Crest Tankers, Inc. v. NAT. MARITIME UNION OF AMERICA

605 F. Supp. 1270, 119 L.R.R.M. (BNA) 2100, 1985 U.S. Dist. LEXIS 21031
CourtDistrict Court, E.D. Missouri
DecidedApril 4, 1985
Docket83-1481C(1)
StatusPublished
Cited by3 cases

This text of 605 F. Supp. 1270 (Crest Tankers, Inc. v. NAT. MARITIME UNION OF AMERICA) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crest Tankers, Inc. v. NAT. MARITIME UNION OF AMERICA, 605 F. Supp. 1270, 119 L.R.R.M. (BNA) 2100, 1985 U.S. Dist. LEXIS 21031 (E.D. Mo. 1985).

Opinion

605 F.Supp. 1270 (1985)

CREST TANKERS, INC., and Clayton Tankers, Inc., Plaintiffs,
v.
NATIONAL MARITIME UNION OF AMERICA, Defendant.

No. 83-1481C(1).

United States District Court, E.D. Missouri, E.D.

April 4, 1985.

*1271 Thomas M. Hanna, St. Louis, Mo., for plaintiffs.

Robert Bogard, St. Louis, Mo., Ned R. Phillips, New York City, Sandor Korein, East St. Louis, Ill., for defendant.

MEMORANDUM

NANGLE, Chief Judge.

This case was tried to this Court sitting without a jury. This Court having considered the pleadings, the testimony of the witnesses, the documents in evidence, and the stipulations of the parties, and being fully advised in the premises, hereby makes the following findings of fact and conclusions of law, as required by Rule 52 of the Federal Rules of Civil Procedure. Fed.R.Civ.P. 52.

A. FINDINGS OF FACT

1. Crest Tankers, Inc. (hereinafter "Crest") is a Missouri corporation and a wholly-owned subsidiary of Apex Holding Co. (hereinafter "Apex Holding"). Clayton Tankers, Inc. (hereinafter "Clayton") is a Missouri corporation and a wholly-owned subsidiary of Apex Holding. Clayton is engaged in the ownership of United States flag vessels and Clayton's vessels are operated by Crest under contract. Crest is engaged in the ownership and operation of United States flag vessels on the high seas.

2. Trinidad Corp. (hereinafter "Trinidad") is a Delaware corporation and a wholly-owned subsidiary of Apex Shipping, Inc. (hereinafter "Apex Shipping"), which, in turn, is a wholly-owned subsidiary of Apex Holding. At all relevant times herein, Trinidad had offices in Philadelphia, Pennsylvania; Long Beach, California; and Clayton, Missouri. Trinidad engaged in the ownership and operation of United States flag vessels, including vessels of the Military Sealift Command of the United States Navy.

3. Apex Holding is a wholly-owned subsidiary of Apex Oil Co. (hereinafter "Apex Oil"). Apex Oil is a partnership that owns approximately 60 companies. The business of Apex Oil can be generally described as that of "oil traders". Oil traders make a profit by purchasing oil at a low price in one part of the world and transporting it to another part of the world to sell at a higher price.

4. On a flow chart, the corporate relationship of Apex Oil, Apex Holding, Apex Shipping, Trinidad, Clayton and Crest, is, as follows:

APEX OIL APEX HOLDING APEX SHIPPING CREST CLAYTON TRINIDAD

5. Trinidad was purchased by Apex Shipping in January, 1981. By the summer of 1982, Trinidad owned, inter alia, five (5) tanker vessels outright, all of which were under continuous voyage charters to Apex Oil. At that time, Trinidad was the only Apex Oil subsidiary operating American-Flag tankers. Each of these had a capacity of 26,000 long tons. In addition, Trinidad was operating, under a management contract, two ships, the "Allegiance" and the "Banner", which were owned by Grand Bassa Tankers, Inc. Under said management agreement, Trinidad had the right of *1272 first refusal at any given price to purchase the Allegiance and the Banner.

6. The National Maritime Union (hereinafter "NMU") is a "labor organization" within the meaning of § 152(5) of the Labor Management Relations Act, as amended (hereinafter "LMRA"), 29 U.S.C. § 152(5). NMU is the collective bargaining representative of the unlicensed sea-going personnel of Trinidad. NMU and Trinidad are parties to a multi-employer collective bargaining agreement covering said unlicensed sea-going personnel. Said contract between Trinidad and NMU was effective June 16, 1981, through June 16, 1984. NMU and its duly authorized agents maintain an office in Granite City, Illinois, and do business in St. Louis, Missouri.

7. The collective bargaining agreement between Trinidad and NMU provides, in pertinent part, as follows:

The company in entering into this Agreement hereby recognizes the Union as the sole collective bargaining agent for the Unlicensed Personnel employed aboard all vessels of the Company where the Company also recognizes the Union as such agent. The Company also recognizes the Union as the sole collective bargaining agent for the Unlicensed Personnel employed by the Company on board all U.S. Flag oceangoing vessels including, but not limited to passenger, freighter, bi-cargo, tanker and bulk carriers, which are owned or operated (both at present or at any time during the life of this Agreement), by the Company or any of its subsidiaries or affiliates (whether so at present or at any time during the life of this Agreement), except those companies and vessels already covered by another AFL-CIO Maritime Union, as an owner, as an agent, as a General Agent of the United States, or under bareboat charter....
The term "subsidiaries" or "affiliates" shall be deemed to include any business entity whether corporate, partnership, trust or individual which is effectively controlled by or effectively controls the Company either directly or indirectly.
The Union may in its discretion at any time require that any such subsidiary or affiliate execute this Agreement and a refusal to do so will give the Union the right upon a 10-day written notice to the Company to cancel this Agreement. The failure of the Union to request a subsidiary or affiliate to sign this Agreement shall not in any way affect the obligation of the Company herein that this Agreement does cover and include all unlicensed personnel on all the vessels described above whether owned or operated by the Company or any of its subsidiaries or affiliates.

Article I, Section 1 (emphasis added).

8. Crest was organized on or about September 15, 1982, and began to make preparations for the ownership and operation of United States flag vessels on the high seas. Crest's first employee was William McHenry, who was hired on September 1, 1982, as Crest's fleet manager. Immediately prior to his employment by Crest, Mr. McHenry was a port captain and operations manager for Trinidad. When Mr. McHenry moved from Trinidad to Crest, he continued to be covered under the same savings and health plans. Mr. McHenry's titles with Crest were personnel manager and assistant to the vice president of operations. The remainder of Crest's management staff was assembled from either outside sources or the ranks of Apex Oil.

9. Crest began operations by purchasing two vessels, the "New York Getty" and the "Delaware Getty", from the Getty Oil Company. Said vessels were subsequently renamed the "Beaujolais" and "Pommard", respectively. Said vessels were purchased for Crest by an entity known as Apex Marine, Inc. Because of the sale of said vessels, the Getty Oil Company intended to lay off a number of licensed and unlicensed personnel aboard said vessels. Getty Oil Company furnished Crest with a list of employees that were going to be laid off and Crest then made inquiries among both licensed and unlicensed personnel to ascertain whether they desired employment with Crest. Crest actually manned said vessels *1273 almost entirely with unlicensed personnel laid off by Getty Oil Company.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
605 F. Supp. 1270, 119 L.R.R.M. (BNA) 2100, 1985 U.S. Dist. LEXIS 21031, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crest-tankers-inc-v-nat-maritime-union-of-america-moed-1985.