Malquist v. Foley

714 P.2d 995, 220 Mont. 176, 1 I.E.R. Cas. (BNA) 1287, 1986 Mont. LEXIS 811, 121 L.R.R.M. (BNA) 2936
CourtMontana Supreme Court
DecidedFebruary 13, 1986
Docket84-499
StatusPublished
Cited by7 cases

This text of 714 P.2d 995 (Malquist v. Foley) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Malquist v. Foley, 714 P.2d 995, 220 Mont. 176, 1 I.E.R. Cas. (BNA) 1287, 1986 Mont. LEXIS 811, 121 L.R.R.M. (BNA) 2936 (Mo. 1986).

Opinions

MR. JUSTICE MORRISON

delivered the Opinion of the Court.

This is an appeal from an order of the Fourth Judicial District Court dismissing plaintiffs’ complaint on the basis that the action was pre-empted by federal law and the State District Court lacked subject matter jurisdiction to adjudicate the controversy. We reverse and remand for trial.

This action was instituted by plaintiffs Dale Malquist, George Boharski, George Belt and Local 768, IBEW. No issue has been raised on appeal concerning standing of Local 768, IBEW, to prosecute this tort action and therefore all plaintiffs will be treated as one.

In 1979, Champion International, of Bonner, Montana, began construction of an expansion project on a packaging plant in Missoula County, Montana. Champion hired Matthews, McCracken and Rut-land (MM&R) of Baton Rouge, Louisiana, to do the general electrical contracting work. In March of 1980, MM&R, Howard P. Foley Company, City Electric and R. L. Payne, Inc., entered into a collective bargaining agreement with Local 768 of the International Brotherhood of Electrical Workers. Pursuant to the terms of the agreement signed by the parties, all electrical contractors on the project were to hire electricians through the Union referral books. Hiring could be from no other source unless labor was not available from the Union. Malquist, Boharski and Belt all placed their names in the referral book and were hired by MM&R until that company was terminated by Champion. At this time the three plaintiffs were laid off pursuant to a reduction in force and placed their names in [178]*178the referral book for future employment. Plaintiffs were referred to defendants for employment, but were refused.

In September of 1980, a meeting was held between Union officials and representatives of defendant employers. A Union business agent, Reg McMurdo, was shown a list of 20-30 names allegedly blacklisted from the project. Plaintiffs were blacklisted. Thereafter the Local filed a complaint under the collective bargaining agreement. The Labor-Management Committee deadlocked on the issue by a 6-6 vote, and the Union then dropped the complaint for the reason that the conduct complained of was not covered in the collective bargaining agreement, which only dealt with wages, hours and conditions of work.

Plaintiffs then filed claims in the State District Court for the willful and malicious blacklisting of the plaintiffs, seeking both compensatory damages and punitive damages. Two of the three defendants, R.L. Payne and City Electric, moved for summary judgment, alleging federal pre-emption. The District Court denied the motions for summary judgment, but dismissed the complaint, holding that blacklisting is arguably prohibited by the National Labor Relations Act (NLRA) and thus the State District Court lacked subject matter jurisdiction.

The issues presented on appeal are:

1. Whether plaintiffs’ claim grounded in tort is pre-empted by the National Labor Relations Act, thereby denying the State District Court subject matter jurisdiction?

2. Whether plaintiffs failed to exhaust their administrative remedies?

3. Whether the action is barred by the statute of limitations?

Respondents place heavy reliance upon San Diego Building Trades Council v. Garmon (1959), 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed. 2d 775. In Garmon, supra, the United States Supreme Court established guidelines for determining respective jurisdictions of the National Labor Relations Board and the states in labor management relations. The Court said:

“When it is clear or may fairly be assumed that the activities which a State purports to regulate are protected by Section 7 of the National Labor Relations Act, or constitute an unfair labor practice under Section 8, due regard for the federal enactment requires that state jurisdiction must yield. To leave the States free to regulate conduct so plainly within the central aim of federal regulation in[179]*179volves too great a danger of conflict between power asserted by Congress and requirements imposed by state law.”

359 U.S. at 244, 79 S.Ct. at 779, 3 L.Ed.2d at 782.

In dismissing the complaint, the trial court placed emphasis upon the rule articulated by the Garmon court that the conduct need only be “arguably subject” to the NLRA. The language used by the Court in Garmon supports the trial court’s position:

“. . . When an activity is arguably subject to Section 7 or Section 8 of the Act, the States as well as the federal courts must defer to the exclusive competence of the National Labor Relations Board if the danger of state interference with national policy is to be averted.”

359 U.S. at 245, 79 S.Ct. at 780, 3 L.Ed.2d at 783.

Respondents acknowledge that two subsequent cases modified the Garmon approach. In Sears, Roebuck & Company v. San Diego County District Council of Carpenters (1978), 436 U.S. 180, 98 S.Ct. 1745, 56 L.Ed.2d 209, and Farmer v. United Brotherhood of Carpenters and Joiners of America, Local 25 (1977), 430 U.S. 290, 97 S.Ct. 1056, 51 L.Ed.2d 338, the Supreme Court protected the states from federal pre-emption when the states were controlling conduct traditionally subject to state jurisdiction, especially where the state had a substantial interest in regulation of the conduct at issue and the state’s interest was one that did not unduly interfere with federal regulation. The exception to federal pre-emption recognized by the United States Supreme Court has been primarily confined to a “violence” exception. Where the defendant’s conduct may well have constituted an unfair labor practice but amounted to violence, the United States Supreme Court has decided that the state’s interest in protecting its citizens from violence is sufficiently strong that the state’s tort law will be allowed to regulate and punish such conduct. Farmer, 430 U.S. at 299, 97 S.Ct. at 1063, 51 L.Ed.2d at 349-350.

We do not find respondents’ authority dispositive of the fact situation here at issue. Section 39-2-803, MCA, provides:

“Blacklisting Prohibited. If any company or corporation in this state authorizes or allows any of its agents to backlist or any person does blacklist any discharged employee or attempts by word or writing or any other means whatever to prevent any discharged employee or any employee who may have voluntarily left the company’s service from obtaining employment with another person . . . such company or corporation or person is liable in punitive damages [180]*180to such employee so prevented from obtaining employment, to be recovered by him in a civil action . . .

The conduct proscribed by the state statute is “blacklisting” per se. There is no requirement that blacklisting be related to an unfair labor practice. If an employer blacklists an employee for any reason, that employer is subject to tort liability under Section 39-2-803, MCA.

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Bluebook (online)
714 P.2d 995, 220 Mont. 176, 1 I.E.R. Cas. (BNA) 1287, 1986 Mont. LEXIS 811, 121 L.R.R.M. (BNA) 2936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/malquist-v-foley-mont-1986.