INTERNATIONAL U., UA, A. & AIW v. American MP Co.

408 S.W.2d 682
CourtCourt of Appeals of Tennessee
DecidedOctober 4, 1964
StatusPublished

This text of 408 S.W.2d 682 (INTERNATIONAL U., UA, A. & AIW v. American MP Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
INTERNATIONAL U., UA, A. & AIW v. American MP Co., 408 S.W.2d 682 (Tenn. Ct. App. 1964).

Opinion

408 S.W.2d 682 (1964)

INTERNATIONAL UNION, UNITED AUTOMOBILE, AIRCRAFT AND AGRICULTURAL IMPLEMENT WORKERS OF AMERICA, AFL-CIO, Local Union No. 1198 United Automobile, Aircraft and Agricultural Implement Workers of America, AFL-CIO, Appellants,
v.
AMERICAN METAL PRODUCTS COMPANY, Inc., Appellee.

Court of Appeals of Tennessee, Western Section, at Jackson.

October 4, 1964.
Certiorari Denied April 5, 1965.

*685 John W. Hart and J. Howell Glover, Union City, and Lowell Goerlich, Washington, D.C., for appellants, International Union, UAW, and Local Union No. 1198, UAW.

Tom Elam, Union City, and Douglas D. Roberts, Detroit, Mich., for appellee, American Metal Products Company.

Certiorari Denied by Supreme Court, April 5, 1965.

CARNEY, Judge.

The plaintiff below, American Metal Products Company, often called Ampco, recovered joint and several judgments in the Circuit Court of Obion County, Tennessee, against the defendant labor unions for $118,775.42 representing $68,775.42 compensatory damages and $50,000.00 punitive damages. The defendants are Local 1198, United Automobile Workers of America of Union City, Tennessee, a corporation, often referred to as the Local Union and International Union, United Automobile, Aircraft and Agricultural Implement Workers of America, AFL-CIO, an unincorporated labor organization often referred to as the International Union.

The case was tried without a jury before Circuit Court Judge E.A. Morris who requested Chancellor Wayne Cox of Paris, Tennessee and Judge R.D. Jones of Dyersburg, Tennessee, to hear the case with him.

The plaintiff, American Metal Products Company, has been engaged in the manufacture of automobile parts in Union City, Tennessee, since 1951. Effective October 1, 1959, Ampco entered into a collective bargaining agreement with the two Unions. This contract expired October 1, 1961 and was extended from day to day until November 14, 1961. At 12:01 A.M. November 14, 1961, the defendant unions went on strike placing picket lines across the entrances and exits to the plaintiff's plant in Union City, Tennessee. The defendant Local 1198 had 388 members, all employees of the plaintiff's plant in Union City, Tennessee. Nearly all of the members went on strike and participated at various times in the picketing activities.

Plaintiff's declaration averred that the defendants followed a pattern of harassment, intimidation, coercion, violence and threats of violence against the plaintiff's customers, its employees and persons having business with the plaintiff as a result of which plaintiff lost forty-eight working days out of a total of an annual 246 working days and that it sustained actual damages of $350,000.00 in fixed cost expenses and loss of profits resulting from cancellation of sales. The declaration also by a second count sought to recover punitive damages in the amount of $350,000.00.

It was the contention of the defendants:

(1) That the Circuit Court had no jurisdiction over the defendants:

(a) Because of defective process;
(b) Because of Federal preemption by the National Labor Relations Act of 1935 as amended by the Taft-Hartley Act of 1947.

(2) That there was no misconduct on the part of the defendant Unions or their members.

(3) That if there was misconduct and illegal and violent action on the part of the *686 members of the defendant Unions, then the defendant Unions themselves were not legally responsible for such actions and did not participate in, authorize, ratify, or condone such illegal activity, if any.

(4) That any damages sustained by the plaintiff were the natural and direct result of a legal strike and the normal and legal activities incident thereto including picketing and such damages were therefore not compensable.

The Trial Court, in its finding of fact, stated that it found from an "overwhelming preponderance of the evidence" that the defendant Unions actively engaged in a concerted pattern of conduct and action which grew out of a malicious intent to wrongfully interfere with the plaintiff's business operations, its employees, suppliers, etc. and that the illegal conduct consisted mainly of "continual harassment, abusive language, mass picketing, intimidations, coercion, threats, picketing accompanied by violence, public disorders, frightening conduct, all of which created a state of cringing fear in the area of influence of Obion County in violation of the common law of Tennessee."

The Trial Court disallowed any recovery for loss of profits. It found that the plaintiff's plant was out of operation from January 3, 1962, through January 20, 1962, a period of fourteen working days by reason of the illegal, wrongful concerted activities of the defendants; that the daily fixed cost of the Union City plant was $4,912.53 per production day and therefore recovery of compensatory damages in the amount of $68,775.42 was allowed. The Trial Court found the defendant Unions guilty of willful and wanton conduct and willful and intentional interference with the plaintiff's business operations and allowed the recovery of punitive damages in the amount of $50,000.00 making a total judgment against both defendants of $118,775.42.

The defendant Unions have appealed and filed 31 assignments of error. The record is voluminous with fifteen volumes and approximately 1800 pages. The trial below lasted two weeks and every issue was hardfought every step of the way by the able counsel on each side. Yet at all times the counsel for each side were courteous and respectful of adversary counsel and of the court. They displayed the same courteous but zealous presentation of their clients' interests upon the oral argument before this Court.

Since the case was tried without a jury it comes to this court on appeal for trial de novo accompanied by a presumption of correctness of the judgment below, T.C.A. Section 27-303.

The plaintiff, American Metal Products Company, is chartered in the State of Michigan but qualified to do business in the State of Tennessee. In the operation of what it calls the "automotive division" the plaintiff operates plants at Detroit, Michigan, Union City, Tennessee, and Arcadia, Louisiana. The plant in Union City makes wire springs, front and rear seat frame assemblies for the automotive industry primarily Ford and Chrysler. The home office of Ampco is in Detroit, Michigan. Each month the plant in Union City receives notice of the number and type parts to be manufactured and the date they are expected to be ready for shipment to the ultimate purchasers such as Ford and Chrysler.

Mr. A.J. Luther of Union City, Tennessee, was the manager of the Union City plant and in full charge of its operation. Mr. William Barter of Detroit, Michigan, was the personnel director of the entire automotive division of American Metal Products Company including the plant at Union City.

As the name implies, the International Union, United Automobile, Aircraft and Agricultural Implement Workers of America, AFL-CIO, is a labor organization. Its membership numbers more than a million workers of the automotive industry. Headquarters *687 are in Detroit, Michigan. Regional and local offices are maintained throughout the United States and Canada. Walter Reuther is the president. As of December 31, 1961, the International Union had a net worth of fifty million dollars and a strike fund in excess of thirty-six million dollars.

The defendant Local Union No.

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408 S.W.2d 682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-u-ua-a-aiw-v-american-mp-co-tennctapp-1964.