Reichert v. United Brotherhood of Carpenters & Joiners of America

183 A. 728, 14 N.J. Misc. 106, 1936 N.J. Ch. LEXIS 121
CourtNew Jersey Court of Chancery
DecidedFebruary 3, 1936
StatusPublished
Cited by6 cases

This text of 183 A. 728 (Reichert v. United Brotherhood of Carpenters & Joiners of America) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reichert v. United Brotherhood of Carpenters & Joiners of America, 183 A. 728, 14 N.J. Misc. 106, 1936 N.J. Ch. LEXIS 121 (N.J. Ct. App. 1936).

Opinion

Buchanan, Y. C.

The United Brotherhood of Carpenters and Joiners of America is the parent or national organization of the divers local trades unions of carpenters throughout the country. It is an unincorporated association, having its offices and officers at Indianapolis, Indiana. Its membership is composed of the various subordinate or local unions, and the individual members of such locals.

In 1933 there were six of such locals in and near the city of Elizabeth, to wit, Locals No. 167, 687 and 1724 of Elizabeth, No. 330 of Roselle, No. 320 of Westfield and No. 537 of Rahway. Because of the depression, lack of work and possibly other reasons these locals found themselves losing members and in financial and other difficulties, and Local 167 submitted to Local 687 and the others a proposal that the six locals should be consolidated into one. Local 687 rejected the proposal, (as did also the Rahway and Westfield Locals), and thereupon Local 167 submitted it to William L. Hutcheson, the general president of the national body, seeking to have the consolidation effectuated notwithstanding the objections of the other locals.

Hutcheson sent a representative, T. M. Guerin, to investigate and report back to him. Guerin had a conference with the representatives of the six locals and on Saturday, August 5th, wrote report to Hutcheson in Indianapolis, and sent a copy to the locals, recommending consolidation of the four locals, 167, 687, 1724 and 330, and their funds and assets into one consolidated local, (omitting the Rahway and West-field Locals because they were too far away from Elizabeth).

On Tuesday, August 8th, without more,—and obviously without opportunity for Local 687 to receive the copy of Guerin’s report and write Hutcheson its objections to, and its arguments against, the recommendation,—Hutcheson as general president issued an order of consolidation accordingly to be consummated September 6th.

Section 10. paragraph G, of the “Constitution and Laws” of the organization provides:

“Whenever in the judgment of the General President there be a superfluous number of Local Unions in any locality, and he should [108]*108deem in his wisdom a consolidation for the best interests of the organization, locally or at large, he shall have power to order two or more of such Local Unions to consolidate and to enforce the consolidation, provided such course receives the sanction of the General Executive Board.”

Section 25, paragraph C, of the same, provides:

“A Local Union cannot withdraw from the United Brotherhood or dissolve so long as ten members in good standing object thereto, but shall consolidate with another Local Union on order of the General President with sanction of the General Executive Board or by a majority vote of each Union at a special called meeting after paying up all indebtedness to date of consolidation.”

There is no authority, other than the foregoing, for the consolidation of any locals. At the time of the issuance of the consolidation order by Hutcheson, such order had received no sanction or approval from the general executive board; nor was there any such sanction or approval at any time prior to September 15th.

On August 25th, Local 687 wrote to Hutcheson and also to the general executive board, taking exception to Hutcheson’s order and asking the board for a hearing. Under date of September 5th Hutcheson sent.a reply in which he said “You will comply with (the consolidation), after which you can present your protest to the General Executive Board.” The executive board never sent any reply to the letter to it, and gave no hearing.

On September 6th, the other three locals complied with the order of consolidation and turned over all their books, papers, moneys and other effects to the new consolidated local, Ho. 715. Local 687 did not then comply, (nor has it since complied). On September 12th, it telegraphed Hutcheson asking two weeks’ time to call a special meeting of the local in the hope that a satisfactory adjustment might be worked out. Hutcheson replied that they could have two weeks’ time “in which to affiliate with the new local, if they would forthwith turn over to the new local all the books, papers and property of local 687.”

On September 15th, the general executive board approved Hutcheson’s order of consolidation; but no notice thereof was [109]*109given to, or received by, Local 687 until after the revocation of its charter.

On September 29th Hutcheson revoked the charter of Local 687 and notified them that they were no longer recognized as being a local of the Brotherhood.

Litigation immediately ensued. On September 20th, Frank Meier, a member of Local 687, filed a bill against the local and its individual officers, subsequently consolidated with the present suit; and shortly thereafter complainants, individual members of Local 687, filed their bill against the national organization, and its officers, and against certain members of Local 167. Eventually a complete new set of pleadings by all parties was filed.

The present amended bill, by complainants as members of Local 687 and on behalf of the members of that Local as a class, sets up, inter alia, the foregoing facts and prays inter alia that the national organization and Hutcheson as president, be restrained from taking away the charter of the local and from interfering with the functioning of the local as a regular local “provided it conducts itself in accordance with the Constitution and Laws of the national body;” and from demanding or enforcing the transfer of any of the property of Local 687 to any other local or individual. It also prays, as against the national body and individual members of Local 167 and other defendants, decree that the property of Local 687 is held by the present holders in trust for the benefit of the members in good standing of Local 687.

The new, consolidated Local 715 was added as a party, also a number of individual members who have transferred from Local 687 to the new local.

Allegations of favoritism and improper conduct of the organization were abandoned at the hearing.

The individual members of (former) Local 167 filed a counter-claim against complainants and individual members who were or are the officers of Local 687, and against Local 687 and others, seeking restraint against Local 687 and its officers from distributing the property of Local 687 among the individual members or transferring it to any other than the new Local 715 for the benefit of all the union carpenters [110]*110and joiners of Elizabeth and vicinity. Local 715 and the added members thereof aforesaid, filed answer, in effect joining in the counter-claim, and seeking adjudication of the rights of the parties as to beneficial ownership in the property aforesaid and an accounting from the officers of Local 687.

The pleadings leave much to be desired; but it sufficiently appears from them, and from the stipulations filed by the parties, and from the briefs, that there is no substantial dispute as to the facts, and that what both sides seek is a determination, under the .admitted facts,-—■

(1) As to the “validity or legality of the suspension and revocation of the charter of Local 687, with respect to the relief sought in the way of restraint against depriving the members of Local 687 of their status and standing as union members.”

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Bluebook (online)
183 A. 728, 14 N.J. Misc. 106, 1936 N.J. Ch. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reichert-v-united-brotherhood-of-carpenters-joiners-of-america-njch-1936.