Gregory Electric Co. v. Custodis Construction Co.

312 F. Supp. 300, 74 L.R.R.M. (BNA) 2947, 1970 U.S. Dist. LEXIS 12046
CourtDistrict Court, D. South Carolina
DecidedApril 17, 1970
DocketCiv. A. No. 69-307
StatusPublished
Cited by1 cases

This text of 312 F. Supp. 300 (Gregory Electric Co. v. Custodis Construction Co.) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gregory Electric Co. v. Custodis Construction Co., 312 F. Supp. 300, 74 L.R.R.M. (BNA) 2947, 1970 U.S. Dist. LEXIS 12046 (D.S.C. 1970).

Opinion

ORDER

HEMPHILL, District Judge.

This action was commenced by plaintiff, a South Carolina corporation with its principal place of business in said state, against defendant, a Delaware corporation with its principal place of business in Illinois, in the Court of Common Pleas of Berkeley County, South Carolina. The prayer of the complaint was for Two Hundred Thousand and No/100 ($200,000.00) Dollars, actual

and punitive damages. This court having original jurisdiction of the action under the provisions of Title 28, United States Code, Section 1332, defendant removed the case to it pursuant to the authority of Title 28, United States Code, Section 1441(a).

The complaint alleges that on January 22, 1969, defendant contracted with it to install aviation obstruction lights on two chimneys defendant was building at the Jeffries Steam Plant (Santee Cooper) in Berkeley County, South Carolina for an agreed sum of $3,826.00 per chimney, or a total contract price of $7,652.00. The core of the allegations claim plaintiff sent its employees to begin work as contracted and that defendant refused to allow plaintiff’s employees on the job site. In this regard plaintiff alleges in paragraphs 7, 8 and 9 of its complaint as follows:

7. That plaintiff is informed and believes and therefore alleges that at points of time between January 27, 1969, and January 30, 1969, certain agents, servants, and employees of defendant met with various representatives of labor unions and organizations whose members were also engaged in working on the said Jeffries Steam Plant, the precise labor unions being unknown but collectively operating under the style name of the Charleston Building Trades Council, and as a result of such meetings the defendant [302]*302agreed to refuse to permit any employee of plaintiff to enter upon such work because plaintiff’s employees were not members of a labor union or organization.
8. That because plaintiff’s employees were not members of a labor union, and pursuant to Section 40-46 et seq., South Carolina Code of Laws, 1962, commonly called the “Right to Work Law”, specifically Section 40-46.1, plaintiff could not require its employees to become such members, the defendant, negligently, recklessly, wilfully, wantonly and maliciously refused to permit plaintiff and plaintiff’s employees to continue its work upon the said Jeffries Steam Plant pursuant to the terms of plaintiff’s contract with defendant, thereby denying to plaintiff’s employees the right to work because of non-membership in a labor union, in violation of Section 40-46 et seq., Code of Laws of South Carolina, 1962, and through such unlawful denial to plaintiff’s employees, depriving it of the benefits of its said contract.
9. That plaintiff is entitled to damages both actual and punitive for the wrongful refusal of defendant to permit plaintiff’s non-union employees and plaintiff to perform work agreed upon at the said Jeffries Steam Plant and attorneys’ fees for its al. torneys in bringing this action.

Defendant made a timely motion to strike the above quoted paragraphs on the grounds that “the Right to Work Law is not applicable and punitive damages and attorneys’ fees are not recoverable in South Carolina in the circumstances alleged in the Complaint and such paragraphs and words are immaterial, impertinent and scandalous.”

At the hearing on the motion, plaintiff’s counsel conceded that plaintiff had no action against defendant under the South Carolina Right to Work Law. Counsel, nevertheless, contends that the Right to Work Law makes the type of conduct of which defendant is accused tortious and that, therefore, a tort action may be maintained for defendant’s alleged breach of its contract with plaintiff.

In order for plaintiff to prevail upon this motion, two questions must be answered affirmatively. First, does there exist in South Carolina a cause of action sounding in tort arising from acts which constitute a violation of Right to Work Law Title 40, Section 46 et seq., South Carolina Code, 1962, Annotated? Stated alternatively, it must be determined whether the conduct proscribed by the relevant sections constitutes a common law tort in this state. Second, if such a right of action exists, does it extend to, or can it be tortious to, one occupying a position such as this plaintiff?

It seems clear that the conduct alleged to have transpired here is violative of Section 40-46 et seq., Code of Laws of South Carolina, 1962, and is tortious under South Carolina law.

The preamble of the “Right to Work Law” announces emphatically the public policy of South Carolina that union membership should have no relevance upon a person’s “right to work”: “It is hereby declared to be the public policy of this State that the right of persons to work shall not be denied or abridged on account of membership or non-membership in any labor union or labor organization.” Section 46 of Title 40, Code of Laws of South Carolina, 1962. Subsequent sections of the Right to Work Law make it illegal to deny a person employment on the grounds of union non-membership. Section 40-46.8 provides remedy for one injured as a result of a violation of the Act. It states, in part:

* * * [t]he court, in any such proceedings may grant and issue such restraining, and other, orders as may be appropriate * * * and may determine and award, as justice may require, any actual damages, costs and attorneys’ fees which have been sustained or incurred by any party to the action, and, in the discretion of the [303]*303court or jury, punitive damages in addition to the actual damages.

In Branham v. Miller Electric Co., 237 S.C. 540, 118 S.E.2d 167 (1961), the South Carolina Supreme Court considered the “Right to Work Law.” Plaintiff’s (a non-union laborer) employment was terminated because he was not in good standing with the union; the union refused to approve him. Plaintiff instituted suit against the employer. The defendant demurred to the complaint. A ground of demurrer was that the complaint “failed to allege violation of any duty or obligation owed to plaintiff by the defendant company.” The trial court sustained the demurrer and the South Carolina Supreme Court reversed. In reaching a decision, the court discussed the public policy underlying the Right to Work Law and the evils which it was intended to remedy:

Here, the first section of the statute expressly declares it to be the public policy of this state that ‘the right of persons to work shall not be denied or abridged on account of membership or non-membership’ in a labor union. But viewing that section in conjunction with the others before mentioned, particularly Section 2, it seems to us quite clear that the evils to which the legislative intent and the remedial purpose of the statute were directed were: (1) union control of employment on the one hand; and (2) employer boycott cf. or insistence upon, union labor on the other.

In Branham defendant insisted that it owed no duty to plaintiff. In its opinion the appellate court recognized indirectly a legal obligation upon defendant to afford employment without consideration of union affiliation.

One year later the South Carolina Supreme Court had before it Kimbrell v. Jolog Sportswear, 239 S.C.

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Related

Layne v. International Brotherhood of Electrical Workers
247 S.E.2d 346 (Supreme Court of South Carolina, 1978)

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Bluebook (online)
312 F. Supp. 300, 74 L.R.R.M. (BNA) 2947, 1970 U.S. Dist. LEXIS 12046, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gregory-electric-co-v-custodis-construction-co-scd-1970.