Walles v. International Broth. of Elec. Workers, AF of L-CIO

• Decision Date: 20 April 1977
• Docket Number: No. 57586,L-CIO,57586
• Parties: 95 L.R.R.M. (BNA) 2549, 82 Lab.Cas. P 55,070 Joseph B. WALLES, Appellant, v. INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, AF OF, et al., Appellees. v. BECHTEL CORPORATION, Appellant, v. Joseph B. WALLES, Appellee.
• Court: Iowa Supreme Court

Page 701

252 N.W.2d 701

95 L.R.R.M. (BNA) 2549, 82 Lab.Cas. P 55,070

Joseph B. WALLES, Appellant, v. INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, AF OF L-CIO, et al., Appellees. v. BECHTEL CORPORATION, Appellant, v. Joseph B. WALLES, Appellee.

No. 57586.

Supreme Court of Iowa.

April 20, 1977.

James W. Crawford and Gerald T. Sullivan, Cedar Rapids, and Edwin Vieira, Jr., Silver Spring, Md., for appellant Joseph B. Walles and appellee Joseph B. Walles.

Patrick M. Roby and Robert R. Rush, Shuttleworth & Ingersoll, Cedar Rapids, for appellant Bechtel Corp.

Robert E. Conley, Des Moines, for appellee International Broth. of Elec. Workers, AF of L-CIO.

Joseph E. Day, Cedar Rapids, for appellee International Broth. of Elec. Workers, AF of L-CIO, Local 405.

Raymond W. Conley, Des Moines, for appellee International Broth. of Elec. Workers, AF of L-CIO, Local 716.

Heard before MOORE, C. J., and MASON, REYNOLDSON, HARRIS and McCORMICK, JJ.

MASON, Justice.

The question presented in this matter is whether plaintiff Joseph B. Walles can maintain his lawsuit in the Iowa district court. It comes to us by way of appeal from the trial court's rulings on various special appearances.

Defendant, International Brotherhood of Electrical Workers, AF of L-CIO (hereinafter referred to as International), is an association of local labor organizations and individuals residing in various places including Linn County, Iowa. Defendant, International Brotherhood of Electrical Workers, AF of L-CIO, Local 405 (Local 405), is a labor organization comprised of individuals residing in various places including Linn County, Iowa, with its principal office located in Cedar Rapids, Linn County. Defendant, International Brotherhood of Electrical Workers, AF of L-CIO, Local 716 (Local 716), is a labor organization comprised of individuals residing in various places in the United States with its principal office in Houston, Texas. Defendant, Bechtel Corporation (Bechtel), is a foreign corporation authorized to do business in the state of Iowa and actually engaged in construction business in Linn County. Local 405 and Local 716 are local labor organizations which are part of, and are controlled by, International in their relations with members. Plaintiff at all times material hereto was a member of International through his affiliation with Local 716.

In September of 1971 plaintiff, an electrician, presented to an agent of Local 405 a letter of introduction and employment recommendation from Local 716. As a result, plaintiff obtained employment by Bechtel on a construction site near Palo, Iowa. April 3, 1972, plaintiff was discharged. He maintains his discharge was pursuant to an alleged agreement or understanding between Bechtel and Local 405 that union membership was necessary for employment as an electrician on the construction site.

During employment by Bechtel plaintiff regularly paid assessments to Local 405 but became in arrears in dues payment to Local 716. Before being discharged by Bechtel plaintiff attempted to pay the arrears in dues to Local 716 but payment was refused by its authorized agents. Local 716 advised the authorized agent or agents of Local 405 of plaintiff's status who in turn notified Bechtel.

March 29, 1974, Walles commenced an action at law against Bechtel, International, Local 405 and Local 716. No other parties or individuals were named in the suit.

After identifying the parties to the lawsuit and describing the circumstances leading to his employment and subsequent discharge by Bechtel, plaintiff alleged as a claim for relief that an agreement or understanding existed between Bechtel and Local 405 that union membership was necessary for employment as an electrician on the construction site in Palo; that the concerted activities of defendants resulted in his wrongful discharge from employment with Bechtel for the status of plaintiff's union membership; and that said actions constituted violations of section 736A(1)(2)(3) and (4), The Code. In division 1 plaintiff prays for compensatory damages in the amount of $100,000 and in division 2 seeks damages in the amount of $150,000. He did not seek injunctive relief.

Proper service of original notice was made on Bechtel. Service on Local 405 was made by delivery of the original notice to the vice-president of Local 405. Original notices to the International and Local 716 were filed with the secretary of state and notifications of filing were forwarded by certified mail to the defendants and to the officers of the International and Local 716. The record is clear and no one disputes that these notifications were received.

Special appearances were filed by all defendants. Bechtel's special appearance stated that (1) Mr. Walles' allegations, if true, violated sections 7 and 8 of the National Labor Relations Act; (2) Mr. Walles failed to allege that the National Labor Relations Board or any other federal agency had refused jurisdiction of his claim; and (3) that because the subject matter of the suit could constitute a violation of the National Labor Relations Act, the state court lacked jurisdiction over this defendant. The trial court overruled the special appearance finding that the preemption doctrine did not apply in this case. Bechtel sought and obtained leave to present its interlocutory appeal from the trial court's overruling of its special appearance.

The written ground in the special appearance of Local 405 was that federal law preempted the state courts from jurisdiction over the subject matter of the suit. The written grounds in the special appearance of Local 716 were: (1) service of an unincorporated association cannot be made under section 617.3, The Code, 1971, (2) defendant's lack of minimum contacts, and (3) federal preemption. The written grounds in the special appearance of the International were: (1) the International by allegation of the petition did not qualify as a nonresident and thus could not be served under section 617.3, The Code, 1971, (2) the International cannot be sued in its own name, and (3) federal preemption.

Plaintiff resisted the special appearances. The trial court ruled against defendants on the preemption issue relying upon Retail Clerks Int. Ass'n L. 1625 v. Schermerhorn, 375 U.S. 96, 84 S.Ct. 219, 11 L.Ed.2d 179. However, the special appearance of each labor organization was sustained on the basis of plaintiff's failure to name individual defendants in addition to defendant labor organizations relying upon Boyer v. Iowa High School Athletic Assn., 258 Iowa 285, 287-288, 138 N.W.2d 914, 915. All other grounds asserted by the various defendants were rejected by the court. Plaintiff appeals from these decisions.

The International, Local 405 and Local 716 have cross appealed.

The following issues are presented for this court's review by the parties designated:

(1) Do preemption concepts prohibit a state court from exercising jurisdiction over plaintiff's claim for relief? (All parties).

(2) Can grounds asserted in the special appearance of one defendant inure to the benefit of other similarly situated defendants? (Plaintiff, Local 405 and Local 716).

(3) Is there a failure to obtain jurisdiction over an unincorporated labor union by reason of the fact that individual members or officers were not named as additional party defendants? (All parties except Bechtel).

(4) Is International beyond the reach of section 617.3, The Code, in light of the fact some of its members are residents of Iowa? (Plaintiff and International).

(5) Is section 617.3, The Code, available to secure jurisdiction over a foreign unincorporated association? (Plaintiff, Local 716 and International).

I. In ruling on a special appearance this court accepts as true the allegations of the petition. Plaintiff has the burden of sustaining jurisdiction, but once a prima facie case has been demonstrated the burden of going forward with the evidence to rebut or overcome the prima facie showing is upon defendant. This court's review is not de novo, and consequently, the trial court's findings of fact are binding upon us if supported by substantial evidence. In addition, the evidence is viewed in the light most favorable to those findings. Douglas Mach. & Eng. v. Hyflow Blanking Press, 229 N.W.2d 784, 787-788 (Iowa 1975); Creative Commun. Consult. v. Byers Transp., 229 N.W.2d 266, 268-269 (Iowa 1975).

The theme common to the special appearances of all defendants in this matter is the contention the Linn District Court lacked jurisdiction to consider the subject matter of plaintiff's petition since the allegations of the petition, if proven, would charge an unfair labor practice prohibited by section 8 of the National Labor Relations Act, 29 U.S.C.A. section 158, and committed to the exclusive jurisdiction of the National Labor Relations Board (NLRB) by section 10(a), 29 U.S.C.A. section 160(a).

Specifically, defendants argue plaintiff alleges the maintenance of a "closed shop" pursuant to the alleged agreement which is clearly violative of sections 8(a)(1) and 8(a)(3) of the NLRA, 29 U.S.C.A. section 158(a)(1) and (3).

Under the principle of law stated earlier in this division plaintiff has the burden of alleging sufficient facts to demonstrate a prima facie case of subject matter jurisdiction.

Ordinarily, plaintiff is aided by a presumption that a court of general jurisdiction has jurisdiction over a particular controversy unless a showing is made to the contrary.

In this state the district court is a court of general jurisdiction. Section 602.1, The Code, provides:

"There shall be a unified trial court in the state of Iowa, known as 'Iowa District Court'. The Iowa district court shall have exclusive, general and original jurisdiction of all actions, proceedings, and remedies, civil, criminal, probate, and juvenile, except in cases where exclusive or concurrent jurisdiction is conferred upon some other court, tribunal, or administrative body,...