State Ex Rel. Yellow Cab Service, Inc. v. Sup. Ct. for King Cty.

333 P.2d 924, 53 Wash. 2d 644, 1959 Wash. LEXIS 316, 43 L.R.R.M. (BNA) 2513
CourtWashington Supreme Court
DecidedJanuary 8, 1959
Docket34929
StatusPublished
Cited by7 cases

This text of 333 P.2d 924 (State Ex Rel. Yellow Cab Service, Inc. v. Sup. Ct. for King Cty.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Yellow Cab Service, Inc. v. Sup. Ct. for King Cty., 333 P.2d 924, 53 Wash. 2d 644, 1959 Wash. LEXIS 316, 43 L.R.R.M. (BNA) 2513 (Wash. 1959).

Opinion

Hill, C. J.

This is an application for a writ of mandate sought by the relator, Yellow Cab Service, Inc., a Washington corporation, to direct the superior court of King county to take jurisdiction of its action against the International Brotherhood of Teamsters (hereinafter referred to as the union) to enjoin the picketing of its premises. The union successfully attacked the superior court’s jurisdiction over the relator’s action on the ground that the only proper forum was the National Labor Relations Board.

Some background on the controversy between the relator and the union is necessary. Until 1955, the Yellow Cab company in Seattle was a partnership. During 1955 and 1956, a plan of liquidation was put into effect, under which all of the taxicabs were sold to some one hundred eighteen individual Washington corporations indépendent in ownership from the relator corporation and from the original partnership. These one hundred eighteen individual corporations, most of which purchased just one taxicab, then undertook the functions of operating their respective taxicabs. All taxicabs were purchased under conditional sales contracts from the partnership, none of which has been completely paid off as yet.

The trial court found that the relator corporation was organized for two purposes: (1) for service to the one hundred eighteen individual taxicab operators, and (2) for assurance to the partnership that the taxicabs it had sold would ultimately be paid for. The relator corporation is controlled by the original partnership.

The central dispatching facilities were transferred to the relator. The relator also furnishes for the individual taxicab operators accounting and bookkeeping services, advertising services, and services as a bargaining agent for insurance upon all of the taxicabs. From the partnership the *646 relator has derived certain exclusive contractual rights for Yellow Cabs to pick up arriving passengers at the Seattle railroad terminals, airports, and passenger steamship docks. The relator holds and owns the Yellow Cab color rights, and the good will attached to the ñamé of the Yellow Cab company, and grants their use to the individual taxicab operators.

As security during the period in which the taxicabs are being paid for, the partnership retains, through its conditional sales contracts, a considerable control over the quality of the Yellow Cab service. The conditional sales agreements give the partnership the right to repossess taxicabs if their operators are guilty of breaches of good operating procedure as defined by the directors of the relator corporation, though, in practice, no such repossession has taken place. Matters of operating procedure and discipline of taxicab operators are handled through an operating committee of all of the operators, plus the representatives of the relator. Power to discipline operators is sometimes delegated by the operating committee to a “personnel manager” supplied by the relator.

In 1956, the relator and all of the operators bargained together with the union in making a contract which all parties signed. This contract terminated on June 1, 1958. The relator claims that it has accepted the union contract offered this year, and that many of the independent operators have also done so. The union, it is charged, has refused to sign the contract with the relator or any of the operators until some twenty to thirty of the operators, who have not at this time accepted the offered contract, be persuaded, or compelled, to accept it. Furthermore, the relator charges that as a result of the union’s dispute with these twenty to thirty operators the union is picketing the relator’s place of business in Seattle, and such picketing has caused relator’s crew of dispatchers to leave their jobs and remain away until such time as all of the taxicab operators, along with relator, agree to the union’s contract. The relator, therefore, claims that it has no part in whatever labor dispute now exists, and that the picketing of its premises can properly be enjoined.

*647 The merits of this case were never determined in the superior court, due to that court’s decision that it did not have jurisdiction to proceed with the case. The superior court decided that the Yellow Cab system was in interstate commerce and that the case presented a labor dispute affecting interstate commerce over which the National Labor Relations Board would have jurisdiction. Relying on Guss v. Utah Labor Relations Board (1957), 353 U. S. 1, 1 L. Ed. (2d) 601, 77 S. Ct. 598, the superior court held that the federal jurisdiction over this case was exclusive and pre-empted the state court’s jurisdiction.

The National Labor Relations Act empowers the National Labor Relations Board “to prevent . . . any person from engaging in any unfair labor practice . . . affecting commerce.” 49 Stat. 453, 29 U. S. C. A. § 160(a). The definition of the term “affecting commerce” is given as follows, at 49 Stat. 450, 29 U. S. C. A. § 152 (7):

“The term ‘affecting commerce’ means in commerce, or burdening or obstructing commerce or the free flow of commerce, or having led or tending to lead to a labor dispute burdening or obstructing commerce or the free flow of commerce.”

The term “commerce” used herein at all times refers to interstate commerce subject to Federal regulation. See 49 Stat. 450, 29 U. S. C. A. § 152(6).

The first question to be answered concerning the National Labor Relations Board’s jurisdiction in this case is whether Seattle’s Yellow Cab system is “in [interstate] commerce.” The conclusion of this court is that it is not.

The union places some reliance on a recent press release (October 2, 1958) from the National Labor Relations Board indicating that it will assume jurisdiction in cases involving taxicab companies where the annual gross volume of business is $500,000 or more. We are of the opinion that the ultimate test is not the amount of gross volume of business, but whether the local transportation service is an integral part of interstate commerce. Guss v. Utah Labor Relations Board, supra.

*648 The Yellow cabs are based in the city of Seattle and operate almost entirely within King county. In order to establish that they are in interstate commerce, the union relies upon the business these taxicabs do in picking .up and delivering passengers at the railroad terminals, airports, and passenger steamship docks. The total gross revenues received by all of the hundred and eighteen taxicab operating corporations from July 1, 1957, through June 30, 1958, was $1,429,914.02. Gross revenues received from picking up passengers from the Seattle airports were $141,460.80 from Seattle-Tacoma Airport and $14,601.60 from King County Airport (Boeing Field). An estimate was made at the trial that this constituted seventy per cent of the full business of these taxicabs in,serving these airports, the remaining thirty per cent involving trips to the airports. Not all of these gross revenues came from passengers traveling interstate, however it appears that a substantial portion did.

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Bluebook (online)
333 P.2d 924, 53 Wash. 2d 644, 1959 Wash. LEXIS 316, 43 L.R.R.M. (BNA) 2513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-yellow-cab-service-inc-v-sup-ct-for-king-cty-wash-1959.