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ISBRANDTSEN CO. v. LOCAL 1291

August 19, 1952

ISBRANDTSEN CO., INC.
v.
LOCAL 1291 OF INTERNATIONAL LONGSHOREMEN'S ASS'N ET AL.



The opinion of the court was delivered by: Grim, District Judge.

This is an action brought under Section 301(a) of the Labor Management Relations Act of 1947*fn1 (popularly known as the Taft-Hartley Act) to recover damages for breach of a collective bargaining agreement.

Section 301(a) provides:

    "Suits for violation of contracts between an
  employer and a labor organization representing
  employees in an industry affecting commerce as
  defined in this chapter, or between any such labor
  organizations, may be brought in any district court
  of the United States having jurisdiction of the
  parties, without respect to the amount in controversy
  or without regard to the citizenship of the parties."

Defendant has moved to dismiss on the grounds that the Court has no jurisdiction of the action and that the Complaint fails to state a claim upon which relief can be granted because plaintiff is not a party to the agreement upon which relief is sought.

The Complaint contains the following allegations: Plaintiff, the Isbrandtsen Company (hereinafter referred to as "Isbrandtsen"), is a New York corporation engaged in the business of a common carrier by water in foreign trade. Defendant, Local 1291 of the International Longshoremen's Association, is a labor union representing employees in the shipping industry, which is an "industry affecting commerce."

On October 3, 1950, the Philadelphia Marine Trade Association, on behalf of its members, among them the Lavino Shipping Company*fn2 (hereinafter referred to as "Lavino"), entered into a collective bargaining agreement with the International Longshoremen's Association which was acting on behalf of its local unions, among them the defendant, Local 1291. This agreement, incorporated in the Complaint, recited that it was "meant to cover the loading and unloading of ocean-going ships in the Port of Philadelphia and vicinity" and included an agreement that there would be "no strikes, work-stoppages, slow-downs or lock-outs during the pendency of any matter before" a joint arbitration board provided elsewhere in the agreement for the settling of disputes.

Plaintiff, Isbrandtsen, owner of the steamship "NYCO" on February 1, 1951, chartered that vessel to the Scott Paper Company*fn3 (hereinafter referred to as "Scott") for the purpose of transporting wood pulp from Nova Scotia to Philadelphia, Pennsylvania. Under the terms of the charter agreement, the Scott Paper Company was to load and discharge the vessel. On September 1, 1951, Scott signed an agreement with Lavino in which Lavino undertook to discharge the cargo of wood pulp from the vessel upon its arrival in Philadelphia.

On November 23, 1951, Lavino, pursuant to the collective bargaining agreement, employed members of defendant, Local 1291, as stevedores to discharge the cargo in compliance with Lavino's contract with Scott. On November 26, 1951, a date on which all the agreements mentioned above were still in effect, the stevedores of Local 1291, who were discharging the cargo from plaintiff's vessel, violated the collective bargaining agreement by refusing further to discharge cargo pending arbitration of a grievance that had risen. Plaintiff, Isbrandtsen, alleged that the collective bargaining agreement was made for plaintiff's benefit and that by reason of defendant's violation of this agreement plaintiff has been required to pay additional port charges and other expenses, has suffered loss of charter hire that it would have otherwise received had the vessel "NYCO" not been idle, and has suffered other loss and damage, in the total amount of $25,000.

In short, Isbrandtsen is claiming from Local 1291 damages allegedly resulting from Local 1291's failure to perform its promise*fn4 to Lavino not to strike,*fn5 which promise Isbrandtsen alleges was made for the benefit of Isbrandtsen as third-party beneficiary.

Defendant, Local 1291, has attacked the Complaint on two grounds: (1) That Section 301(a) does not confer jurisdiction upon this Court over a suit by a third-party beneficiary of a collective bargaining agreement and (2) that Isbrandtsen has no standing to sue under Section 301(a), since it is not a third-party beneficiary, but is merely an incidental beneficiary of, and a stranger to, the allegedly breached agreement.

Assuming the allegations of the Complaint to be true, as I must do in considering a motion to dismiss, I conclude that Isbrandtsen is clearly a stranger to the collective bargaining agreement and that, therefore, it has no standing to bring suit thereon. Having concluded that plaintiff is not a third-party beneficiary, I need not take up the thorny question of whether the courts under Section 301(a) have jurisdiction over a suit brought by a third-party beneficiary on a collective bargaining agreement.*fn6 In the present case, I am assuming, without deciding, that this court has jurisdiction over such a suit. I am deciding only that it is clear from the language of the agreement itself that plaintiff, contrary to its allegations, is not a third-party beneficiary, but is a mere stranger to, and an incidental beneficiary of, the agreement.

Isbrandtsen's contention is that, in Section 8(a) of the agreement, one of Local 1291's purposes of promising Lavino not to strike pending arbitration of a dispute was to confer upon Isbrandtsen a right against Local 1291.

The pertinent terms of Section 8(a) are:

    "All disputes and grievances arising under the
  terms and conditions of this agreement which cannot
  be adjusted at the job site by representatives of the
  employer involved and the Union shall be referred to
  a Joint Arbitration Board * * *. There shall be no
  strikes, work stoppages, slow-downs or ...

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