Joint Board of Cloak, Skirt & Dressmakers Union of the International Ladies Garment Workers Union v. Senco, Inc.

310 F. Supp. 539, 74 L.R.R.M. (BNA) 2501, 1970 U.S. Dist. LEXIS 12325
CourtDistrict Court, D. Massachusetts
DecidedMarch 27, 1970
DocketCiv. A. No. 68-45
StatusPublished
Cited by3 cases

This text of 310 F. Supp. 539 (Joint Board of Cloak, Skirt & Dressmakers Union of the International Ladies Garment Workers Union v. Senco, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joint Board of Cloak, Skirt & Dressmakers Union of the International Ladies Garment Workers Union v. Senco, Inc., 310 F. Supp. 539, 74 L.R.R.M. (BNA) 2501, 1970 U.S. Dist. LEXIS 12325 (D. Mass. 1970).

Opinion

OPINION

GARRITY, District Judge.

On January 19, 1968 the Joint Board of Cloak, Skirt and Dressmakers Union of the International Ladies’ Garment Workers Union, AFL-CIO (the Union) brought an action in this court under § 301 of the Labor Management Relations Act of 1947, 29 U.S.C. § 185, to enforce an arbitration award that had been issued against Senco, Inc. (Senco) and Maco Clothing Corporation (Maco), both Massachusetts corporations engaged in the manufacture of ladies’ garments. On August 28, 1968 the court ruled on cross motions for summary judgment, Joint Board of Cloak, Skirt & Dressmakers Union v. Senco, Inc., D.Mass., 1968, 289 F.Supp. 513.

It has not been disputed that on January 4, 1965 a collective bargaining agreement was entered into between the plaintiff Union and the Association of Garment Contractors, Inc., a multiemployer bargaining unit. Senco was at that time a member of the Association and a signatory of the collective bargaining agreement. Under Articles 35 and 36 of that labor contract, any unresolved dispute was to be submitted to arbitration for final decision by an arbitrator called an impartial chairman. Article 69 provided that subsidiary, auxiliary or affiliated firms or corporations would be bound by the terms of the agreement. Throughout the litigation plaintiff Union has alleged, and Maco denied, thaf Maco is such a firm or corporation.

On January 24, 1967 plaintiff submitted to the arbitrator an unresolved complaint that Senco and Maco had violated the agreement in a number of respects and requested damages and other relief. The arbitration hearings proceeded despite the fact that neither Senco nor Maco responded to notices of the hearings tendered to them nor were represented in any way before the arbitrator. On October 27, 1967 the arbitrator issued his opinion and award ex parte. Among other things, he found pursuant to Article 69 of the collective bargaining agreement that Maco was a subsidiary of Senco and was therefore bound by the fact that Senco was a signatory to the contract.

In its earlier decision, already mentioned, this court ruled on motions for summary judgment filed by all the parties, that is, by the Union, Senco and Maco. The cross motions pertaining to the claim of the Union against Maco were denied without prejudice. The question of Maco’s liabilities under the arbitrator’s award required a prior judicial determination that Maco, which had not signed the labor agreement itself, could be bound by the arbitration clause by virtue of its relationship with Senco, which was a signatory. We noted, Joint Board of Cloak, Skirt & Dressmakers Union v. Senco, Inc., supra at 526, that the guiding principle on this point was set out clearly in John Wiley & Sons, Inc. v. Livingston, 376 U.S. 543 at 547, 84 S.Ct. 909 at 913,11 L.Ed.2d 898:

Here, the question is whether Wiley, which did not itself sign the collective bargaining agreement on which the Union’s claim to arbitration depends, is bound at all by the agreement’s arbitration provision. The reason requiring the court to determine the issue is the same in both situations. The duty to arbitrate being of contractual origin, a compulsory submission to arbitration cannot precede judicial determination that the collective bargaining agreement does in fact create such a duty. Thus, just as an employer has no obligation to arbitrate issues which it has not agreed to arbitrate, so a fortiori, it cannot be compelled to arbitrate if an arbitration clause does not bind it at all.

Absent a judicial determination that Maco is bound to the arbitration clause [541]*541of the contract signed by Senco by virtue of its relationship to Senco, the arbitrator’s findings and award, including his finding that Maco is a subsidiary of Senco, could be binding only on Senco and not on Maco. Since neither the Union nor Maco provided the court with enough facts to rule with finality on this issue of relatedness, the cross motions for summary judgment were denied.

Subsequently, on October 30, 1969, the parties agreed by stipulation that the court receive as evidence the official transcript of the sworn testimony and exhibits received in evidence at a hearing before a trial examiner for the National Labor Relations Board. This hearing related to charges of unfair labor practices brought by the Union against Senco, Maco and others. One of the major issues involved there and treated throughout more than 2400 pages of transcript and 150 exhibits was the integration of Maco with Senco.1

It is on the basis of this record that the court will decide whether Maco, though as a corporate entity itself not a signatory to the contract containing the arbitration clause, should nonetheless be bound by the arbitrator’s award. As part of their stipulation, both parties reserved the right to object to the relevancy or admissibility of any portions of the transcript or exhibits. Maco has objected to, and has requested the court to disregard, testimony by certain individuals that Henry Senese had made statements to them that he owned and/or controlled Maco. This testimony is important because plaintiff relies chiefly on the alleged common control of both Senco and Maco by Senese in urging that an inference of integration should be drawn. Maco objects to the admissibility of their testimony because, at this juncture in the proceedings it is being offered against Maco alone and so Senese’s statements made outside the presence of and not acquiesced in by any authorized representative of Maco should be excluded as hearsay and not binding on Maco.

Senese, however, was himself a witness. He was examined under Rule 43(b), Fed.R.Civ.P., by the attorney for the general counsel of the Board. He was therefore available for examination regarding his alleged prior statements. The record shows that he continually denied any control over Maco. The testimony that Senese had previously made statements to the contrary were certainly admissible to impeach Senese’s own testimony. The use of such evidence need not be limited to impeachment purposes. Asaro v. Parisi, 1 Cir., 1962, 297 F.2d 859, 863-864. See also Rule 63(1) of the proposed Uniform Rules of Evidence. Accordingly, the court overrules the objections to the admissibility in evidence without limitation of testimony relating to statements by Senese that he was in control of Maco.

Findings of Fact

1. For approximately three years prior to the formation of Senco, Inc., in 1960 Henry Senese had been proprietor of Paula Sportswear, a company, like Senco, involved in the production of women’s wearing apparel. Despite Henry Senese’s testimony to the contrary, he was the "boss” and the individual in charge of the operations of Paula Sportswear.

2. In September 1960 Senco was incorporated. It took over the premises at 10 Frankfort Street in East Boston formerly occupied by Paula Sportswear Company. In the summer of 1963 it also opened a shop at 104 Meridian Street. Senco’s operations were similar to Paula Sportswear’s. Stitching and sewing were done at the Meridian Street plant, while cutting, pressing and finishing were performed at Frankfort Street.

3. The incorporators of Senco were Mary B. DeSimone, also known as Mary Senese, Phyllis Baldassari and Kenneth C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
310 F. Supp. 539, 74 L.R.R.M. (BNA) 2501, 1970 U.S. Dist. LEXIS 12325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joint-board-of-cloak-skirt-dressmakers-union-of-the-international-ladies-mad-1970.