International Union, United Mine Workers of America v. District 50, United Mine Workers of America

435 F.2d 421
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 17, 1970
DocketNos. 23127-23129
StatusPublished
Cited by1 cases

This text of 435 F.2d 421 (International Union, United Mine Workers of America v. District 50, United Mine Workers of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Union, United Mine Workers of America v. District 50, United Mine Workers of America, 435 F.2d 421 (D.C. Cir. 1970).

Opinion

LEVENTHAL, Circuit Judge.

This litigation began with what seens on the surface a traditional action on a [423]*423promissory note, differing from other such actions, perhaps, in the size of the note — $8,000,000—and in the fact that both obligor and payee on the note when executed, in 1962, were labor unions identified with the United Mine Workers of America. The plaintiff payee is the International Union, United Mine Workers of America, which will be referred to variously as United Mine Workers, and UMW. The defendant obligor, District 50 of the United Mine Workers, offered the defense that the note is unenforceable because of the circumstances which led to its execution.

At the same time the note was executed, the parties signed an affiliation agreement which contained a licensing provision whereby District 50 was allowed to continue using the words “United Mine Workers of America” as part of its name. In 1968 the UMW exercised its rights under the termination clause permitting either party to terminate the agreement on thirty days’ notice. District 50 continued to use the words “United Mine Workers of America” in its title. When plaintiff sued on the note it also filed an action for an injunction against the use by District 50 of the Mine Workers name. District 50 counterclaimed with a demand for an accounting for all of the funds which the United Mine Workers had received from District 50 since its establishment.

The District Court rejected the defenses of fraud and coercion raised by District 50, granted judgment to plaintiff United Mine Workers on the note and on its request for an injunction, and dismissed District 50’s counterclaim. This case is moot as to the injunction since after taking the appeal District 50 started using another name.1 In our view the District Court failed to take proper account of the circumstances surrounding the execution of the note and

the name-licensing affiliation agreement. We reverse the judgment on the note and order the action dismissed. We affirm the District Court’s judgment dismissing District 50’s counterclaim.

I

The roots of the present controversy extend back to the 1930’s. In 1935 the United Mine Workers Union was a member of the AFL, and the UMW charter restricted membership to persons “employed in and around coal mines, coal washeries and coke ovens on the American Continent.” In late 1935, John L. Lewis, President of the UMW, resigned from his position as Vice President of the AFL, the UMW withdrew from the AFL, and shortly thereafter the UMW constitution was amended to extend' membership not only to those previously eligible, but also persons “in such other industries as may be designated and approved by the International Executive Board.” The general purpose of this move was stated as protecting the UMW from “raids” by AFL unions and other unions which might be established in coal-related areas and which might seek to expand membership into the coal-mining area itself.

Accordingly, in September 1936, the UMW chartered District 50, and established its membership as including, for example, gas and chemical workers. However, District 50 was formed as a “provisional” district, and was subject to the jurisdiction of the UMW. Its charter provided that it was to “acquire no rights in the funds, or to participate in the elections or conventions of the United Mine Workers of America.” Instead, District 50 was to have its “own autonomy with respect to * * * elections, conventions and wage negotiations.” District 50 and its members were required to make payments to the parent UMW.

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435 F.2d 421, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-union-united-mine-workers-of-america-v-district-50-united-cadc-1970.