American Newspaper Guild v. MacKinnon

108 F. Supp. 312, 1952 U.S. Dist. LEXIS 2262
District Court, D. Utah·Decided November 13, 1952·No. Civ. 1992·Published·Cited by 8 cases

Opinion

KNOUS, District Judge.

This is an action to recover .dam.ages. for an alleged libel deprecating the American Newspaper Guild, an unincorporated association. Federal jurisdiction is asserted oh the ground of alleged diversity of citizenship. The defendants are citizens and residents of the. State of Utah and the libel was allegedly published in that state. The law of Utah, therefore, controls the features of this case which are outside the orbit of federal jurisprudence. Erie R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188.

The defendants have filed a motion to dismiss the complaint. One ground for the motion is that the plaintiff, being an ■unincorporated association, cannot maintain the action in its own name. The argument in support of this position is .grounded in Rule 17(b), F.R.C.P., 28 U. S.C.A., which, so far as is material here, provides the following:

“ * * * capacity to sue or be sued shall be determined by the law of the state in which the district court is held, except (1) that a partnership or other unincorporated association, which has no such -capacity by the law of such state, may sue or be sued in its common name for the purpose of enforcing for or against it a substantive right existing under the Constitution or laws of the United States * *

Under the rule, an unincorporated association must thus meet one of two possible requirements in order to merit consideration as a party in a given federal court. It must either have been bestowed capacity ■to sue or be sued by the state in which the action is lodged, or the suit must contemplate the enforcement of a substantive right existing under the constitution or laws of the United States.

Cases in which the second requirement was held to have been met involved such matters as the War Labor Disputes Act, 50 U.S.C.A.Appendix, § 1501 et seq., Thermoid Co. v. United Rubber Workers of America, D.C., 70 F.Supp. 228; the Fair Labor Standards Act, 29 U.S.C.A. § 201 et seq., Schmidt v. Peoples’ Telephone Union of Maryville, Mo., 8 Cir., 138 F.2d 13; the Patent Laws, Sperry Products v. Association of American Railroads, D.C., 44 F. Supp. 660; the Sherman Anti-Trust Act, 15 U.S.C.A. §§ 1-7, 15 note, United Brick & Clay Workers v. Robinson Clay Product Co., D.C., 64 F.Supp. 872; the Labor Management Relations Act, 29 U.S.C.A. § 141 et seq., Wilson & Co. v. United Packinghouse Workers of America, D.C., 83 F. Supp. 162, and actions involving constitutional rights; Alston v. School Board, etc., 4 Cir., 112 F.2d 992, 130 A.L.R. 1506; United Electric Radio & Mach. Workers, etc. v. Baldwin, D.C., 67 F.Supp. 235. It does not require extensive elaboration to arrive at the indisputable conclusion that the claim for relief which is advanced in this case is totally devoid of even the remotest contact with substantive federal jurisprudence. The American Newspaper Guild’s capacity as a party plaintiff is, therefore, entirely dependent on the law of Utah.

The' general common law rule is that an unincorporated association has no legal entity aside from its members and has, therefore, no standing and no capacity as a party litigant in its own name. Moffat Tunnell League v. United States, 289 U.S. 113, 53 S.Ct. 543, 77 L.Ed. 1069; Cox v. Government Employees Ins. Co., 6 Cir., 126 F.2d 254; Kingsley v. Amalgamated Meat Cutters, etc., 323 Ill.App. 353, 55 N.E.2d 554. While the law of Utah includes enabling legislation, which confers upon an unincorporated association sufficient status to be sued in its own name as a party defendant, U.C.A.1943, 104-3-26, it includes no provision and no authority permitting such an association to institute an action in its own name as a party plaintiff. It has been held repeatedly that statutes whioh au *314 thorize suits against an association in its common or associate name do not confer a mutual or reciprocal privilege permitting such associations to institute litigation in ■ their -own name. St. Paul Typothetae v. St. Paul Bookbinders’ Union, 94 Minn. 351, 102 N.W. 725; Kline v. Knights of the Golden Eagle, 113 N.J.Eq. 513, 167 A. 758; Newton County Farmers & Fruit Growers’ Exchange v. Kansas City Southern Ry. Co., Mo.App., 2 S.W.2d 125; 7 C.J.S., Associations, p. 85.

The plaintiff urges that this court adopt the rule announced in Busby v. Electric Utilities Employees Union, 79 U.S.App.D.C. 336, 147 F.2d 865. In that case, the Court of Appeals for the District of Columbia held that an unincorporated trade union had, in view of its power, influence, size, activities, purposes and aims, capacity to sue and be sued, irrespective of enabling legislation. By urging this decision as precedent in the light of the controlling law of Utah, the plaintiff failed to consider a vital function of the federal courts in the District of Columbia as distinguished from the duties incumbent upon this tribunal. This Court’s jurisdiction is limited and it must resolve the question under consideration ■ according to the law of the forum. The Court of Appeals for the District of Columbia, on the other hand, acted in the capacity of a state appellate court when it decided the Busby case. It was bound only by its own precedent and by its sense of justice. If this Court were to adopt and follow the rule of the Busby case, it would, in effect, usurp the functions of either the judicial or legislative bodies of the State of Utah. It would, for purposes of this case, change the existing law of that state.

Yet, even if this were done and this Court were to branch away from the state rule which binds it, the plaintiff association, would reap scant comfort. An unincorporated association cannot maintain an action in the federal court of a state which has enabled such an association to sue and be sued, if federal jurisdiction depends on diversity of citizenship, unless it appears from the complaint that diversity exists as between all the members of the association and the opposing party. One learned author has stated this rule with reference to the previously-quoted Rule 17(b), F.R.C.P., as follows:

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American Newspaper Guild v. MacKinnon, 108 F. Supp. 312, 1952 U.S. Dist. LEXIS 2262 (D. Utah 1952).

108 F. Supp. 312 (American Newspaper Guild v. MacKinnon) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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