Galveston Maritime Ass'n v. South Atlantic & Gulf Coast District

234 F. Supp. 250, 57 L.R.R.M. (BNA) 2648, 1964 U.S. Dist. LEXIS 7974
CourtDistrict Court, S.D. Texas
DecidedSeptember 30, 1964
DocketCiv. A. No. 64-G-35
StatusPublished
Cited by10 cases

This text of 234 F. Supp. 250 (Galveston Maritime Ass'n v. South Atlantic & Gulf Coast District) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Galveston Maritime Ass'n v. South Atlantic & Gulf Coast District, 234 F. Supp. 250, 57 L.R.R.M. (BNA) 2648, 1964 U.S. Dist. LEXIS 7974 (S.D. Tex. 1964).

Opinion

NOEL, District Judge.

Plaintiff Galveston Maritime Association, Inc., is a corporation and trade association whose members are owners, operators, agents and stevedores of deep sea vessels loading and unloading at the ports ■of the State of Texas and Lake Charles, Louisiana. Plaintiff Texas Transport :and Terminal Co., Inc., acts as agent and/or stevedore for deep sea vessels at various ports, including the port of Galveston, Texas.

The three defendants, South Atlantic and Gulf Coast District, International Longshoremen’s Association, hereinafter called District, and Locals 307 and 851 of the International Longshoremen’s Association, hereinafter called Locals, are labor organizations representing employees engaged in longshoring deep sea vessels.

On October 1, 1956, plaintiffs and other employers entered into a contract called Deep Sea Longshore and Cotton Agreement with defendants and other local unions which provided the terms and conditions of employment for employee longshoremen at the Texas ports. This contract, as amended in 1959 and 1963, was in full force and effect at all times material to the questions to be decided by this Court.

On April 2, 1964, Locals refused to furnish labor to perform certain burlaping of bilges and other work in the holds of SS POINT VICENTE, then lying at the port of Galveston, until they were paid for certain cleaning work on the vessel which had been performed by an independent contractor specializing in such work, but who had employed no labor furnished by Locals. Locals contended that the plaintiffs had bound themselves in the Agreement to employ longshore labor to perform this type of work. The plaintiffs contended that this was specialized work beyond the purview of the Agreement.

To avoid delay in loading the vessel, plaintiffs acceded to the demand of Locals, but paid under protest. Plaintiffs then requested that two issues be submitted to arbitration: (1) whether Locals should be allowed to retain the payment made under protest, and (2) whether defendants are liable for damage sustained by plaintiffs resulting from the delay in loading the vessel before payment was made.

This request to arbitrate was refused by Locals and ignored by District. Plaintiffs then filed the suit now before this Court asking (1) that the defendants be ordered to arbitrate, and (2) that damages be awarded. All defendants answered and filed motions to dismiss. These first motions to dismiss were denied by calendar entry of the Court on June 17, 1964. Pretrial conference was held on June 25, 1964, on which day the three defendants jointly filed a second motion to dismiss. By pretrial order dated July 6, 1964, this second motion to dismiss was denied in part and carried with the case in part. Also by this order and pursuant to Rule 42(b) of the Federal Rules of Civil Procedure, the damage issue was severed, leaving before the Court only the cause of action, if any, relating to arbitration. At the invitation of the Court, these parties reappeared on July 10, 1964 to show cause why they should not proceed to arbitration. On this day defendants filed their third motion to dismiss. After hearing the testimony and argument offered, the Court is prepared to render its final opinion.

This opinion will be limited to questions concerning the jurisdictional power of the Court to issue an order compelling the parties to arbitrate. It is not intended to reflect any view of the Court on the merits of the controversy, for the right to consider the merits has been reserved by the parties to the arbitral processes provided in their contract. Furthermore, two assertions in the defendants’ most recent motion to dismiss [252]*252are also properly questions for the arbitrator. The first assertion is that any dispute once existing between the parties is now moot due to an alleged accord and satisfaction. The Court views this assertion as an answer to the merits rather than a fact to be considered in determining jurisdiction. The second assertion is that plaintiffs are barred from arbitration by failing to comply with the procedural conditions precedent in their contract. That this matter is also reserved to the arbitrator is clear from recent cases. In the words of the Supreme Court in John Wiley & Sons, Inc. v. Livingston, 376 U.S. 543, 84 S.Ct. 909, 11 L.Ed.2d 898 (1964) :

“Once it is determined, as we have, that the parties are obligated to submit the subject matter of a dispute to arbitration, ‘procedural’ questions which grow out of the dispute and bear on its final disposition should be left to the arbitrator.”

This has been the view of the Fifth Circuit as expressed in Deaton Truck Line, Inc. v. Local Union 612, 314 F.2d 418 (1962) and the recent opinion of Judge Brown in United Steelworkers of America v. American International Aluminum Corp., 5 Cir., 334 F.2d 147 (1964). Although perhaps unessential on this point, Steelworkers contains language to the effect that the courts have often held that where one party to a collective bargaining agreement makes it clear that it does not intend to arbitrate, then the other party need not go through the useless formalities to set the wheels in motion.

The jurisdictional question now before this Court falls naturally into three parts. The first concerns itself with whether this Court is without jurisdiction due to the asserted fact that under “Taft Hartley” exclusive jurisdiction has been vested in the National Labor Relations Board. Assuming jurisdiction, the second step is to decide if this Court has power to order specific performance of the arbitration clause involved. The third and most difficult part of this question is whether the absence of an alleged necessary party is a bar to the issuance-of a complete and binding order.

As to the first part of this-question, the Court holds that it has jurisdiction over this suit under § 301(a) of the Labor Management Relations Act of 1947. The exclusive jurisdiction of the National Labor Relations Board over-unfair labor practices is unquestioned; however, a breach of contract is not an-unfair labor practice.1 The Fifth Circuit in Lodge No. 12 etc. v. Cameron Iron. Works, Inc., 257 F.2d 467 (1958), subscribes to this view and has amplified it-to include a situation where conduct is. both a breach of contract and also an unfair labor practice. In the language of the Court:

“However, in this case, we must go-one step further because substantially the same conduct here involved would constitute a violation of the-contract and an unfair labor practice. The distinguishing point is. that, while an act may be both an arbitrable contract violation and an unfair labor practice, a ‘breach of contract is not an unfair labor practice’ ; the former is enforced by the-courts, the latter by the Board; the-former gives to private parties a remedy, the latter uses a private right to effectuate the declared policies of the Act; the former gives a certainty of decision, the latter leaves decision discretionary.”

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234 F. Supp. 250, 57 L.R.R.M. (BNA) 2648, 1964 U.S. Dist. LEXIS 7974, Counsel Stack Legal Research, https://law.counselstack.com/opinion/galveston-maritime-assn-v-south-atlantic-gulf-coast-district-txsd-1964.