A & D Supermarkets, Inc. v. United Food & Commercial Workers, Local Union 880

732 F. Supp. 770, 133 L.R.R.M. (BNA) 2545, 1989 U.S. Dist. LEXIS 16210, 1989 WL 191462
CourtDistrict Court, N.D. Ohio
DecidedDecember 22, 1989
DocketC88-3551
StatusPublished
Cited by1 cases

This text of 732 F. Supp. 770 (A & D Supermarkets, Inc. v. United Food & Commercial Workers, Local Union 880) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A & D Supermarkets, Inc. v. United Food & Commercial Workers, Local Union 880, 732 F. Supp. 770, 133 L.R.R.M. (BNA) 2545, 1989 U.S. Dist. LEXIS 16210, 1989 WL 191462 (N.D. Ohio 1989).

Opinion

MEMORANDUM OF OPINION

BATCHELDER, District Judge.

This matter is before the Court on the motion of the defendants to dismiss the complaint and/or to join parties. Based on this motion, the parties’ briefs and the complaint, the Court finds that the federal antitrust claims are not covered by the statutory or nonstatutory labor exemptions to the federal antitrust laws; that the state antitrust claims are preempted by federal law; that the plaintiffs’ claims against the individual defendants are insufficient as a matter of law; and that the co-conspirator unionized supermarkets are not persons required to be joined by Fed.R.Civ.P. 19.

I.

The plaintiffs, independent non-union retail grocery stores located in the Youngstown, Warren, Massillon, Akron and Canton areas, have brought this action seeking declaratory and injunctive relief and treble damages against the defendants, United Food and Commercial Workers Union (“UFCW”), Local Union No. 880 (“Local 880”) and its officers, based on allegations that the defendants have violated various provisions of the Sherman Act, 15 U.S.C. § 1, et seq., (Counts I-VI) by conspiring with unionized supermarkets to eliminate the plaintiffs as competitors by picketing them pursuant to a wage stabilization clause contained in collective bargaining agreements between the defendants and the co-conspirator union supermarkets, which permits the co-conspirator union supermarkets to reduce the union employee’s wages to the level of the plaintiffs’ non-unionized stores unless the union is picketing the plaintiffs’ stores. See complaint 11 ’s 1, 13-19, 29. The Wage Stabilization Clause (provided in its entirety by defendants in their motion to dismiss) states:

Section 1(a). Effective March 1, 1988, the Employer shall have the right to reduce the economic terms and conditions of this Agreement in any store that is in a geographic marketing area that is directly competitive with any supermarket that has rates of pay or other economic terms and conditions below the standards of this Agreement.
Section 1(b). Such reductions shall be no greater than the extent that the store in question is below the standards of this Agreement and shall not occur until sixty (60) days after the Employer has given the Union and Federal Mediation and Conciliation Service notice of the dispute. The Union and the Employer shall enter into negotiations during the sixty (60) days period following the giving of such notice.
Section 1(c). No notice shall be given under (b) above until an Employer has submitted a request to the Akron-Canton Food Industry Committee and such request has been approved or modified in whole or in part, in writing, by the Akron-Canton Food Industry Committee Food with a copy to the Union. The approval must contain the following information:
1. The identity of the competition providing less than the economic terms and conditions of this Agreement;
2. The stores of the Employer that are in the directly competitive geographic marketing area with the competition providing less than the economic terms and conditions of this Agreement; and
3. The proposed reductions in wages or other economic terms and conditions.
*772 Section 2. The Employer shall not exercise the rights granted in Section 1(a) above when the Union is engaged in picketing the consumer entrance or entrances of the store or stores described in Section 1(a) above during business hours on a regular and daily basis, nor when the Union is prevented from taking such action either by law or by the United Food and Commercial Workers International Union, AFL-CIO-CLC.
Section 3. In the event that the Akron-Canton Food Industry Committee implements any proposed modifications in the affected stores pursuant to the terms of this Article in the absence of an agreement with the Union to do so, the Union shall have the right to strike the stores in which the modifications have been implemented and such strike shall not be a violation of Article XVII, Section 1, provided that the strike is limited to the issues of the implemented modifications.
Section 4. The provisions of this Article shall not apply to independent owner-operators of small supermarkets with two (2) stores or less (not including owners who are part of larger cooperative groups), to stores which have collective bargaining agreements with the Union which were signed before November 29, 1987, until those agreements expire, nor to any agreement which is the product of a proceeding in Federal Bankruptcy Court.

See motion to dismiss, at pages 5-6.

The plaintiffs have also asserted claims under the Ohio Monopolies Statute, O.R.C. § 1331.01 et seq. (Counts VII-X) and for tortious interference with business relations.

The defendants have filed a motion to dismiss the complaint and/or to join parties on the grounds that the federal antitrust claims are covered by the statutory and nonstatutory labor exemption; that the state antitrust claims are preempted; that the individual union defendants must be dismissed because the complaint does not allege that they engaged in inherently wrongful conduct; and that the co-conspirator union supermarkets must be joined as parties.

II.

The Court, in reviewing a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(6), may dismiss the complaint only if the plaintiffs can prove no set of facts in support of their complaint which would entitle them to relief. Conley v. Gibson, 355 U.S. 41, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957).

III.

Labor Exemptions to the Federal Antitrust Laws

A. Statutory Exemption

In United States v. Hutcheson, 312 U.S. 219, 231, 61 S.Ct. 463, 465, 85 L.Ed. 788 (1941), the Carpenters’ and the Machinists’ union were involved in a jurisdictional dispute regarding the erection and dismantling of machinery for the construction of a new building for Anheuser-Busch, Inc. Anheuser-Busch gave the disputed jobs to the Machinists, and the Carpenters struck and picketed Anheuser-Busch and their tenant and asked union members and friends to boycott Anheuser-Busch beer. The Supreme Court stated that “whether trade union conduct constitutes a violation of the Sherman Law is to be determined only by reading the Sherman Law and § 20 of the Clayton Act and the Norris-LaGuardia Act as a harmonizing text of outlawry of labor conduct.” Id. at 219, 61 S.Ct. at 463. The Court set out the classic formulation for application of the statutory exemption:

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Cite This Page — Counsel Stack

Bluebook (online)
732 F. Supp. 770, 133 L.R.R.M. (BNA) 2545, 1989 U.S. Dist. LEXIS 16210, 1989 WL 191462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-d-supermarkets-inc-v-united-food-commercial-workers-local-union-ohnd-1989.