National Labor Relations Board v. B. D. Holt Company

516 F.2d 505, 89 L.R.R.M. (BNA) 3065, 1975 U.S. App. LEXIS 13475
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 25, 1975
Docket75-1296
StatusPublished
Cited by4 cases

This text of 516 F.2d 505 (National Labor Relations Board v. B. D. Holt Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. B. D. Holt Company, 516 F.2d 505, 89 L.R.R.M. (BNA) 3065, 1975 U.S. App. LEXIS 13475 (5th Cir. 1975).

Opinion

AINSWORTH, Circuit Judge:

This matter is before us on petition of the National Labor Relations Board to enforce its order that respondent, B. D. Holt Company, cease and desist from refusing to bargain collectively with Local 450 of the International Union of Operating Engineers, AFL-CIO [the Union], as the exclusive bargaining agent for the company’s production and maintenance employees at the Company’s facilities in Aransas Pass and Corpus Christi, Texas.

I. Factual Background

On January 9, 1974 a consent election was held by the Company’s employees which the Union won by a vote of 47 to 29. Additionally, two ballots were void and five were challenged. During its campaign in late 1973 the Union told the Company’s employees that, if the Union won the election, they would be in a branch local (Local 450B) rather than in Local 450 of the International Union of Operating Engineers. The international union’s charter permits locals to create branch units, largely for the purpose of making distinctions in the amount of dues and fees to be paid by the employees. The Union’s representatives explained that the dues in branch Local 450B would be substantially lower than the dues required in Local 450, because the members of Local 450 were operating engineers in the construction industry and their higher wage scale permitted payment of more fees.

On December 31, 1973, the Company sent a letter to the employees stating:

We all know that unions cannot operate without dues and initiation fees. In this connection we have determined that Local Union No. 450 requires payment of dues of $13.50 per month and an initiation fee of $159 from union members classified as “oilers”, and dues of $15 per month and an initiation fee of $320 from union members classified as “equipment operators.”

(emphasis in original). This information was repeated in a speech by company representatives on January 7, 1974. On January 8, 1974, the day before the election, the Union responded with a letter of its own, stating:

And in that same letter — the crowning insult! He [the company president] in *507 effect, tells you that you are like little children and that you must not listen to that bad old man down at the union hall. He tells you that bad old union man is going to make you join the union and pay him $320 and $15.00 a month dues. Well, I’m telling you and Mr. Holt [the company president] that he is a liar! and statements like that only show the extent to which he will go to scare you (like you were a little child) so that he can keep working you at starvation wages.
Those of you who attended our meetings know that I have already told you what your initiation fee and dues will be, but let us put it in writing so there will be no doubt. Your group will be under a branch charter known as local 450B.
B Charter Initiation Fee $15.00
2% tax to International 3.00
3 mo. dues at $5.00 per month 15.00
$33.00
with 3 mo. dues paid

On the day of the election, the Union also circulated among the Company’s employees copies of the bylaws of Local 450, which concededly did not reflect recent revisions in the amounts of dues and fees.

In its objections to certification, the Company alleged three instances of misrepresentation: (1) the Union’s declaration, in its letter to employees the day before the election, that the company president was a liar; (2) the Union’s allegedly unfulfilled promise, in the same letter, that the employees would be part of a separately chartered branch local; and (3) the Union’s distribution of inaccurate written material concerning dues. The Board’s Regional Director investigated these objections and overruled them. On May 29, 1974, the Board certified the Union, adopting the Regional Director’s findings and conclusions. The Company thereafter refused to bargain with the Union, precipitating this unfair labor practice proceeding. On December 5, 1974 the Board granted the General Counsel’s motion for summary judgment and entered a cease-and-desist order against the Company.

II. Whether the Union’s Actions Require that the Election be Set Aside.

The principles of law governing misrepresentation questions are clear:

A four-prong test has been formulated by this Court for evaluating questionable campaign communications: (1) whether there has been a misrepresentation of a material fact; (2) whether the misrepresentation came from a party who was in an authoritative position to know the truth, or who had special knowledge of the facts; (3) whether the other party in the election had adequate opportunity to reply and to correct the misrepresentation; (4) whether the employees had independent knowledge of the misrepresented fact so that they could effectively evaluate the propaganda.

N. L. R. B. v. Mr. Fine, Inc., 5 Cir., 1975, 516 F.2d 60. See, e. g., N. L. R. B. v. Carlton McLendon Furniture Co., Inc., 5 Cir., 1974, 488 F.2d 58, 62; N. L. R. B. v. Cactus Drilling Corporation, 5 Cir., 1972, 455 F.2d 871, 874. In this case we need not consider the second, third and fourth elements of the test because we conclude that the Union’s statements were not misrepresentations of material facts.

In calling the Company president a liar the Union’s letter accused him of an intentional misrepresentation in the Company’s letter of December 31, 1973 concerning the amount of dues to be assessed. This accusation was a statement of opinion and nothing more. The Company’s letter, although technically accurate, may very well have been designed to convince the employees that the dues paid by members of Local 450 would also be applicable to them, which concededly is not true. This was the conclusion drawn by the Union in its letter. The employees were free to evaluate that opinion and come to their own conclusions. A statement of opinion cannot be a misstatement of fact, unless it contains *508 the implication that the author of the statement is relying on unrevealed information. The Union’s letter contained no such innuendo. Cf. Luminator Division of Gulfton Industries, Inc. v. N. L. R. B., 5 Cir., 1972, 469 F.2d 1371; N. L. R. B. v. Bill’s Institutional Commissary Corp., 5 Cir., 1969, 418 F.2d 405. It merely expressed an opinion on the basis of facts (the contents of the Company’s letter) fully available to the employees.

It is to be expected that representation battles will sometimes be waged by hyperbole.

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516 F.2d 505, 89 L.R.R.M. (BNA) 3065, 1975 U.S. App. LEXIS 13475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-b-d-holt-company-ca5-1975.