Mason-Rust v. Laborers Local No. 42

306 F. Supp. 934, 72 L.R.R.M. (BNA) 2743, 1969 U.S. Dist. LEXIS 9497
CourtDistrict Court, E.D. Missouri
DecidedSeptember 12, 1969
DocketNo. 68 C 94(2)
StatusPublished
Cited by6 cases

This text of 306 F. Supp. 934 (Mason-Rust v. Laborers Local No. 42) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mason-Rust v. Laborers Local No. 42, 306 F. Supp. 934, 72 L.R.R.M. (BNA) 2743, 1969 U.S. Dist. LEXIS 9497 (E.D. Mo. 1969).

Opinion

MEMORANDUM

MEREDITH, District Judge.

This case was tried to the Court without a jury. The plaintiff is a joint venture composed of The Rust Engineering Company, a Delaware corporation, and The Mason & Hanger-Silas Mason Co., Inc., a West Virginia corporation. Defendant, Local 42 of the Laborers’ International Union of North America, AFL-CIO, is a voluntary unincorporated association and is a labor organization within the meaning of 29 U.S.C. § 152. This Court has jurisdiction under 29 U.S.C. §§ 185 and 187.

Mason-Rust received a contract from the Corps of Engineers, United States Army, to perform construction work at the Gateway Army Ammunition Plant. Its job was to make certain alterations in the building so that it could be converted from a steel forging plant into a plant for the manufacture of artillery shells. Mason-Rust employed members of several construction trade unions, including Local 42. It operated with these unions on the basis of national and local contracts.

Mason-Rust has brought this action against Local 42 under 29 U.S.C. §§ 185 and 187 for damages allegedly sustained because of a jurisdictional strike prohibited by 29 U.S.C. § 158 that arose during the course of the work at the Gateway Army Ammunition Plant. The details of the strike and alleged damages will be described later.

Defendant Local 42 has moved to dismiss this action on the grounds that plaintiff is not the real party in interest and has not suffered any damages, even if all it alleges in its complaint was true. This argument is based upon the fact that plaintiff’s contract with the Army was a cost-plus-a-fixed fee and that plaintiff was reimbursed for any losses sustained by reason of the strike. Plaintiff has admitted that any damages recovered will be turned over to the Army. Section 187, 29 U.S.C., allows a party “injured in his business or property” to “recover the damages by him sustained and the [936]*936cost of the suit.” Defendant argues that since the Army reimbursed plaintiff for any out-of-pocket expenses caused by the strike, the Army could be the only party that has suffered any damage within the meaning of the statute, therefore, the suit should be dismissed. It is true that the damages provisions of this section 187 are to be strictly construed in some situations. In the area of punitive damages, it is clear that recovery for an employer’s business loss caused by a union’s activities proscribed by section 187 should be limited to actual, compensatory damages. Local 20, Teamsters, Chauffeurs and Helpers Union v. Morton, 377 U.S. 252, 260, 84 S.Ct. 1253, 12 L.Ed.2d 280 (1964). The Morton case is distinguishable from the present ease. In Morton the Supreme Court found that recovery of punitive damages would be a violation of national labor policy. In this case punitive damages are not in issue; the plaintiff is, under the allegations in the complaint, seeking only actual damages. This situation does not prevent plaintiff from maintaining this action and indemnifying the other contracting party, if it recovers damages. J. W. Terteling & Sons v. Central Nebraska Public Power & Irrigation Dist., 8 F.R.D. 210 (D.Neb. 1948). In Peelers Co. v. Wendt, 260 F.Supp. 193 (W.D.Wash. 1966), a cost-plus contractor was allowed to bring an action under the Clayton Act. It is the opinion of the Court that Mason-Rust can maintain this action and that the action should not be dismissed for failure to join an indispensable party, that is, the United States. All of the transactions involved in this case were between Local 42 and Mason-Rust. Mason-Rust has been damaged by the mere fact that the contract took longer and was more expensive to complete than was anticipated. Therefore, it should be allowed to maintain this action, and the Court will make a determination on the merits.

Under 29 U.S.C. § 187(a) it is unlawful for any labor organization to engage in conduct or activities prohibited by 29 U.S.C. § 158(b) (4). That section defines the prohibited conduct as a secondary boycott or jurisdictional strike. Section 29 U.S.C. § 187(b) gives a person who has been damaged by union conduct prohibited by the foregoing sections a cause of action within the limitations of 29 U.S.C. § 185. The defendant admits that there was a jurisdictional strike from February 27, 1968, to March 5, 1968. It does not admit that it was responsible for the strike and denies that plaintiff was damaged by the work stoppage. The basic facts of the strike will be set out briefly before these two issues are specifically discussed.

One of the projects involved in the work at the Gateway plant was the construction of a quench pit. The pit was “T” shaped, approximately fifty-five feet by fifty in size, and about twelve feet deep. Its walls and floor were of concrete. The quench pit was to be used to house a metal tank which, in turn, would contain oil to cool the 175 mm shells during the production process.

On February 16, 1968, Leithauser, Mason-Rust’s general superintendent, gave instructions to the carpenters to begin stripping away the plywood forms which made up the mold into which concrete was poured to form the pit. The carpenters began this work on the next day, a Saturday. No protest was made of this assignment of work. On the following Monday, Bob Tarpin, the steward for Local 42, came to Baird, the labor relations man for Mason-Rust, and claimed the work of lowering the concrete forms from scaffolding to the bottom of the pit. Baird told Tarpin the work would continue as assigned and that Local 42 and the carpenters’ union would be contacted in an effort to resolve the dispute.

Baird contacted a business agent of Local 42, Emma, and told him of the claim. Emma said that he would relay the information to Tony Pelker, the business manager of Local 42, and request a meeting with the carpenters to settle the dispute. Baird reported these events to Leithauser.

[937]*937On the next day,' February 20th, the carpenters stopped stripping the forms. At this point the work was about half finished. Leithauser took no action concerning the unions because it seemed to be the area practice that when a dispute over work arose, the unions involved would stop work until their business agents settled the question. He did, however, tell Baird to continue to get the business agents together. Baird then telephoned Local 42’s business agent, Paul Pelker, brother of Tony Pelker, about the dispute. Paul Pelker said the work was that of the carpenters and asked that Tarpin be brought to the telephone.

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306 F. Supp. 934, 72 L.R.R.M. (BNA) 2743, 1969 U.S. Dist. LEXIS 9497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mason-rust-v-laborers-local-no-42-moed-1969.