Walsche v. Sherlock

159 A. 661, 110 N.J. Eq. 223, 1932 N.J. Ch. LEXIS 154
CourtNew Jersey Court of Chancery
DecidedMarch 24, 1932
StatusPublished
Cited by25 cases

This text of 159 A. 661 (Walsche v. Sherlock) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walsche v. Sherlock, 159 A. 661, 110 N.J. Eq. 223, 1932 N.J. Ch. LEXIS 154 (N.J. Ct. App. 1932).

Opinion

Berry, V. C.

The complainants are four members of Local No. 11 of the International Association of Bridge, Structural and Ornamental Ironworkers, which is an unincorporated labor union having its principal office at 60 Branford Place, Newark, New Jersey. The territory over which this local exercises jurisdiction is that including the counties of Essex, Union, Morris, Middlesex and parts of'the counties of Passaic, Hudson, Somerset and Sussex. The defendants are Samuel McKee, president; John J. O’Neill, financial secretary; Thomas J. Sherlock, business agent; Peter Roth, Daniel Flynn, John Duifey, George Cowan and Thomas Eagleson, members of the executive committee and Paul Yan Esten, treasurer and recording secretary of Local No. 11.

The complainants seek to restrain the above named officers of Local No. 11 from using what is commonly known as the “permit” and “card index” system, or, if permitted to use said system, restraint from discrimination against the complainants and other members of the local by said officers. The bill alleges that “under the ‘permit’ system the members of the local union were permitted to seek employment * * * but could not commence work without having first procured from * * * Sherlock, or his assistant, a permit authorizing him to accept such employment from the particular employer and on the particular piece of work for which he had secured employment; the result was that without such a permit a member of the local could not obtain actual employment any *225 where within the territory covered by such Local No. 11, nor could he obtain employment in the territory of any other local in New Jersey or elsewhere without either a permit from the said Sherlock or a transfer out of his union, which transfer became operative so as to permit the workman to obtain employment in the territory of such other local, only if and when he was accepted by the other local union in whose jurisdiction he proposed to work.”

The bill further alleges “that under the ‘card index’ system employers desiring workmen were to communicate with the office of the local, listing their requirements; the members desiring employment were to report at the office of the secretary of the local, and a card index of those so reporting was to be kept, and employment, as it became available, was to be assigned and given to them in the order, in point of time, in which they had so registered or ‘checked in,’ as it was called; such assignment of employment was evidenced by a permit to that effect, so that the employer or contractor would not employ any man unless he produced a permit from the local, signed by Thomas J. Sherlock or John J. O’Neill, permitting such workman to work for that particular employer on that particular work.” It is charged that before the installation of the card index system the defendant Sherlock used the permit system in a wholly arbitrary manner, granting or refusing to grant permits according to his own caprice and that that system was used by him without any supervision, rules or regulations; that the card index system was inaugurated in an attempt to abolish or curtail Sherlock’s arbitrary powers thus assumed; and.to insure equality in the distribution of employment amongst the members. It is further charged that the card index system has completely failed of its purpose because the defendants Sherlock and O’Neill have not administered it honestly, but, on the contrary, have fraudulently exercised it so that favoritism has resulted and friends and supporters of Sherlock and O’Neill have been assigned to the best jobs while the complainants and others opposed to the regime of Sherlock and O’Neill have been either left without work or assigned to the more dangerous *226 and less lucrative jobs. Other abuses of the system and illegal practices by the defendant officers are charged in the bill. The defendants deny any abuse of the system and any fraudulent or illegal practices and claim to have administered the permit and card index systems with absolute honesty and without favoritism. Generally speaking, however, I think that substantially all of the allegations of the bill of complaint are sustained by the evidence although the defendants had not, at the time of the suspension of the final hearings, put in all their proof with respect to the misuse of the card-index-permit-system. But all the principal defendants had testified and as the testimony stands I am inclined to believe that complainants’ evidence presented the true picture. However, another defense interposed, and the one with which we are now more particularly concerned, is that this court is without jurisdiction in the premises because the complainants have not exhausted the remedies within the organization provided by its constitution.

It is admitted by the complainants that they have not exhausted these so-called remedies but they claim they are not obliged to do so because the pursuit of them would be futile and would amount to a denial of justice, and that if their compliance with the card-index-permit-system is required because of their contract of membership, such contract is void as violative of their constitutional right to freely dispose of their own labor, and the constitutional rights of employers anxious to employ them, to the free flow of labor to such employers.

After ten days had been consumed in the final hearing of this cause it was decided to suspend further hearings until the legal questions raised by the pleadings and by counsel during the course of the trial, especially the defense of non-exhaustion of remedies within the association, were decided.

In disposing of these questions it should be borne in mind that this is not a controversy between “labor” and “capital,” such as is usually involved in injunction. suits concerning labor unions; it is a strife within the union aligned on one side of which are the four complainants, representing a con *227 siderable portion of its membership, and on the other, certain members and officers of that union who are so-called “labor leaders” and who have the active support of the international officers. The union itself is not a party to these proceedings and is involved only because the defendants in their answer invoke the provisions of the constitutions of the local, the district council and the international. The particular section of the international constitution which is invoked is section 2a of article xvii, which reads ás follows:

“No officer or member of our International Association or its local unions shall resort to court proceedings of any description in any matter pertaining to this organization, its local unions or his membership until all remedies provided for within our International Association and local laws have been fully exhausted. Violation of this section shall be sufficient cause for expulsion from membership in this International Association and its local unions.”

The general rule is that the provisions of the constitution and by-laws of a voluntary association become a part of the contract entered into by a member when he joins that association, and this rule is not in dispute. It is also a general rule of law that in controversies between a member and the association the remedies within the organization provided in the constitution and by-laws must be exhausted before appeal to the courts. The New Jersey rule has been recently restated by our supreme court in Emma v.

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Bluebook (online)
159 A. 661, 110 N.J. Eq. 223, 1932 N.J. Ch. LEXIS 154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walsche-v-sherlock-njch-1932.