# Petition — R. L. Sweet Lumber Co. v. National Labor Relations Board

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1975
- **Citation:** 423 U.S. 986

## Text

m ‘Supreme © * C. S.
FIL D
1975

AUG 29

wo 5-321 4 | ilicuas, ronan Je, CuERK

IN THE SUPREME COURT OF THE UNITED STATES
October Term, 1975

R. L. SWEET LUMBER COMPANY,
~4

Petitioner,
vs.

NATIONAL LABOR RELATIONS BOARD.

PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE TENTH CIRCUIT

‘Charles E. Hoffhaus,
HILLIX, BREWER, HOFFHAUS,
GRIER & WHITTAKER

2715 Commerce Tower
Kansas City, Mo. 64105

Attorneys for Petitioner

August 25, 1975

Y

INDEX

Opinions Below . . . « « « « «
Jurisdiction ...+«e-e«e $e
Question Presented for Review.
Statutory Provision Involved .
Statement of the Case ....
Reasons for Granting the Writ.
Conclusion ..-« + « «© «© « « e
Appendix A (Decision and
Proposed Order of Admini-
strative Law Judge) ..... -
Appendix B (Decision and Order
of National Labor Relations

“SOkWWND

~

BeewG)e « « eo coe veeaeseess Be MEB-

Appendix C (Opinion of Court of

Appeals for the Tenth Circuit). 55 App.

Appendix D (Judgment of Court of

Appeals for the Tenth Circuit). 77 App.

AUTHORITIES

Cases Page

Local No. 1424, International
Machinists v. NLRB, 362 U.S.41l
(1960) 4L.Ed. 2d 832, 80 S.Ct.

Ce « 6.4 6 6 & 2%. ee 2 eee

NLRB v. Brown (CCA9, 1962), 310
* B a re Sms we eee

Tennessee Products Chemical Corp.

v. NLRB, (CCA6, 1970), 423 F2d

Me « « 6 @ » 6 6.6 6 & 2S

Statutes

29 U.S.C.A. §160(b). . - « « « 3

(i)

bs
B
z

IN THE SUPREME COURT OF THE UNITED STATES

October Term, 1975

No.

R. L. SWEET LUMBER COMPANY,
Petitioner,
vs.

NATIONAL LABOR RELATIONS BOARD

PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE TENTH CIRCUIT

| The petitioner, R. L. SWEET LUMBER
COMPANY, respectfully prays that a writ
of certiorari issue to review the judg-
ment and opinion of the United States
Court of Appeals for the Tenth Circuit
entered in this proceeding on June 5,

1975.
—=

OPINIONS BELOW

The Decision and Proposed Order of
the Administrative Law Judge, Case No.
17-CA-5292, John F. Corbley, Administra-
tive Law Judge, is unreported and is
printed in Appendix A, infra, pp. 1 - 52,
App. (The Appendix("App.") is printed
and paginated separately). The Decision
and Order of the National Labor Relations
Board is reported at 207 NLRB No. 89 and
1974 CCH NLRB 425,971 (see Appendix B,
infra, pp. 53 - 54, App.). The Opinion
of the Court of Appeals for the Tenth
Circuit is reported at 515 F.2d 785 (see

Appendix C. infra, pp. 55 - 76, App.).

JURISDICTION

‘The judgment of the Court of Appeals
(see Appendix D, p. 77, App., infra) was
entered on June 5, 1975. The jurisdic-
tion of this Court is invoked under 28

U.S.C.A. §1254(1).
_=

QUESTION PRESENTED FOR REVIEW

Does the continuing recognition and
enforcement by an employer after the
barred statutory limitations period, of
a labor contract entered into with a
union which did not represent a majority,
as in this Court's 1960 Bryan decision
cited infra, constitute an actionable

unfair labor practice (or is this Court

willing to allow Bryan to be ignored)?

STATUTORY PROVISION INVOLVED

Section 10(b) of the National Labor
Relations Act, 29 U.S.C.A. §160(b), p.5,
provides in pertinent part:

That no complaint shall issue
upon any unfair labor practice
occurring more than six months
prior to the filing of the
charge with the Board [National
Labor Relations Board] and the
service of a copy thereof upon
the person against whom such
charge is made, unless the per-
son aggrieved thereby was pre-
vented from filing such charge
by reason of service in the armed

<_™

forces, in which event the six-
month period shall be computed
from the day of his discharge.

STATEMENT OF THE CASE

. Petitioner, R. L. Sweet Lumber Com-
pany, a Missouri corporation qualified
to do business in Kansas (the "Company”")
has operated a lumber business since 1952
on Roe Boulevard in Kansas City, Kansas
where, as well as selling lumber and
other building materials, it has manu-
factured and sold millwork such as win-
dows, doors and room dividers, and also
Single-package prefabricated homes. The
prefab home manufacturing activiae was
known as the Standard Homes Division. It
was not a separate legal entity until
November 1971, at which time the name
of an available subsidiary was changed to
Standard Homes Company and the prefab

equipment was sold to that subsidiary.
age

a”

The prefab manufacturing employees at Roe

Boulevard, some 16 in number, were mem-

bers of Carpenters Local 1635 and were
represented by the Carpenters’ District
Council of Kansas City and Vicinity,
AFL-CIO, ("Union” or "Carpenters") in a
separate unit. Seven or eight of these
employees spent all or most of their time
in prefabrication and assembly of the
packaged homes. Another unit, composed
of warehouse and yard employees (e.g.,
lumber handlers, truckdrivers, loaders,
forklift operators, stockmen, etc.), was
represented by Teamsters Local 541.
Because its prefab home operation
at Roe Boulevard was cramped and ineffi-
ciently organized, the Company decided in
about 1970 to build a _— plant at Olathe,
Kansas, about 19 miles away and the part-

ies stipulated to the economic necessity
@S-

of this move. In January 1972, with the
new plant almost completed, Standard Homes
Company hired four new employees to work

at the Olathe plant. (At least three of
these initial four employees later worked
on the production line for prefab homes at
Olathe.) During their first month, before
production started, these four men unloaded
the initial lumber deliveries at Olathe and
did carpentry work, building racks and
other facilities preparatory to the manu-
facture of prefab homes.

On January 24, 1972, a business agent
of Teamster Local 541 visited Olathe and
obtained signed authorization cards from
all four men and presented them to the
Company. Standard Homes Company and Team-
sters Local 541 executed a contract on

February 11, 1972 (the "Olathe contract”)

which ran from February 7, 1972 until

February 2, 1975, with a provision for
-6-

qutenatic renewal. The contract gave
Local 541 representation over "all produc-
tion and maintenance employees at the Em-
ployer's Olathe, Kansas, plant including
truck drivers". One of its provisions re-
quired unit employees to join Local 541
after 31 days of employment.

By its later actions, including
actions considerably mass than six months
after the signing of the Olathe contract,
the Company (and its subsidiary Standard
Homes Company) gave lawful recognition
and enforcement to the Olathe contract
by advising new production and maintenance
workers that they were subject to the con-
tract with Teamsters Local 541, checking
off dues, paying the wage scale referred
to therein, and in general adhering to the
terms thereof. The Carpenters sought, and
the Company declined, bargaining with re-

spect to the Standard Homes production
Jo

workers in about February of 1972, and
later Carpenters grievance and arbitration
attempts were also rejected by Company,
because of the binding effect of the
Teamsters contract. |

This proceeding was initiated by an
unfair labor practice charge filed by
the Carpenters and served on the Company

on August 18, 1972 (six months and seven

days after the date of signing the Olathe
Teamsters contract). As hereinafter noted,

the District Director dismissed the

original charge, but it was later rein-
stated by direction from the National
office. The case was heard before the

U. S. Tenth Circuit Court of Appeals upon
the application of the National Labor Re-
lations Board pursuant to jurisdiction
granted by Section 10(e) of the National
Labor Relations Act, as amended (61 Stat.

136, 73 Stat. 519, 29 U.S.C. Sec. 151, et
~~

woe

seq.), for enforcement of its order issued

against the Company on November 23, 1973.

.That Court had jurisdiction of the pro-

ceeding, the alleged unfair labor practices
having occurred in the State of Kansas.
Judgment was entered by the U. S. Tenth
Circuit Court of Appeals on June 5, 1975

enforcing the aforesaid order of the NLRB .

against Company.

REASONS FOR GRANTING THE WRIT

The reasons for granting the writ are

(a) The Bryan NLRB statute of limit-
ations case, decided by this Court on vir-
tually identical facts, and cited infra,
was not followed by the Court of Appeals,
opening the way for burdensome disposition
of a huge volume of otherwise time-barred
unfair labor practice cases.

(b) The decision of the Tenth Cir-

cuit Court of Appeals is in conflict with

those of other circuits on the same

issue, thereby inviting the exercise of
this Court's power of supervision to foster
uniformity. |

This appeal assumes arguendo that

(1) in early February, 1972 (pre-February
19) the Teamsters card-signers were in the
minority insofar as the eventual unit was
concerned, as in the Bryan case; (2) Stand-
ard Homes was the alter ego of the Company;
(3) all work granted to the Teamsters by
the contract of February 1l, 1972 (i.e.,
all production and maintenance work) was
work previously contracted to a certified
union, Carpenters Local 1635 of the K. C.
Carpenters District Council, as in the
Bryan case; and (4) that the contract con-
tinued to be enforced and maintained by ..
Company and Standard Homes after the six
month limitations period, as in the Bryan

case.
-10-

The Regional Director (who dismissed
the original charge), the Law Judge, the
Board and the Court of Appeals all agreed
with Company that the recognition of, and
execution of a contract with, the Team--
sters at the Olathe plant are not action-
able because these two actions are barred
because of this Court's ruling in Bryan.
The only dispute is over later enforcement.

The issues herein were all decided by

this Court in Local No. 1424, International

Machinists v. NLRB, 362 U.S. 411 (1960)

4 L.Ed. 2d 832, 80 S. Ct. 822, commonly

known as the Bryan Manufacturing Company

case. The Bryan case dealt with the appli-
cation of Section 10(b) of the National
Labor Relations Act, as amended, 61 Stat.
146, 29 U.S.C. §160(b) which provides, in

pertinent part, as follows:

"Provided, that no complaint shall
issue based upon any unfair labor
practice occurring more than six

-ll-

months prior to the filing of the
charge with the Board and the serv-
ice of a copy thereof upon the per-
son against whom such charge is
made***" (Emphasis supplied)

This Court cited the legislative his-
tory of the Section to the effect that it
was designed to bar litigation over past
events "after records have been destroyed,
witnesses have gone elsewhere, and recol-
lections of the events in question have
become dim and confused” (l.c. 419).

In the Bryan case, this Court made it
clear that events barred by the limitation
cannot be used to "taint" later events
which are not, in and of themselves (and
without reference to barred unfair prac-
tices). unfair.

Yet the Court below, ignoring this
prohibition, felt free to look at later
hirings and enforcement of Teamsters'
wages, check-off, pension, and other con-

tract terms in isolation, even though pre-
@-12<

dicated on the barred contract. This
Court thoroughly explored this issue in
the Bryan case, and succinctly stated that
(l.c. 423):

"In any real sense, then, the
complaints in this case are

"based upon’ the unlawful execu-
tion of the agreement, for its
enforcement, though continuing,

is a continuing violation solely

by reason of circumstances exist-
ing only at the date of execution.
To justify reliance on those cir-
cumstances on the ground that the
maintenance in effect of the
agreement is a continuing viola-
tion is to support a lifting of

the limitations bar by a character-
ization which becomes apt only when
that bar has already been lifted.
Put another way, if the §10(b) pro-
viso is to be given effect, the en-
forcement, as distinguished from
the execution, of such an agreement
as this constitutes a suable unfair
labor practice only for six months
following the making of the agree-
ment." (Emphasis is the Court's).

Standing alone, Company's acts were

totally innocuous and it is only by lifting

the bar and finding the inception of the

agreement to be an unfair labor practice

o}3=

that the General Counsel seeks to chal-

lenge them.

The Court below suggests that Bryan
can be selectively applied because the
original minority union was not a repre-
sentative complement as to the prefab em-
ployees. The avowed purpose of the NLRB,
according to its counsel, was to splinter .
off from the Bryan case situations (such
as here) where the barred contract was made
with a "minority" union. Would this Court
allow Bryan thus to be distinguished and
rendered ineffective? This would open the
floodgates to time-barred labor litigation!

The factual background revealed by. the
appellate history of the Bryan case shows
that the majority Bryan employees (the

U.A.W. adherents) were in the same relative

position as the complaining Carpenters here

and the issue was decided against the

U.A.W. and for the minority union (Machin-
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ists). If the "complement" was "not rep-
resentative," that very situation obtained
on February 11, 1972 when the Teamsters’
contract was signed. (Actually, there was
a representative complement since at least
three of the original four Teamsters card
signers later worked as production workers
on the line.)

The whole thrust of Bryan was to pro-

tect companies in time-barred minority

union situations such as this. In Bryan,
this Court said (l.c. 425, f£.n.16):

"16. The immediate impetus of the
legislation was the pendency of an
NLRB proceeding involving a closed-
shop agreement in effect at the
Kaiser shipbuilding yards in Port-
land, Oregon. The agreement, though
executed at a time when only 66
workers were employed, was being
applied to a 20,000-man work force.
The debates show that the issue of
representation by minority unions
was in the forefront of legislative

——_——_—_—

concern.” (Emphasis supplied)

The Bryan case dealt with an extreme minor-

ity union situation. As Mr. Justice
-15-

Whittaker pointed out in his dissent
(l.c. 433, f.n.1):

"In fact the undisputed testimony
was that the union did not then
represent a single one of the em-
ployees, and that the employer
acceded to the union's demand for
recognition and entered into the
contract simply because the union
had it ‘over a barrel'" (Emphasis
supplied. )

The other Circuit Courts of Appeal have
uniformly followed the holding of this
Court in the Bryan case. Typical of these
cases is the opinion of the Sixth Circuit

in Tennessee Products Chemical Corp. vs.

NLRB, 423 F.2d 169 (CCA6 1970), dealing
with enforcement of a time-barred contract
Similar to that in the instant case, and

following Bryan, supra. In that case, as

here,. the employer was alleged to have con-
tracted with a minority union which did not
actually represent the employees in the
unit at the time of the contract. That

minority non-representative condition con-

tinued, but the Court refused to apply a

"continuing violation" theory after the

barred period. The Court said (l.c.

180):

"The charge of violation of
Section 8(a)(1) and (2) was
not made until July 1, 1965,
almost a year after the ac~-
cused contract or contracts
of July 16, 1964. If there
was a violation, that is
the date it occurred. The
assertion of the Board that
the contract, to run for
three years, was a contin-
uing violation, was consid-
ered and disposed of by the
Supreme Court's opinion in
[Bryan] (citing the quota-
tion, supra, from p.423 of
the Bryan case).

To like effect (§1C(b) running from date

of contract) was NLRB vs. Brown, (CCA 9,

1962), 310 F.2d 539.

CONCLUSION

For the reasons set forth above, it -

is respectfully submitted that this peti-

aio

tion for a writ of certiorari should be

granted.

August 25,

1975.

HILLIX, BREWER, HOFFHAUS,
GRIER & WHITTAKER

By

Charles E. Hoffhaus
2715 Commerce Tower
Kansas City, Mo. 64105
Phone: (816) 221-0355
Attorneys for Petitioner.

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