially threatened and then attacked drivers and occupants of vehicles as they approached the site by breaking windows, slashing tires and physically assaulting and punching the passengers. In addition, these persons vandalized a crane and at least four other pieces of heavy equipment owned by Julian and then located at the site. At the time of that picketing, Local 542's pickets carried signs identifying themselves as members of or picketing on behalf of Local 542 and defendant Spanich, the business agent of Local 542, was present on the site and was directing the picketing. This picketing and use of violence and physical force by Local 542 prevented free ingress and egress to this construction site by Julian's employees and other officials and persons who are required to have access to the project site, as well as access to the county landfill by state and/or local employees and officials. As a result of Local 542's picketing and other violent activities, Julian's equipment and business were severely damaged and the construction of the project was delayed. (¶¶ 50-55).

Julian further alleges that "in furtherance of the defendants' unlawful object and agreement to preclude Julian from performing work on the ... project" (¶ 56), the following conduct was engaged in. On or about August 22, 1979, Local 542 resumed its picketing of the construction site in violation of a settlement stipulation which it had entered into with the National Labor Relations Board. On or about October 17, 1979, the Iron Workers, directed by defendants Spanich and Peterson, following their observation of the project site on or about October 15, began picketing the job site. Beginning on or...