Red Ball Motor Freight, Inc. v. General Drivers Local 961

202 F. Supp. 904, 49 L.R.R.M. (BNA) 2816, 1962 U.S. Dist. LEXIS 4481
CourtDistrict Court, D. Colorado
DecidedMarch 15, 1962
DocketCiv. A. No. 7290
StatusPublished
Cited by3 cases

This text of 202 F. Supp. 904 (Red Ball Motor Freight, Inc. v. General Drivers Local 961) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Red Ball Motor Freight, Inc. v. General Drivers Local 961, 202 F. Supp. 904, 49 L.R.R.M. (BNA) 2816, 1962 U.S. Dist. LEXIS 4481 (D. Colo. 1962).

Opinion

DOYLE, District Judge.

This action arises under Section 301 of the Labor Management Relations Act, 1947, Title 29 U.S.C.A. § 185. The named respondents are General Drivers Local 961, International Brotherhood of Teamsters, Central Conference of Teamsters, Central States Drivers Council, and Harry Bath, an individual. The action is entitled “Petition for Enforcement of Arbitration and Request for Injunction and Damages.”

A motion to dismiss has been filed on behalf of respondent Harry Bath, an individual. In this motion these jurisdictional issues are raised:

1. Whether an individual union member may be made a party defendant or respondent in an action arising under Section 301 of the Labor Management Relations Act, and

2. Whether an action which seeks to set aside an arbitration award and to compel the parties defendant or respondent to proceed to join in a request for a rehearing before an arbitration committee based on alleged faulty procedure is an action cognizable under Section 301.

POINT 1.

The statutory provision creates federal jurisdiction in suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce. Jurisdiction also exists under the act in suits between labor organizations. Subsection (b) declares that any such labor organization may sue or be sued as an entity and in behalf of the employees it represents in the courts of the United States. Nevertheless, petitioner contends that the statute is susceptible to the construction for which they contend.

The exact wording of the statute is: “Suits for violation of contracts between an employer and a labor organization * * * or between any such labor organizations, may be brought in any district court of the United States *

The argument is that the phrase “between an employer and a labor organization” should be held to modify the term “contracts.” So construed, the holding would be that any suit involving a contract between an employer and a labor organization would be cognizable under the act. If, however, the clause is held to modify the term “suits,” there is a jurisdictional limitation to actions in which the parties are an employer and labor organization, or between labor organizations. The ambiguity which is said to exist renders material the background of the enactment of the amendment.

A pertinent Senate Committee Report indicates that Section 301, as amended, was not intended to embrace actions by or against individuals. The language of this report which is of interest here, appears in the majority and dissenting opinions in Textile Workers Union v. Lincoln Mills of Alabama, 353 U.S. 448, 77 S.Ct. 912, 923, 1 L.Ed.2d 972 (Senate Report 105, Eightieth Congress, first session, page 16). The amendment was intended to provide a remedy for enforcement of agreements between employers and unions, and the philosophy of the enactment as expressed in the report is stated in part as follows:

“Consequently, to encourage the making of agreements and to promote industrial peace through faithful performance by the parties, collective agreements [affecting] interstate commerce should be enforceable in the Federal courts. Our amendment would provide for suits by unions as legal entities and against unions as legal entities in [906]*906the Federal courts in disputes affecting commerce.”

This report further points out that:

“The amendment specifically provides that only the assets of the union can be attached to satisfy a money judgment against it. The property of the individual members of the organization would [not be subject to] any liability under such a judgment. Thus the members of the union would secure all the advantages of limited liability without incorporation of the union.”

This legislative background shows plainly that Congress intended to create a remedy applicable to unions. It dispels any possible doubt as to whether it can fee read so as to authorize a remedy by or against an individual.

The author of the Annotation, 17 A.L.R.2d 614, 615, declares that the principal reason underlying the enactment of Section 301 was to create a practical method of suing unions for violations of collective bargaining agreements. He further points out that prior to this enactment actions could be brought in state courts, but since many of the states required individual service on the members of the union, that is, refused to recognize the labor union as an entity, unions were for practical purposes immune from suit. The practical effect of the enactment of Section 301 was recognition of the union as an entity.

In view, therefore, of the legislative history of this statute, the petitioners can justify the action against Bath only on the basis that the wording of the statute authorizes the naming of an individual even though it may not have been intended to do so, but it certainly can not justify the inclusion of Bath on the basis that the statute is somewhat ambiguous because the legislative history resolves the ambiguity against the petitioner.

Although there appears to be some law to the contrary, it would appear that the majority of cases have refused to approve an action by an individual or against an individual under Section 301. See, for example, United Protective Workers of America v. Ford Motor Co., 194 F.2d 997, 1000 (7 Cir., 1952) as follows:

“We also agree that if the case only involved an action under § 301(a), Orloski, under the express terms of this statute could not be considered a proper party plaintiff. This seems clear from the language of the statute.”

To the same effect are Square D Co. v. United Electrical, Radio & Machine Workers of America et al., 123 F.Supp. 776 (E.D.Mich.1954). See also Wilson & Co. Inc. v. United Packinghouse Workers, 181 F.Supp. 809 (N.D.Iowa 1960), and Sinclair Refining Co. v. Atkinson, 187 F.Supp. 225 (W.D.Ind.1960), affirmed in part and reversed in part, 290 F.2d 312 (7 Cir., 1961).

In Square D Co. v. United Electrical, Radio & Machine Workers of America, et al., supra, the Court’s analysis is particularly persuasive, and for that reason it is quoted liberally here:

“Plaintiff concedes that individuals may not maintain the action but denies that the converse is true and challenges the existence of any precedent for the proposition that an individual member of a union may not be sued in an action filed under Sec. 301. But in the Schatte v. International Alliance case, supra [D. C.Cal.1949, 84 F.Supp. 669], the court, after reviewing the legislative history of the act, concluded that by Sec. 301 Congress intended to provide a forum, other than the street, for settlement of asserted violations of labor contracts by law suits, the parties to which could only be the parties to the contract involved, i. e., either the employer or the labor organization. In Wilson & Co. v. United Packinghouse Workers, D.C. N.Y.1949, 83 F.Supp. 162, the court determined that Sec. 301 must be interpreted as creating new substantive rights in each of the parties to a labor contract to the observance and

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202 F. Supp. 904, 49 L.R.R.M. (BNA) 2816, 1962 U.S. Dist. LEXIS 4481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/red-ball-motor-freight-inc-v-general-drivers-local-961-cod-1962.