United States v. Ryan

350 U.S. 299, 76 S. Ct. 400, 100 L. Ed. 2d 335, 100 L. Ed. 335, 1956 U.S. LEXIS 1632, 37 L.R.R.M. (BNA) 2581
CourtSupreme Court of the United States
DecidedFebruary 27, 1956
Docket281
StatusPublished
Cited by158 cases

This text of 350 U.S. 299 (United States v. Ryan) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Ryan, 350 U.S. 299, 76 S. Ct. 400, 100 L. Ed. 2d 335, 100 L. Ed. 335, 1956 U.S. LEXIS 1632, 37 L.R.R.M. (BNA) 2581 (1956).

Opinion

*300 Mr. Justice Clark

delivered the opinion of the Court.

The question for decision in this case is whether the president and principal negotiator of a labor union is a “representative” of employees within the meaning of § 302 (b) of the Labor Management Relations Act of 1947. 61 Stat. 136, 29 U. S. C. § 141. That section makes it unlawful for “any representative of any employees” to receive money or other thing of value from the employer. The District Court, 128 F. Supp. 128, held that respondent Joseph P. Ryan was a “representative” within the meaning of § 302 (b), but the Court of Appeals for the Second Circuit reversed, Judge Hand dissenting. 225 F. 2d 417. Because of the importance of this question in the administration of the Act, we granted certiorari, 350 U. S. 860.

Ryan was president of The International Longshoremen’s Association (ILA) during the years 1950 and 1951. The ILA and its affiliated groups were the recognized collective-bargaining agents for longshore labor in the Port of New York, and bargained through a wage scale committee of which Ryan was a member. He signed the agreements negotiated during that period. J. Arthur Kennedy & Son, Inc., and Daniels & Kennedy, Inc., were concerns engaged in stevedoring operations; their employees were members of the ILA, and they were bound by the agreements negotiated with that union by the New York Shipping Association. The District Court found that James C. Kennedy, president of both Kennedy companies, had given Ryan $1,000 in December of each year from 1946 through 1951, and $500 in April 1951. These findings are not disputed. Ryan was indicted under § 302 (b) for accepting the one 1950 and two 1951 payments. 1 He was found guilty and sentenced to *301 six months’ imprisonment on each of the three counts, the sentences to run concurrently, and fined $2,500.

The Court of Appeals reversed solely on its interpretation of the term “representative” in § 302 (b) of the LMRA. It concluded that the term had a technical meaning in labor legislation and was limited to “the exclusive bargaining representative” of the employees, which in this case was the ILA itself. Since the section applied only to the “representative,” payments to Ryan individually were not covered even though as president of the representative union, he was a member of its wage scale committee and signed all negotiated agreements. We do not decide whether any official of a union is ex officio a representative of employees under § 302. We believe, however, that respondent’s relationship brings him within that term.

The LMRA provides that the term “representative” shall have “the same meaning as when used in the National Labor Relations Act as amended by this Act.” §501 (3). The pertinent definition appears in §2(4) of the NLRA: “The term 'representatives’ includes any individual or labor organization.” 49 Stat. 449, 450, 29 U. S. C. §§ 151, 152 (4).

The Board has held that employees may choose to elect an individual as exclusive or sole bargaining representative. 2 The Court of Appeals, laying much stress on these holdings, assumes that the possibility of such a one-man exclusive bargaining representative, though extremely rare, 3 is the only reason for the inclusion of the word “indi *302 vidual” in this definition. We cannot accept such an anomalous view. It is obvious that any labor organization, even when serving as an exclusive bargaining representative, can negotiate, speak, and act only through individuals. All collective bargaining is conducted by individuals who represent labor and management. Many limitations or prohibitions upon labor organization action can be effective only if there are corresponding limitations or prohibitions on the individuals who act for the labor organization. Congress, we believe, placed the identical limitations on both individuals and organizations by terming both “representatives” of employees in § 2 (4). We agree with Judge Hand that in using the term “representative” Congress intended that it include any person authorized by the employees to act for them in dealings with their employers.

Considering the precise words of the statute — “any representative of any employees” — it is plain that their literal meaning strongly suggests that they were meant to include someone in the position of respondent Ryan who represented employees both as a union president and principal negotiator. And this interpretation is strengthened by a consideration of the full text of § 302. 4 ' Para *303 graphs (a) and (b) of § 302 make it unlawful for any employer to offer, or any representative to accept, money or other thing of value. Paragraph (c) lists five exceptions to these broad prohibitions. The first exempts payments as compensation for services “to any representative who is an employee” of the employer. Thus it is clear that § 302 anticipates that a “representative” may be an individual. Of the remaining four exceptions, one could *304 apply only to unions but each of the other three could apply as readily to individuals. 5

Further, a narrow reading of the term “representative” would substantially defeat the congressional purpose. In 1946 Congress was disturbed by the demands of certain unions that the employers contribute to “welfare funds” which were in the sole control of the union or its officers and could be used as the individual officers saw fit. The United Mine Workers’ demand that mine *305 operators create a welfare fund for the union by contributing 10 cents for each ton of coal mined, caused the Congress to act. The Case Bill, H. R. 4908, 79th Cong., 2d Sess., which regulated welfare funds in a manner similar to § 302, was enacted in 1946, but was vetoed by the President. The following year the Taft-Hartley Act containing § 302 was passed over another veto. But, if “representative” means only the “exclusive bargaining representative,” the explicit limitations on welfare funds in § 302 (c) (5) may be easily evaded. Payments made directly to union officials, or to other individuals as trustees, would apparently be excluded from § 302. Thus, a narrow construction would frustrate the primary intent of Congress.

Nor can it be contended that in this legislation Congress was aiming solely at the welfare fund problem. Such a suggestion is supported neither by the legislative history nor the structure of the section. The arrangement of § 302 is such that the only reference to welfare funds is contained in § 302 (c)(5). If Congress intended to deal with that problem alone, it could have done so directly, without writing a broad prohibition in subsections (a) and (b) and five specific exceptions thereto in subsection (c), only the last of which covers welfare funds.

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350 U.S. 299, 76 S. Ct. 400, 100 L. Ed. 2d 335, 100 L. Ed. 335, 1956 U.S. LEXIS 1632, 37 L.R.R.M. (BNA) 2581, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-ryan-scotus-1956.