Communications Workers of America, Local 11500 v. Allen (In Re Allen)

75 B.R. 742
CourtUnited States Bankruptcy Court, C.D. California
DecidedJanuary 8, 1987
DocketBankruptcy No. LA 85-11052-RM, Adv. No. LA 85-4140-RM
StatusPublished
Cited by3 cases

This text of 75 B.R. 742 (Communications Workers of America, Local 11500 v. Allen (In Re Allen)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Communications Workers of America, Local 11500 v. Allen (In Re Allen), 75 B.R. 742 (Cal. 1987).

Opinion

MEMORANDUM OF DECISION GRANTING DEBTOR’S MOTION FOR SUMMARY JUDGMENT.

LISA HILL FENNING, Bankruptcy Judge.

INTRODUCTION

Debtor, Amelia Allen, is employed as a telephone operator by Pacific Telephone and Telegraph Company (“PacTel”). On August 1985, she crossed a picket line to continue working during a strike called by her Union, Local 11500 of the Communication Workers’ of America, AFL-CIO (the “Union”). The Union fined her $3,009.12 for violating the Union’s constitution and bylaws. Debtor filed a chapter 7 bankruptcy petition after the Union sued her in state court to collect its fine. The Union now seeks a determination that the fine is nondischargeable under 11 U.S.C. § 523(a)(6) as a debt “for willful and malicious injury by the debtor to another entity or the property of another entity.”

This matter came on for hearing on the Union’s motion for summary judgment. The parties stipulated at the hearing that Debtor’s response could be deemed a cross-motion for summary judgment. After considering the declarations filed by the parties and the arguments of counsel, this Court finds that the material facts are undisputed. Although Debtor’s action was intentional and breached her Union obligations, this Court concludes that her conduct did not constitute “willful and malicious injury” within the meaning of 11 U.S.C. § 523(a)(6). Therefore, this debt is fully dischargeable. The Union’s summary judgment motion is denied; Debtor’s summary judgment motion is hereby granted.

FINDINGS OF FACT

The following facts are uncontroverted:

1. Plaintiff Union is a local affiliate of the Communication Workers of America, AFL-CIO (“CWA”). CWA has a collective bargaining relationship with PacTel, Debt- or’s employer.

2. Debtor’s employment by PacTel was governed by a collective bargaining agreement between PacTel and CWA. Debtor was a member of the Union at all material times herein.

3. On August 7, 1983, CWA and the Union called a strike against PacTel, and set up a picket line against PacTel from that date through August 27, 1983.

4. During the August 1985 strike against PacTel, Debtor crossed the Union’s picket lines to go to her job at PacTel. When she crossed the picket line without Union authorization, Debtor knew that it was important to the Union’s bargaining strength that all workers stay out on strike, and knew that her strikebreaking, together with that of her co-workers, might impair the Union’s bargaining position.

5. Article XIX, section 1 of the CWA Constitution provides that members may be fined, suspended or expelled by the Union or other local affiliates for (a) willfully violating the CWA’s Constitution, Union Bylaws or Rules; (b) disobeying or willfully failing to comply with any lawful decision or order of the CWA or the Union; (c) and/or working without Union authorization during a properly approved strike at an establishment that is being struck by the CWA or its locals.

6. In accordance with the CWA Constitution and the Union’s Bylaws, the Union filed charges against Debtor for crossing the Union’s picket lines during the August 1985 strike. After an uncontested hearing before a Union court, Debtor was found guilty as charged; temporarily suspended from the Union; fined total amount of wages she earned for work during the strike ($2,909.12); and penalized $100 for her violation. Debtor did not appeal. Nor has she challenged either the Union’s procedures or its right to impose a fine upon her under the circumstances.

*744 7. On April 5,1985, the Union instituted an action in Los Angeles Municipal Court to enforce and collect the penalty and fine assessed against Debtor. That action was stayed by the filing of Debtor’s Chapter 7 petition on August 8, 1985. In her schedules filed in this proceeding, Debtor lists the debt of $3,009.12 to the Union as undisputed.

8. At the hearing on the summary judgment motion, the Union admitted that no strike funds were available to pay the living expenses of its members during the first three weeks of a strike, and only extremely limited funds might be available should the strike last longer than three weeks. • The Union did offer to contact its members’ creditors to attempt to defer payments for the duration of the strike, although that would not relieve Union members of their obligation to pay in full once the strike was over. The Debtor did not request such help.

9. At the time of the strike, Debtor’s only source of income other than her job at PacTel was $160.00 per month in child support for her two minor children. Without a regular paycheck, she lacked the financial resources necessary to pay her rent and feed her children. Debtor crossed the pjck-et line to earn the income necessary to pay for her family’s immediate housing, food and other necessities.

10. During the hearing, counsel for the Union represented that approximately 490 of the Union’s members were disciplined for crossing the picket line during this strike. The adverse effect on the Union’s bargaining position from this strikebreaking activity was cumulative; no direct relationship between the actions of any individual Union member and the progress of the collective bargaining talks could be isolated or quantified.

CONCLUSIONS OF LAW

1. This court has jurisdiction over this proceeding under 28 U.S.C. Section 1471.

2. The Constitution and Bylaws of CWA and the Union constitute an enforceable contract between the Union and Debtor under applicable labor statutes and case law.

3. Under applicable labor law, the Union is authorized to impose, enforce and collect fines under its constitution and bylaws against members who engage in strikebreaking, including cro»sing picket lines. The Union’s power to discipline its members for strikebreaking is essential to its legal status as bargaining representative for employees.

4. Debtor’s breach of her contract with the Union did not violate any federal or state laws. Nor did her conduct inflict “willful and malicious injury” on the Union or its property within the meaning of 11 U.S.C. § 523(a)(6).

5. The full amount of Debtor’s debt to the Union is dischargeable under the Bankruptcy Code.

6. There are no genuine issues as to any material fact. Summary judgment is appropriate under the standards of Bankruptcy Rule 7056 and F.R.C.P. Rule 56.

DISCUSSION

It is undisputed that Debtor intentionally crossed the picket line in violation of her contractual obligations to her Union, with the knowledge that her action would probably undercut the Union’s bargaining position. It is also undisputed that Debtor’s conduct was motivated by financial hardship, not by a desire to injure the Union in any manner.

Nevertheless, the Union argues that Union fines should be nondischargeable under Section 523(a)(6) of the Bankruptcy Code.

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Cite This Page — Counsel Stack

Bluebook (online)
75 B.R. 742, Counsel Stack Legal Research, https://law.counselstack.com/opinion/communications-workers-of-america-local-11500-v-allen-in-re-allen-cacb-1987.