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CHICAGO AREA VENDING v. LOCAL UNION NO. 761

May 9, 1983

CHICAGO AREA VENDING EMPLOYERS ASSOCIATION, PLAINTIFF,
v.
LOCAL UNION NO. 761, A/W INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND HELPERS OF AMERICA, AND CUSTOM COFFEE SERVICE, DEFENDANTS.



The opinion of the court was delivered by: William T. Hart, District Judge.

MEMORANDUM OPINION AND ORDER

This action is brought by a multiemployer bargaining association, the Chicago Area Vending Employers Association ("Association") against Local Union No. 761, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America ("Local 761") and Custom Coffee Service ("CCS"). The gist of the three count complaint is that CCS, a member of the Association, improperly and independently contracted with Local 761 to withhold pay raises promised to CCS' employees under the terms of the collective bargaining agreement between the Association and Local 761. The Association seeks to enforce under federal law the terms of the collective bargaining agreement. The complaint also includes pendent claims for breach of contract and tortious interference with contractual relations. Relief is sought in the nature of specific performance, an injunction, declaratory judgment, back pay, liquidated damages, punitive damages, costs and attorneys' fees. Jurisdiction is alleged under section 301(a) of the Labor Management Relations Act of 1947 ("LMRA"), as amended 29 U.S.C. § 185, 28 U.S.C. § 1331 and 28 U.S.C. § 2201 and 2202.

Facts

The Association is an Illinois nonprofit corporation comprised of eight separate employers engaged in the vending machine industry in the Chicago metropolitan area. It is an "employer" in or affecting commerce within the meaning of section 152(2) of the LMRA. CCS is a charter member of the Association and the Association alleges that CCS had not severed its membership at any time relevant to this lawsuit. Local 761 is a "labor organization" within the meaning of section 152(5) of the LMRA and the designated bargaining agent of the employees of the constituent members of the Association.

The Association was formed in 1978 to negotiate and administer collective bargaining agreements with Local 761. Incident to its formation and purpose, each member entered into an Association Agreement and executed a Power of Attorney, appointing the Association as its collective bargaining agent to Local 761. The Association Agreement specifies the rights and duties of the Association and its members which, in pertinent part, include:

ARTICLE III

EXECUTIVE COMMITTEE

Section 7. The committee is empowered . . .

    (a) To negotiate and sign a collective
    bargaining agreement . . . between the Union
    and the members of the Association. Such . . .
    agreement shall cover all the members'
    employees represented by the Union and shall be
    binding upon all members of the Association.

ARTICLE V

COLLECTIVE BARGAINING BY THE ASSOCIATION

  Section 3. The members agree not to
        individually, either directly or
        indirectly, negotiate, discuss, agree to
        sign, or sign any agreement with the
        Union . . . including interim agreements,
        concerning any matter under a collective
        bargaining agreement with the Union.

ARTICLE VI

ENFORCEMENT OF AGREEMENT

  Section 1. . . . The promises, undertakings and
    agreements herein contained are a contract by
    each member not only in favor of the Association
    but also expressly for the benefit of every other
    signatory. It is understood and agreed by all
    members that any member who violates or fails or
    refuses to perform, obey, or carry out any of the
    above promises, undertakings and agreements
    violates the entire purpose and objectives of the
    Association and seriously and irreparably damages
    the Association and its members.
  Section 3. Any alleged violation of this Agreement
    may be submitted to arbitration. . . .
  Section 6. Because great and irreparable damage to
    the Association and its members will result from
    the violation by any member of the provisions of
    this Agreement, the Committee may bypass
    arbitration and may, by action in any court
    having jurisdiction, apply for ...

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