Allen v. Kelley

191 Misc. 762, 77 N.Y.S.2d 879, 1948 N.Y. Misc. LEXIS 2208
CourtNew York Supreme Court
DecidedFebruary 16, 1948
StatusPublished
Cited by10 cases

This text of 191 Misc. 762 (Allen v. Kelley) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. Kelley, 191 Misc. 762, 77 N.Y.S.2d 879, 1948 N.Y. Misc. LEXIS 2208 (N.Y. Super. Ct. 1948).

Opinion

Greenberg, J.

Petitioners own and maintain a substantial number of thoroughbred horses which are entered and rim in various races throughout the United States. They have, among others in their employ, grooms and exercise boys. The respondent union has attempted to organize these employees. The petitioners, except one, formed a group or association known as the Horsemen’s Committee to enable them to bargain collectively and Herbert Bayard Swope was designated as their representative for that purpose. Swope signed a consent to the holding of an election to designate a bargaining agent. The election was held and the board certified the union as such agent for the employees in question.

The petitioners refused to bargain with the union and accordingly the latter filed a charge of violation of subdivision 6 of section 704 of the New York State Labor Belations Act (Labor Law, art. 20), which, in substance, makes it an unfair labor practice for an employer to refuse to negotiate in good faith with a duly chosen bargaining representative.

The board entertained the charge and commenced an unfair labor proceeding after giving due notice to the petitioners. The petitioners did not file an answer to the complaint. At the first hearing before the board an adjournment was requested and obtained. On the adjourned date the board and the union were served with an order signed by a justice of this court, which temporarily stayed the hearing and trial of the charge and directed the respondents to show cause why they should not be permanently stayed from taking any action in the proceeding then pending before the board.

[764]*764In support of their application for a permanent injunction under article 78 of the Civil Practice Act the petitioners claim that since the grooms and exercise hays are engaged in work which “ affects interstate commerce ” within the meaning of the National Labor Relations Act as amended (U. S. Code, tit. 29, § 151 et seq.), the National Labor Relations Board has exclusive jurisdiction. Specifically, the petitioners allege that they are engaged in the business of purchasing, selling and transporting thoroughbred horses, each of considerable value, from State to State, and from town to town; that they also transport their employees who are charged with the care and maintenance of the afore-mentioned throughbred horses across State lines, as well as large amounts of personal property consisting of harness, tack, feed, etc., such personal property being necessary for the care and maintenance of the horses. In many cases, according to the petition, horses are transported from State to State for the purpose of sale or for the purpose of running horses in a so-called “claiming race ”, in which the winning horse is subject to be purchased by “all comers at a declared price”. All of this activity, petitioners urge, demonstrates that they are engaged in interstate commerce or at least that the grooms and exercise boys perform work which affects interstate commerce.

The board filed an answer to the petition. No attempt is made by the board to argue the merits of petitioners’ claim, i.e., that the dispute involved affects commerce within the meaning of the National Labor Relations Act. Nor does the board contest the petitioners’ claim that if interstate commerce is affected, exclusive jurisdiction in respect of unfair labor practices is vested in the National Labor Relations Board. The sole basis upon which the present application is resisted by the board is that it possesses jurisdiction in the first instance to take proof and determine whether the activities of the grooms and exercise boys are such as to affect interstate commerce. The burden of the position of the board is that it is without knowledge of any of the facts relating to the character of the work done by the grooms and exercise boys and that “ until the evidence pro and con has been submitted to the Board at the mandatory hearing, and until the Board has had an opportunity to consider it, the Board can make no finding on that question.” Accordingly, the board requests the court in the sound exercise of its discretion to decline to entertain the proceeding and to permit the board initially to determine the question of jurisdiction.

[765]*765In Myers v. Bethlehem Corp. (303 U. S. 41) the question for decision was whether a Federal District Court could validly enjoin the Rational Labor Relations Board from holding a hearing upon a complaint filed by it against an employer alleged to be engaged in unfair labor practices prohibited by thb Rational Labor Relations Act. The basis of the claim of the employer who obtained the injunction in the lower courts was that the Rational Labor Relations Act was not applicable to its business at the plant involved in the controversy because the operations conducted there “ are not carried on, and the products manufactured are not sold, in interstate or foreign commerce ” (p. 47). The employer maintained (pp. 47-48) that “ the Corporation’s relations with its employees at the plant cannot burden or interfere with such commerce; that hearings would, at best, be futile; and that the holding of them would result in irreparable damage to the Corporation, not only by reason of their direct cost and the loss of time of its officials and employees, but also because the hearings would cause serious impairment of the good will and harmonious relations existing between the Corporation and its employees, and thus seriously impair the efficiency of its operations.”

The Supreme Court held that the District Court was without jurisdiction to enjoin hearings before the Rational Labor Relation Board because the Rational Labor Relations Act (p. 48) “ provided for appropriate procedure before the Board and in the review by the Circuit Court of Appeals an adequate opportunity to secure judicial protection against possible illegal action on the part of the Board.” The court added that “ Ro power to enforce an order is conferred upon the Board. To secure enforcement, the Board must apply to a Circuit Court of Appeals for its affirmance.”

As to the contention of the employer that, because it denied that interstate or foreign commerce was involved, a hearing would subject it to irreparable damage and rights guaranteed by the Federal Constitution would be denied it unless the Federal District Court possessed jurisdiction to enjoin the holding of a hearing by the board, the Supreme Court declared (pp. 50-51) : “So to hold would, as the Government insists, in effect substitute );he District Court for the Board as the tribunal to hear and determine what Congress declared the Board exclusively should hear and determine in the first instance. The contention is at war with the long settled rule of judicial administration that no one is entitled to judicial relief for a supposed or threatened [766]*766injury until the prescribed administrative remedy has been exhausted. That rule has been repeatedly acted on in cases where, as here, the contention is made that the administrative body lacked power over the subject matter.

“ Obviously, the rule requiring exhaustion of the administrative remedy cannot be circumvented by asserting that the charge on which the complaint rests is groundless and that the mere holding of the prescribed administrative hearing would result in irreparable damage.”

It is to be noted that subdivision (f) of section 10 of the National Labor Relations Act (U. S. Code, tit. 29, § 160, subd. ffl), referred to in footnote 7 to the opinion of the court, provided that ‘ ‘

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Bluebook (online)
191 Misc. 762, 77 N.Y.S.2d 879, 1948 N.Y. Misc. LEXIS 2208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-kelley-nysupct-1948.