Emde v. San Joaquin County Central Labor Council

143 P.2d 20, 23 Cal. 2d 146, 150 A.L.R. 916, 1943 Cal. LEXIS 240, 13 L.R.R.M. (BNA) 663
CourtCalifornia Supreme Court
DecidedNovember 2, 1943
DocketSac. 5602
StatusPublished
Cited by106 cases

This text of 143 P.2d 20 (Emde v. San Joaquin County Central Labor Council) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Emde v. San Joaquin County Central Labor Council, 143 P.2d 20, 23 Cal. 2d 146, 150 A.L.R. 916, 1943 Cal. LEXIS 240, 13 L.R.R.M. (BNA) 663 (Cal. 1943).

Opinions

EDMONDS, J.

During a labor dispute between George W. Emde and Lois E. Marshall, the owners of a dairy business, and Teamsters’ Local No. 439, the Stockton Labor Journal published an article stating that, because of a violation of their contract with the teamsters’ union, the employers had been placed upon the “We Don’t Patronize” list. Certain labor organizations and their officers, against whom compensatory and punitive damages were awarded, assert that they had nothing to do with the publication of the article. As additional grounds for reversal of the judgment, they and the owners of the newspaper, who were also found liable, rely upon truth and privilege as defenses, and the questions for decision concern the scope and effect of the announcement sued upon.

•At the time of the publication complained of and of the commencement of this action, as stated in the respondents’ complaint, Emde and Marshall were co-partners, carrying on a dairy business under the name of Happyholme Farms. International Brotherhood of Teamsters, Chauffeurs, Stablemen and Helpers of America, a voluntary unincorporated association, was a labor union affiliated with the American Federation of Labor. Teamsters’ Local No. 439, also a voluntary unincorporated association, was a labor union chartered by the international organization. The San Joaquin County Central Labor Council was a voluntary unincorporated association consisting of local trade and labor unions affiliated with the American Federation of Labor, including Teamsters’ Local No. 439, and was maintained to influence public opinion in favor of organized labor.

C. C. Allen was secretary-treasurer of the local union. William J. Conboy, as international organizer of the brotherhood was in the sole and exclusive charge and control of all the affairs and activities of the local. Joseph Bredsteen and W. R. Tosh, doing business under the firm name of Bredsteen and Tosh, were publishers of the Stockton Labor Journal, which was a weekly newspaper, devoted to the interests of organized labor, and the duly authorized organ of the labor council for publishing its pronouncements and communicating its activities to the public and to all union members and sympathizers in San Joaquin County.

[149]*149According to the complaint, these labor organizations and individuals “printed and published in said Stockton Labor Journal” an article reading as follows:

“Happyholme Dairy Violates Contract With Teamsters
“Unionists Urged not to Patronize by Local Council
“Action Comes After Three Months’ Negotiations Pail to Bring Peaceful Settlement from Operators.
“Because it had violated its signed agreement with Teamsters Local 439, hiring non-union drivers and initiated a destructive labor policy, the Happyholme Dairy, located on the Sacramento Road at Lodi and serving the entire Stockton area, was placed on the official ‘We Don’t Patronize’ list of the San Joaquin County Central Labor Council Monday night.
“All friends of organized labor are urged not to patronize this dairy. All other milk distributors in Stockton are operating on a union-basis, so there is no excuse for dealing with a non-union firm.
“According to officials of the Teamsters Union, the Happyholme dairy had been working under an agreement with the organization for several months. On July 1, however, while the contract was still in force, the management openly violated its word by hiring non-union milk wagon drivers.
“In addition, drivers were made to furnish their own vehicles and were put on a straight commission plan. This move wiped out the minimum wage guarantees established in the agreement with the Union, although the status of the drivers as employes of the dairy remained unchanged. The destruction of wage mínimums is a threat to gains made by organized labor throughout the district.
“A peaceful settlement of the difficulty has been sought for three months by the Teamsters Union, but the dairy managers have refused to make any concessions. Their persistent refusal to work out a mutually satisfactory arrangement has forced the Union and the Central Labor Council to deny the dairy the patronage of organized labor.
“In Stockton, the Happyholme Dairy operates out of the Bobb Inn, 1147 North El Dorado, a non-union eating place.
[150]*150“All friends of labor now getting milk from the Ilappyholme dairy are urged to take their patronage elsewhere immediately and thus help maintain union-established and union-protected wage scales and working conditions. ’ ’

By this article, the complaint continues, the appellants meant that the respondents had violated their agreement with the local union. In failing to keep their promise to employ only members of it at the scale specified by the contract, they were dishonest and had failed to perform their legal obligations. The owners of the dairy are operating a nonunion business, and are opposed to organized labor, whereas all other persons conducting similar businesses are conforming to the union agreement. The appellants also meant, says the complaint, that Emde and Marshall had persistently refused to work out any mutually satisfactory arrangement with the local, and in order to protect union wage scales and working conditions in Stockton, it was necessary for all members of unions and their sympathizers to withdraw patronage from the respondents.

The article was false and defamatory in each of these particulars, the complaint charges, and was printed and published by the appellants, wickedly and maliciously and with full knowledge of its falsity on the part of each of them, with the intent and design to injure the owners of the dairy in their occupation and to destroy their business. Categorical denials of the truth of each statement in the article follow.

Concerning the damage claimed to have been suffered, the value of the dairy is placed at $25,000, and it is asserted that the profit, and in fact the very existence of the business, directly depends upon the good will of purchasers of milk and milk products in San Joaquin county. By reason of the publication, certain named customers ceased to patronize the dairy, at a loss of $1,900, computed on an annual basis; a number of persons unknown to the respondents who had formerly been purchasers of Happyholme products withdrew their patronage, occasioning a further loss of $1,348 on the same basis. Further damage in an annual amount of $3,613 is charged because three wholesale customers discontinued business relations. The respondents valued the asserted general injury to their business and reputation at $25,000 and demanded $10,000 additional as exemplary damages because [151]*151of the express malice on the part of the appellants, and each of them.

The unions, Allen and Conboy joined in an answer which admitted the allegations concerning the existence and general purposes of the labor organizations. The pleading also conceded that Allen and Conboy held the offices and performed the duties specified by the complaint. But all of the respondents’ other charges were denied although it was stated that the article pleaded in the complaint'“appeared or was published or printed in the Stockton Labor Journal.”

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Bluebook (online)
143 P.2d 20, 23 Cal. 2d 146, 150 A.L.R. 916, 1943 Cal. LEXIS 240, 13 L.R.R.M. (BNA) 663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/emde-v-san-joaquin-county-central-labor-council-cal-1943.