Yellow Bus Lines, Inc. v. Drivers, Chauffeurs & Helpers Local Union 639

883 F.2d 132, 280 U.S. App. D.C. 60, 1989 WL 95389
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 22, 1989
DocketNos. 86-5135, 86-5136
StatusPublished
Cited by46 cases

This text of 883 F.2d 132 (Yellow Bus Lines, Inc. v. Drivers, Chauffeurs & Helpers Local Union 639) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yellow Bus Lines, Inc. v. Drivers, Chauffeurs & Helpers Local Union 639, 883 F.2d 132, 280 U.S. App. D.C. 60, 1989 WL 95389 (D.C. Cir. 1989).

Opinions

MIKVA, Circuit Judge:

This litigation arises from events surrounding a four day strike by employees of Yellow Bus Lines, Inc. for recognition by the company of a union local, Drivers, Chauffeurs, and Helpers Local 639 (“Local 639” or “the Local”), as their collective bargaining representative. Believing that the union had engaged in a campaign of violence to sabotage the company and obtain labor concessions, Yellow Bus and three of its officers (“Yellow Bus” or “appellants”) filed claims and counterclaims in these consolidated cases against the Local and its business agent and trustee James Woodward, accusing them of engaging in a “pattern of racketeering activity” in. violation of section 1962(c) and (d) of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. sections 1961 et seq. (1982) and alleging violations of tort law.

After the judge dismissed the RICO charges, the remaining counts were tried before a jury. The jury awarded damages against the Local and Woodward on three tort claims. Yellow Bus appeals from the district court judge’s partial grant of appellees’ motion for judgment notwithstanding the verdict (JNOV) setting aside each verdict except that against Woodward for malicious destruction of property. Appellants also challenge various pre-trial orders, including denial of leave to amend the RICO complaint and dismissal of the RICO counts.

On June 27, 1989, the Supreme Court vacated an earlier opinion of this court in this matter and remanded the case for our consideration in light of the Court’s teaching in H.J. Inc. v. Northwestern Bell Telephone Company, — U.S. —, 109 S.Ct. 2893, 106 L.Ed.2d 195 (1989). The decision in Northwestern only impacted this court’s opinion on the RICO issues. Having considered the Court’s teaching, we iterate our finding that the dismissal of the RICO counts by the district court and the denial of leave to amend were error. Accordingly, we reverse and remand on that ground. For reasons set forth below (and unaffected by the Court’s decision in Northwestern ) we also vacate the judgment notwithstanding the verdict against the Local on malicious destruction of property. In all other respects, we affirm the judgment of the district court.

I. Background

In 1979, appellants Maria Triggs, Paula Westgate, and her brother Peter McKinnon created Yellow Bus Lines, Inc., a Virginia corporation located and operated in the District of Columbia. In October 1981, a number of Yellow Bus employees met with Local 639 business director Woodward for the purpose of organizing the company em[63]*63ployees. After Yellow Bus refused to recognize and bargain with the union, a strike was called on November 9, 1981.

According to Yellow Bus, the strike was marred by threats and violence against company property by Woodward and other strikers. As a result of one incident in which Woodward allegedly threatened to “burn the company buses,” Ms. Triggs called the police. Woodward was briefly arrested and charged in a three-count felony indictment for threatening to damage the buses.

Proceedings in the court below were initiated one year after the strike, when Woodward filed suit on November 4, 1982 against District of Columbia police officer Michael DiPalermo, the city, and three officers of Yellow Bus alleging abuse of process and false arrest. The defendants in that action, Woodward v. DiPalermo, et al, Civ. No. 82-3154, then counterclaimed, alleging malicious destruction of property and intentional interference with contract as well as intentional infliction of emotional distress. They also charged Woodward and the Local with abuse of process, claiming that Woodward filed his false arrest claim to discover information essential to his criminal defense and to induce Yellow Bus to agree to the Local’s proposed contract terms. In April 1983, Yellow Bus filed additional charges against Woodward and the Local alleging violations of RICO, 18 U.S.C. sections 1962(c) and (d). By October 1984, the district court had dismissed all the federal claims, but elected to retain jurisdiction ov.er the tort claims. In May 1984, Woodward’s false arrest claim was dismissed after Woodward reached a settlement with the District of Columbia. The trial on the remaining counts began in February 1985, and the jury returned a verdict in favor of appellants on three counts, awarding a total of $133,200. Yellow Bus was awarded $1,280 against Woodward and $1,920 against Local 639 for malicious destruction of property, and $40,000 against Woodward and $60,000 against the Local for intentional interference with contractual relations. The jury also awarded the company and its three officers $15,000 against Woodward and $15,000 against the Local for abuse of process. In March 1985, the court entered judgment for these amounts. In January 1986, the court partially granted appellees’ JNOV motion and set aside all except the $1,280 judgment against Woodward for malicious destruction of property. 686 F.Supp. 1.

II. JNOV On Malicious Destruction of Property

In support of its claim of malicious destruction, Yellow Bus introduced testimony of damage to vehicles observed by employees at the strike site. Although no employee saw Woodward participate directly in vandalism, the court found that “circumstantial” evidence linking Woodward to property damage, coupled with threats made by Woodward and other strikers, was sufficient to support the jury determination that Woodward was liable for the property damage. The court decided, however, that the evidence against the Local was insufficient to support liability under section 6 of the Norris-LaGuardia Act, which requires clear proof of union responsibility for the acts of its agents.

Section 6 of the Norris-LaGuardia Act states that

No officer or members of any association or organization, and no association or organization participating or interested in a labor dispute shall be held responsible or liable in any court of the United States for the unlawful acts of individual officers, members, or agents, except upon clear proof of actual participation in, or actual authorization of, such acts, or of ratification of such acts after actual knowledge thereof.

29 U.S.C. section 106 (1982). Section 6 applies in “federal court adjudications of state tort claims arising out of labor disputes.” United Mine Workers v. Gibbs, 383 U.S. 715, 737, 86 S.Ct. 1130, 1144, 16 L.Ed.2d 218 (1966); see also Ramsey v. United Mine Workers, 401 U.S. 302, 310, 91 S.Ct. 658, 663, 28 L.Ed.2d 64 (1970). In order to support a grant of the motion for JNOV, the trial judge could not have found “clear proof” of the union’s participation or [64]*64authorization. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 2512-13, 91 L.Ed.2d 202 (1986).

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Bluebook (online)
883 F.2d 132, 280 U.S. App. D.C. 60, 1989 WL 95389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yellow-bus-lines-inc-v-drivers-chauffeurs-helpers-local-union-639-cadc-1989.