Bethlehem Shipbuilding Corporation v. Nylander

14 F. Supp. 201, 1936 U.S. Dist. LEXIS 1285
CourtDistrict Court, S.D. California
DecidedApril 3, 1936
Docket818
StatusPublished
Cited by5 cases

This text of 14 F. Supp. 201 (Bethlehem Shipbuilding Corporation v. Nylander) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bethlehem Shipbuilding Corporation v. Nylander, 14 F. Supp. 201, 1936 U.S. Dist. LEXIS 1285 (S.D. Cal. 1936).

Opinion

*202 STEPHENS, District Judge.

The Pleadings.

The corporate complainant is a citizen of the state of Delaware, with offices in Bethlehem, Pa. It bases its claim herein for equitable relief and for a declaratory judgment upon allegations that the three defendants above,named will exercise certain functions in the matter of holding a hearing at Los Angeles, Cal., under the so-called Wagner Act, or, as it is sometimes called, the National Labor Relations Act (title 29, U.S.C.A. sections 151-161, July 5, 1935), herein generally referred to as the act. The defendants are sued in, and are accused of acting in, three distinct capacities: Nylander, individually and as regional director and as the National Labor Relations Board; McWilliams, individually and as trial examiner and as the said Board; Janofsky, individually and as attorney for and as such Board. In no other manner is the Board or are the members of the Board named as parties. The said Board, which shall hereinafter be referred to as the Board, consists of three members, each a citizen of a state different from that of the other two. The headquarters of the Board proper are in the District of Columbia.

The hearing referred to is entitled “United States of America Before the National Labor Relations Board Twenty-first region, In the Matter of Bethlehem Shipbuilding Corporation, Limited, and Industrial Union of Marine and Shipbuilding Workers of America No. 9.”

Upon the filing of the bill of complaint in this court, an order was issued commanding defendants to show cause why they should not be restrained from performing any acts in furtherance of such hearing. The defendants filed a joint return, a motion to dismiss, and several affidavits.

The cause was submitted for decision after it had been thoroughly briefed and exhaustively argued, and, after a full consideration of the points and authorities, I have cóme to the conclusion that no relief can be granted complainant. The pertinent facts will develop with the treatment of the several points treated in the opinion.

Mechanics of Board Action.

The action in the jurisdiction of the Board is not taken by a complainant against a defendant as in a court, but the Board or its regional agent is informed of claimed violations of the act, and in the discretion of the regional director or of the Board, the former in this case, a complaint is filed and served on the parties concerned. The party against whom the complaint has been lodged is denominated the respondent, and he may file his reply, have process, present witnesses, et cetera. After the testimony has been taken it is transmitted in written form to the Board and the Board determines therefrom whether or not an order to “cease and desist” in alleged “Unfair Labor Practices” shall issue. If such order issues and the respondent does not comply therewith, the Board may apply to the Circuit Court (under certain limited circumstances to the District Court) for appropriate action for enforcement of its order. Any person aggrieved by the order may also apply to such court. Such court may order additional evidence to be taken before the Board, but “the findings of the Board as to the facts, if supported by the evidence, shall be conclusive.” The Supreme Court of the United States may review proceedings by certiorari. It is the contention of defendants here that no other court procedure is open to respondents except in relation to subpoena in such hearing, and I shall notice this question later on.

Cause of Complaint.

The respondent in the Board case, the complainant here, claims • that the whole act is unconstitutional and void, and that it invades complainant’s constitutional rights in several particulars and that the maintainance of the Board case and the performance of defendants of any act in pursuance of said hearing does and will cause complainant to suffer irreparable injury.

Court’s Conclusions and Reasons Therefor.

Since the complaint is drawn upon the theory that each of the three defendants is in this litigation in three ways, “individually,” “officially,” and “as. the Board,” it will be well to make an early examination of the situation with that especially in mind. In the first place, neither of the defendants purport to have any relation to the subject-matter in any individual capacity. To regard them as acting in their individual capacities would require, first, the determination by this court that the act is wholly void and that they are acting without any authority *203 whatever, or, as counsel for complainant states, as though the act never existed. Of course, I cannot begin with that premise, because there is a presumption of great weight that an act of Congress is valid. Consistent with the complaint, counsel for the complainant in their oral argument contended that service upon these defendants was tantamount to service upon the Board, and that the Board is in reality before this court, and therefore, it would seem, subject in a practical sense to this court’s process, through process upon these defendants. This seems to lead us into strange and inconsistent positions. If the Board, by its members, were actually made parties here in the usual manner, the cause would have to be dismissed as to them, as they cannot be sued in this jurisdiction without their consent, which is lacking. If they are not parties, the real and overwhelmingly important relief sought by the complainant, to wit, restraint of the Board, cannot be directly granted. • I know of no legal method of resolving away the right of the members to be sued in the proper jurisdiction by a judicial fusing of the Board status with that of their limited power of agency. They purport to be acting in their official capacity, that is, as regional director,-trial examiner, and attorney, respectively. In such capacities only should I consider them until it appears that they occupy some other additional or different status, and I think it never so appears in this case.

Most of Relief Sought Is against Board.

A reading of the bill of complaint, together with the briefs and transcribed oral argument, leaves no uncertainty that the Board (or its members) is the real party against whom complainant desires relief and accounts for the broadly encompassing allegations as to defendants’ capacities—an effort to include the Board as the alter ego of defendants. Reference is made to but a few passages.

From paragraph 2 of the complaint: “Said Madden, Carmody and Smith (Members of the Board) would appear to be proper parties defendant herein, but are not necessary parties defendant herein and are not named parties defendant because they are not personally within the jurisdiction of this honorable court. Although said Madden, Carmody and Smith have not been named as parties defendant herein for the foregoing reason, complainant desires to have them granted the right to become parties defendant herein with all of the rights of parties defendant and not limited to an appearance before this court as amici curise, or in any other capacity with rights inferior to those of actual parties defendant herein.”

The complaint digests the so-called unfair labor practices named in the act.

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Cite This Page — Counsel Stack

Bluebook (online)
14 F. Supp. 201, 1936 U.S. Dist. LEXIS 1285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bethlehem-shipbuilding-corporation-v-nylander-casd-1936.