Walter Kidde & Co. v. United Elec., Radio & Mach. Workers of America, CIO, A--69

• Decision Date: 29 June 1951
• Docket Number: No. A--69,A--69
• Citation: 82 A.2d 184,7 N.J. 528
• Parties: WALTER KIDDE & CO., Inc. v. UNITED ELECTRICAL, RADIO & MACHINE WORKERS OF AMERICA, CIO et al.
• Court: New Jersey Supreme Court

Page 528

7 N.J. 528

82 A.2d 184

WALTER KIDDE & CO., Inc. v. UNITED ELECTRICAL, RADIO & MACHINE WORKERS OF AMERICA, CIO et al.

No. A--69.

Supreme Court of New Jersey.

Argued Jan. 8, 1951.

Reargued June 25, 1951.

Decided June 29, 1951.

Morton Stavis, Newark, argued the cause for appellant. William Rossmore, Newark, on the brief.

Abraham L. Friedman, Newark, argued the cause for respondent. Samuel L. Rothbard, Newark, on the brief. Rothbard, Harris & Oxfeld, Newark, attorneys.

The opinion of the court was delivered by

HEHER, J.

Plaintiff invoked the equitable remedy of interpleader; and there was an order on September 15, 1949 directing the payment of the fund in controversy into court, discharging the plaintiff, and ordering the adverse claimants to interplead. The subject matter is $2,167.00, union dues 'checked off' by the plaintiff employer from the wages of its employees pursuant to a collective bargaining agreement between plaintiff and defendant United Electrical Radio & Machine Workers of America, CIO, (for convenience referred to as UE) and its local affiliate, Tool Die Makers and Machinists, Local 420 (referred to as UE 420), for the months of September, October and November, 1948. The fund is also claimed by the defendant International Union, United Automobile, Aircraft and Agricultural Implement Workers of America (UAW--CIO) Local 146 (designated as UAW 146), now the collective bargaining agent of plaintiff's employees. These are unincorporated associations. Statements of claim and answers were filed by the contesting parties; and there was judgment awarding the fund to UAW Local 146. An appeal taken by the defendant UE to the Appellate Division of the Superior Court was certified here for decision on our own motion.

The Superior Court found that on September 16, 1948, UE Local 420, by valid and effective corporate action, disaffiliated from the parent UE and, not long thereafter, was chartered by UAW as Local 146, and that in consequence of these events the title to the fund in suit is now vested in the UAW local, notwithstanding provisions of UE's constitution for a continuance of the UE local while seven or more members so will, and for a transfer of the local's property to the UE parent body in the event of the local's disbandment.

UE Local's membership was then about 500. The 'day shift' and the 'night shift' of the members had two separate meetings. The minutes show that the former group voted, 65 to 45, for disaffiliation, and that the latter group, 5 or 6 in number, opposed this course, but took no formal action on the proposal. The motion was that 'local 420 disaffiliate from UE.' Thus, there was a vital decision by a relatively small proportion of the membership; and the question arises whether there was adequate notice and whether a matter of such moment is a proper subject for group action such as we have here. But we have no occasion to consider the point. For a more fundamental reason, the action taken was ineffective.

The issues are largely controlled by the principles governing contracts. Union membership derives from and depends upon the common consent of the parties, expressed in the constitution and laws of the association, and, while the law of contracts does not rule all its aspects, the relationship gives rise to interests of substance which the law will protect. Unless contrary to the public interest or the law of the land, the legal consequences of the compact are as stipulated by the parties; and thus in general the law treats the association as essentially contractual. Harker v. McKissock, 7 N.J. 323, 81 A.2d 480 (1951).

Local 420 was chartered June 5, 1937, as a constituent of UE. The local and its members voluntarily assumed the obligations of the constitution, rules and regulations of UE--these among others: Article 18, section N of UE's constitution, providing that 'If a local disbands,' all its funds and property 'shall...