Hotel Phillips, Inc. v. Journeymen Barbers, Hairdressers, Cosmetologists & Proprietors International Union

195 F. Supp. 664, 49 L.R.R.M. (BNA) 2152, 1961 U.S. Dist. LEXIS 5156
CourtDistrict Court, W.D. Missouri
DecidedJuly 21, 1961
Docket13212
StatusPublished
Cited by15 cases

This text of 195 F. Supp. 664 (Hotel Phillips, Inc. v. Journeymen Barbers, Hairdressers, Cosmetologists & Proprietors International Union) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hotel Phillips, Inc. v. Journeymen Barbers, Hairdressers, Cosmetologists & Proprietors International Union, 195 F. Supp. 664, 49 L.R.R.M. (BNA) 2152, 1961 U.S. Dist. LEXIS 5156 (W.D. Mo. 1961).

Opinion

RIDGE, Circuit Judge.

In this private Sherman Act case (15 U.S.C.A. §§ 1-15) three (3) local Kansas City, Missouri hotels and the individual lessee-operator of the barber shop at the Kansas City, Missouri Municipal Airport seek treble damages and injunctive relief against the Journeymen Barbers, Hairdressers, Cosmetologists and Proprietors International Union of America and Kansas City, Missouri Local No. 192 of said International Union, for alleged conspiratorial conduct and activities charged to be in violation of Section 1 of the Act. (15 U.S.C.A. § 1.) Though not named as parties herein, plaintiffs claim that Kansas City Local 185 of J.B.H.H. & P. International Union; Associated Master Barbers, a national voluntary association of employer barbers; and Kansas City Chapter of Associated Master Barbers, an unincorporated association, some members of which are themselves barbers, are co-conspirators to the conduct and activities indited by plaintiffs.

The gist of the instant claim is that, by agreement and conspiracy between the defendant Unions and the Master Barbers Associations, all barber shops in the Greater Kansas City Metropolitan Area which employ members of Local 192 and Local 185, supra, charge a uniform price for haircuts, fixed as to the amount and date; that all barber shops in the area are restricted to a 5-day work week, either Tuesday through Saturday or Monday through Friday, so that no shop employing members of such Local Unions is allowed to operate or remain open for more than five (5) days of any one week. Such conduct and policy is alleged to be in violation of Section 1 of the Sherman Act, supra, because defendants and their co-conspirators for the past four (4) years have thereby:

(1) Fixed the minimum price for which haircuts and other services of the barbering industry may be sold in the Metropolitan Kansas City Area;
(2) Refused to allow members of their organization to sell services of, or to be employed in, the barbering industry in any barber shop which remains open for more than five (5) days a week;
(3) Arbitrarily decided which barber shops may remain open for business in the Metropolitan Kansas City Area on Monday through Friday and which shops may re *666 main open for business Tuesday through Saturday, and have conspired and agreed with each other to prevent plaintiffs from opening their barber shops for business during six (6) days of each week when the public has need for such service;
(4) Conspired and agreed with each other to require plaintiffs to shut their barber shops on Mondays;
(5) Insisted that all collective bargaining agreements entered into between Local 192 and Local 185, and members of Associated and Kansas City Associated Master Barbers and plaintiffs * * * contain provisions prohibiting the sale of service of the barbering industry at prices below those “fixed” and prohibiting dates of operation other than as prescribed above; and
(6) They have intimidated the individual owner of Airline Barber Shop with the threat of using political power of Local 192 to cause the City of Kansas City, Missouri, not to renew his lease in order to secure that plaintiff’s compliance with the above demands; and have used officials, representatives and members of Local 192 and Local 185 “as enforcing agents of the conspiracy” charged.

The injury and damage resulting from such alleged conspiratorial activities and conduct is alleged to be that the (shear-shave) consuming public has been denied the benefits of competitively established prices, and in some shops the consuming public has been prevented from purchasing barbering service at any time during Saturdays; and in others, including plaintiffs, have been denied the right to competitively establishing their own prices for the sale of services in their own - barber shops and they have been denied the right to operate their barber shops during Mondays. As a consequence, plaintiffs claim lost profits on sales of barbering industry to interstate travelers and others * * * i0st profits from prospective guests who would have patronized their hotels except for their inability to provide said guests with services of the barbering industry during hours and on the days prohibited by defendants’ conspiracy.

The interstate character of the commerce affected by the conspiracy charged is alleged in the complaint thus:

“10. The City of Kansas City, Missouri is located upon the border of the States of Kansas and Missouri and in the heart of the Kansas City Metropolitan Area. It is surrounded by a metropolitan population which extends into Jackson, Clay and Platte Counties in Missouri and Wyandotte and Johnson Counties in Kansas (hereinafter referred to as ‘Kansas City Metropolitan Area’). A substantial number of this population works in one state and lives in the other, or works in one state and shops in the other, or lives in one state and shops in the other. Barber services are purchased largely in the place where the customer works, lives or shops, but customer habits vary as among which of these places barber services will be purchased and a substantial number of barber customers in the Kansas City Metropolitan Area are in interstate transit from their homes to their employment or -to their shopping centers while purchasing said services.
“11. The greatest volume of the guests of the hotels are people from outside the State of Missouri and a substantial number of said guests are interstate travelers who are traveling to points beyond Kansas City, Missouri, and use the barber shops of their hotels while in transit to points beyond said City.
“12. The hotels compete with each other and with other hotels-in ' other cities throughout the United *667 States for the location of national and regional conventions and meetings of employee, business, religious, educational, political and other groups at their respective hotels and in Kansas City, Missouri. The ability of the hotels to effectively compete in this area is largely dependent upon the services and facilities which they have to offer to their guests.
“13. Plaintiff Airline Barber Shop sells barbering services to in transit airline travelers during layovers and other delays in their journeys and to others. The majority of sales of plaintiff Airline Barber Shop is to interstate travelers.
“14. The offenses * * * complained of were committed and/or threatened to be committed by defendants, their co-conspirators and others as a part of an interstate conspiracy to restrain competition in the sale of barbering services throughout the Kansas City Metropolitan Area and elsewhere within the States of Missouri and Kansas.”

Defendant International Union has filed motion to quash service of summons made on it, on the grounds that Robert H. Lake, Jr., Secretary-Treasurer for the allegedly autonomous Local 192, is not an “agent authorized by appointment or by law to receive service of process” as provided in Rule 4(d) (3), F.R.Civ.P.

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195 F. Supp. 664, 49 L.R.R.M. (BNA) 2152, 1961 U.S. Dist. LEXIS 5156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hotel-phillips-inc-v-journeymen-barbers-hairdressers-cosmetologists-mowd-1961.