Henderson Trumbull Supply Corporation v. The National Labor Relations Board, Region 2

501 F.2d 1224, 86 L.R.R.M. (BNA) 3121, 1974 U.S. App. LEXIS 7496
CourtCourt of Appeals for the Second Circuit
DecidedJuly 23, 1974
Docket699, 878, Dockets 73-2441, 73-2643
StatusPublished
Cited by31 cases

This text of 501 F.2d 1224 (Henderson Trumbull Supply Corporation v. The National Labor Relations Board, Region 2) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henderson Trumbull Supply Corporation v. The National Labor Relations Board, Region 2, 501 F.2d 1224, 86 L.R.R.M. (BNA) 3121, 1974 U.S. App. LEXIS 7496 (2d Cir. 1974).

Opinions

MANSFIELD, Circuit Judge:

Henderson Trumbull Supply Corp. (the “Company” herein) seeks review, and the National Labor Relations Board (the “Board” herein) seeks enforcement, of a Board order issued against the Company on August 6, 1973, directing it to bargain collectively in good faith with Local 191, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (the “Union” herein) as the certified bargaining representative for the Company’s employees. Certification was granted on October 31, 1972, based on the Union’s narrow victory (by one vote) in an election held on June 14, 1972. Because the Board granted certification and subsequently issued its order without affording the Company an evidentiary hearing on certain objections it raised with respect to the pre-election conduct of the Union, we deny enforcement of the Board’s order and remand for an eviden-tiary hearing on those objections.

The Company is a small retail seller of building materials and home supplies in Trumbull, Connecticut. Upon the Union’s filing of a petition with the Board for certification as collective bargaining representative for the Company’s employees, an election was held at the Company on June 14, 1972, which the Union won by a vote of 7 to 6 in a unit of only 15 eligible voters, two of whom did not cast ballots. Shortly after the election the Company filed timely objections with the Board, alleging that following the Union’s distribution in early June of a letter to the employees stating that the Company “had been making a great deal of money through you and your fellow employees,” the Union’s Business Agent, two days before the election, had made material misrepresentations of fact to the employees, to which the Company had had no opportunity to respond before the election. Specifically the Company charged that at a meeting of its employees held at the Union’s offices on June 12, 1972, the Union’s Business Agent, Anthony Rossetti, stated that in the previous year the Company had “made a profit ... of $1,300,000.-00” and that the Company’s Vice-President, Fred Salvati, had “just built a new residence for himself costing $75,000 to $80,000.” Both statements, according to the Company, were “absolutely false, un[1226]*1226true and misleading.” During the year prior to the election the Company’s [t] otal gross sales let alone profit, were “[only] $970,000” 1 (emphasis supplied) and its profit was a much smaller amount.

Pursuant to § 102.69 of the Board’s Rules and Regulations, 29 C.F.R. § 102.-69, the Board’s Acting Regional Director conducted an independent investigation of the Company’s objections. In a report dated August 1, 1972, he found that the Union had held a meeting at its offices in Bridgeport, Connecticut, on the evening of June 12, 1972, which was attended by eight of the Company’s employees. During this meeting, after Rossetti had explained the Board’s election procedures and urged the employees to vote for the Union, the subject of discussion turned to the Company’s ability to pay the employees more money. Rossetti denied that he initiated' the discussion concerning Vice-President Salvati’s new home or placed any value on it, and the Regional Director found no evidence to contradict him. The Regional Director stated:

“Seven of the eight attending employees were interviewed by a Board Agent. Five of these employees say flatly that Rossetti did not bring the house into discussion but rather that an employee did. Two do not recall who brought the matter up. All seven agree that Rossetti placed no value on the house.”

However, four of the employees interviewed did recall that Rossetti had discussed what the Company had “made” during the previous year:

“One stated in an affidavit that Rossetti had said the Employer had made 1.3 million dollars. A second employee claimed Rossetti said the Employer had made one million dollars, without identifying the figure as gross, net or profit. This same employee, in a second statement to the Board agent made two weeks later, revised his original figure and stated that he ‘believed’ that Rossetti had claimed the Employer made 1.2 or 1.3 million dollars. He would not sign either statement. A third employee recalled that Rossetti had said ‘something about the Employer making a million dollars last year and being able to afford to pay us more.’ (The employee would not sign a statement.)
“The fourth of the employees who recalled a specific figure states that during the meeting ‘someone,’ I believe it was Rossetti, ‘said the company grossed at least one million dollars last year’ and says also that this statement was made in a context of the Company’s ability to pay increases. (This employee signed a statement.)”

The Regional Director found that although the evidence was “somewhat contradictory,” it “would support the assertion that some specific figure was stated.” Beyond this, however, he apparently did not seek to ascertain the impact of Rossetti’s statement by inquiring whether any of the interviewed employees had been influenced by it to vote in favor of the Union. Instead he concluded in effect that Business Agent Rossetti’s statements, as interpreted by him, were per se immaterial and hence that the Union's alleged misrepresentation of Company profits was meritless:

“[T]he evidence does not tend to establish that Rossetti was referring to ‘profits’ as distinguished from gross income. It is of course arguable that the use of the word ‘made’ implied a profit but there is enough ambiguity in the term, and so little an exaggeration in the figure, as to preclude a conclusion that a material misrepresentation was made. More importantly, it is clear from the nature of the statement allegedly made by Rossetti, that he was not talking from knowledge, but was expressing an opinion [1227]*1227or making a guess and this obviously was clear also to the employees he was addressing who were competent to appraise the statement in the light of their own knowledge — or lack of it— concerning the Employer’s profits from its operations.”

Accordingly, the Regional Director recommended that the Company’s objections be overruled and that the Board certify the Union as the exclusive collective bargaining representative of the Company’s employees.

The Company filed timely exceptions to the Regional Director’s findings, conclusions and recommendations. However, on October 31, 1972, the findings and conclusions were adopted by the full Board which certified the Union as the bargaining representative for the Company’s employees. In November 1972, upon the Company’s refusal to bargain collectively with the Union over wages, hours and working conditions, the Union filed an unfair labor practice charge with the Board and on December 14, 1972, the Board issued a complaint against the Company. In its answer the Company challenged the validity of the original certification. It also alleged that subsequent events, specifically the termination of 10 out of the 15 employees who had been eligible to vote in the election for theft of the Company’s money and materials, made a revocation of certification proper, since there was a strong probability, as a result of the post-election turnover, that only a small fraction of those in the unit, and possibly more, would currently be represented by a bargaining agent of their choice if effect were given to the certification.

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Bluebook (online)
501 F.2d 1224, 86 L.R.R.M. (BNA) 3121, 1974 U.S. App. LEXIS 7496, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-trumbull-supply-corporation-v-the-national-labor-relations-ca2-1974.