Stork Restaurant, Inc. v. Fernandez

16 Misc. 2d 265, 184 N.Y.S.2d 810, 43 L.R.R.M. (BNA) 2771, 1959 N.Y. Misc. LEXIS 4069
New York Supreme Court·Decided March 23, 1959·Published·Cited by 2 cases

Opinion

Joseph A. Gavagan, J.

Plaintiff corporation, operating a restaurant, seeks a temporary injunction to restrain the defendant unions from continuing the alleged unlawful picketing, which has proceeded in front of plaintiff’s premises for more than [266] two years. The unions cross-move to dismiss the complaint on the ground that the court does not have jurisdiction of the subject of the action and on the further ground that there is a prior action pending in this court for the same relief.

The present action, unlike the prior action, is predicated upon the continuation of the picketing after the declination by the State Labor Relations Board to take jurisdiction of the controversies. The State board found that the plaintiff was engaged in interstate commerce and that its labor relations were accordingly within the jurisdiction of the National Labor Relations Board.

The decisive question presented on this application is whether, under the facts here, “ Congress, by vesting in the National Labor Relations Board jurisdiction over labor matters affecting-interstate commerce, has completely displaced state power to deal with such matters ” (Guss v. Utah Labor Bd., 353U. S. 1, 2-3).

Although the course of the controversies between the parties is tortuous, the material facts are largely undisputed. On January 5, 1957, plaintiff discharged one of its kitchen employees allegedly for union activity in behalf of the defendant Local 89, which has a membership of some 9,000 kitchen employees working in New York City restaurants. A few days later, Local 89 claiming a majority of plaintiff’s kitchen employees, established a picket line in front of plaintiff’s premises. About the same time, the defendant Local 1, which has a membership of some 12,000 dining room employees working in New York City restaurants, claimed it represented a majority of plaintiff’s dining room employees.

On January 9, 1957, Local 89 filed a charge with the State Labor Relations Board based on plaintiff’s alleged failure to bargain collectively. Two weeks later Local 1 filed a charge with the State board which also alleged that plaintiff was engaged in unfair labor practices. On February 6, 1957, the plaintiff filed two petitions with the State board: one alleging that a dispute had arisen with Local 89 concerning the representation of plaintiff’s kitchen employees and the other alleging that a dispute had arisen with Local 1 concerning the representation of plaintiff’s dining room employees. In each petition the State board was requested to certify the representative, if any, designated by the employees involved. Shortly thereafter, each union filed amended charges and based on such charges the State board issued its complaint alleging in substance that the plaintiff (as respondent in the administrative proceedings) had engaged in unfair labor practices, par[267] ticularly the failure to bargain collectively with each union and the discriminatory discharges of employees for union activities. The various proceedings before the State board were consolidated and hearings were held before a trial examiner on 24 days from May 2 to November 6, 1957.

In the meantime, the plaintiff had instituted the prior action and applied to this court for a temporary injunction to enjoin the allegedly unlawful picketing pending the certification proceedings before the State board. -On that application, too, the unions cross-moved to dismiss the complaint. Special Term enjoined the picketing pending trial. On appeal, the Appellate Division held that ‘ ‘ it was possible for the plaintiff to deal with the defendants without being exposed to the hazards of a charge for unlawful labor practices, which the plaintiff in the Goodwins case [303 N. Y. 300] was unable to do”, and modified the order of Special Term to the extent of striking the injunctive provision (3 A D 2d 233, 236).

A subsequent application to the court for a temporary injunction against the picketing of plaintiff’s premises was settled by stipulation limiting, among other things, the number of pickets.

On September 30, 1957, in the proceedings before the State board, the plaintiff filed a second amended answer which, for the first time, alleged that the plaintiff was engaged in interstate commerce, that the Federal board had sole and exclusive jurisdiction of its labor relations and that the State board was without jurisdiction.

In January, 1958, more than one year after the charges were filed with the State board, the trial examiner issued an intermediate report in which he found that the board lacked jurisdiction of plaintiff’s labor relations and recommended dismissal of the complaint. Exceptions to the trial examiner’s intermediate report were filed by the State board’s litigation attorney, as well as by the unions. In November, 1958, there were two significant developments which materially changed the situation in the opinion of the board. The first was a decision by the national board holding that it would assert jurisdiction over all retail enterprises engaged in interstate commerce which did a gross volume of business of at least $500,000 annually (Carolina Supplies & Cement Co., 122 N. L. R. B. No. 17). The second was the decision in Hotel Employees v. Leedom (358 U. S. 99), where the Supreme Court held that the Federal board could not refuse to exercise jurisdiction over the hotel industry as a class. Based on those decisions the State board found that it lacked jurisdiction since the restaurant business was a [268] part of the hotel industry. On January 28, 1959, more than two years after charges were filed before the State board, it entered an order dismissing the complaint against the plaintiff and discontinuing all proceedings between the parties on the ground that the plaintiff was engaged in interstate commerce, that the Federal board would assert jurisdiction over plaintiff’s labor relations and that the State board was without jurisdiction.

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Stork Restaurant, Inc. v. Fernandez, 16 Misc. 2d 265, 184 N.Y.S.2d 810, 43 L.R.R.M. (BNA) 2771, 1959 N.Y. Misc. LEXIS 4069 (N.Y. Super. Ct. 1959).

16 Misc. 2d 265 (Stork Restaurant, Inc. v. Fernandez) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Stork Restaurant, Inc. v. Fernandez
8 A.D.2d 38 (Appellate Division of the Supreme Court of New York, 1959)