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Cross Baking Company, Inc. v. National Labor Relations Board
453 F.2d 1346
1st Cir.
1971
Check Treatment

*1 (Tex.Civ. baugh, part 916, 918 closed, of the 59 S.W.2d a substantial loan App.1933).10 loan unpaid construction on the balance renewed, and un- extended judgment District Court they specifically amendment der the cause fur- vacated remanded for agreed upon and renewal. extension proceedings not ther inconsistent with $500,000 note was executed When the opinion. original deed remained secured equally. The costs are divided security. phrase- trust, plus other cent, per ology is “10 v. Harris Nevels per from the time interest annum money of the until borrower had the use repay

he should the circumstanc- it.” he case, think that “until

es of this repay due date of it” note.8

renewal and extension saving cas- The rationale of clause COMPANY,Inc., CROSSBAKING preference for nonu- es and the Texas Petitioner, here, surious construction relevant just as in our threshold con- NATIONALLABOR RELATIONS apply sideration of whether the life BOARD,Respondent. the loan Our conclusion rule. No. 71-1185. loan lasted until the due date United Appeals, States Court of gives par- extension note effect to the First Circuit. saving ties’ intention evident Heard Nov. agreement 1971. open clause their interpretation more on the than one Decided Dec. 1971. question of date the loan was to Rehearing Denied Dec. terminate.9 findings In its amended correctly

conclusions the District Court

held that interest maximum allowable by subtracting must be calculated $67,500 $860,000 front from the end fee

stated amount of the or advance in prin

der real arrive at amount

cipal received, $792,500. See Nevels v.

Harris, supra, S.W.2d at Co., supra,

Adleson v. B. F. Dittmar 940; Temple

S.W.2d at Trust Co. v. Sto- Terry Teachworth, supra, reject Imperial’s position also con- 10. We loan, cerned a stipulation parties construction but the court of the Dis barred the arrange- not consider effect correcting trict Court from its initial cal parties ments culation, between $S60,000. since the life was based on question. just stip the loan barely arguable was not in did, point, ulation covered if it $5,000 9. The District parties Court found that a not bind the District payment interest calculating was made on the exten- Court to a method of interest September 5, 1969, sion note misapprehended after the Lo the Texas law. Imperial due gan date of the note. has not Lumber Co. Commissioner of In argued beyond Revenue, (5th loan life went ternal 365 F.2d 846 Cir. July 30, September 1966) ; Campanella treat Edison Boston Co. v. merely payment Co., occurrence & Cardi Const. 272 F.2d 430 at 433 (1st overdue 1959). note. Cir. *2 City, Pay son, New York Martin F. Kap Lewis, Roger S. whom Robert Jackson, Lewis, & lan, Schnitzler City,

Krupman, were on York New brief, petitioner. Davison, Deputy Asst. M. Warren Nash, Counsel, Peter G. with whom Gen. Mallet-Prevost, Counsel, Marcel Gen. Counsel, P. Edward Wen-

Asst. Gen. Washington, C., Atty., D. del, respondent. brief, for Judge, ALDRICH, Mc Chief Before Judges. COFFIN, Circuit ENTEE and Judge. ALDRICH, Chief to this defense employer’s basic to bar- (5) (1) refusal 8(a) section regardless gain that, certification sition of the Board ease is assigns improper. coercive to be two reasons. whether acts shown itself, “[t]he attributable On November 1. Fear and Coercion. important fact is that conditions public on a incident occurred existed and that a free election Dre- Von in which one Patricia street den, *3 thereby impossible.” rendered Diamond actor, another, principal and the 3, Poultry Co., 1953, 107 State N.L.R.B. employees being others, all assaulted two 6. they company, refused of because the inju- pledge support the The union. importantly, More we do kept by the ries one of victims received agree accept refusal to Board’s returning- two for work her from testimony employees re- that Von D of got naturally, this, of months. Word atmosphere of den’s conduct created plant, talk that there was about the and supported by is of fear its citation might The election assaulted. be others Packing Co., 1969, NLRB 395 v. Gissel 22, com- The 1969. was held 575, 1918, U.S. 89 23 S.Ct. L.Ed.2d 547. produced alleges pany incident that this There is a difference be substantial coercion atmosphere of fear and testimony subjec post tween ex facto of The election. prevented a fair signing tive intent in authorization No. 186 N.L.R.B. held otherwise. cards, normally offered to contradict (10/31/70). 28 content, testimony their and of reaction to force or threats force. When fear agree Board, the but present, with and of violence are the threats arguments agree certain employees’ precisely we do not with state is the mind Dreden question in court. Von advanced is at issue. This in-plant considering advo principal wrong was that the Board in important regards it cate. The Board objectively, circumstances but paid un subjective entirely app be that she was shown evidence is however, is not agent. question, ropriate.1 question ion Even when union, culpability whether objective partic one of whether a was atmosphere through fear and coercion ular letter sent the mails was Foods, threat, Home Town criminally in See making created fact. re sender 241, NLRB, Cir., 1967, F.2d Inc. 5 379 subjective v. sponsible, effect of the America, Enterprises upon recipient Shoreline letter re be Cir., 1959, F.2d NLRB, 5 262 Barcley, Inc. v. ceived. See United States that fear would Cir., not follow 942. It does F.2d The Board’s an unofficial effective if it had objectionable less protest that the evidence origin. Indeed, can visualize situa we self-serving, or because it is cannot be might tions more effective. where rebutted, obsolete is reminiscent of violence, instigated If union officials thinking excluding testimony in might gain employees adher anti-union parties. terested get all, rid, of a bel ents ligerent and for once Having this, way no disa- in said we voting against by gree prod atmosphere with resolution of the Board’s whereas if finding em co-employees, rest issue that Von Dre- uct of based its might going discharged ployees they shortly the as- were be den after feel disagreeable return, what sault there left situation and did not were with during election, happen two in the no further ever incidents remaining election. to live it. months hence had learn with before best agree po- any event, the earlier Even had testified that witnesses Co., D.C.Cir., 1971, Equip. Corp. 449 F.2d See NLRB Auto Monroe F.2d Ex-Cell-O- tigated contrary frightened, the Board would learned the truth is were still legal justified principles. and ethical more in both In- than have been unpersuasive. deed, testimony But such a conclusion as this trial proof gives rejected deep point examiner us concern. of fact the offers fright- simply that were deception was, however, There another Nothing ened in was of- November. not noted The letter stat- Board. atmosphere Janu- fered to show the ed that received" “have ary. company’s contention They not, the increase even stated. had Board’s action was unwarranted so on the three- 60 cent This was a basis. indulged in this frivolous that we year, progressive contract, roughly one register, future simply to discussion time, viz., third at a 20 cents at about pre- purposes, our on the matters views question. date Instead of “have *4 viously discussed. cents, employees a over received” 75 average three-year period 40 Misrepresentation. The union Without discussion the cents. campaign in October commenced large concluded “in the context of January being the election scheduled in did fact increases [the union] 22, 20 1969. On secure, was that there not ‘substantial union letter assert a received from ing * * * departure the truth from voting advantage of expected reasonably may to be [which] “this union” was demonstrated what significant impact on the elec- have a plant— another similar ” had achieved in (The Holly- quotation from tion.’ hour; point of In an a week. $30. 750 fact 221, Ceramics, 1962, 140 N.L.R.B. wood in a second the union was 224.) or The given statement sole additional plant. previous union had ob that The support of the Board reason electioneering un $6; or tained 150 also fact that there were was the this added ion that had achieved contract a benefits, holiday some and vacation 600, affirmed or The Board $24. measured. value of which could be finding dollar- trial examiner that irrelevant We this fact both believe wise, difference. not a was material inconsequential. (10/31/70). It did 186 28 N.L.R.B. No. seeking support its decision the ground finding that its on the rest in One Board cites two lines cases. claiming price right was “extravagant” See, promises. e. volves inconse due another credit union was Cir., 1958, Rug g., NLRB, 7 Co. Olson v. misrepresentation quential, con employee re 255, can An 260 F.2d Sugar Indus in NLRB v. Maine demned gard is, and dis promise for what 942, Inc., tries, Cir., 1970, 1 425 F.2d accordingly. case In the count it 945, entitled union was the other fact, appar positive past statement of a Rather, the Board to the entire credit. knowledge the de ently within approach flat there was a took the inapposite. clarer, decisions are exaggeration the union dollar of what Secondly, factual mis cites the Board accept approach. accomplished. We cases, can commendable statement adopt Board, correctly, quite dor, and unfavorable. favorable discounting both the mis the trial examiner’s trend cases definite ground These reveal a representations on the principles. support two state checked the could have misrepresentation sub has if a un found them in the letter and ments stance, if there is discounted suggested why be will an true. No reason employer to make opportunity for the word. employee should doubt union’s Pepperell g., reply. See, e. misrepresentation effective a lat excuse NLRB, Cir., 1958, F. Mfg. 403 5 ground party, hav Co. that the deceived 520, National Bever 2d NLRB ing inves- so, to do could have no reason 1350

ages, 206, Inc., Cir., hardship 418 F.2d 5 Nor is it an undue to the un- weighing against 208. The second is that ion to it in such find circum- materiality misrepresenta- the closeness the election stances. Eleventh hour important. See, Corp. untrue, g., tions, manifestly deliberately e. Follett 91, 95; NLRB, obviously carefully F.2d been timed Graphic Finishing Arts Co. v. obtain the utmost of the un- benefit Cir., 1967, truth, presumably F.2d have been

phrased go just enough far to meet The Board did not deal with eith misrepresenting party what the believes clearly principles. er of these suggest It necessary. there not afford to deal with closeness upon should affirmative burden way vote, voter the other since one party, accordingly, disprove ma- and the union would have lost.2 teriality. As If 20 cents and 60 cents now other, the trial had found that examiner eventually just good would sound as as employer adequate had had time now, it seems reasonable cents reply. expressly The Board declined why ask the union latter. sup decide whether this very substantial mis This ported. cannot, court, rely in this representation. None of the Board’s ci unless we could rule a matter support note *5 tations its result. We against fact, employer. law ruling the our employer misrepre that where had way. would the other evi not sented the facts as to a mere bonus copy dence showed that a the union’s electioneering by obtained employer’s letter first came to the atten plant, was held another the election tion January on the afternoon of Lomb, tainted. Bausch Inc. & plant closed, only that a If 451 F.2d 873. we present January skeleton force endorsing here, morning affirm we would be voting began and that the unarticulated, of un-rea in the January sense Adequate reply time to soned, finding, goes further, adequate which must mean time to an ef make light employer’s of the lack of the reply. fective Particularly where a un opportunity reply the closeness and presump ion makes a statement of fact election, any tively than has court other knowledge, within its own Feeling employer’s decision. as we delib response do about is, necessarily, hear pi misrepresentations, say, erate will not we a last minute bare denial cannot be oneer in this direction. reply. an effective It is but natural for employee response to discount such Hearing. Although aspect Fair this gasp last by employer. minute moot, is now do un- not wish to leave doubt, furthermore, many whether em many by answered the claims em- ployees very find themselves in the last ployer that it did not a fair receive campaign open hours with an hearing. jus- complaints, Some of its if reply mind. The effective that we all, inconsequential tified at minu- can think of in such circumstance tiae. the extent are not be, anything produce if be, totally minutiae we find them unwar- photostatic copy of the contract whose ranted. We see no for basis whatever misrepresented. terms the union Mani criticizing the trial examiner’s conduct. festly employer to,make had no time such a demonstration. The order is set aside. No costs. 2. We song, point are reminded out, of the employer old “If when the lost you good large margin, can’t tell the world she’s a decreases girl, just say nothing little significance misrepresentation. at all.” This of the It good advice, social correspondingly recognize it does the re- objective lead the Board toward verse. always quick decisions. The Board REHEARING FOR

ON PETITION America, UNITED STATES rehearing, contend- The Board seeks Appellant, ing correctness of the pay had having increase “received” Charles Winfield WEST. consequently was not been before No. 71-1687. therewith us. not before In connection time the com- it transmits for the first Appeals, States United Court exceptions, pursuant sec- Third Circuit. pany's filed 160(e), 10(e), tion § U.S.C. Argued Nov. true trial examiner’s decision. Decided Jan. specifically spoke difference these cents, and 75 cents between point even

did make terms How-

the 60 was not “received.” cents

ever, general objec- company made let-

tion: “The union’s mate-

ter of contain impaired misrepresentations

rial freedom choice.” Jurisdictionally, exception enough any misrep

seems broad raise If

resentation borne out record. reason the Board some aliunde

misled, so. far too late now petitioner aside

As a to review and set *6 order, company’s was filed brief plainly

first. Its brief asserted that additionally misrepre

union letter had

sented stated that the 75 cents fully

had been “received.” The Board’s way suggested

brief in no this claim was

impermissible. argument In oral Again repeated point.

company objection. no made now, object argument gone through

after we have consid process writing opinion,

erable

totally unacceptable. implicit

judicial process, as Local reflected our 9,* that, barring

Rule ex a substantial

cuse, digest once, the court will a case but

and ruminates the loose sense no true

the word. We intent to be a

ruminant.

Rehearing is denied. * complied petition rehearing petition with “A contain not.” Board’s shall introductory requirement, argument no men- but makes statement preca- presented before, rule or second. This matter tion to- gether tory. explanation why

Case Details

Case Name: Cross Baking Company, Inc. v. National Labor Relations Board
Court Name: Court of Appeals for the First Circuit
Date Published: Dec 30, 1971
Citation: 453 F.2d 1346
Docket Number: 71-1185
Court Abbreviation: 1st Cir.
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