Penello v. United Hatters, Cap & Millinery Workers Union

174 F. Supp. 887, 44 L.R.R.M. (BNA) 2263, 1959 U.S. Dist. LEXIS 3115
CourtDistrict Court, D. Maryland
DecidedJune 8, 1959
DocketNo. 11140
StatusPublished
Cited by1 cases

This text of 174 F. Supp. 887 (Penello v. United Hatters, Cap & Millinery Workers Union) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Penello v. United Hatters, Cap & Millinery Workers Union, 174 F. Supp. 887, 44 L.R.R.M. (BNA) 2263, 1959 U.S. Dist. LEXIS 3115 (D. Md. 1959).

Opinion

R. DORSEY WATKINS, District Judge.

This proceeding is before the court on a petition filed for and on behalf of the National Labor Relations Board (the Board), by John A. Penello, Regional Director of the Fifth Region of the Board, pursuant to the provisions of section 160(1) of Title 29 U.S.C.A. codifying section 10(Z) of the Labor Management Relations Act,1 1947, as amended (29 U.S.C.A. § 141 et seq.). The petition, which seeks a temporary injunction pending the final disposition by the Board of the matters herein involved, was filed after preliminary investigation of charges made by Korber Hats, Inc. (Korber) of Fall River, Massachusetts, alleging that respondent has engaged in, and is engaging in, unfair labor practices within the meaning of section 158(b), subsection (4) (A) of Title 29 U.S.C.A., the Regional Director having found reasonable cause to believe such charges were true. This court has jurisdiction of the subject matter and of the parties.

The prerequisite to the granting of the relief contemplated by section 160 (Z) of Title 29 is a finding by the court that there is “reasonable cause to believe” that a violation of the Act, as charged, has been committed. The court is not called upon in this proceeding to [890]*890decide whether in fact the charges are true or whether in fact a violation of the Act has been committed in that the picketing hereinafter described constitutes the type of secondary activity proscribed by the Taft-Hartley Act. The responsibility for making the ultimate determination of the truth of the charges and the existence of a violation of the Act affecting commerce has been placed by Congress primarily on the Board, subject to review by the Court of Appeals of this Circuit (Penello v. Milk Drivers and Dairy Employees Local Union, D.C.Md. 1957, 156 F.Supp. 366, 368).

Not all types of secondary activity are so prohibited. Section 158 provides:

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“(b) It shall be an unfair labor practice for a labor organization or its agents—
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“(4) to engage in, or to induce or encourage the employees of any employer to engage in, a strike or a concerted refusal in the course of their employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials, or commodities or to perform any services, where an object thereof is: (A) forcing or requiring * * * any employer or other person to cease using, selling, handling, transporting, or otherwise dealing in the products of any other producer, processor, or manufacturer, or to cease doing business with any other person; * * * ”

Under the facts in the instant ease the Board contends that the plain purpose of the picketing engaged in by the respondent is to. induce and encourage the employees of Theodore Epstein & Sons and the employees of other employers (such employers being the cotenants of Epstein and the motor carriers doing business with Epstein) to refuse to work and thereby force or require Epstein’s suppliers or the employers who deliver or pick up goods, to cease doing business with Epstein, and to force or require Epstein to cease doing business with Kor-ber. In short the Board alleges that respondent is exerting unlawful pressure against Epstein, a neutral secondary employer, and other neutral employers, in support of its dispute with Korber, the primary employer. Respondent on the other hand asserts that its picketing is within the area outlined by the courts as permissive customer picketing.

After a hearing on the petition at which testimony was taken the court, finds the following facts to be basically undisputed. For some time past, respondent has been engaged in a labor dispute with Korber, a manufacturer of men’s hats. In support of this labor dispute, respondent has since October 14,. 1958, been picketing the premises of Kor-ber in Fall River, Massachusetts. In further support of its dispute with Korber, respondent since December 5, 1958, has been picketing the premises in Baltimore, Maryland of Theodore Epstein & Sons (Epstein), a wholesale distributor of men’s hats. Epstein receives its hats, from approximately ten to fifteen major manufacturers, including Korber, in various states among these being New York, New Jersey, Massachusetts and Missouri. The hats are made up specifically to Epstein’s order regarding dimensions, colors and sizes and are shipped to Epstein from the various manufacturers by common motor carrier. The hats are then assembled by Epstein, which does no manufacturing itself, and sold to retail outlets for resale, such outlets being men’s stores selling hats only, men’s specialty stores, general merchandise stores and small department stores throughout the Southeastern states of Maryland, Virginia, North and South Carolina and Georgia. There is no identification within the hats as to the manufacturer nor do they carry the name Epstein. Rather, .all hats received from the ten to fifteen manufacturers mentioned above are distributed under one of three trade marks — belonging to Epstein— Holbert, Tepson or Headmaster, the last two appearing in hats manufactured for Epstein by Korber. During 1958 Epstein received from points outside of the state of Maryland merchandise, the value of which was in excess of $50,000, and [891]*891shipped goods valued in excess of $50,000 to points outside of Maryland. Its total number of customers approximates nine hundred of whom twenty-seven, or about three per cent, are located in Maryland while about half of the twenty-seven are located in Baltimore City, sales to its Baltimore customers comprising no more than four per cent of Epstein’s total business operation. Hardly any of Epstein’s customers come to Epstein’s place of business, practically all of Epstein’s sales being made at the retailer-buyer’s place of business. Out of Epstein’s total number of customers of 900, not more than 25 visited Epstein’s during the previous year and during the two month period from the beginning of picketing by the respondent until the hearing on the present petition for a temporary injunction about ten customers had visited the picketed premises.

Epstein is a partnership owned and operated by Theodore Epstein and his two sons, Irvin E. and Gilbert Epstein. The partnership has but one employee, Willard H. Wagner, a non union worker who is a combination shipping clerk, stock clerk and errand boy. Epstein rents the third, fourth and fifth floors of the building picketed while two other business firms occupy the first floor, and a third firm the second floor. The building is approximately 22 feet wide with two entrances about 8 feet apart, the front or north entrance being used by the first floor employees and customers and the south entrance, giving access to a freight and passenger elevator operated by an employee of the landlord, being used by the second floor tenant and by Epstein’s one employee, its associates and by truck drivers making deliveries to, or picking up shipments from, Epstein.

As previously stated, in the fall of 1958, United Hatters, Cap and Millinery Workers International Union became involved in a labor dispute with Korber of Fall River, Massachusetts. Pursuant to this dispute, a representative of the union, its business manager in the Baltimore area, approached Irvin E. Epstein in September of 1958 in order to advise of the existence of the labor dispute and to recommend Epstein’s purchasing its straw hats from a manufacturer other than Korber. Mr.

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174 F. Supp. 887, 44 L.R.R.M. (BNA) 2263, 1959 U.S. Dist. LEXIS 3115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penello-v-united-hatters-cap-millinery-workers-union-mdd-1959.