National Labor Relations Board v. Tri-State Casualty Ins. Co

188 F.2d 50
CourtCourt of Appeals for the Tenth Circuit
DecidedApril 24, 1951
Docket4139
StatusPublished
Cited by17 cases

This text of 188 F.2d 50 (National Labor Relations Board v. Tri-State Casualty Ins. Co) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth 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. Tri-State Casualty Ins. Co, 188 F.2d 50 (10th Cir. 1951).

Opinion

MURRAH, Circuit Judge.

Pursuant to the usual proceedings under Section 10 of the Labor Management Relations Act of 1947, 61 Stat. 136, 29 U.S.C.A., § 151 et seq., the National Labor Relations Board found that the respondent Tri-State Casualty Insurance Company, had engaged, and was engaging, in unfair labor practices toward the service employees of its office building in Tulsa, Oklahoma, in violation of Section 8(a)(1) (3) of the Act, and ordered the respondent to cease and desist, post statutory notice, and reinstate a discharged employee, with back pay. The respondent has failed to comply and the Board has petitioned this court under Section 10 (e) for enforcement of its order.

Respondent assails the jurisdiction of the Board, and the sufficiency of the evidence to warrant enforcement.

Respondent is an Oklahoma corporation with its principal and only office in Tulsa, Oklahoma. It writes major types of casualty insurance, such as automobile liability and workmen’s compensation. It’s business is solicited by 334 agents', 84 of whom are located in 14 states outside Oklahoma, on an independent contractor commission basis. The direct premiums on business written in 1947 was $993,258.65 for Oklahoma and $237,059.92 outside the state. For the same period $304,134.55 was paid out in claims on Oklahoma business and $11,059.16 on claims outside the State. In 1947 it paid out nearly $100,000 in premiums to its reinsurance agent, the General Reinsurance Company of New York City. It owns the office building in Tulsa, Oklahoma, and occupies the 7th and part of the 6th floors, serviced by the employees involved in this labor dispute.

The respondent does not deny the applicability of the Labor Management Relations Act to insurance companies as such. See Polish National Alliance v. N. L. R. B., 322 U.S. 643, 64 S.Ct. 1196, 88 L.Ed. 1509; N. L. R. B. v. Phoenix Mutual Life Insurance Co., 7 Cir., 167 F.2d 983, 6 A.L.R.2d 408. Nor does it deny that documents and communications essential to the negotiation and service of insurance contracts outside the state are commerce within the meaning of Section 2(6) of the Act. See United States v. South-Eastern Underwriters Ass’n, 322 U.S. 533, 64 S.Ct. 1162, 88 L.Ed. 1440. But, invoking the doctrine of de minimum non curat lex to its own interstate activities, it is vigorously and earnestly contended that their impact on interstate commerce is so inconsequential that “the channels of commerce would remain open and there would hardly be a ripple on the sea of commerce” if they were discontinued, or were stopped or curtailed because of the labor dispute. Then, it is said with equal force and vigor that even though such activities do affect commerce, the purely local activities of the building service employees are not a part of such commerce; do not have any substantial effect thereon, and are not, therefore, within the scope of the Act.

In the National Labor Relations Act, 49 Stat. 449, 29 U.S.C.A. § 151 et seq., the Congress used the phrase “affecting commerce” to manifest its purpose to exercise the full sweep of its constitutional *52 authority to prevent the harmful effects of industrial strife on interstate commerce. See Section 10(a) ; Polish Alliance v. N. L. R. B., supra. And, that phrase, with its statutory definition and judicial construction was carried over into the Labor Management Relations Act of 1947. See Sections 10(a) and 2(7). The scope of the Act and the jurisdiction of the Board under it were not contracted. The Board is specifically empowered to prevent any proscribed unfair labor practice “affecting commerce,” and whether any such unfair labor practice affects commerce is not to be determined solely by the quantitative effect of the activities immediately before us. See N. L. R. B. v. Fainblatt, 306 U.S. 601, 307 U.S. 609, 59 S.Ct. 668, 83 L.Ed. 1014; Polish Alliance v. N. L. R. B., supra; United Brotherhood of Carpenters v. Sperry, 10 Cir., 170 F.2d 863; J. L. Brandeis & Sons v. N. L. R. B., 8 Cir., 142 F.2d 977, certiorari denied, 323 U.S. 751, 65 S.Ct. 85, 89 L.Ed. 601.

Whether, therefore, the respondent’s interstate activities affect commerce is not to be judged by their quantitative relationship to the whole of its business activities. Nor, is it decisive that the labor dispute in this case is wholly between employees performing purely local activities. The Act extends to and was explicitly designed to regulate not merely interstate transactions, but all activities which in their totality adversely affect the full flow of interstate commerce. See N. L. R. B. v. Fainblatt, supra; United Brotherhood of Carpenters v. Sperry, supra. The touch-Carpenters v. Sperry, supra. The touchstone of jurisdiction is the ultimate effect on commerce, and our query is whether the acts or practices of. the respondent would lead or tend to lead to a labor dispute with its service employees, which would obstruct or burden the respondent’s interstate activities. The test of coverage is different from the employees of a building under the Fair Labor Standards Act, where the question is whether their activities are “in commerce”, or in work so closely related to it, as to be practically a part of it. See 29 U.S.C.A. § 201 et seq.; Kirschbaum Co. v. Walling, 316 U.S. 517, 62 S.Ct. 1116, 86 L.Ed. 1638; Rucker v. First National Bank of Miami, Oklahoma, 10 Cir., 138 F.2d 699. By the use of the phrase “in commerce” in the Fair Labor Standards Act the Congress did not purport to fully exhaust its constitutional powers over commerce, Rucker v. First National Bank of Miami, Oklahoma, supra.

The employees involved here maintain and operate the building, including the elevators, where the respondent conducts its insurance business. Those directly engaged in the conduct of the business undoubtedly depend upon the maintenance employees for elevator service to and from the offices on the sixth and seventh floors. Then, too, the maintenance of these offices is an important part of the performance of the duties incident to the business. It is reasonably foreseeable that a stoppage of the elevators and the maintenance of the building, with picket lines in front, would have a substantially adverse effect upon the conduct of the business, including the interstate activities, See Butler Bros. v. N. L. R. B., 7 Cir., 134 F.2d 981. This situation is different from N. L. R. B. v. Shawnee Milling Company, 10 Cir., 184 F.2d 57

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