Schena v. Smiley

401 A.2d 1194, 265 Pa. Super. 249, 101 L.R.R.M. (BNA) 2937, 1979 Pa. Super. LEXIS 2044
CourtSuperior Court of Pennsylvania
DecidedApril 12, 1979
DocketNo. 55
StatusPublished
Cited by1 cases

This text of 401 A.2d 1194 (Schena v. Smiley) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schena v. Smiley, 401 A.2d 1194, 265 Pa. Super. 249, 101 L.R.R.M. (BNA) 2937, 1979 Pa. Super. LEXIS 2044 (Pa. Ct. App. 1979).

Opinion

SPAETH, Judge:

This is an appeal from an order of the lower court dismissing appellants’ preliminary objections to appellees’ complaint in trespass. The issue is whether the lower court had subject matter jurisdiction over the cause of action alleged or whether its jurisdiction was preempted by virtue of the federal law of labor relations.1

In 1969, appellants attempted to organize the employees of Treasure Lake, Inc. During the organizational campaign Treasure Lake discharged a number of employees; appellees were discharged on May 23, 1969, and fourteen other employees were discharged on June 20. On September 4, 1969, appellants filed with the National Labor Relations Board an action claiming that in discharging employees Treasure Lake had committed an unfair labor practice. On September 30, and on several occasions thereafter, appellees asked appellants whether their names had been included in the unfair labor practice action. Appellees allege — and on demurrer we take the allegations as true — that appellants promised them that their names would be included.

The unfair labor practice action was heard by an Administrative Law Judge, who ordered one employee reinstated. On appeal the NLRB ordered thirteen more employees reinstated, and awarded back pay and interest to all fourteen reinstated employees. On January 26, 1972, the United States Court of Appeals for the Third Circuit affirmed. The fourteen employees thus reinstated and awarded back pay were those employees who had been discharged on June 20, 1969. Appellees had in fact not been included in the action, and so were not either reinstated or awarded back pay. By the time appellees discovered that they had not been included in the action, the statute of limitations for filing their [252]*252own action against Treasure Lake with the NLRB had run.2 Alleging negligence3 on the part of appellants in not including their names in the action, appellees brought the present action in trespass, demanding damages of $49,345.004 and punitive damages of $98,690.00.

The basis of appellants’ jurisdictional preliminary objection to the complaint5 may be summarized as follows: to recover from appellants, appellees must prove that in discharging them Treasure Lake committed an unfair labor practice;6 under the National Labor Relations Act, whether an employer has committed an unfair labor practice is a determination exclusively within the jurisdiction of the NLRB; therefore, the lower court' lacked subject matter jurisdiction of appellees’ complaint. In dismissing appellants’ objection7 the lower court stated:

[253]*253While it is- true that were this a claim to remedy an unfair labor practice, this Court would have no jurisdiction, and while it is further true that in order to recover in this case Plaintiffs must prove an unfair labor practice to establish damages nevertheless, this Court is of the opinion that jurisdiction properly lies here. This in an Action in Trespass seeking recovery for the wilful or negligent conduct of the Defendants, and the alleged loss resulting therefrom. It is not an action to cure an unfair labor practice, although proof of such is an element in the Plaintiffs’ case. Defendants admit that it is now impossible for the Plaintiffs to proceed on their own before the NRLB and to obtain their remedy in that manner, although they are within the Statute of Limitations to proceed in the above action. Therefore, the Plaintiffs only possible remedy is as set forth above, and if they are correct in their pleadings, a legally redressible situation exists.
To hold that the Plaintiffs do not now have the right to proceed because an element of their proof involves an unfair labor practice, which in and of itself does not fall within the jurisdiction of this Court, would effectively deny them the right to be heard on their claim. Therefore, this Court is of the opinion that the proof of the unfair labor practice is only important as it bears on the damages sustained by the Plaintiffs in the event they are able to prove liability on the part of the Defendants. The suit itself is not based upon an unfair labor practice, but upon an alleged tortious act by the Defendants over which this Court has jurisdiction. Thus, this Court dismissed Defendants’ Preliminary Objections as to jurisdiction. Lower Court Opinion at 2-3.

In San Diego Building Trades Council v. Garmon, 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed.2d 775 (1959), the Supreme Court of the United States established the following rule for determining whether the jurisdiction of a state court has been preempted:

[254]*254When an activity is arguably subject to § 7 or § 8 of the Act, the States as well as the federal courts must defer to the exclusive competence of the National Labor Relations Board if the danger of state interference with national policy is to be averted. .
359 U.S. at 245, 79 S.Ct. at 780.

Applying this rule here, it is clear that if appellees had brought an unfair labor practice action against Treasure Lake, the action would have been under sections 8(a)(1) or 8(a)(3) of the National Labor Relations Act. See 29 U.S.C. § 158(a)(1), (3).8 Therefore, if in the present case appellees had brought suit against Treasure Lake, either as the only defendant or as co-defendant with appellants, the jurisdiction of the lower court, at least with respect to the liability of Treasure Lake, would be preempted. See Machinists v. Wisconsin Employment Relations Commission, 427 U.S. 132, 96 S.Ct. 2548, 49 L.Ed.2d 396 (1976). The question is whether appellees have avoided this preemption by bringing their suit not against Treasure Lake but only against appellants. In order to answer this question we must examine the cases applying the rule of Garmon. As will be apparent, the rule is not to be applied literally, even in cases where the activities complained of were arguably, or even concededly, [255]*255within the protections of section 7 or the prohibitions of section 8 of the Act.

Thus, the rule of Garmon has been held not to apply where the action is brought for a violation of a collective bargaining agreement under sections 301 and 303 of the Labor Management Relations Act of 1947,9 see Smith v. Evening News Assoc., 371 U.S. 195, 83 S.Ct. 267, 9 L.Ed.2d 246 (1962), or where the action is against a union for breach of its statutory duty of fair representation, see Motor Coach Employees v. Lockridge, 403 U.S. 274, 91 S.Ct. 1909, 29 L.Ed.2d 473 (1971); Vaca v. Sipes, 386 U.S. 171, 87 S.Ct. 903, 17 L.Ed.2d 842 (1967).10 These exceptions, however, do not [256]

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Bluebook (online)
401 A.2d 1194, 265 Pa. Super. 249, 101 L.R.R.M. (BNA) 2937, 1979 Pa. Super. LEXIS 2044, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schena-v-smiley-pasuperct-1979.