Upper Lakes Shipping, Ltd. v. Seafarers' International Union

18 Wis. 2d 646
CourtWisconsin Supreme Court
DecidedFebruary 5, 1963
StatusPublished
Cited by2 cases

This text of 18 Wis. 2d 646 (Upper Lakes Shipping, Ltd. v. Seafarers' International Union) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Upper Lakes Shipping, Ltd. v. Seafarers' International Union, 18 Wis. 2d 646 (Wis. 1963).

Opinion

Wilkie, J.

There are three principal issues on this appeal:

1. Does the National Labor Relations Act pre-empt the state of Wisconsin from taking jurisdiction in this controversy ?

2. If there is no federal pre-emption, is the plaintiff (as a foreign corporation without a certificate of authority from the secretary of state) precluded from invoking the jurisdiction of the courts of this state ?

3. Was the trial court correct in enjoining the picketing by defendant ?

Was there pre-emption by federal governmentf On the question of pre-emption this case is governed by Benz v. Compania Naviera Hidalgo (1957), 353 U. S. 138, 77 Sup. Ct. 699, 1 L. Ed. (2d) 709.

In that case the S. S. Riviera, owned by a Panamanian corporation and flying a Liberian flag, sailed into Portland, Oregon, for repairs, to load a cargo of wheat, and to complete an insurance survey. The crew was made up entirely of nationals of countries other than the United States, principally German and British. On or about September 9, 1952, the members of the crew went on strike on board ship. On September 26th the striking crewmen left the ship. The crew picketed the ship from September 9th to October 13th. The crew had designated the Sailors’ Union of the Pacific as their collective-bargaining representative. This latter union picketed the ship until restrained by an injunction. Damages were later awarded to the employer. All the picketing was peaceful hut was enjoined because the purpose of the picketing was illegal.

[651]*651The union and their representatives contended that the trial court was without jurisdiction because the Labor Management Relations Act of 1947 had pre-empted the field. The judgments were based on a common-law theory that the picketing was for an unlawful purpose under Oregon law. The court ruled that there was no federal pre-emption and in its opinion stated (353 U. S. 138):

“It [the controversy] was between a foreign employer and a foreign crew operating under an agreement made abroad under the laws of another nation. The only American connection was that the controversy erupted while the ship was transiently in a United States port and American labor unions participated in its picketing, (p. 142.)
“Our study of the act leaves us convinced that Congress did not fashion it to resolve labor disputes between nationals of other countries operating ships under foreign laws. The whole background of the act is concerned with industrial strife between American employers and employees, (p. 143.)
“For us to run interference in such a delicate field of international relations there must be present the affirmative intention of the Congress clearly expressed.” (p. 147.)

In the case at bar, the plaintiff Upper Lakes is a Canadian employer and its crew is composed entirely of foreign seamen, sailing under a Canadian flag, who were picketed by another Canadian union while the ship involved was transiently in-an American port. Because there were no more internal United States contacts and controls in the instant case than in the Benz Case, supra, we are convinced that under the ruling in that case, there was no federal pre-emption here.

Defendant union contends that the ship makes many voyages to Milwaukee each year. Upper Lakes ships may visit Milwaukee from four to six times during the season. Furthermore, in Lauritzen v. Larsen (1953), 345 U. S. 571, 73 Sup. Ct. 921, 97 L. Ed. 1254, the United States supreme court dismissed the argument that frequent and regular visits [652]*652will of themselves bring the subject matter under federal jurisdiction.

The defendant cites two cases decided by the national labor relations board that hold that the state of Wisconsin is preempted from asserting jurisdiction in this case: West India Fruit & Steamship Co. (1961), 130 N.L.R.B. 343, and United Fruit Co. (1961), 134 N.L.R.B. 287. It is true that in both of these cases the national labor relations,board did retain jurisdiction over the controversy. But both of these cases can be easily distinguished from the case at bar. In the West India Fruit Case, supra, the ship sailed only between Cuba and the United States and was owned by a United States corporation. In the United Fruit Case, supra, the ships were owned by a subsidiary which was in turn completely owned, operated, and controlled by a United States corporation. The national labor relations board held there were substantial United States contacts which brought the case under the jurisdiction of the board. In oral argument the defendant also cited a recent supreme court decision Ex parte George (1962), 371 U. S. 72, 83 Sup. Ct. 178, 9 L. Ed. (2d) 133. In that case the supreme court of the United States held that the state of Texas did not have jurisdiction over a labor dispute involving the American Oil Company and the National Maritime Union. The labor union peacefully picketed a refinery operated by a subsidiary of American that had a valid collective-bargaining agreement with the Oil, Chemical & Atomic Workers International Union. The court held that the district court (of Texas) was without jurisdiction to enforce contempt proceedings against the union representative who did not abide by that court’s injunction against the picketing of the refinery.

“ ‘In the absence of the board’s clear determination that an activity is neither protected nor prohibited or of compelling precedent applied to essentially undisputed facts, it is not for this court to decide whether such activities are subject to state jurisdiction.’ San Diego Building Trades Council, [653]*653etc., v. Garmon, 359 U. S. 236, 246, 79 S. Ct. 773, 780, 3 L. Ed. 2d 775. The Texas supreme court held that petitioner’s conduct was neither arguably prohibited nor arguably protected by the Act. (Tex.), 358 S. W. (2d) 590. We disagree. Even assuming, without deciding, that the picketing would not fall within the prohibitions of sec. 8 (b) (1) (A) or sec. 8 (b) (4) (i) (B) of the National Labor Relations Act, as amended, we hold, in light of the district court’s finding that American wholly owns the subsidiary and ‘directs and controls all of . . . [its] activities,’ that petitioner’s picketing was conduct at least arguably protected by sec. 7 of the act.” (Emphasis ours.) (371 U. S. at p. 73.)

Thus a United States corporation was a real party to the dispute and that fact in itself also distinguishes the above case from the Benz Case, supra, and the case at bar.1

Is the plaintiff precluded from invoking the jurisdiction of the courts of this state? Sec. 180.801 (1), Stats., states:

[654]*654“A foreign corporation shall procure a certificate of authority from the secretary of state before it shall transact business in this state . . .”

Sec. 180.847 (1), Stats., states:

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18 Wis. 2d 646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/upper-lakes-shipping-ltd-v-seafarers-international-union-wis-1963.