Geske & Sons, Inc. v. National Labor Relations Board, and International Union of Operating Engineers, Local 150, Afl-Cio, Intervenor

103 F.3d 1366, 154 L.R.R.M. (BNA) 2129, 1997 U.S. App. LEXIS 394
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 9, 1997
Docket95-2213, 95-2358
StatusPublished
Cited by17 cases

This text of 103 F.3d 1366 (Geske & Sons, Inc. v. National Labor Relations Board, and International Union of Operating Engineers, Local 150, Afl-Cio, Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Geske & Sons, Inc. v. National Labor Relations Board, and International Union of Operating Engineers, Local 150, Afl-Cio, Intervenor, 103 F.3d 1366, 154 L.R.R.M. (BNA) 2129, 1997 U.S. App. LEXIS 394 (7th Cir. 1997).

Opinion

RIPPLE, Circuit Judge.

This dispute between Geske and Sons, Inc. (“Geske” or “the Company”) and Local 150 of the International Union of Operating Engineers, AFL-CIO (“Local 150” or “the Union”) has spawned litigation before the Illinois state courts, the National Labor Relations Board and the federal district court. In this case and a companion case, Zipp v. Geske & Sons, Inc., 103 F.3d 1379 (7th Cir.1997), issued at the same time as this case, we resolve this dispute.

In the present case, the National Labor Relations Board (“NLRB” or “Board”) determined that Geske had violated the National Labor Relations Act (“NLRA” or “Act”) by filing and prosecuting a baseless lawsuit in state court against Local 150. The NLRB therefore ordered Geske to dismiss that suit and to reimburse the defendants for then-expenses incurred in defending against the suit. Geske now challenges the Board’s order and asks us to deny enforcement; the NLRB asks that we grant enforcement of their order. Because the Board correctly exercised its authority under the NLRA by ordering Geske to dismiss its state lawsuit, we grant enforcement of its order.

I

BACKGROUND

A. Local 150 Pickets Geske for Recognition

Geske manufactures asphalt; it .is the only non-unionized asphalt manufacturer in the Chicago area. Local 150 is a union that represents operators in the construction industry.

From August 19 to September 18, 1991, Local 150 — assisted on occasion by members or representatives of other unions — picketed Geske. It sought recognition as the union representing Geske’s operator employees. Local 150 did not file a petition for an election for recognition as the employees’ representative union. Section 8(b)(7)(C) of the Act, 29 U.S.C. § 158(b)(7)(C), implicitly permits reeognitional pickets for “a reasonable period of time not to exceed thirty days” even in situations in which a union has not filed a petition for an election. NLRB v. Local Union No. 103, Int’l Ass’n of Bridge, Structural & Ornamental Iron Workers, 434 U.S. 335, 338, 98 S.Ct. 651, 654, 54 L.Ed.2d 586 (1978); Kobell v. United Food & Commercial Workers Int’l Union, Local 23, 788 F.2d 189, 194 (3d Cir.1986).

During the picketing, Local 150 displayed signs reading:

I.U.O.E. LOCAL 150

ON STRIKE

AGAINST

GESKE

FOR RECOGNITION AS MAJORITY BARGAINING

REPRESENTATIVE

OF . COMPANY’S OPERATING ENGINEER EMPLOYEES

During the course of the picketing, the Union told customers approaching Geske’s plant that the Company was “on strike,” that Geske was “closed” or “broke[n] down,” that the operators at Geske’s plant wanted to be unionized, and that the customers could buy *1369 asphalt at a lower cost from one of Geske’s unionized competitors. At times, Local 150 parked near Geske’s plant an automobile with license plates that read “SCABBY.” The vehicle also had a large inflatable rat on the roof, and bore signs on the sides that read “Local 150 Rat Patrol.”

B. Geske’s Lawsuit in State Court

On September 5, 1991, Geske filed a lawsuit in Illinois state court against Local 150 and various other defendants. 1 The suit raised three causes of action: trade libel, tortious interference with contractual relations, and tortious interference with prospective advantage. Geske’s trade libel claim alleged that the “on strike” language on the Union’s picket signs, in conjunction with similar oral statements made by the picketers to Geske’s suppliers and customers, was false and misleading. The other two causes of action related to the Union’s attempts to dissuade Geske’s suppliers and customers from doing business with Geske.

In its suit, Geske requested injunctive relief and damages. After an ex parte hearing on September 5, the day the suit was filed, the Illinois court issued a temporary restraining order that prohibited the Union from blocking the entrance to Geske’s plant, from threatening Geske’s employees, customers or suppliers, and from pubhshing false and misleading statements about Geske.

On September 6, the Union removed Geske’s suit to federal court. On September 11, however, the district court remanded the ease to state court. It held that Geske’s three claims were all brought under state common law and that none was preempted by the NLRA. Accordingly, the court con-eluded, there was no basis for federal jurisdiction.

On September 12, the Illinois trial court began a nine-day hearing on Geske’s request for a preliminary injunction. After Geske presented its case-in-chief, the court granted the defendants’ motion for a directed finding. 2 The court held that, under the applicable definition of trade libel in Illinois, there was no “reasonable extension” or “reasonable interpretation” of Local 150’s “on strike” statements that could be construed as trade libel; the court thus concluded that Geske had a very small likelihood of success on the merits with respect to its libel claim.

The Illinois court further held that Geske had failed to produce any evidence that it suffered tortious interference in the conduct of its business. The court ruled that, although there was evidence that the picketers did interfere to a limited degree with Geske’s business and contractual relationships, the evidence indicated that the interference was merely incidental to lawful acts by the Union, and hence, was not tortious. The court therefore concluded that Geske had little likelihood of success on the merits of either of these two remaining claims. Accordingly, the court denied Geske’s motion for a preliminary injunction.

Geske then filed an interlocutory, appeal of the denial of its motion for a prehmináry injunction. The Illinois trial court stayed all further proceedings pending the resolution of Geske’s appeal. The Illinois appellate court denied Geske’s appeal on September 29, 1992. 3 Geske then filed a petition for leave to appeal to the Supreme Court of Illinois and a petition for a writ of certiorari to the Supreme Court of the United States. Both petitions were denied. 4

*1370 Despite having lost its motion for a preliminary injunction, Geske then sought to continue to prosecute its lawsuit on the merits in state court. The NLRB petitioned the federal district court for an injunction, pursuant to 28 U.S.C. § 160(j), to prohibit Geske from prosecuting its case in state court until the proceedings before the Board were resolved. Geske, in turn, countersued the NLRB. That petition and countersuit are the subject of Zipp v. Geske.

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Bluebook (online)
103 F.3d 1366, 154 L.R.R.M. (BNA) 2129, 1997 U.S. App. LEXIS 394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geske-sons-inc-v-national-labor-relations-board-and-international-ca7-1997.