Iowa Beef Processors, Inc. v. Amalgamated Meat Cutters & Butcher Workmen

597 F.2d 1138, 101 L.R.R.M. (BNA) 2235
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 1, 1979
DocketNos. 78-1248, 78-1268
StatusPublished
Cited by1 cases

This text of 597 F.2d 1138 (Iowa Beef Processors, Inc. v. Amalgamated Meat Cutters & Butcher Workmen) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iowa Beef Processors, Inc. v. Amalgamated Meat Cutters & Butcher Workmen, 597 F.2d 1138, 101 L.R.R.M. (BNA) 2235 (8th Cir. 1979).

Opinion

BRIGHT, Circuit Judge.

Amalgamated Meat Cutters and Butcher Workmen of North America, AFL-CIO (the International), and three of its local unions (the locals)1 appeal from a judgment of the district court,2 following a jury trial, awarding $1,756,592 to Iowa Beef Processors, Inc. (IBP or the Company) on IBP’s claims that the Unions breached the no-strike provisions of the collective bargaining agreements at IBP’s Fort Dodge, Mason City, and LeMars, Iowa, beef processing plants.

On appeal, the Unions raise the following issues:

(1) As to the alleged breach of contract at the Fort Dodge plant, the trial court erred in denying motions for judgment notwithstanding the verdicts or for a new trial, because
(a) the no-strike provision of the Fort Dodge collective bargaining agreement did not prohibit sympathy strikes, and
(b) the Unions’ representatives declared the strike unauthorized and ordered their members back to work pursuant to contractual terms;
(2) Regarding the Mason City plant, the trial court erred in denying motions for judgment notwithstanding the verdicts or for a new trial because IBP voluntarily closed the plant, thereby precluding its recovery of damages under a breach of contract action;
(3) The trial court erred in failing to grant the Unions’ motions for judgment notwithstanding the verdicts or for a new trial because IBP failed to prove that it had sustained damages at the Mason City, LeMars, and Fort Dodge plants attributable to the Unions’ conduct;
(4) The trial court committed prejudicial error in permitting the jury to consider evidence of alleged acts of sabotage which preceded the strikes against the Mason City and LeMars plants; and
(5) The trial court’s error in submitting a form of verdict which permitted the jury to assess compensatory damages jointly against the International and the locals warrants a new trial.

IBP cross-appeals from the judgment insofar as it excludes punitive damages and attorneys’ fees.

Upon a careful examination of the record, we affirm the judgment of the district court on the appeal and cross-appeal.

1. Factual Background.

The present controversy arose in the wake of a lawful economic strike by the International and its local union at IBP’s beef processing plant in Dakota City, Nebraska, on August 24, 1969. The Dakota City strike, which was particularly bitter, terminated on April 13, 1970, after the International and IBP negotiated a contract. From September-October 1969, labor difficulties arose at IBP plants in Mason City, LeMars, and Fort Dodge, Iowa. At each of the three Iowa facilities, collective bargaining agreements containing no-strike clauses governed management-employee relations.

At a union meeting in September 1969, Jim Robinson, an official of the International, allegedly directed Mason City plant employees to “[d]o anything you can to slow down the line or stop the line.” Through September 1969, the Mason City plant experienced incidents of damage to machinery and slowdowns in the production processes. By early October 1969, the obstructive ac[1142]*1142tions had intensified to such a degree that IBP sought a court order authorizing it to close the plant.3 IBP obtained such permission at about 1:30 p. m. on October 6, 1969.

On the morning of October 6, a brisket saw used on the “kill floor” of the Mason City plant broke. The ensuing dispute between management and Bill Neve, the Mason City Local’s president, over whether production could continue while the saw remained inoperable, led to an IBP order halting the further killing of cattle that day. IBP informed its kill floor employees that they would be advised when the kill floor would recommence operations. At about 12:30 p. m., Neve told the plant superintendent that “this is a lockout, and if the kill doesn’t work no one works.” The superintendent replied that only the kill floor was closed, but Neve repeated that “no one is going back to work, this is a lockout.” By 1:00 p. m. all of the employees had left the plant. They did not return until May 25, 1970.4

Shortly after the conflict at the Mason City plant came to a head, the LeMars plant began to experience similar difficulties. During October 7-17, 1969, production dropped sharply due to various alleged acts of sabotage, including considerable damage to machinery. On October 17, after IBP suspended two employees for fighting, Bob McKelvey, president of the LeMars local, demanded immediate reinstatement of one of the workers. IBP’s refusal to meet that demand precipitated a walkout by the employees that afternoon. Work at the Le-Mars plant did not resume until June 11, 1970.5

All differences which may arise under the terms of this Agreement between Company and employees, or between Company and Union, including violations of an employee’s working conditions or an employee’s complaint of excessive job loads, shall be processed and settled through the grievance procedure provided and there shall be no strike, walkout, stoppage, slow down or suspension of work, boycott of any kind on the part of •the Union or its members or any employees represented by it, nor any lock • out on the part of the Company during the term of this Agreement. The parties have provided a sufficiently complete method and procedure for amicable settlement of any complaint or dispute which may arise and therefore there shall be no strike, walkout, of employees nor any lock-out by Company during the life of this Agreement.

The third and final flareup occurred at the Fort Dodge plant. At union meetings in mid-October 1969, officers of the Fort Dodge local advised their members that, if pickets from the Dakota City plant showed up at the Fort Dodge plant, they did not have to honor them, but as “good union members” they should do so. Tony Fetter, a representative of the International, also stated that a good union member would not cross a picket line and that those who honored the picket line would receive strike benefits. Moreover, a witness at trial testified that Mr. Fetter said that “it wouldn’t make any difference if the strike was legal or illegal, Iowa Beef would eventually beg us to come back to work, if we stuck together.” When the pickets from the Dakota City and Mason City plants appeared at the Fort Dodge plant on October 20, virtually all of the employees honored the picket line. Although David Hart, a vice president of the International, declared the strike was unauthorized and ordered union members back to work, his announcement went unheeded.6 The union members who respected the picket line at Fort Dodge received strike benefits from the Interna[1143]*1143tional from early November 1969 until production resumed in April 1970.7

On October 24, 1969, IBP filed the present action under section 301 of the Labor Management Relations Act, 29 U.S.C. § 185 (1976).

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Bluebook (online)
597 F.2d 1138, 101 L.R.R.M. (BNA) 2235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iowa-beef-processors-inc-v-amalgamated-meat-cutters-butcher-workmen-ca8-1979.