In Re Charles K. Sewell

690 F.2d 403
CourtCourt of Appeals for the Fourth Circuit
DecidedNovember 17, 1982
Docket82-1125
StatusPublished
Cited by14 cases

This text of 690 F.2d 403 (In Re Charles K. Sewell) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Charles K. Sewell, 690 F.2d 403 (4th Cir. 1982).

Opinion

BUTZNER, Circuit Judge:

Charles K. Sewell seeks a writ in the nature of mandamus or prohibition requiring the district court to dismiss with prejudice an action instituted against him by the Glass Bottle Blowers Association, its local chapter, and several of its members (the union). The National Labor Relations Board, intervenor, joins Sewell’s request for the writ.

We conclude that the district court’s interlocutory order denying Sewell’s motion to dismiss may be reviewed by a petition for mandamus and that federal labor law preempts the state law on which the union bases its action. Prosecution of the union’s action would infringe the exclusive jurisdiction of the Board to adjudicate violations of § 8(a)(5) of the National Labor Relations Act, 29 U.S.C. § 158(a)(5), and the jurisdiction of this court to review bargaining orders issued by the Board. Consequently, a writ in the nature of mandamus is appropriate, and the union’s action must be dismissed.

I

For many years, employees of Sewell Plastics, Inc., have been represented by the union. In 1977 a petition to decertify the union as collective bargaining representative was filed with the Board’s regional office. The union prevailed in the ensuing decertification election, and following resolution of objections filed by the company, the Board certified the union. The company, however, refused to bargain on the ground that its objections were improperly overruled and that certification was invalid. It stated that it would decline to bargain unless the Board’s decision was judicially approved.

A complaint was issued on the union’s charge that the company violated § 8(a)(5) of the Labor Act. 1 The Board found the complaint had merit and issued a bargaining order, 2 which this court subsequently enforced. 3

After the Board’s certification of the union, but before this court enforced the bargaining order, the union filed suit in a North Carolina state court against Charles K. Sewell, president of the company. Se-well removed the action to the district court on the basis of diversity and federal question jurisdiction.

The complaint contained two counts — one alleging wrongful interference with contractual relations, and the other charging Sewell with malice in preventing the union and the company from bargaining. Specifically, the complaint alleged that the Board had certified the union as the bargaining agent for employees at the Sewell Plastics plant in Charlotte, North Carolina, and that the union has both a statutory and a contractual duty to bargain collectively with the company. It also alleged that pursuant to § 8(a)(5) of the Act the company has a statutory duty to bargain with the union and that Sewell had prevented the company and the union from making a contract by committing the following acts:

a.) refusing to arrange on behalf of Se-well Plastics, Inc. a mutually convenient time and place for collective bargaining with [the union];
*405 b. ) petitioning the NLRB on behalf of Sewell Plastics, Inc. to determine whether [the union] possesses the majority status requisite for participation' in collective bargaining, despite the NLRB’s recent certification of [the union] as the majority representative; 4
c. ) continuing to challenge, on behalf of Sewell Plastics, Inc., the majority status of [the union], despite the NLRB’s reaffirmation of [the union’s] majority status;
d. ) refusing, in Sewell Plastics, Inc.’s name, to furnish [the union] with the names, addresses, and seniority status of employees at the Charlotte plant. 5

The complaint also alleged that Sewell acted against the best interests of the company because he subjected it to potential penalties for violating § 8(a)(5) of the Act.

The complaint charges that the union and the local chapter have suffered the following harm:

a. ) inability to perform their duty to Se-well Plastics, Inc. employees to bargain collectively with Sewell Plastics, Inc. on their behalf;
b. ) administrative and legal expenses connected with their as-yet-unsuccessful attempts to engage in collective bargaining with Sewell Plastics, Inc.;
c. ) loss of union dues normally deducted from the wages of Sewell Plastics, Inc. employees at the Charlotte plant.

It also alleges that the employees have suffered the following harm:

a.) loss of increased wages similar to those collectively bargained by [the union] on behalf of other similarly situated employees within the same geographical area;
b.) loss of other improved terms and conditions of employment similar to those collectively bargained by [the union] on behalf of other similarly situated employees within the same geographical area.

The complaint sought damages from Se-well for the union in the amount of lost union dues and administrative and legal expenses. It sought damages in favor of the employees for the amount of wages and benefits lost due to Sewell’s wrongful acts. It also sought punitive damages in the amount of $10,000.

Sewell moved to dismiss the complaint for lack of subject matter jurisdiction and failure to state a claim upon which relief can be granted. The district court denied the motion, concluding that the complaint stated a claim under North Carolina law for tortious interference with the formation of a contract. With respect to Sewell’s claim that federal labor law preempted state law, the court ruled:

The allegations of Plaintiffs’ Complaint, if proven, would likewise bring Charles Sewell’s conduct outside the area of exclusive jurisdiction of the National Labor Relations Board. Sewell’s individual conduct as alleged is of the “outrageous” variety deemed by the U.S. Supreme Court in Farmer v. Carpenters, 430 U.S. 290 [97 S.Ct. 1056, 51 L.Ed.2d 338] (1977) to be outside the scope of the Board’s exclusive jurisdiction. Although the Board might find Sewell Plasties, Inc. guilty of violating the National Labor Relations Act by failing to bargain in good faith, the Board does not have jurisdiction over Charles Sewell’s individual conduct or jurisdiction to award punitive damages as requested in Plaintiffs’ Complaint. 6

*406 II

The first issue is whether the interlocutory order of the district court denying Se-well’s motion to dismiss the union’s complaint may appropriately be reviewed by a petition seeking relief in the nature of mandamus or prohibition pursuant to the All Writs Act, 28 U.S.C.

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Bluebook (online)
690 F.2d 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-charles-k-sewell-ca4-1982.