Seslar v. Union Local 901
| Decision Date | 11 January 1951 |
| Docket Number | No. 10176.,10176. |
| Citation | 186 F.2d 403,30 ALR 2d 593 |
| Parties | SESLAR v. UNION LOCAL 901, Inc. |
| Court | U.S. Court of Appeals — Seventh Circuit |
Sol Rothberg, Thomas A. Gallmeyer, Fort Wayne, Ind., for appellant.
Oliver A. Switzer, South Bend, Ind., David B. Rothstein, Irving Meyers, Chicago, Ill., for appellee.
Before MAJOR, Chief Judge, and KERNER and LINDLEY, Circuit Judges.
This is an appeal from a decree entered March 20, 1950, adjudging the defendants in contempt for having failed and refused to obey the court's decree of November 9, 1949, 87 F.Supp. 447. By the latter decree the defendants were ordered to reconvey to Local 901, United Electrical, Radio and Machine Workers of America, all real property, funds, assets, choses in action, bonds and other personal property assigned, transferred, conveyed or delivered to the defendant corporation by Local 901 on and after October 4, 1949. The individual defendants were also enjoined from transferring, assigning, conveying, loaning or encumbering any of the funds, property or assets of Local 901, except as might be consistent with the constitution of the United Electrical, Radio and Machine Workers of America, and the constitution and by-laws of Local 901.
No appeal was taken from the decree of November 9, 1949; however, the defendants in the instant appeal attack the jurisdiction of the court to entertain the suit wherein that decree was entered. Obviously, if the court was without such jurisdiction, its later decree adjudging the defendants in contempt cannot stand. In view of the conclusion which we have reached on this jurisdictional issue, it will be unnecessary to make a statement of the facts other than those relevant thereto.
Jurisdiction is predicated upon Title 28 U.S.C.A. § 1332, which provides for original jurisdiction of all civil actions "where the matter in controversy exceeds the sum or value of $3,000 * * *," and is between "Citizens of different States". Admittedly, there was diversity of citizenship, but the issue is whether the requisite amount was shown. The suit was brought by plaintiff, who according to the allegations of the complaint was a resident of the State of Ohio and a member of Local 901, United Electrical, Radio and Machine Workers of America. This Local, an unincorporated association, had a membership of approximately 5,000, who were employees of the General Electric Company at its manufacturing plant in Fort Wayne, Indiana. The defendant Union Local 901, Inc. was an Indiana corporation whose articles of incorporation were granted on October 4, 1949, for the purpose of protecting the assets of Local 901. The individual defendants, so it was alleged, were officers of both Local 901 and Union Local 901, Inc., and were residents of the State of Indiana. On October 3, 1949, at a regular meeting of Local 901, with 300 members attending, by a vote of 200 for and 100 against, it was decided to transfer the property, funds and assets of the Local Union to the incorporated Local. Such transfer was made on the following day, which was alleged to be in violation of the constitution and by-laws governing the affairs of the Local Union.
Relative to the amount involved the complaint alleged, (The complaint lists the items of property owned by the Local, with the value of each, which totals $114,000.) This was the sole specific allegation as to the amount involved, but other allegations may be relevant. It was alleged "That the funds, property and assets of the Local Union so conveyed to the corporation were accumulated through the dues payments of the plaintiff and other members of the Local Union, and by enterprises engaged in by the Local Union for and on behalf of the plaintiff and other members," and "That as a result of the acts of the individual defendants in conveying the local union's property to themselves in their corporate capacity, the plaintiff has lost the value of his interest in said property."
The defendants moved to dismiss the complaint for lack of jurisdiction, alleging that it was apparent from the face of the complaint that the amount actually in controversy was less than $3,000. This motion to dismiss was denied without the taking of evidence, insofar as the record discloses. Thereupon, the defendants answered the complaint, denying among other things all allegations pertaining to the jurisdictional amount. The court, as a basis for its original decree of November 9, 1949, made its findings of fact and conclusions of law. Relative to the jurisdictional issue the court found, "The amount in controversy is in excess of three thousand dollars," and "The plaintiff, as a member of the union, was adversely affected by the transfer of funds to the defendant corporation." In its conclusions the court stated, "Each member of the local union has an interest in the entire assets and property of the local union." The court also concluded that each member of the Local Union had a contractual right to have the property of the Local used only for the purposes set forth in its constitution and disbursed only in conformity therewith, and further, that each member had a right to have the property of the Local remain under its control, as provided for in its constitution and by-laws.
It is to be kept in mind that this suit is brought by a single individual, one of 5,000 members of a Local Union, each of which has the same right and interest in its funds and property. Plaintiff seeks no relief on behalf of others similarly situated; neither does he bring a class action. In fact, in his brief it is stated, "The instant case was not a class suit in which aggregation of interest would be permitted." We are not clear on what basis the court determined that the amount in controversy exceeded $3,000. Plaintiff in his brief, however, states, "Judge Swygert held that the plaintiff-appellee, as a member of the union, had an interest in all the assets of his local union and that this included a right to have the assets remain under the control of the union as well as the right to have them used in a manner consistent with the constitution of the union." Assuming this to be a correct statement, it leaves unanswered the question for decision. Plaintiff's asserted interest in the assets of the Union and...
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