Incres Steamship Co. v. International Maritime Workers Union
Incres Steamship Co. v. International Maritime Workers Union
Opinion of the Court
Plaintiff Incres Steamship Company, Ltd., is a Liberian corporation owned by Italian stockholders. During seven months of each year it operates two Liberian-registered passenger ships, manned by alien crews signed on in Europe, on regularly scheduled cruises to Caribbean ports, originating at and returning to New York City. Its main office is in London and it has no place of business in Liberia but it has in New York City an office which it shares with a New York corporation (Incres Line Agency, Inc.) owned and controlled by Incres. The New York office is run by its manager who is president of Incres and the New York corporation acts as agent for Incres in booking passengers for the cruises, arranging schedules, and providing supplies, repairs and the like.
Defendant International Maritime Workers Union (IMWU) is an American labor union formed in 1959 by two other American maritime unions, both affiliated with AFL-CIO, to organize and improve job conditions of merchant seamen employed on “ flag-of-convenience ” ships, that is, ships registered in foreign countries (principally in Liberia, Panama and Honduras) but
From the beginning the respective parties have taken the same two opposing positions as to which the Appellate Division divided 3 to 2 and which are again urged on us on this appeal. Incres argues, and both courts below held, that defendant’s acts were illegal and tortious, and that the New York Supreme
The union, besides asserting the exclusive jurisdiction of the NLRB, argues that its conduct was not unlawful, that the New York courts have no power to enjoin a “maritime tort” and that, in any event, injunctive relief from a New York court is precluded by the “labor dispute” provisions of section 876-a of the Civil Practice Act. We will assume, as did the Appellate Division, that the union is wrong as to all those positions, and go to the real question — jurisdiction. (This court has jurisdiction of the appeal because the Appellate Division made a slight modification of the permanent injunction by changing the language which prohibited picketing the vessels ‘ ‘ for any purpose” so as to read for “any such purpose”—that is, a limitation to the particular activity condemned.)
The whole issue may be stated thus: is this dispute 1 ‘ arguably subject ” to NLRB jurisdiction or, on the contrary, has it been authoritatively determined that the Labor Management Relations Act is completely inapplicable to labor disputes between nationals of other countries operating ships under foreign flags Í The Supreme Court has not definitively made answer to that, but recent judicial and NLRB history, some of it made since the Appellate Division decision here, leaves it disputable that the NLRB has primary jurisdiction. The NLRB has taken jurisdiction of several representation cases as to foreign flag vessels (Peninsular & Occidental S. S. Co., 42 LRRM 1113
lucres cites Benz v. Compania Naviera Hidalgo (353 U. S. 138) and Marine Cooks v. Panama S. S. Co. (362 U. S. 365) as final authority that the Federal act has no coverage of internal labor relations between a foreign ship and its foreign workers. The union answers correctly that the Bens case as explained in the Marine GooJcs Union opinion related only to a ship which “ happened temporarily to be in American waters ” (see 362 U. S., p. 369). Bens marked the point of division in the Appellate Division. However, the emphasis in Bens on the transient character of the American contacts of the ship there involved makes it impossible to regard the Bens holding, as the Appellate Division majority did, as a determination that “ Congress did not intend to apply the Federal statute at all to foreign shipping.” Left open by the Bens case was the question of what shipping is so “ foreign ” as to be excluded. All agree that foreign registration is not enough (see Afran Transp. Co. v. National Mar. Union, 169 F. Supp. 416, cited by the Supreme Court in the Marine Coolcs Union opinion, 362 U. S. 365, 371, supra). All agree that Congress has power to intrude on the internal economy of a foreign-registered ship as a condition to permitting entry into American ports or waters (see Benz v. Compania Naviera Hidalgo, 353 U. S. 138, 144-145, 147, supra). The unresolved question is as to whether Congress intended it»
The ship in the West India Fruit & S. S. Co. case (47 LRRM 1269, supra) was the freighter Sea Level flying the Liberian flag and owned by a Liberian corporation but operating as a common carrier between Louisiana and Cuba, and with a Cuban crew. Clearly, held the board, she was engaged in ‘1 commerce ’ ’ under the Federal act, the alleged unfair labor practices ‘ ‘ affected ’ ’ commerce under the act and nothing in the act exempts the maritime industry or seafarers. The “ ship-territory ” doctrine, said the board, has nothing to do with the territorial reach of the statute (Cunard S. S. Co. v. Mellon, 262 U. S. 100, 123) and so there is no “extraterritoriality” to interfere with applying the Federal statute to a foreign ship in American waters. The board concluded that there was nothing to prevent Congress applying this law to events occurring on foreign-registered ships in domestic waters.
The judgment should be reversed and the complaint dismissed, with costs to defendants-appellants-respondents in all courts.
Dissenting Opinion
The plaintiff, Incres Steamship Company, Ltd., owns and operates two ocean-going liners generally engaged in the passenger cruise trade between New York City and Caribbean ports. In the spring of 1960, the defendant Maritime Workers Union organized, picketed and struck those vessels, completely disrupting their operations. The plaintiff thereupon instituted this action for injunctive relief and damages. The court at Special Term, denying a motion made by the defendants to dismiss the suit for lack of jurisdiction, granted the plaintiff the broad injunction which it had sought. The Appellate Division, though it agreed with all that the trial court had decided, modified the resulting judgment so as to limit the injunction “ to the condemned [illegal] activity * * * presented in this case ”. Both plaintiff and the defendants appeal to us as of right.
We are called upon to construe the National Labor Relations Act, for the jurisdiction of the courts over the subject matter of this action depends upon whether the National Labor Relations Board has jurisdiction under that statute. If the Board has such jurisdiction, then, the courts have no authority to act. More specifically, the question presented for decision is whether the Act applies to a controversy affecting a foreign (Liberian) flagship — engaged in foreign commerce bringing it to and from United States ports for short stays — which is 100% owned and controlled by foreign nationals and manned by a foreign crew, recruited and hired in the ship’s home port in Italy and serving under foreign articles entered abroad.
In our view, the answer is clearly in the negative. Indeed, as Justice Bbeitel observed in his comprehensive opinion for
The circumstance that there was here substantial continuing American foreign commerce and that the plaintiff had a New York corporation to act as its American agent is not sufficient to render inapplicable the rationale underlying the Bens decision and vest the National Labor Relations Board with jurisdiction. All-important in the case before us is the fact that the vessels were owned and controlled by Italian nationals and that their home port was, for all essential purposes, in G-enoa; in addition, it might be noted, their crews, entirely alien, consisted largely of Italians who had signed on in Italy under contracts made abroad. In our judgment, if the National Labor Relations Act were to be held to cover the foreign-owned ships here involved simply because they dock in New York City and employ a New York corporation as their American agent, it would follow that the Act applies to give the board jurisdiction over controversies involving seamen on board the great fleets of foreign flag and foreign-owned passenger and cargo vessels while engaged in trips between the Port of New York and the foreign countries.
It is hardly necessary to observe that in terms of comity between nations such a result could not help but have a disastrous effect. When in the Bens case the argument was advanced as to the Act’s applicability to foreign-owned ships, the Supreme Court expressed its concern in these words: ‘ ‘ For us to run interference in such a delicate field of international relations there must be present the affirmative intention of the Congress clearly expressed. It alone has the facilities necessary to make fairly such an important policy decision where the possibilities of international discord are so evident and retaliative action so certain. We, therefore, conclude that any such appeal should be directed to the Congress rather than
We will not impute to Congress — unless the intention is clearly expressed (cf. Foley Bros. v. Filardo, 336 U. S. 281, 285-286) — a concern to deal with the labor relations of alien seamen on foreign flag vessels, owned by foreign nationals, throughout the world or even while they are in American waters. The fact that our American laws apply to crews, no matter what their nationality, employed on American-owned vessels does not militate against our conclusion. It is the proper concern of Congress in passing labor laws to regulate and control conditions on American ships while they are in American waters, as well as while they are on the high seas and in foreign ports.
A completely different case is presented where the ship, flying a foreign flag of convenience, is actually owned and controlled by American nationals. In such a case — and this is the sort of case which is relied upon to support the argument and the conclusion that the National Labor Relations Act has given the board jurisdiction (see, e.g., West India Fruit & S. S. Co., 130 NLRB No. 46, 47 LRRM 1269; Peninsular & Occidental S. S. Co., 120 NLRB 1097, 42 LRRM 1113; Navios Corp. v. National Mar. Union, 402 Pa. 325, cert. den. 366 U. S. 905) —the ship may, in a very real sense, be regarded as sufficiently “American” to justify the invocation of the Federal statute.
In point of fact, in the Benz case (353 U. S. 138, supra), the Supreme Court actually passed upon the issue whether the Act applied to the foreign flagship there involved. Such a determination could not have been made if the pre-emption doctrine were applicable, since that doctrine precludes federal courts—including the Supreme Court-—as well as state courts, from taking jurisdiction over activities which arguably involve an unfair labor practice or protected conduct. (See San Diego Unions v. Garmon, 359 U. S. 236, 244-245, supra; Plumbers’ Union v. Door County, 359 U. S. 354.) But courts, neither state nor federal, need step aside to permit the National Labor Board to pass upon questions regarding the scope and coverage of the Act. The board has no special competence in this area, and questions concerning jurisdiction are not its exclusive concern.
In sum, therefore, it is our opinion that the National Labor Relations Act does not apply to a foreign flagship owned by foreign nationals, that the board does not have jurisdiction and that such a determination may in the first instance be made by a state court.
We would affirm the judgment appealed from.
Judges Dye, Froessel and Foster concur with Chief Judge Desmond ; Judge Fuld dissents in an opinion in which Judge Burke concurs and in which Judge Van Voorhis concurs in the following memorandum: I" concur in the dissenting opinion by Judge Fuld except that I do not reach the question whether the same result would obtain in case of vessels of foreign registry but domestic ownership.
Judgment reversed, etc.
. There can be no doubt that in the cases cited the operative fact was ownership by American nationals. Thus, in the West India case (130 NLRB No. 46), not only does the board’s prevailing opinion remark and stress again and again the vessel’s American ownership (e.g., pp. 3,15, 24, 25, 27, 32), but the dissenting opinion in so many words notes that the majority “have determined that, pursuant to Section 2 (6) and (7), the jurisdictional reach of the Act extends to the operations of American shipowners who register their vessels with, and fly the flags of, foreign nations, and that the policies of the Act will be effectuated by asserting jurisdiction over these shipowners and their operations” (p. 43).
Reference
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- Incres Steamship Company, Ltd., Respondent-Appellant, v. International Maritime Workers Union Et Al., Appellants-Respondents, Et Al., Defendants
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- Published