Cato v. South Atlantic & Gulf Coast District of the International Longshoremen's Ass'n

364 F. Supp. 489, 84 L.R.R.M. (BNA) 3010, 1973 U.S. Dist. LEXIS 13955, 6 Empl. Prac. Dec. (CCH) 9031, 6 Fair Empl. Prac. Cas. (BNA) 1154
CourtDistrict Court, S.D. Texas
DecidedApril 20, 1973
DocketCiv. A. 71-G-109
StatusPublished
Cited by11 cases

This text of 364 F. Supp. 489 (Cato v. South Atlantic & Gulf Coast District of the International Longshoremen's Ass'n) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cato v. South Atlantic & Gulf Coast District of the International Longshoremen's Ass'n, 364 F. Supp. 489, 84 L.R.R.M. (BNA) 3010, 1973 U.S. Dist. LEXIS 13955, 6 Empl. Prac. Dec. (CCH) 9031, 6 Fair Empl. Prac. Cas. (BNA) 1154 (S.D. Tex. 1973).

Opinion

MEMORANDUM OPINION

NOEL, District Judge.

On March 12, 1973, the Court denied the motion of defendant South Atlantic & Gulf Coast District, International Longshoremen’s Association (hereinafter “district union”) for summary judgment and dismissed with prejudice the plaintiffs’ claims against defendants *491 Board of Trustees, Galveston Wharves and the City of Galveston (hereinafter “Wharves and City”). This Memorandum Opinion explains the reasons for those actions.

I. Claim against the District Union

Plaintiffs’ claim of misrepresentation by defendant district union assumes that defendant had the duty to fairly represent the individual members of the local union. Courts have implied a duty of fair representation on the part of union organizations from the provisions of the Railway Labor Act, as amended, 45 U.S. C. § 151 et seq. (1970). Steele v. Louisville & Nashville R. R. Co., 323 U.S. 192, 65 S.Ct. 226, 89 L.Ed. 173 (1944); Richardson v. Texas & New Orleans R. R. Co., 242 F.2d 330 (5th Cir. 1957). Nonetheless, this defendant is a district organization, an intermediary between the local union and the international brotherhood. Defendant contends it does not represent the individual members and therefore had no duty of fair representation. The evidence presented by plaintiffs rebuts defendant’s claim.

The Constitution of the South Atlantic and Gulf Coast District governs the local unions and provides that “All locals . shall consult the District or International Officers when in a crisis, instead of consulting outside affiliations and/or resorting to the Courts.” Article XIX. The testimony démonstrates that in fact Local 1513, whose former members are plaintiffs here, regularly and repeatedly went to the district officers “when in a crisis” for advice and assistance. Aid, including legal counsel when appropriate, was freely given by the district union. Other provisions of the constitution grant the district organization considerable authority over the operation of local unions and over their individual members. There is no evidence indicating that these provisions are ignored.

In addition, as stipulated by the parties, the defendant district union was the recognized bargaining representative of the plaintiff employees. Stipulation O. Approval of the district office was necessary before the local organization could ratify a new contract.

This evidence demonstrates that both on paper and in practice, the defendant district union acted as representative of the individual union members in their important contacts with the employer. As such, the defendant assumed the responsibility and legal duty to fairly represent the individual members. Conley v. Gibson, 355 U.S. 41, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957); Brady v. Trans World Airlines, Inc., 401 F.2d 87 (3rd Cir. 1967).

Plaintiffs contend that officials of defendant district union breached this duty with regard to a lawsuit against the Wharves and City and others. Plaintiffs claim the district officers made statements which mislead plaintiffs into believing such a suit had been filed on their behalf. Plaintiffs also argue that the officials breached their duty by failing to affirmatively tell plaintiffs that in fact no suit had been filed. Plaintiffs thus allege both action and inaction which breached defendant’s duty to plaintiffs and caused damage to plaintiffs.

Defendant responds that there has been no showing of bad faith on the part of union officials as required by Steele v. Louisville & Nashville R. R. Co., supra and its progeny. See Gainey v. Brotherhood of Railway Clerks, 313 F.2d 318 (3rd Cir. 1963). Defendant points out that union officials, along with several of the plaintiffs, worked with the new management of Elevator B in an attempt to obtain jobs for old employees. According to defendant, this approach, rather than litigation, was considered more likely to benefit the former members of Local 1513.

This line of argument obscures the issue. Plaintiffs do not complain of the district union’s attempts to obtain jobs or its failure to file a lawsuit. Plaintiffs complaint is that they were not told about the decision not to sue and were in fact mislead into believing a suit was pending. The gravamen of *492 their complaint is that the plaintiffs were thereby precluded from individually deciding whether or not to sue.

Several Local 1513 members were never rehired at Elevator B. Those who were rehired, still lost considerable benefits which were legally recoverable. United Industrial Workers of Seafarers v. Board of Trustees of the Galveston Wharves, 400 F.2d 320 (5th Cir. 1968), cert. denied 395 U.S. 905, 89 S.Ct. 1747, 23 L.Ed.2d 219 (1969) (hereinafter “S.I.U. suit”). These members might well have desired to file a claim or join the existing' S.I.U. suit. Plaintiffs contend that defendant’s action prevented such a decision.

The evidence suggests that defendant district union sought favorable relations with the new management and new employees with the eventual goal of representing the new bargaining unit at Elevator B. The testimony also raises the inference that union official’s failure to tell the Local 1513 members of the decision not to sue, and union official’s ambiguous statements concerning the issue were calculated to prevent suit by Local 1513 members as part of the attempt to establish good relations with the new management of Elevator B. As such, defendant’s action is clearly hostile to the interests of Local 1513 members who were not rehired at Elevator B. Defendant’s conduct is also adverse to the interests of any member who might have wanted to sue the Wharves and City in an attempt to recoup past benefits. Brady v. Trans World Airlines, Inc., supra.

Plaintiffs’ evidence indicates that defendant was willing to trade off the interests of the old employees of Local 1513 in exchange for good relations with the new management and employees. The burden of justifying this conduct now shifts to defendant. Ferro v. Railway Express Agency, Inc., 296 F.2d 847 (2nd Cir. 1961).

Defendant’s final major contention is that the two-year statute of limitations bars this cause of action which is based on events which took place in 1964. Plaintiffs maintain that the misrepresentations made by defendant’s officers concealed the facts of the situation until March 1970, when plaintiffs discovered that they were not parties to the S.I.U. lawsuit. Thus, plaintiffs conclude, the statute of limitations was tolled until that date. Defendant responds that the facts are such as to give plaintiffs effective notice long before 1970. On balance, the Court finds that plaintiffs did not have notice of the relevant facts until March 1970. Therefore, plaintiffs’ cause of action against the defendant district union is not barred by the statute.

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364 F. Supp. 489, 84 L.R.R.M. (BNA) 3010, 1973 U.S. Dist. LEXIS 13955, 6 Empl. Prac. Dec. (CCH) 9031, 6 Fair Empl. Prac. Cas. (BNA) 1154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cato-v-south-atlantic-gulf-coast-district-of-the-international-txsd-1973.