International Union of Operating Engineers v. Jones Const. Co.

240 S.W.2d 49, 28 L.R.R.M. (BNA) 2422, 1951 Ky. LEXIS 939
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedJune 1, 1951
StatusPublished
Cited by18 cases

This text of 240 S.W.2d 49 (International Union of Operating Engineers v. Jones Const. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Union of Operating Engineers v. Jones Const. Co., 240 S.W.2d 49, 28 L.R.R.M. (BNA) 2422, 1951 Ky. LEXIS 939 (Ky. 1951).

Opinion

STANLEY, Commissioner.

The appellees are two foreign corporations united under the name of The Jones-Wright Company as joint contractors for the 'building of the Wolf Creek Dam on the Cumberland River in this state. The appellants are labor unions with whom a collective bargaining agreement was made for a class of craftsmen employed on the job. “Local No. 181, International Union of Operating Engineers" is a constituent unit of “International Union of Operating Engineers, (A. F. of L.)”, both unincorporated, voluntary associations. For brevity we will refer to them as Local and International, respectively. Other appellants are a number of individual members of the union who were made parties as representatives of the class for the determination of a question of common and general interest of both organizations and all their members. Sec. 25, Civil Code of Practice. The suit was brought by the contractors against the appellants to have the court construe the agreement with the labor unions with respect to the duration of its provisions covering wages. The controversy is whether the agreement is to remain in effect until the job of building the dam is completed or whether it expired by its terms on or about January 1, 1949. The court adjudged it to be until the work is done.

The first question to be considered is the ■overruling of a motion by International, made in a special and reserved appearance, to quash the return on the summons. The summons directed that it be served on “Joe A. Pirtle or Montie Bashion, its chief officer or agent in Jefferson County, Kentucky.” It was served on Pirtle in such capacity. Another process was served on Bashion as agent of both International and Local as well as one of fifteen individuals, alleged to be members of both unions. International’s motion was upon the ground that neither Pirtle nor Bashion was its agent or representative. Their affidavits stated they were not such agents. There was no counter-affidavit or evidence offered at the time. The motion was overruled. International reserved its exception and, denying waiver, filed ■ demurrers and an answer. It is conceded that Pirtle and Bashion were agents of Local Union and that it was properly sued and brought before the court.

Section 51(6), Civil Code of Practice, provides that in an action against an association which has “for the transaction of any business, an office or agency in any county of this state other than that in which the principal resides, service of process may be had on the agent or manager in charge of such office or agency, in *51 all actions growing out of or connected with the business of that office or agency.”

In Jackson v. International Union of Operating Engineers, 307 Ky. 485, 211 S.W.2d 138, these two defendants were sued for damages, as were a number of individuals as representative of all their members. The same Joe A. Pirtle was served with process as agent of both unions. The question of whether the unions could be sued as entities or brought before the court in a class action was raised, but the question of agency of Pirtle for service of process was not raised. Nor was the question raised whether the service of members of the class brought the union as an entity or all the membership before the court. We held that the unions as such could be brought before the court by service on their agents, and in effect also under the provisions of Sec. 25, 'Civil Code of Practice, by service on members who, because of their position, could be deemed to represent the class having general and common interests. The special demurrer by which jurisdiction was challenged did not raise the same question of authority as does the motion to quash the return of the summons. The present suit follows both lines of procedure approved in the Jackson case. It is against the unions as organizations or quasi-corporations and against their members as a class. Upon the un-contradicted affidavits supporting the motion to quash the return upon International the court should have sustained the motion, prima facie.

The question follows whether or not the court may consider subsequent developments of the record in a trial of the merits and whether they revealed that the interlocutory order overruling the motion, Bastian Brothers Co. v. Field, 280 Ky. 727, 134 S.W.2d 648, was proper or that any judgment could have been entered against International as a party over which the court had acquired jurisdiction. If it was not), so shown, then the judgment would be void. Missouri-Kansas Pipe Line Co. v. Hobgood, 244 Ky. 570, 51 S.W.2d 920. We think this is a 'proper inquiry for the question before us is the validity of the judgment. If the developments during the course of the trial show the court did have jurisdiction, to hold the judgment invalid because of the erroneous interlocutory order that it did would be to subordinate the substance of justice to the form of procedure.

We look to those developments. In the Hobgood case just cited, it is held that service of summons upon an agent of a subsidiary corporation controlled by another having its own officers and agents amenable to service of process is not service upon the parent or controlling corporation. But the distinction is there drawn between the relationship of such independent bodies and the relationship where the parent corporation utilizes the services of its subsidiary corporation or its agents to transact the business out of which the litigation arose. In such a case service of process will be sustained upon the ground that it was had upon persons through whom- the business was transacted. International Harvester Co. v. Commonwealth, 147 Ky. 655, 145 S.W. 393; Postal Telegraph Cable Co. v. Thornton, 153 Ky. 176, 154 S.W. 1100. It is to be remembered that we are not here dealing with corporations having separate existence through charters granted by the state, but dealing with voluntary unincorporated associations which, however, have the quality or nature of corporations.

We come to the point where it must be determined in which category the present case falls. While regarded as entities, neither body is distinct from its individual members as a corporation is of its stockholders. Is the Local and its members merely an agency of International so that it must be regarded as identical or as its alter ego through which it transacts business in Kentucky, as .held in International Harvester Co. v. Commonwealth, supra, and Postal Telegraph Cable Co. v. Thornton, supra? International and its local union have a common constitution. There is no independent membership in the parent body separate and apart from the membership in the local unions' except where a charter has lapsed or been revoked, any member under certain conditions may become classified as a “member of the Gen *52 eral Office Membership.” This is apparently to maintain a union status temporarily. The parent body possesses and dominates its constituent parts. The locals have very little automony. They are given certain rights 'of local organization and administration, but over all stand the reserved powers of the parent body to approve or disapprove its - action. Some of the many bonds of unity may be mentioned. The purposes and objects of the organization include.

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Bluebook (online)
240 S.W.2d 49, 28 L.R.R.M. (BNA) 2422, 1951 Ky. LEXIS 939, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-union-of-operating-engineers-v-jones-const-co-kyctapphigh-1951.