Central Bus Operators, Inc. v. Central Avenue Bus Owners Ass'n

11 A.2d 732, 127 N.J. Eq. 144, 26 Backes 144, 1940 N.J. Ch. LEXIS 98
CourtNew Jersey Court of Chancery
DecidedMarch 14, 1940
StatusPublished
Cited by1 cases

This text of 11 A.2d 732 (Central Bus Operators, Inc. v. Central Avenue Bus Owners Ass'n) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Bus Operators, Inc. v. Central Avenue Bus Owners Ass'n, 11 A.2d 732, 127 N.J. Eq. 144, 26 Backes 144, 1940 N.J. Ch. LEXIS 98 (N.J. Ct. App. 1940).

Opinion

Egan, V. C.

The complainant is a corporation whose membership is composed of drivers of buses who operate over a course known as the Central avenue line in Jersey City, New Jersey. On this line there are twenty-six buses owned by individuals and corporations. The owners of the buses are members of the defendant organization, Central Avenue Bus Owners Association.

Edward Wendt, the defendant, owned, and held a franchise on, one of the buses for approximately ten years. He operated the bus during that time. In February, 1939, he formed a corporation which was named the Wendt Bus Company, Inc. He transferred his bus and franchise to that corporation. The transfer ivas, on March 30th, 1939, approved by the Board of Public Utility Commissioners of the State of New Jersey (Exhibits D-2 and D-4).

The complainant organization in March, 1938, and April, 1939, entered into contracts (Exhibits C-4 and C-5, respectively) with the defendant, Central Avenue Bus Owners Association; both contracts are practically alike. The March, 1938, contract, marked as Exhibit 0-4, expired in March, 1939. The April, 1939, contract, marked as Exhibit 0-5, is still in force. The first paragraph of the contracts provides:

“1. Members of the Central Bus Operators Incorporated with paid up books to he employed or those willing to become members at the next regular meeting of the association.” (Italics mine.)

Scicutella, the defendant, for ten years prior to the incorporation of the Wendt Bus Compaq1, Inc., operated the Wendt bus. He was a member of the complainant organiza *146 tion. His dues liad been fully paid. In February, 1939, when the Wendt Bus Company, Inc., was formed, he agreed to purchase four shares of its stock. The complainant takes the position that from the time he agreed to purchase that stock he violated article 14 of its constitution which reads as follows:

“No person while a member of this association may belong to or participate in any other labor organization in the State of New Jersey of a similar purpose or nature served by this organization or any other organization in conflict with the interests of this association.”

It declared his action called for his expulsion from its organization; consequently, it expelled him. The expulsion divested him of all organization rights and benefits, among which was the right to be employed as an operator of a bus on the Central' avenue line. The provisions of section 1 of the contracts, Exhibits 0-4 and 0-5, complainant says, limits the operation of buses to members of its organization.

The contract, Exhibit 0-4, in addition to the above quoted paragraph 1, contains the following:

“34. This agreement from and after March 19th, 1938, will remain in force for one year, and continue thereafter, unless either party gives thirty (30) days’ notice in writing to the other of any change.”

In conformity with paragraph 34 of the contract 0-4, the complainant on February 18th, 1939, gave notice to the defendant Central Avenue Bus Owners Association, that the contract Exhibit 0-4 would expire March 19th, 1939.

The defendants Wendt and Scicutella, and the defendant Wendt’s, daughter, Mrs. Binns, became the original stockholders of the Wendt Bus Company, Inc. Four shares of the stock were issued to Scicutella; for its purchase, he executed and delivered to Wendt a promissory note for the sum of $14,400. As collateral security for the payment of the note, he gave the stock to Wendt.

The market value of the Wendt bus and franchise is appraised at approximately $36,000.

The complainant says it learned of the incorporation of the Wendt Bus Company, Inc., sometime in February, 1939, from published accounts of its formation in newspapers.

*147 The defendant Central Avenue Bus Owners Association is an unincorporated voluntary association consisting of more than seven members. Its constitution and by-laws say its object is to “promote friendship and co-operate with all members and pledge itself to pool its interests and work in harmony with the city and state laws.” It acts as a co-ordinating agency for the physical operation of the buses on the Central avenue line; and it handles the pooling of revenues derived from the operation of the buses. It has no title to the buses; operates none and is without authority to employ, or discharge, operators, or drivers thereof.

Scicutella charges that his alleged expulsion from the complainant’s organization was unjust and without reasonable cause. He filed a counter-claim in which he states that he offered his dues to the complainant and that it refused to accept them; that, thereafter, without notice to him, or the submission of any charges against him, he was expelled from the complainant organization. He asserts that his stock-holdings in the Wendt Bus Company, Inc., violated no provisions of the constitution, or the by-laws, of the complainant organization. He seeks to enjoin it from interfering with, or excluding him from, his membership in its organization, and asks that he be reinstated therein as a member.

The complainant alleges that it held a meeting of its executive committee on or about March 20th, 1939, and that such committee then expelled Scicutella (testimony, page 9). It admits that Scicutella was not informed that the committee would hold a hearing of charges against him for having violated the constitution or by-laws of the organization. It is evident that he was not present at any meeting, or hearing, held by either the executive committee, or the complainant organization, when alleged violations of the constitution or by-laws by him were being considered. The minutes of complainant’s organization, or committee, meetings bear no such record and make no mention of his expulsion.

Article 5, section 1, of the complainant’s constitution provides that the. executive board of the complainant association “shall upon receipt of charges of any infraction of the rules or by-laws of this Association by any member or officer, inves *148 tigate such charges, and upon finding such member guilty, may suspend, fine or expel or act, in any way that the Executive Board shall see fit to further the best interest of the organization.” There is no evidence in the complainant organization’s records that it was “in receipt of charges of any infraction of the rules or by-laws of the Association” by Scicutella.

The executive board, according to the complainant’s constitution, consists of the president, vice-president and secretary-treasurer of the organization. The secretary-treasurer, Victor J. Wolfersberger, testifying for the complainant, stated that he became secretary-treasurer in February, 1939; and that during February, March and April of that same year, Frank O’Rourke was president and that William Meóla was vice-president. Wolfersberger declared that he could recall but one meeting of the executive board that he attended, and that was sometime after the summer of 1939.

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Bluebook (online)
11 A.2d 732, 127 N.J. Eq. 144, 26 Backes 144, 1940 N.J. Ch. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-bus-operators-inc-v-central-avenue-bus-owners-assn-njch-1940.