Davis v. Henry

266 F. 261, 1920 U.S. App. LEXIS 1676
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 2, 1920
DocketNo. 3390
StatusPublished
Cited by7 cases

This text of 266 F. 261 (Davis v. Henry) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Henry, 266 F. 261, 1920 U.S. App. LEXIS 1676 (6th Cir. 1920).

Opinion

PER CURIAM.,

This is an appeal from an order awarding temporary injunction in a suit brought by appellee, as sole plaintiff, against certain former employés of the Delker Bros. Buggy Company, of Henderson, Ky. (as well as one other individual defendant and a local labor union), restraining certain activities on the part of defendants in the course of a strike directed against the buggy company and the operation of its factory. The bill and affidavits make out a case of violence toward and intimidation of the buggy company’s employés, which, under the decisions of the Supreme Court and of this court, amply justifies injunctive relief, provided plaintiff has such an interest as entitles him to maintain this suit without joining the buggy company. Hitchman Coal & Coke Co. v. Mitchell, 245 U. S. 229, 38 Sup. Ct. 65, 62 L. Ed. 260, L. R. A. 1918C, 497, Ann. Cas. 1918B, 461; Sona v. Aluminum Castings Co. (C. C. A. 6) 214 Fed. 936, 131 C. C. A. 232; Tosh v. West Ky. Coal Co. (C. C. A. 6) 252 Fed. 44, 47, 164 C. C. A. 156.

The asserted jurisdiction is based solely on diverse citizenship of the parties; the plaintiff being a citizen of Tennessee, and all the defendants being citizens of Kentucky. The buggy company is also a citizen of Kentucky, and, if made a party and aligned as a plaintiff, diversity of citizenship would disappear. It is rightly conceded that, if the buggy company is an indispensable party, it must be aligned with the plaintiff.1

[ 1 ] The basis of plaintiff’s asserted right to maintain this suit, without making the buggy company a party, is that plaintiff had a subsisting contract with the buggy company whereby he was, for a period of one year from July 1, 1919, “to devote his energies as in the past to the sale of the lines of goods manufactured by the Delker Bros. Buggy Company in the same territory he has been having in the past, for which he is to receive a salary of $7,500, payable in equal monthly payments, based on sales of $190,000 computed on gpods shipped,” together with an added compensation of 3 per cent, and 2 per cent., respectively, on two certain grades of goods shipped during the year. It appears that when the bill was filed (January 31, 1920) plaintiff had already sold $354,000 of the company’s goods, $159,000 of which had already been shipped by the company, that amount only having been yet fully manufactured," the remainder being either in course of manufacture or to be manufactured; that the buggy company’s ability to

[263]*263fill all these orders was seriously threatened by defendants’ conduct; and that its inability so to do would entail a loss to plaintiff of commissions to a maximum of more than $4,000, and also to a possible scaling of his salary, if less than $190,000 of goods were shipped, in addition to the possibility of plaintiff’s making still further sales during the remaining portion of the year.

The buggy company had a direct and predominating interest in putting an end to the strike, and plaintiff could not properly file this bill, unless by virtue of special and peculiar interests and relations; nor even then could the presence of the buggy company be dispensed with, unless, in its absence, the rights of the parties before the court could consistently with equity and good conscience be fully and completely determined, and without injury to the rights of the buggy company or the defendants. In several cases one having a special interest in a corporation or its property has, under the circumstances there existing, been held entitled to maintain suit in the federal courts to restrain the prosecution of a strike against the corporation threatening the destruction of or injury to such special interest, and without aligning the corporation as a plaintiff, where to do so would defeat jurisdiction. Among the more prominent of these cases are Chesapeake & Ohio Coal Agency v. Carroll (C. C.) 119 Fed. 942; Id. (C. C. A. 4) 124 Fed. 305, 61 C. C. A. 49; Ex parte Haggerty (C. C.) 124 Fed. 441; Fortney v. Carter (C. C. A. 4) 203 Fed. 454, 121 C. C. A. 514; Jennings v. United States (C. C. A. 8) 264 Fed. 399.

In the Chesapeake '& Ohio Case, supra, an injunction suit was brought by a selling corporation, which had contracts with mining companies, by which the selling corporation was to take all the mining companies’ product at the mines and to pay for the same, whether sold by plaintiff or not, to furnish transportation, and to sell the coal at prices fixed by the companies, receiving a stipulated sum per ton for its services. In reliance upon these contracts plaintiff had contracted for the sale of large quantities of coal and coke, which could only be supplied by the mining companies. It also appeared that these companies would not necessarily be injured (indeed, they might be benefited 2) by the strike (which relieved them from liability upon their contracts with plaintiff), while plaintiff’s business would be ruined thereby. They were also held to have no interest in plaintiff’s rights under its contracts of sale. These mining companies were made defendants, were, alleged to be irresponsible, and injunction was asked to restrain them from allowing the individual defendants or others to do acts tending to interfere with the coal companies’ employes. The decision involved only the sufficiency of the bill as against demurrer. The opinion of the Circuit Court of Appeals not only commented upon this prayer, but distinctly recognized the possibility of actual fault on the part of the mining companies. The bill thus asserted, not only a right with which the mining companies were not concerned, but an adversary relation on their part.

[264]*264In Fortney v. Carter, supra, the bill was filed by the mortgage bondholders of a corporation, who were held to have “an independent personal right to protect their interests in the premises.” It was held that neither the mining company nor the mortgage trustee were necessary parties. The published opinion of the District Court, on which the decision below was affirmed, does not show the reasons for that conclusion (evidently stated in a former unpublished opinion), except by the statement that it is “immaterial whether the [mining] company as such has aided them in the prosecution of'this suit or not, and no question of collusion can arise. It is undisputed that they have instituted this suit to preserve such right.”

In Ex parte Haggerty, supra, a bill to restrain unlawful action by strikers had been filed by the trustee of mortgage bonds secured upon all the property of the mining company against whom the strike was directed. The mortgagor was not a party. Jurisdiction was involved as affecting liability for violation of an injunction issued in that suit. Judge Goff held that upon the issues in that case, and as no relief was prayed against the mortgagor, full and complete justice could be done between the parties before the court without the presence of the mortgagor mining company, and that jurisdiction thus existed.

Jennings v. United States, supra, involved a review of a judgment of conviction of contempt in violating an injunction in a suit brought .by a mortgage trustee and a mortgage bondholder. The mortgagor traction company was made a party defendant, and the bill prayed that the traction company be restrained from ceasing to operate its cars, and that it be compelled to so operate.

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Bluebook (online)
266 F. 261, 1920 U.S. App. LEXIS 1676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-henry-ca6-1920.