Fletcher v. Grinnell Bros.

78 F. Supp. 339, 1948 U.S. Dist. LEXIS 2475
CourtDistrict Court, E.D. Michigan
DecidedJune 2, 1948
DocketNo. 3587
StatusPublished
Cited by2 cases

This text of 78 F. Supp. 339 (Fletcher v. Grinnell Bros.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fletcher v. Grinnell Bros., 78 F. Supp. 339, 1948 U.S. Dist. LEXIS 2475 (E.D. Mich. 1948).

Opinion

LEDERLE, District Judge.

Findings of Fact

1. This action was brought by sixteen plaintiffs, who are or were warehouse and garage employees of defendant, Grinnell Brothers, a Michigan corporation engaged [340]*340in the furniture and musical equipment business, wherein plaintiffs claim unpaid overtime compensation under the Fair Labor Standards Act, 29 U.S.C.A. § 201 et seq. At the close of plaintiffs’ evidence, a motion to dismiss was made by defendant. Judgment for defendant on this motion was entered July 11, 1944, pursuant to findings of fact and conclusions of law reported in 62 F.Supp. 258. The sole determination in such decision was that plaintiffs were employed in defendant’s retail establishment, the greater part of whose selling was in intrastate commerce, and were, therefore, excluded from coverage of the Act under the retail establishment exemption contained in 29 U.S.C.A. § 213(a) (2).

2. Defendant had also relied upon 29 U.S.C.A. § 213(b) (1), as exempting plaintiffs from benefits of the Act under the so-called Interstate Commerce Commission exemption, and pending a motion to amend its answer so as to plead that plaintiff Hoolihan also came within the executive and administrative exemption contained in 29 U.S.C.A. § 213(a) (1). No determination was made of these latter two defenses because they were immaterial in view of the decision for defendant on the retail establishment exemption theory.

3. Following the subsequent decision on March 26, 1945, of Phillips v. Walling, 324 U.S. 490, 65 S.Ct. 807, 89 L.Ed. 1095, 157 A.L.R. 876, the Sixth Circuit Court of Appeals, in Fletcher v. Grinnell Bros., 150 F.2d 337, 339, reversed the judgment herein on July 9, 1945, and held that: •

“The Grinnell Company falls within the category of a chain store organization. Here, as in the Phillips case, appellant employees ‘are performing wholesale duties in the very midst of the stream of interstate commerce. They constantly deal with both incoming and outgoing interstate shipments.’ (Citing cases.) * * * all appellant employees are entitled to the benefits of the provisions of the Fair Labor Standards Act, unless certain of them are exempted from the operation of the statute by virtue of Section 13(b) (1) of the Act, 29 U.S.C.A. § 213(b) (1), which in so far as here applicable, provides that such statute shall not cover ‘any employee with respect to whom the Interstate Commerce Commission has power to establish qualifications and maximum hours of service,’ pursuant to the provisions of the Motor Carrier Act, 49 U.S.C.A. § 301 et seq.”

Thereafter, in an unreported opinion1 dated September 10, 1945, the Circuit Court of Appeals denied defendant’s motion for rehearing, holding that its determination that the parties were engaged in interstate commerce was in accordance with admissions made in defendant’s answers to the complaint and to interrogatories. These answers have never been amended.

4. Further hearings were held under the mandate, and final hearing withheld pending progress through the Supreme Court of Levinson v. Spector Motor Service, 330 U.S. 649, 67 S.Ct. 931, 91 L.Ed. 1158; Pyramid Motor Freight Corp. v. Ispass, 330 U.S. 695, 67 S.Ct. 954, 91 L.Ed. 1184; and Morris v. McComb, 332 U.S. 422, 68 S.Ct. 131, each of which involved the Interstate Commerce Commission exemption. Since decision of the last cited case, final hearing has been held herein.

5. As this record now stands, the Circuit Court of Appeals has determined that each of the plaintiffs herein was engaged in interstate commerce in connection with his employment at defendant’s warehouse within the general terms of the Fair Labor Standards Act, which determination has never been reversed or overruled, and, since remand of this case, the Supreme Court, in the cases cited in finding 4, has defined the test to be applied in determining whether an employee is within the Interstate Commerce Commission exemption as, — the character of the employee’s activities in relation to safety of interstate motor transportation rather than the proportion of either his time or his activities devoted to duties relating to safety of such operation.

6. Except for plaintiffs William C. Wiley, Frank Miller, Arthur Hoolihan and Morgan Dohm, each of the other [341]*341twelve plaintiffs worked regularly either as a driver of, or a driver’s helper on, defendant’s trucks, and findings 7 to 9, inclusive, relate to such latter twelve plaintiffs.

7. All of these drivers and drivers’ helpers were employed at and worked out of defendant’s warehouse and garage in Detroit, Michigan. The trucks they drove, or on which they worked as drivers’ helpers, were used by defendant for three major purposes: to load merchandise coming from outside Michigan at the Detroit depots, docks and warehouses of interstate carriers and transport such merchandise to the defendant’s warehouse; to transport merchandise from defendant’s warehouse to its various retail stores, of which there were 23 in Michigan, 1 in Toledo, Ohio, and 1 in Windsor, Ontario, Canada; and to deliver merchandise sold in the Detroit retail stores to defendant’s customers, making such deliveries partly from the stores but for the most part from the warehouse stock. Prior to October, 1940, these trucks also carted manufactured goods from defendant’s Holly manufacturing plant to its Detroit warehouse. In so far as these plaintiffs spent their time driving or loading defendant’s trucks, their activities directly affected the safety of operation of motor vehicles, and these duties were a natural, integral and inseparable part of defendant’s operations as a private carrier of its own merchandise. When not employed on defendant’s trucks, these plaintiffs worked at defendant’s warehouse loading and unloading trucks and .arranging stock.

8. Defendant did not keep records showing in detail the percentage of daily time each of these plaintiffs spent in making deliveries to retail stores and in “hitting the docks and depots” for incoming interstate merchandise. Plowever, defend.ant kept daily delivery sheets, which show on what days each plaintiff was engaged in making deliveries, and whether these deliveries were to retail stores, customers or distributors. Defendant submitted in evidence a compilation of the data contained in these daily delivery sheets for a representative six month period from October 1, 1940, to March 31, 1941. Numerous deliveries to retail stores from the warehouse and numerous deliveries to the warehouse from docks and depots were made by numerous of these plaintiffs each week. These drivers and drivers’ helpers themselves testified, and, while there are minor variations in their respective claims, in general their testimony falls into a pattern. That is, on the average, each of them spent about two-thirds of his time in making deliveries to retail stores and to customers, and in receiving and transporting incoming interstate shipments from Detroit docks and depots to defendant’s warehouse.

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Cite This Page — Counsel Stack

Bluebook (online)
78 F. Supp. 339, 1948 U.S. Dist. LEXIS 2475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fletcher-v-grinnell-bros-mied-1948.