Haenlein v. Saginaw Building Trades Council
Haenlein v. Saginaw Building Trades Council
Opinion of the Court
The tie game played by Moody against Carnegie a year ago (356 Mich 434) did but forecast our disagreement in this case.
' Having bumped my own way through this Court’s bulbous verbosity of dissertation, upon the supposed elasticity of time-limitations appearing in Court Rules Nos 28 and 48 (1945), I find the field clear for independent judgment that a personally served defendant (or plaintiff for that matter), seeking by late motion or application to avoid his entered default (on strength of which due proceedings have been taken), may do so only by charging and proving that his litigant opponent has committed a fraud, upon him or the court, either in bringing about entry of such default or in the inducement of inaction by such personally served defendant. Such judgment shortens the present opinion, which is well.
In Moody the total time allowed — by Court Rule .No 48 — for application for rehearing had expired.
No heed was given, by defendants Dalton and International Brotherhood, to any of these notices. The last one was given by the assignment clerk of the court. By it counsel of record were notified, under date of October 9, 1958, that the cause would come on for trial October 21, 1958 (which it did). Between the date of such notice and the stated date of trial, Milwaukee counsel appearing for defendants Dalton and International Brotherhood wrote a Saginaw representative of defendant Local Union No. 486 as follows:
“We received notice from William L. Hellerman that the Haenlien case was set for trial on October 21, 1958. We understand that the Teamsters have no interest in the Haenlien Company and do not desire to litigate the issues involved in that case. We suggest that your local attorney inform the court and the plaintiff’s counsel of this fact with the view in mind of having the Teamsters dismissed as a party by stipulation.”
In denying this application for rehearing, the chancellor rightfully followed the rule of White v. Sadler, 350 Mich 511, that is to say:
“Our Court has traditionally been strict on setting aside defaults once regularly entered. Where a default following personal service is regularly taken, the court rule providing that it shall not be set aside after a certain time (presently 4 months) has generally been regarded as mandatory (Hensey v. Hensey, 331 Mich 518; Gombasy v. Gombasy, 318 Mich 139; Watkins v. Wayne Circuit Judge, 247 Mich 237), and this rule, however, harsh, has been subject to few exceptions, the most notable being that of fraud (Hensey v. Hensey, supra), which is not urged or suggested here.” (Quotation from White, pp 521, 522.)
An application for rehearing under Court Rule No 48, by a party in default, provides no means of getting around the time-limitation of Court Rule No 28, which is to say that these defendants presently have no standing to apply under Rule No 48 for rehearing. Their default has never been set aside. Nor has any petition or motion to vacate such default been submitted. Consequently, this application was out of order and is now out of order. See, to the point, McInerney’s, Inc., v. Dunford, 341 Mich 477.
A final question is raised; that no State court may entertain jurisdiction over a case “which originated with an employer’s charge of unfair labor practices against unions in an industry which affects com
In my view this jurisdictional question was not open to consideration below, nor is it here, for want of fact-proof of its decisive premises. See Austin v. Painters’ District Council, 339 Mich 462, 484, 485. There the defendants, by “petition to reopen the cause for certain purposes,” sought without success to introduce a corresponding defense of exclusively Federal jurisdiction. Sometimes, jurisdictional questions need proof to make them effective. That is true here. The asserted want of jurisdiction does not appear in or on the face of the record.
I would affirm, with costs to plaintiff.
Supplement (July 12, 1960):
This case was duly assigned to the writer prior to submission thereof during the April term. In pursuance of such assignment the foregoing opinion was submitted for consideration of our membership on May 11, 1960. Now, under term-delayed date of June 30th, Justices Carr and Smith have gotten around to writing that the Court should pursue other and separate courses toward appellate judgment. One would affirm with explanation of what he has written in Moody v. Carnegie, 356 Mich 434. The other would reverse for want.of determination below of a question of jurisdiction, pleaded affirmatively by these defaulted defendants, the validity of which question depended below and depends now on defensive-essential proof the defaulted labor union chose not to present.
My Brother Carr, bolstering his extended writing in Moody, refers to the allegedly defrauded party (in that case) as “an elderly widow.” The “elderly widow,” for whom my Brother bleeds anew, was shown in the cited case as having been party to a
' I would say this only, by way of compendious reply to my Brother’s bootstrap review of Moody: At first writing Justice Carr warily refrained from saying who perpetrated the “fraud” as found by him. Writing in today’s case, he is yet unwilling to name and so accuse the alleged perpetrator. One thing is sure. Defendant Carnegie and his counsel were innocent of fraud, or participation in the commission of fraiid. So, if “fraud” really did taint the plan aiid the presentation of the suit brought in Mrs. /Moody’s name, was it not committed exclusively by some one or all of those who participated in the illegal agreement to sue and divide?
Aside from the above, both opinions of Moody speak for themselves. One group would insert a stretehable-at-will number of weeks, months, or years in the time-limitational periods of Court Rule Nos 28 and 48 (1945). The other group would not. Such being the divisive state of things, how trustworthy — anyway—are limitations of time by court rule? Let troubled lawyers answer in the safe privacy of Michigan law offices, seasoning their speech with salt
Today’s question of jurisdiction is simple of presentation: Did the court have power to enter upon the inquiry presented by the pleadings'? The very nature of its self-styled “affirmative defense” is an admission by the defendant union of a “yes” answer. By that plea the union asked the court to receive evidence in support thereof and, upon such evidence, to find judicially that it — the union — was immune from State court suit as pleaded. Having duly acquired jurisdiction — conferred by the plaintiff’s bill and the defensive pleadings as filed — the court below was authorized to proceed until it was “judicially informed that its power over the cause has been suspended.” Phoenix Insurance Company v. Pechner, 95 US 183, 186 (24 L ed 427). It was never so informed, and this my Brother Smith admits:
I voted to sustain the defendant union in Town & Country Motors, Inc., v. Local Union No 328, 355 Mich 26, because that union amply supported, with proof, its plea to the jurisdiction. I vote here to overrule the defendant union because it has failed to offer proof supporting its like plea. When a union is right, I shall vote to support its cause. When it
I vote again to affirm, with costs to plaintiff.
“Let thy speech he alway with grace, seasoned with salt, that ye may know how ye ought to answer every man.” (Golossians 4:6.)
Dissenting Opinion
(dissenting). We are concerned at the threshhold of this case, as we were in Taylor v. Auditor General, 360 Mich 146, with a question of jurisdiction.
One of the appellants set up lack of jurisdiction over the subject matter as an affirmative defense in a suit brought by the appellee to obtain an injunction in a labor dispute:
“As and for an affirmative defense, defendant International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local No. 486, AFL-CIO, alleges that the plaintiff’s business and the employment relations of the plaintiff affect interstate commerce within the terms and definitions of the national labor relations act, 29 USCA, § 151 et seq., exclusive jurisdiction over which resides in the national labor relations board; and further alleges that any assumption of jurisdiction by the courts of the State of Michigan would violate article 1, § 8, and article 6 of the United States Constitution.”.
It should be obvious to any lawyer that reliance is being placed on the doctrine of Federal pre-emption, a doctrine vital to the effectuation of national policy in the field of labor relations. See Town & Country Motors, Inc., v. Local Union No. 328, 355 Mich 26. When such a jurisdictional question has been brought to the attention of a court, its first duty is to make an inquiry and determination even despite failure of the parties themselves to plead or argue the question. Thus, in New York, N. H. & H.
It answers nothing of substance to say that the appellant alleged no “facts” in support of its jurisdictional defense. "What it alleged in its sworn answer was that plaintiff’s business and employment relations affected interstate commerce. It asserted that exclusive jurisdiction over the case resided in the national labor relations board, and cited specifically the applicable sections of the Federal code. Are these “facts”?
Much ingenuity has been spent in the past distinguishing facts from conclusions, and questions of fact from questions of law. We cannot build the jurisprudence of a great State upon these slippery semanticisms. They represent, in all but the simplest cases, of which this assuredly is not one, terms not susceptible of either definition or accurate description. They are often ex post facto rationales for decisions reached, rather than reasons for arriving at the decision. Moore points out that the Federal courts under their present rules “are not hampered by the morass of decisions as to whether a particular allegation is one of fact, evidence, or law.”
No more should we be so hampered. The Federal courts have regarded their rules as freeing them from such mysticisms and we, as well, have adopted a liberal interpretation of our rules of pleading. Baker v. Gushwa, 354 Mich 241. If a pleading gives
A motion was made to strike the entire answer of the appellants, which contained the affirmative defense. It was not made within the 15 days specified by Court Rule No 27, § 6 (1945), but some 8 months later. It was granted and a default taken for want of an answer. The objections to the answer were directed to the paragraphs by which facts alleged in the bill of complaint were denied; no reply was made to the affirmative defense and no objection was raised to the manner in which it was made. As the cause thus proceeded nothing appeared to suggest that the defense of lack of jurisdiction was frivolous or otherwise did not deserve the attention of the chancellor. Counsel for the appellants did not contest the motion, indeed, took no further action until some time after the default decree had been entered. Yet the inaction or ineptitude of counsel does not relieve a court of the duty of determining its own jurisdiction. Jones v. Amsel, 388 Pa 47, 51 (130 A2d 119): “The chancellor himself is not [because of
The employment of an analogy may serve to bring the issue before us in sharper focus. We will assume that through some misconception of the law, a bill for divorce is filed in the probate court, that general appearance is entered by the defendant, who challenges jurisdiction in the answer, that thereafter he writes letters to all parties that he will not participate in the trial, does not do so, and that decree pro confesso against him is taken. The decree of the probate court is a complete nullity. Challenge thereto will be heard by any court at any time from any party and will be raised by any court itself, sua sponte, should the circumstances become known to it. No rights can be built on such a decree, any officer attempting execution on the faith thereof is a mere trespasser, and the decree may be directly or collaterally assailed. In short, it is a mere brutum fulmen, wastepaper. See Fox v. Martin, 287 Mich 147.
Finally, it is argued that defendants did not move to vacate the default. What they did, more than 4 months after the entry of the default, was to file a pleading called “petition for rehearing” in which they requested that the decree be set aside, that they be allowed to file an amended answer, and that a rehearing be granted. The name attached to a pleading does not establish its character: it must be construed so as to accomplish its manifest purpose. The chancellor construed it as a prayer that the default be set aside and in so doing he was clearly correct.
Reliance upon Austin v. Painters’ District Council No. 22, 339 Mich 462, is misplaced. In that case, defendants attempted to interject a jurisdictional point in a supplemental brief on appeal. This court examined the record and found nothing therein to form a basis for raising the point, concluding that “it is evident that defendants’ purpose in seeking to reopen the case was to explore the possibilities of establishing evidence upon which to base a Federal question.” Id. at 485. Where the point is not raised frivolously, proper respect for congressional purpose and the orderly administration of justice compels a court to consider the question of jurisdiction.
Whether there is jurisdiction of the subject matter in this cause cannot be determined without further
What appellee’s argument actually presents is a monument to Baron Parke, whose “almost superstitious reverence for the dark technicalities of ■special pleading”
The situation is reminiscent of Sergeant (later Mr. Justice) Haye’s dialogue, “Crogate’s Case; A. Dialogue in the Shades on Special Pleading Be-form.”
“Sur. B.: Done away with special pleading? Heaven forbid! * * * We framed a series of rules on the subject, which have given a truly magnificent development to this admirable system; so much so, indeed, that nearly half the cases coming recently before the court, have been decided upon points of pleading.
“Crogate: You astonish me. But pray how do the suitors like this sort of justice?
“Sur. B.: Mr. Crogate, that consideration has never occurred to me, nor do I conceive that laws ought to be adopted to suit the tests and capacities of' the ignorant.”
In ancient times, when trials were mere combats, between opposing counsel, he who best knew the intricacies of repleader and surrebuttal would prevail as a matter of course. Cases were disposed of in great numbers without taking the testimony of so much as a single witness. Justice was thus sacrificed on the altar of lifeless formalism. Today pleadings are construed, not as an impediment to justice-but to further its accomplishment. Save in the-clearest possible cases, of which this, assuredly, is-not one, modern courts do not dispose of substantial issues on pleading points alone, but on proofs. Since-it is enough that challenge to jurisdiction over the-subject matter need merely be suggested on the record to impose upon a court the duty of conducting-inquiry as to its jurisdiction to proceed, we need, hardly add that inartistic or unskillful pleading thereof'.(even should such exist) will not serve to-relieve the court of its duty.
The. order of the chancellor denying the relief' prayed by the appellants is reversed and the cause-
Decree should be reversed and remanded.
The authority of the chancellor to make such a determination is well established. Teeter v. Teeter, 332 Mich 1; Lehman v. Lehman, 312 Mich 102; In re Estate of Fraser, 288 Mich 392.
2 Moore, Federal Practice (2d ed 1948), § 8.13, at p 1647.
The ehaneellor held, in part, as follows: “Rule No 28, § 4 (1945), provides proceedings to set aside a default must be made within 4 months after the default is regularly filed and entered. This was not done.” Also: “Defendants further allege the default should be set aside because of the neglect of the attorneys.” Also: “This writer is a visiting judge and many trips were made to hear this
Frankfurter, J., dissenting in Johnson v. New York, N. H. & H. R. Co., 344 US 48, 62 (73 S Ct 125, 97 L ed 77).
The principal fault here, according to counsel’s affidavits, was -that appellants’ Milwaukee counsel understood that appellants’ Detroit counsel would forward them all papers filed in the cause but, •due to misunderstanding, this was not done. We are told by affidavit:
“That the address of the attorneys for said Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local Union No. 486, and Neil Dalton, Jr., upon the Notice of Appearance was 2550 Guardian Building, Detroit, Michigan, and that the affiant understood that the Detroit offiee would forward all papers having to do with this case to the office in Milwaukee as soon as they were received in the Detroit office; that a misunderstanding in this regard oeeurred which was inadvertent and unintentional and whieh resulted in .the fact that the papers above mentioned, to-wit: the motion to strike the answer, the order of the court that the ánswer be stricken unless an amended answer be filed, the notices of default for failure to file an amended answer and the notice of hearing were received in the Detroit offiee, but were not forwarded to the Milwaukee’ offiee, and that they did not come to the attention of affiant until after said decree was made and entered.”
9 Holdsworth, History of English Law, p 427.
See Crogate’s Case, 8 Co Rep 66b (77 Eng Rep 574).
Concurring Opinion
(concurring). Plaintiff brought this suit in equity, seeking injunctive relief and damages based on alleged wrongful conduct on the part of ■defendants. The bill of complaint alleged that plaintiff was a contractor engaged in building houses in Saginaw county, that as such he had a number of •employees, and that the defendants engaged in a ■conspiracy to interfere with plaintiff’s business, and with his employees, for the attainment of an unlawful labor objective. The conduct of which plaintiff complained was set forth in detail in his pleading. The defendants filed their answers thereto, the International Brotherhood of Teamsters, Chauffeurs, "Warehousemen and Helpers of America, Local Union No. 486, and defendant Dalton joining in a ■pleading that denied some of plaintiff’s allegations, pleaded lack of information as to others, and asserted by way of affirmative defense that the exclusive jurisdiction with reference to the plaintiff’s alleged ■cause of action was vested in the national labor relations board. The answers filed on behalf of other defendants are not material in the instant controversy.
On behalf of plaintiff a motion was submitted to ■strike the answer filed on behalf of Teamsters Union and Dalton, its local representative, on the ground that its averments were evasive and not in compliance with the requirements of Michigan Court Rules
No attempt was made to have the default referred' to set aside. Several months later the case was set for trial on October 21, 1958. Counsel representing” the plaintiff, and also counsel representing defendants other than the Teamsters Union and Dalton, were present and announced themselves ready for trial. In a colloquy between the court and counsel appearing in the case reference was made to the fact that the 2 defendants named were not present or represented although notice of trial had been sent to them by the clerk of the court, as specifically requested by counsel for the plaintiff. It is not disputed that the notice was received, and it further appears from the record before us that said defendants, the appellants in the case, were also notified by counsel representing another defendant that the case would be brought on for trial on October 21, 1958. It is not disputed that the following letter was written by general counsel for the Teamsters Union, who also represented defendant Dalton:
“Mr. Gerry Mcllvain Teamsters Local 486 229 North Jefferson Street Saginaw, Michigan “Dear Gerry:
“We received notice from William L. Hellerman that the Haenlein case was set for trial on October 21,1958. We understand that the teamsters have no interest in the Haenlein Company and do not desire -to litigate the issues involved in that case. We suggest that your local attorney inform the court and the plaintiff’s counsel of this fact with the view in mind of having the teamsters dismissed as a party by stipulation.
“Please advise if there is anything further we can ■do on this case.
“Yours very‘truly,
“Padway, Goldberg & Previant,
By David Leo Helmen
•“DLU*ED
“cc Mr. William L. Hellerman Attorney at Law Shearer Building Bay City, Michigan”
The trial judge proceeded to hear testimony in the ■case, and concluded that the charges made in the bill •of complaint had been sustained by the evidence. A decree was accordingly entered granting against the defendants an injunction as sought by plaintiff, and also providing as follows:
“It is further ordered, adjudged and decreed that -the defendants, Teamsters, Chauffeurs, Warehouse-men & Helpers of America, Union No. 486, American Federation of Labor, and Neil Dalton, jointly and severally pay to the plaintiff Andrew J. Haenlein, his damages sustained by reason of the illegal and unlawful primary and secondary boycott which the court finds and assesses at $20,000, and that plaintiff may have execution therefor.”
The decree entered in circuit court made no reference to the order of default entered by counsel for plaintiff against appellants. It did, however, recite that appellants had regularly appeared in the case,, that they had received notice of the date and place of trial, and that neither said defendants, nor either of them, nor their counsel, had appeared in court. It thus appears that the circuit judge determined that under the circumstances he was justified in proeeed-ing in accordance with the notice of trial, and in permitting the introduction of proofs offered on behalf of the parties to the case who were represented. It further appears that the decree was based on the proofs taken in open court. No claim is made that appellants sought, or desired, a continuance for any reason. It is a matter of inference only that they believed that plaintiff’s alleged cause of action could not be maintained as against them. Whatever the reason for the failure to appear or to take possible action to bring about a postponement of the trial, the fact remains that defendants elected to take no further part in the proceeding. Under the admitted facts we think the trial judge did not abuse his authority in proceeding with the trial, or in denying appellants’ motion to set aside the decree and grant a rehearing.
On behalf of appellants it is claimed that the trial court was without jurisdiction on the theory that the ■ national labor relations board was vested with sole .and exclusive authority in the premises. However,
On the record before us the situation is analogous to that in Way Baking Company v. Teamsters & Truck Drivers Local No. 164, American Federation of Labor, 335 Mich 478. In that case the claim of the defendant that the plaintiff was engaged in interstate commerce was an issue of fact in the trial court, was determined adversely to defendant, and this Court on appeal concluded that the record supported such finding. It may not be assumed that plaintiff in the case at bar was engaged in interstate commerce, and appellants did not avail themselves of their right to offer proofs in support of their pleaded affirmative defense with reference thereto. The claim now made that the trial court lacked jurisdiction is without merit. For the reasons indicated we concur in affirmance of the decree entered.
Every controversy of this nature must be determined in accordance with the facts involved. Mr. Justice Black has referred in his opinion to Moody v. Carnegie, 356 Mich 434, in which this Court, on equal division, affirmed an order of the circuit court of Wayne county granting a rehearing in an equity case. The fact there was that the plaintiff, an elderly widow, who was a necessary witness in her own behalf, was not given notice that her case had been set for trial at a certain time. As a result she was not present when the case was called and the hearing proceeded without her. Her attorney, who was in
See amendment to Court Rule No 17, § 9, in 335 Midi lxii.—Reporter.
Reference
- Full Case Name
- Haenlein v. Saginaw Building Trades Council, A.F.L.
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