Montgomery v. Pacific Electric Ry. Co.

293 F. 680, 1923 U.S. App. LEXIS 1662
CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 13, 1923
DocketNo. 4045
StatusPublished
Cited by4 cases

This text of 293 F. 680 (Montgomery v. Pacific Electric Ry. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montgomery v. Pacific Electric Ry. Co., 293 F. 680, 1923 U.S. App. LEXIS 1662 (9th Cir. 1923).

Opinion

MORROW, Circuit Judge.

Plaintiff in the lower court (appellee here), the Pacific Electric Railway Company, is an electric railway • corporation incorporated under the laws of California, having its principal place of business in the city of Los Angeles. It is a common carrier, operating a system of urban and interurban lines of railroads in the counties of Los Angeles, Orange, Riverside, and San Bernardino, Cal., engaged in handling passengers and freight in both interstate and intrastate transportation.

Defendants below (appellants here) include the Brotherhood of Railroad Trainmen (hereinafter designated as B. of R. T. for brevity) and the Brotherhood of Locomotive Engineers (hereinafter designated as B. of L. E, for brevity), unincorporated associations doing business in the city of Cleveland, state of Ohio. Defendant M. E. Montgomery is a resident of San Jose, Cal., and-defendant J. A. Farquharson is a resident-of Muskogee, Okl. Montgomery is Assistant Grand Chief of the B. of L. E. Farquharson is vice president of the B. of R. T. The other defendants are residents of the city of Los Angeles, some of whom have been served with process and others not.

The B. of R. T. and the B. of L. E. are labor organizations or societies, organized and maintained by those engaged in platform work and other railroad service in the United States and Canada. These brotherhoods are composed of a large number of local self-governing lodges, conveniently located for their members in the various railroad towns and cities of the United States. On July 2, 1918, plaintiff had in its employ upwards of 1,500 men. During April, May, and June of 1918, many of plaintiff’s employees were persuaded to join the B. of L. E. or the B. of R. T., so that by July 2d over 1,200 men had become affiliated with these organizations. For more than five years previously it had been the fixed policy of the plaintiff to prevent the unionizing of its employees, and to deal with them as to all matters and things properly arising between such employer and employees only as individuals, and not collectively or through organizations.

It appears that, notwithstanding such terms of employment, the defendants Montgomery and Farquharson, who were' not employed by the plaintiff, and therefore not parties to any actual dispute, undertook to interfere between the plaintiff and its employees, claiming that the labor organizations named were authorized to represent the employees in an alleged controversy. The moving cause of complaint of the defendants was that the plaintiff had refused to recognize the labor organizations, in such controversy, and a strike of the employees ensued. Thereupon plaintiff filed a complaint in the District Court of the United States at Los Angeles, praying for a temporary injunction restraining the defendants from certain acts of' interference with plaintiff’s business and its contractual relations with its employees. The application was heard upon the complaint and a supporting affidavit, and [683]*683the temporary injunction issued. From this order an appeal was prosecuted to this court.

The facts relating to the issuance of the temporary injunction and necessary to be considered by the court in determining this question are fully stated in the opinion of Judge Ross in Montgomery et al. v. Pacific Electric Railway Co., 258 Fed. 382, 169 C. C. A. 398. Among other questions determined was the inviolability of tbe contract between the plaintiff and its employees that nonmembership in a union was a condition of employment, and that plaintiff, under the terms of employment, would deal with its employees as individuals only, and not collectively or through organizations.

This court affirmed the order granting the temporary injunction on May 26, 1919. On August 16, 1919, plaintiff’s employees again went out on a strike. On June 19, 1920, or nearly two years after plaintiff filed its complaint, and more than a year after the decision of this court, affirming the temporary injunction, defendants answered; and nearly two years thereafter, or in February, 1922, the case was brought to a hearing in the District Court upon an application for a final decree.

[1, 2] In the course of this hearing, the B. of R. T., the 13. of L,. E-, Montgomery, and Farquharson offered an amendment to their answer, denying the allegations of the complaint concerning plaintiff’s fixed policy to prevent the unionizing of plaintiff’s employees, alleged as recognized and agreed to by each and every one of the plaintiff’s employees, and denying that said policy was to deal with said employees as to all matters and things properly arising between said employer and employees only as individuals, and not through any organization pretending to represent them, and denying that the said defendants knew of said terms of employment.

Defendants, in their answer filed June 19, 1920, or more than a year before the trial, did not deny these allegations of the plaintiff’s complaint, and under rule 30 of the New Equity Rules (201 Fed. v, 118 C. C. A. v) of 1912 the failure of the defendants to deny such allegation was a confession that they were true. But under the rule the answer might have been amended by leave of the court or judge upon reasonable notice, so as to put the averments of the complaint in issue if justice so required.

No notice had been given of this amendment, or of an application to the court for leave to amend,_ and no showing was made explaining the delay in presenting such amendment, nor was there any showing made at any time that the matters alleged and set forth in the denials were true, or that justice required the allowance of such amendment. That justice did not so require was determined by the fact that, while the question of a contractual relation between the plaintiff and its employees had not been denied on the original hearing, the allegations of the complaint in that respect had been treated as true upon the pleading and evidence before the court; and the question as to the legal consequences to be drawn from the admitted fact was considered and passed upon by this court upon the sufficiency of the complaint under the Act of October 15, 1914 (Clayton Actl and the case of Hitchman Coal & Coke Co. v. Mitchell, 245 U. S. 229, 38 Sup. Ct. 65, 62 L. Ed. 260, L. R. A. 1918C, 497, Ann. Cas. 1918B, 461.

[684]*684No application was made to this court for a rehearing upon the ground that that question was not in issue in the case. On the contrary, we find that it was one of the controlling questions discussed in the briefs. Moreover, it does not appear defendants were prejudiced by the ruling of the court, since the evidence in the record shows that plaintiff introduced evidence and proved the allegation of the complaint as though it had been in issue. We are of the opinion that the court did not abuse its discretion in refusing the defendants leave to file the proposed amendment to its answer to renew a controversy the facts of which had already been proven and fully determined by the court.

[3] It is contended, however, that, conceding that there were contractual relations between the plaintiff and its employees, as stated in the complaint, the contract was in violation of law under section 679 of the Penal Code of California, which provides:

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Bluebook (online)
293 F. 680, 1923 U.S. App. LEXIS 1662, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-v-pacific-electric-ry-co-ca9-1923.