Latas Libby's, Inc. v. United Steelworkers of America

Latas Libby's, Inc. v. United Steelworkers of America

Opinion

 [*25]  This appeal arises out of a strike by members of the defendant-appellant, the United Steelworkers of America, AFL-CIO-CLC (the Union), against the plaintiffs-appellees, Latas Libby's, Inc. and Licasco, Inc. (the Company), in violation of the collective bargaining agreement between the Company and the Union. The primary issue before this court, as it was in the trial court, is whether the Union is liable under section 301 of [**2]  the Labor Management Relations Act of June 23, 1947, 29 U.S.C. § 185, for the damages caused by the illegal strike. After a bench trial, the district court found that the Union had both "authorized and/or  [*26]  condoned" the strike and failed to take "all reasonable means to prevent and/or end" the strike. Based on these findings, the court assessed damages of $ 38,389 against the Union and entered an order enjoining the Union to "comply with the no-strike provision of the Collective Bargaining Agreement, which defendants has (sic) in effect with the plaintiffs as well as similar provisions contained in any other collective bargaining agreement which the parties may negotiate in the future." We affirm the findings of the district court on the issue of damages, but we reverse the court's issuance of an injunction mandating compliance with the no-strike provision of the contract between the parties.

The Facts

Latas Libby's and Licasco operate a plant in Villalba, Puerto Rico, engaging in the manufacture of tin cans and ends. The United Steelworkers of America is the exclusive bargaining agent representing the production and maintenance employees at the Villalba plant. The [**3]  Union members at Villalba are also organized into a local union (the Local) having its own officers, board of directors, and treasury. On July 22, 1977, the Union and the Company executed a collective bargaining agreement (the Agreement), which was in effect during the time of the events giving rise to this litigation. Article 2 of the Agreement, entitled "Responsibilities of the Parties", contains a covenant that each party will "discharge its responsibilities under (the) Agreement." Under Article 2.2(c), the Union makes the following commitment regarding strikes against the Company:

"There shall be no strikes, work stoppages, or interruption or impending (sic) of work. No officer or representative of the Union or employee shall authorize, instigate aid or condone, any such activities during the life of this Agreement."

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