United Baking Co. v. Bakery & Confectionery Workers' Union, Local 221

257 A.D. 501
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJuly 11, 1939
StatusPublished
Cited by17 cases

This text of 257 A.D. 501 (United Baking Co. v. Bakery & Confectionery Workers' Union, Local 221) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Baking Co. v. Bakery & Confectionery Workers' Union, Local 221, 257 A.D. 501 (N.Y. Ct. App. 1939).

Opinions

Crapser, J.

The plaintiff, will be hereinafter referred to as “ Company,” the defendant will be the Union ” and the intervenor-appellant as the “ Board.”

In the months of October and November, 1937, plaintiff Company and certain of its employees were having difficulties and on [503]*503November fifth the Company discharged several employees. Such discharges were made, so the Company asserted, for gross incompetency and insubordination.

On January 4, 1938, the Board issued a complaint charging this Company with unfair labor practices set forth in section 704 of the Labor Law. The Company filed its answer denying the issues. Thereafter on January 25, 1938, at the offices of the Board, in the city of Albany, an agreement and stipulation was prepared and signed which settled the pending controversy.

The agreement provided the Union would withdraw its charges, pending proceedings were terminated and the Union relinquished its rights vested by virtue of chapter 443 of the Laws of 1937. In return the Company re-employed all the discharged men until the issue of certification of a collective bargaining agency had been determined by the Board.

This agreement was negotiated after many conferences attended by all the parties under the supervision of the Board of Mediation, Department of Labor, State of New York.

In return the Company, in lieu of payment to individuals, in restitution for back wages, agreed to pay the Union $1,925 and the Union agreed to make an equitable distribution of this sum and certify to the Board of Mediation the distribution of the same.

The stipulation and agreement was drawn and signed by the Company and the Union on the same day, and on a later day it was signed by the Independent Grocery and Bread Workers’ Union and provided for the determination of who was qualified as sole bargaining agency for the employees.

Thereafter, on April 28, 1938, the Company received a certificate of the Board certifying the Independent Grocery and Bread Workers’ Union as sole bargaining representative of all the employees of the Company, as provided by section 705 of the New York State Labor Relations Act.

The defendant did not appeal or attempt to review the question decided by the Board and no action was brought to set aside the agreement or stipulation and defendant has not returned, or offered to return, any part of the $1,925.

The Company, acting on the authority of the agreement, stipulation and certificate of the Board, that the Independent Grocery and Bread Workers’ Union was the sole bargaining agency for its employees, on May 5, 1938, entered into a closed shop agreement with it as the sole bargaining agency for all employees and that they would employ only members of the Union in good standing. The terms of the agreement provided it would continue in full force [504]*504and effect to and through November 30, 1938, at which time a new agreement was entered into, with same provisions, expiring on November 30, 1939.

In 1938, due to lack of work, as the Company claims, they laid off a great many men who belonged to the Union. Under a closed shop agreement with the Union the Board issued a second complaint against the Company dated January 12, 1939. This complaint charged the Company with violation of section 704 of article 20 of the Labor Law, which was added by chapter 443 of the Laws of 1937 and is known as the New York State Labor Relations Act. Among the charges were the intimidation, restraint and coercing of employees since July 1,1937, and until January 25,1938, charging that the certified union was a Company union and that the agreement had been entered into in bad faith.

On the 24th of January, 1939, the Company commenced an action against the Board to restrain it from hearing testimony regarding unfair labor practices prior to January 25, 1938, on the ground that such an act would interfere with the contract rights of the Company under that agreement and further that the Board be estopped by reason of the certification of the Union and reliance of the Company upon it. The motion for temporary injunction was denied and cross-motion for dismissal of the complaint granted.

On January 25, 1939, the Company commenced its present action for an injunction against the Union to prevent it from violating the terms of the agreement of January 25, 1938, and stipulation attached thereto. ■

Subsequently the application was made for a temporary injunction. The Union made cross-motions to dismiss the complaint and the Board applied for permission to intervene and made motions, by way of cross-motions, to dismiss the complaint.

The first issue involves the sufficiency of the complaint as to whether or not it states a cause of action against the Bakery and Confectionery Workers’ Union, Local 221, and whether or not it states facts sufficient to justify exercise of the discretion of the court in granting the temporary injunction.

The second issue is, as to whether or not the intervenor-appellant, New York State Labor Relations Board, is entitled to intervene in an action predicated upon a contract between two other parties.

The purpose of the New York State Labor Relations Act is to prevent strikes, lock-outs and other forms of industrial strife and unrest. Section 700 of the act contains the Legislature’s statement of the findings and policies which led to its adoption.

The action for injunctive relief addressed to the equity powers' of the Supreme Court is predicated upon the violation of contract [505]*505rights between the plaintiff Company and defendant Union arising out of the contract and stipulation instituted by vote January 25, 1938. The stipulation and agreement were signed by the Company and Union and the Independent Grocery and Bread Workers’ Union. The relief demanded by plaintiff is based upon rights which flow entirely and solely from the contract itself and this controversy is solely between plaintiff and defendant.

The Board contends the Union is only nominally a defendant; that the Board itself is a real party in interest.

Subdivision 3 of section 193 of the Civil Practice Act provides: Where a person not a party to the action has an interest in the subject thereof, or in real property the title to which may in any manner be affected by the judgment, or in real property for injury to which the complaint demands relief, and makes application to the Court to be made a party, it must direct him to be brought in by the proper amendment.”

The interest referred to in said section is a property interest or some duty or right devolving upon or belonging to the party brought in. (Morrell v. Brooklyn Borough Gas Co., 231 N. Y. 405, 408.)

The Board claims its duties arise under subdivision 1 of section 706 of the Labor Law and that it is brought within paragraph 3 of section 193 of the Civil Practice Act by reason of said section of the Labor Law.

The present action is one for enforcement of contract rights.

The Legislature did not, by the passage of chapter 443 of the Laws of 1937, make the Supreme Court of the State subservient to the New York State Labor Relations Act. The Board was not given any power, by chapter 443 of the Laws of 1937, to interpret, enforce or abrogate any contract made by any two parties, particularly where it is no! a party to the contract.

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United Baking Co. v. Bakery & Confectionery Workers' Union, Local 221
258 A.D. 764 (Appellate Division of the Supreme Court of New York, 1939)

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Bluebook (online)
257 A.D. 501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-baking-co-v-bakery-confectionery-workers-union-local-221-nyappdiv-1939.