Chicago Automobile Trade Ass'n v. Madden

215 F. Supp. 828, 52 L.R.R.M. (BNA) 2923, 1963 U.S. Dist. LEXIS 7081
CourtDistrict Court, N.D. Illinois
DecidedApril 11, 1963
DocketNo. 63 C 114
StatusPublished

This text of 215 F. Supp. 828 (Chicago Automobile Trade Ass'n v. Madden) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago Automobile Trade Ass'n v. Madden, 215 F. Supp. 828, 52 L.R.R.M. (BNA) 2923, 1963 U.S. Dist. LEXIS 7081 (N.D. Ill. 1963).

Opinion

CAMPBELL, Chief Judge.

This is an action by the Chicago Automobile Trade Association (herein re[829]*829ferred to as the Association) and seven of its members against the Regional Director for the Thirteenth Region of the National Labor Relations Board, the Board’s Chief Trial Examiner, an unnamed Trial Examiner, and three Board attorneys assigned to the Thirteenth Region. The plaintiffs seek to enjoin the defendants from proceeding with a trial de novo against plaintiffs in a consolidated unfair labor practice case now pending before the N.L.R.B. The plaintiffs also pray for an order directing defendant George Bokat, the Board’s Chief Trial Examiner, to re-assign Trial Examiner Arthur Reyman, in concert with another Trial Examiner if necessary, to complete hearing and, alone, to prepare and issue an Intermediate Report in the eases which were recessed sine die by Reyman on December 12, 1962.

The defendants have moved to dismiss the complaint against them on the grounds that: (a) the Court is without jurisdiction over the subject matter of the action; (b) the complaint fails to state a claim upon which relief can be granted; and (c) plaintiffs have failed to make proper service upon defendant George Bokat, Chief Trial Examiner for the Board, who is an indispensable party to this action. In the alternative, defendants have moved that summary judgment be entered in their favor under Rule 12 (b), F.R.Civ.P.

The facts are as follows: On May 4, 1962, after investigation of unfair labor practice charges filed by two unions recently certified as bargaining agents for employees of five of the plaintiffs herein, the Regional Director issued separate complaints against each of these five employers. The complaints alleged that these employers had committed and were committing unfair labor practices. On May 4, the Regional Director issued an order directing that the consolidation of these separate cases was necessary to effectuate the policies of the National Labor Relations Act, and scheduling a consolidated hearing.

On June 13, 1962, after investigation of unfair labor practice charges filed by the two certified unions, the Regional Director issued a complaint against the Association. The complaint alleged that the Association was committing unfair labor practices by assisting and inducing some of its members (namely, the five employers against whom complaints had already issued) to refuse to bargain with the charging unions. On June 22, 1962, the Regional Director issued an order consolidating the complaint against the Association with the cases previously consolidated, and scheduled the matter for hearing. On July 30, 1962, hearing on the consolidated cases opened before Trial Examiner Reyman in Chicago. At the start of the hearing, the Trial Examiner granted the Association’s motion to dismiss the complaint against it. However, on immediate appeal by the General Counsel to the Board, the Board reversed the Trial Examiner’s ruling, and ordered that the complaint against the Association be reinstated and evidence heard on the allegations therein. The hearing then continued on the consolidated cases. On October 5, 1962, a complaint was issued against plaintiff Kole. On October 25, 1962, a complaint was issued against plaintiff Grill-Sadler. They were not parties to the initial unfair labor practice charges and a hearing on their charges was scheduled separately and independently of the previously consolidated cases.

On December 12, 1962, when the consolidated proceeding had accumulated about 1,800 pages of transcript and 100 exhibits, Trial Examiner Reyman adjourned the hearing sine die. Most of the testimony contained in the record had been elicited by the Board as adverse party testimony.

On January 4,1963, defendant Madden issued an order consolidating the Kole case with the other cases previously consolidated and adjourned. On January 11, 1963, a similar order was issued similarly consolidating the Grill-Sadler case.

On January 7, 1963, Chief Trial Examiner Bokat, wrote all the parties in the consolidated cases that he had received Trial Examiner Reyman’s “notice of disqualification, as provided for in Section [830]*830102.37 of the Board’s Rules and Regulations.” Bokat enclosed a copy of the Trial Examiner’s notice, wherein Mr. Reyman had indicated that he was “deeming (himself) to be disqualified to further continue as Trial Examiner for reasons concerning (his) personal health, as reflected by the stenographic transcript of the proceedings of December 12,1962, pp. 1702-1704.” Bokat, therefore, informed the parties that he would designate another Trial Examiner and that a trial de novo would commence on the consolidated cases on January 15, in Chicago, Illinois.

On January 9, plaintiffs’ counsel here and in the unfair labor practice cases before the Board, wrote Chief Trial Examiner Bokat requesting that he reconsider his designation of another Trial Examiner, and his rescheduling of a hearing de novo on the consolidated cases. On January 11, the Regional Director rescheduled the hearing on the consolidated cases from January 15 to January 22. On January 18 plaintiffs filed the present complaint.

Defendants’ contention that plaintiffs have failed to serve an indispensable party, George Bokat, Chief Trial Examiner of the Board, is without merit. A necessary or indispensable party as distinguished from a proper party is one who has such an interest in the controversy that a complete decision would be both unjust and impossible without him. The facts before me clearly indicate that I may proceed to judgment on the merits in this cause without the necessary joining of Bokat as a party defendant. Moreover, on January 23rd, defendants’ counsel represented to this court that he was appearing in behalf of the defendants. No exception- was made as to Bokat who was named a party defendant in the complaint. It is through this same counsel that Bokat is now questioning the court’s jurisdiction over him. Bokat has, since his objection to this Court’s jurisdiction, been served a copy of the complaint and summons by certified mail pursuant to the suggestion of defendants’ counsel.

Considering defendants’ contentions that the court lacks jurisdiction over the subject matter of this action and that the complaint fails to state a claim upon which relief can be granted, there is indeed some question as to the jurisdiction of district courts to entertain suits such as this wherein a plaintiff seeks to enjoin Board action in the labor field. As a general rule plaintiffs who complain of the conduct of administrative bodies have properly been required to exhaust their administrative remedies prior to invoking the intervention of the courts. Myers v. Bethlehem Shipbuilding Corp., 303 U.S. 41, 58 S.Ct. 459, 82 L.Ed. 638. However, this general rule appears to be subject to certain exceptions. The Supreme Court in Leedom v. Kyne, 358 U.S. 184, 79 S.Ct. 180, 3 L.Ed.2d 210, recognized the possibility of such an exception. Although the facts in Leedom are not identical to the facts presently before me, (the conduct of the Board there complained of related to representation matters under Sec. 9 of the Act), the Court clearly held that under certain circumstances district courts do have jurisdiction to enjoin actions of the Board notwithstanding a failure by the plaintiff to have exhausted administrative remedies. Our own Court of Appeals in Vapor Blast Manufacturing Co. v.

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Related

Myers v. Bethlehem Shipbuilding Corp.
303 U.S. 41 (Supreme Court, 1938)
Leedom v. Kyne
358 U.S. 184 (Supreme Court, 1958)
Vapor Blast Manufacturing Co. v. Madden
280 F.2d 205 (Seventh Circuit, 1960)

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Bluebook (online)
215 F. Supp. 828, 52 L.R.R.M. (BNA) 2923, 1963 U.S. Dist. LEXIS 7081, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-automobile-trade-assn-v-madden-ilnd-1963.