JH RUTTER REX MANUFACTURING CO., INC. v. United States

380 F. Supp. 412, 86 L.R.R.M. (BNA) 2540, 1974 U.S. Dist. LEXIS 8758
CourtDistrict Court, E.D. Louisiana
DecidedApril 30, 1974
DocketCiv. A. 71-1960
StatusPublished
Cited by1 cases

This text of 380 F. Supp. 412 (JH RUTTER REX MANUFACTURING CO., INC. v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JH RUTTER REX MANUFACTURING CO., INC. v. United States, 380 F. Supp. 412, 86 L.R.R.M. (BNA) 2540, 1974 U.S. Dist. LEXIS 8758 (E.D. La. 1974).

Opinion

ORDER

R. BLAKE WEST, District Judge.

This action, based upon the Federal Tort Claims Act, arises from a labor dispute which occurred in 1954 and which has' been the subject of almost continuous litigation since that time. 1 By means of the instant lawsuit, plaintiff seeks damages allegedly occasioned by the delay of defendant’s agency, the National Labor Relations Board (hereinafter the Board), in implementing the enforcement order of the Board dated February 13, 1956, which required job reinstatement to certain of the striking employees, as well as back pay to these employees. Plaintiff alleges that the Board “negligently failed and omitted to take any action” pursuant to the order until November, 1961. Plaintiff asserts that this delay impaired its ability to defend the individual back pay claims ultimately designated in the back pay specification (filed on November 16, 1961, and supplemented on November 30, 1970) and caused the claims to increase substantially in amount during the prolonged period of delay.

After failing in an attempt to have the back pay specification reduced because of the delay (N. L. R. B. v. J. H. Rutter—Rex Manufacturing Co., 396 U. S. 258, 90 S.Ct. 417, 24 L.Ed.2d 405 (1969)), the company paid the required back pay and subsequently filed this action for damages pursuant to the Federal Tort Claims Act, 28 U.S.C. § 1346, 28 U.S.C. § 2674. 2

For the following reasons, the Court is of the opinion that, despite the damages suffered by plaintiff as a result of the Board’s inexcusable delay, plaintiff has no basis for recovery against defendant.

It is the position of plaintiff that the Board’s delay violated its duty to proceed with the reasonable dispatch required of the Board by the Administrative Procedure Act, 5 U.S.C. § 555(b), 3 and that such violation renders defendant liable under the Tort Claims Act.

It is the position of defendant that the action taken by the Board (or its inaction) constituted a discretionary function of a governmental agency and *414 therefore was not a basis for an action under the Tort Claims Act. 4

The parties having entered into a lengthy stipulation of facts (See Appendix), the matter was submitted to the Court for what is hoped will be a final disposition of a case which, “ . beclouds the highly respectable idea that all litigation must, some day, come to an end.” J. H. Rutter—Rex Manufacturing Co. v. N. L. R. B., 399 F.2d 356, 357 (C. 5, 1968).

After careful consideration of the matter, it is the opinion of the Court that the delay in completing the back pay specification on the part of the Board was “inordinate” 5 and “deplorable”, 6 and that plaintiff company was in fact damaged both in its ability to defend the specification finally filed and by the increased amount of the required payments occasioned by the delay. However, the Court is also of the opinion that the situation at bar is illustrative of the principle of damnum absque injuria. Plaintiff has failed to provide, and the Court has been unable to find, any authority which supports plaintiff’s contention that unreasonable delay in violation of the dictates of the Administrative Procedure Act renders defendant liable in damages under the Tort Claims Act. On the contrary, it is the opinion of the Court that the action of the agency in allocating its enforcement case load was an act of discretion within the meaning of 28 U.S.C. § 2680(a). Eastport Steamship Corp. v. United States, 372 F.2d 1002, 178 Ct.Cl. 599 (1967); Coastwise Packet Co. v. United States, 398 F.2d 77 (C. 1, 1968), cert. den’d 393 U.S. 937, 89 S.Ct. 300, 21 L.Ed.2d 274 (1968).

While the length of the delay in this case was deplorable, it is the Court’s opinion that it was just this type of governmental liability which the Congress sought to avoid by means of the exception contained in 28 U.S.C. § 2680. 7

For the foregoing reasons, it is ordered that judgment issue in favor of defendant, United States of America, and against plaintiff, J. H. Rutter—Rex Manufacturing Company, dismissing the claim of plaintiff with prejudice, each party to bear its own costs.

APPENDIX

STIPULATION OF FACTS

I.

J. H. Rutter Rex Manufacturing Company, Inc., is a manufacturer of garments with a plant located in the City of New Orleans, at 3725 Dauphine Street. On April 21, 1954, the production and maintenance employees at this plant went on strike. Approximately six hundred (600) employees struck the company, shutting down the entire operation. The strike which later became the subject matter of proceedings before the National Labor Relations Board, was found by the Board to have been economic in origin but converted some time after its inception to an unfair labor practice strike as reflected in the deci *415 sion of the Board in Rutter Rex Mfg. Co., 115 NLRB 388, at p. 390 (1956).

II.

On April 20, 1954, the Amalgamated Clothing Workers of America, AFL-CIO (the union) filed a charge against the company with the Board alleging a refusal to bargain in violation of Section 8(a)(5) of the National Labor Relations Act [29 U.S.C. § 158(a)(5)]. This charge was amended on August 26, 1954. On August 31, 1954, after investigation, the Board issued a formal complaint and notice of hearing alleging that Rutter Rex had unlawfully refused to bargain with the Union after the commencement of the strike. Rutter Rex’s answer to the complaint was filed with the Board on September 16, 1954 alleging that its refusal to bargain with the Union after the commencement of the strike was justified because the Union struck in violation of an agreement not to strike. (See 115 NLRB 388).

III.

On October 4, 1954 a formal hearing convened on the complaint of the Board against Rutter Rex. The hearing closed on March 8, 1955.

IV.

On April 4, 1955 the Union terminated the strike.

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Bluebook (online)
380 F. Supp. 412, 86 L.R.R.M. (BNA) 2540, 1974 U.S. Dist. LEXIS 8758, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jh-rutter-rex-manufacturing-co-inc-v-united-states-laed-1974.