American Fur Manufacturers Ass'n v. Associated Fur Coat & Trimming Manufacturers, Inc.

161 Misc. 246, 291 N.Y.S. 610, 1936 N.Y. Misc. LEXIS 1508
CourtNew York Supreme Court
DecidedNovember 30, 1936
StatusPublished
Cited by7 cases

This text of 161 Misc. 246 (American Fur Manufacturers Ass'n v. Associated Fur Coat & Trimming Manufacturers, Inc.) 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
American Fur Manufacturers Ass'n v. Associated Fur Coat & Trimming Manufacturers, Inc., 161 Misc. 246, 291 N.Y.S. 610, 1936 N.Y. Misc. LEXIS 1508 (N.Y. Super. Ct. 1936).

Opinion

Rosenman, J.

This is a motion for an injunction pendente life. One of the plaintiffs, American Fur Manufacturers Association, Inc. (hereinafter called “ plaintiff association ”), and one of the defendants, Associated Fur Coat & Trimming Manufacturers, Inc. (hereinafter called defendant association ”), are both membership corporations formed for the usual purposes of trade associations — collecting and dispensing credit information to their members; giving them information with respect to legislation affecting the fur industry; aiding in the settlement of disputes, etc.

The plaintiffs, other than the plaintiff association, are persons engaged in the manufacturing of fur garments. The defendants, other than the defendant association, are labor unions (which, it is alleged, controlled approximately ninety-eight per cent of the fur workers in the metropolitan area of New York city), their officers and business agents.

The defendant unions and the defendant association entered into a written agreement with each other in the form generally known as a collective bargaining agreement.. It provided, among other things, machinery for settling by arbitration disputes arising between the member employees and the member employers, thus eliminating strikes and lockouts. It contained a further provision, which has given rise to the chief dispute in this litigation, that “ there shall be but one collective labor agreement in the fur manufacturing industry in the Greater City of New York.”

. The complaint alleges that the defendant association and the defendant labor unions conspired, by means of this collective agreement, to give defendant association a monopoly in the trade association business in this industry. The monopoly is alleged to have been effected by the refusal of the defendant labor unions to enter into a contract with the plaintiff association similar to that with the defendant association. Allegation is made that the result has been to coerce the plaintiffs, other than the plaintiff association, and other manufacturers in the fur industry to cancel their contracts of membership with the plaintiff association and to become members [248]*248of the defendant association; that the only alternative open to them is to enter into individual separate labor agreements with the unions, which would not give such manufacturers the benefits of arbitration and prevention of strikes which were enjoyed by the members of the defendant association.

The complaint then avers that all the defendants have, by reason of the foregoing, violated section 340 of the General Business Law (the Donnelly Anti-Trust Law) and that the plaintiff association and the other plaintiffs, as a result thereof, have suffered an irreparable injury.

That is the main contention of the complaint. There are others. It alleges that the plaintiffs, other than plaintiff association, have been threatened with physical injury by the defendant unions and that such defendants have committed acts of violence upon them in an attempt to interfere with and destroy their business.

Belief is requested that the contract between the defendant labor unions and the defendant association be declared void as against public policy and as in violation of section 340 of the General Business Law; and that the defendants be enjoined from continuing the alleged acts of violence.

The plaintiffs move for a temporary injunction and for a hearing under section 876-a of the Civil Practice Act. The defendants make cross-motions to dismiss the complaint for failure to state a, cause of action as to each of them. The defendants also move that, if the complaint be held good as to those who have been charged with violence, the plaintiffs be compelled to serve separate amended complaints stating their respective causes of action in separate actions.

Section 340 of the General Business Law now reads as follows:

§ 340. Contracts or agreements for monopoly or in restraint of trade illegal and void. 1. Every contract, agreement, arrangement or combination whereby
A monopoly in the manufacture, production, transportation, marketing or sale in this State of any article or product or service used in the conduct of trade, commerce or manufacture or of any article or commodity of common use is or may be created, established or maintained, or whereby
“ Competition or the free exercise of any activity in this State in the manufacture, production, transportation, marketing or sale in this State or in the supply or price of any such article, product, commodity, service, transportation or trade practice is or may be restrained or prevented, or whereby
For the purpose of creating, establishing, maintaining a monopoly or unlawfully interfering with the free exercise of any [249]*249activity within this State in the manufacture, production, transportation, marketing or sale of any such article, product, commodity or service, the free pursuit in this State of any lawful business, trade or occupation is or may be restricted or prevented, is hereby declared to be against public policy, illegal and void.
2. The provisions of this article shall not apply to cooperative associations, corporate or otherwise, of farmers, gardeners, or dairymen, including live stock farmers and fruit growers, nor to contracts, agreements or arrangements made by such associations, nor to bona fide labor unions.
“ 3. The labor of human beings shall not be deemed or held to be a commodity or article of commerce as such terms are used in this section and nothing herein contained shall be deemed to prohibit or restrict the right of workingmen to combine in unions, organizations and associations, not organized for the purpose of profit.”

The defendants contend that the plaintiff association cannot claim the benefit of section 340, because it is not engaged in the manufacture, production, transportation, marketing or sale in this State of any article or product or service used in the conduct of trade, commerce or manufacture ” as set forth in the statute; that even if such service were included in the statute there is no unreasonable restraint in restricting trade association service to a single association in one industry in one city; that there is no way in which the defendant unions may be compelled by court decree to enter into collective agreements with the plaintiff or any other trade associations in the fur industry; that there is no unreasonable restraint set forth in the complaint, because each of the plaintiffs other than the plaintiff association has the right to join the defendant association and obtain the preferential benefits of its collective agreement or refrain from joining the association and enter into its own individual labor agreement with the union; and finally that the contract complained of is expressly exempted from the operation of the statute by the provisions of subdivision 2 of the section, making the law inapplicable to labor unions.

It is not necessary, however, to pass upon all of these contentions because I have concluded that the collective agreement, attacked by this complaint, is cloaked with immunity by virtue of subdivision 2 of section 340, which exempts labor unions. If the contract be held legal as to the defendant labor unions, it must, likewise, be held valid as to the defendant association.

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Bluebook (online)
161 Misc. 246, 291 N.Y.S. 610, 1936 N.Y. Misc. LEXIS 1508, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-fur-manufacturers-assn-v-associated-fur-coat-trimming-nysupct-1936.