Opinion ID: 389950
Heading Depth: 2
Heading Rank: 1

Heading: The International Guild

Text: 31 The district court assumed it had subject matter jurisdiction over the International Guild because the complaint alleged that it was a party to the collective bargaining agreement. It dismissed the section 301 breach of contract claim because it found that there was no dispute over the fact that only the Local Guild was a party to the collective bargaining agreement. Having concluded that there was no federal law cause of action for tortious interference with a contractual relationship, the court did not discuss that claim insofar as it bore on the liability of the International Guild. But since there was a separate nonfrivolous section 301 claim that it was a party to the contract within its subject matter jurisdiction the court found it necessary to discuss whether it should entertain the pendent state law claim for tortious interference. It concluded that where parties to a labor dispute are charged with tortious interference with a collective bargaining agreement, at least in the absence of outrageous or violent conduct, state law causes of action are preempted. Our analysis in Part II B above, and that of the district court are in this respect consistent. The preemption conclusion, arrived at by a somewhat different route, was correct. The issue is one of federal law. But whereas the district court would preempt state law protections of labor contracts while at the same time denying that the federal common law affords any protection, leaving the Employer wholly unprotected from tortious interference, we have held that section 301(a) grants the federal courts authority to develop such protections. Thus the dismissal of the claim against the International Guild must be reversed. Since there will be a remand it is appropriate to address the grant of summary judgment on the section 301(a) contract claim as well. 32 The allegations of the complaint with respect to International Guild representatives Orcutt and Sabatani, which are not disputed, would, we think, permit the Employer to prove a state of facts satisfying the agency standards laid down in Carbon Fuel Co. v. UMW, 444 U.S. 212, 100 S.Ct. 410, 62 L.Ed.2d 394 (1979), under which the International Guild can be held responsible for these individuals' acts. The Carbon Fuel agency standard applies whether the liability sought to be assessed against the International Guild is based on breach of contract or inducement of a breach. We agree with the district court that on this record the International Guild is clearly not a party to the collective bargaining agreement; it did not bind itself to the employment covenant. Its liability, if any, must result from the fact that it induced a breach of contract by the Local Guild. Thus the rule 12(b) dimissal of the International Guild on Count I must be affirmed, without prejudice to any application the employer may make to the district court for leave to amend the pleadings. The complaint does allege, though, and it is not disputed, that Orcutt and Sabatini are assisting the management of the Citizens' Voice, and thus assisting in the unlawful inducement of a breach of the covenant not to work for a competitor. 7 Thus the case must be remanded for consideration of the tortious interference claim.