573 F. App'x 66
2d Cir.2014Background
- Tru-Art sued Local 137 under LMRA § 303 and § 8(b)(4) for a secondary boycott related to Wells Fargo moving conversion work away from Tru-Art.
- Local 137 allegedly threatened to shut down Wells Fargo job sites using non-union workers to coerce compliance.
- During the project, Local 137 communicated with Wells Fargo about who would perform the conversion work and suggested potential conflicts if non-Local 137 entities did the work.
- Evidence at trial showed coercive, unlawful threats; the district court entered judgment for Tru-Art on liability after a jury trial.
- Damages awarded to Tru-Art were $650,000, despite Tru-Art's own asserted profits markup suggesting a different calculation.
- The Second Circuit affirmed liability, vacated the damages award, and remanded for a new damages trial (or potential remittitur) consistent with its opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Local 137’s threats violated § 8(b)(4) and proximately caused Wells Fargo to move work. | Local 137 made unlawful threats coercing Wells Fargo. | No unlawful threats or insufficient causation shown. | Yes; threats found unlawful and a proximate cause. |
| Whether jury instructions misstated law or prejudiced Local 137. | Instructions correctly stated law and were not prejudicial. | Some instructions were erroneous or insufficiently cautioned against unlawful tactics. | No reversible error; no prejudice established; plain error not shown. |
| Whether the damages award was excessive and warranted a new trial on damages. | Damages properly reflect lost profits and harm from Wells Fargo termination. | Damages were improperly large and should be trimmed. | Damages vacated and remanded for a new damages trial (or remittitur). |
Key Cases Cited
- Landstrom v. Chauffeurs, Teamsters, Warehousemen & Helpers Local Union No. 65, 476 F.2d 1189 (2d Cir. 1973) (unlawful threats under § 8(b)(4)(ii) shown when coercion occurs)
- NLRB v. Plumbers Union of Nassau County, et al., 299 F.2d 497 (2d Cir. 1962) (unlawful coercive conduct by a union)
- Carrier Air Conditioning Co. v. NLRB, 547 F.2d 1178 (2d Cir. 1976) (framework for proving § 8(b)(4) violations in LMRA claims)
- National Woodwork Mfrs. Ass’n v. NLRB, 386 U.S. 612 (1967) (balancing of union objectives and preservation of work; purpose element)
- Renz v. Grey Advertising, Inc., 135 F.3d 217 (2d Cir. 1997) (plain-error review when no trial objection)
- Gasperini v. Center for Humanities, Inc., 518 U.S. 415 (1996) (abuse-of-discretion standard for new-trial damages decisions; remittitur option)
- Bracey v. Bd. of Educ. of City of Bridgeport, 368 F.3d 108 (2d Cir. 2004) (remittitur as an alternative to a new trial for excessive damages)