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High Court of Ireland Decisions |
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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> G & T Crampton Ltd. v. Building and Allied Trades Union [1997] IEHC 174 (20th November, 1997) URL: http://www.bailii.org/ie/cases/IEHC/1997/174.html Cite as: [1997] IEHC 174 |
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1. This
is the Plaintiff's application for Interlocutory Injunctions restraining the
Defendants or any person acting in concert with them or with the knowledge of
the making of the Orders sought from:-
2. The
Plaintiff is a building company which has contracted with Dublin City
University to construct a Sciences Block (Block 3) on its campus at Collins
Avenue, Glasnevin in the City of Dublin. The contract price is approximately
£13 million. Under the contract the date for completion is 14th August,
1998 and the Plaintiff is subject to penalty clauses providing for payment of
£30,000 per week in the event of default on its part in performing the
contract.
3. This
is the second application for interlocutory injunctive relief in these
proceedings. The core issue between the Plaintiff and the first defendant (the
union) is that the Union objects to the Plaintiff's practice of sub-contracting
blocklaying and bricklaying work on its construction sites and of not employing
blocklayers and bricklayers directly. When the first interlocutory application
was before the court in July 1997 at issue was the employment of three of the
Defendants other than the Union and the second Defendant, who is a Union
official, on the Glasnevin site and in particular, whether they were employed
by the Plaintiff, the main contractor, rather than by a sub-contractor. At the
time a sub-contractor M. J. Lambe & Sons Limited (Lambe) was carrying out
ground work, substructure and drainage works on site under sub-contract. The
first interlocutory application was disposed of by agreement on the basis that
the workers involved would resume work on the site as employees of Lambe and
the Union would desist from picketing the site pending the resolution of the
issues between the parties through the agreed grievance and disputes
procedures.
4. A
lot has happened between the parties since July 1997 but, for the proposes of
this brief outline of the background to the current application, it is only
necessary to refer to the following facts. First, Lambe completed the
blockwork element of its sub-contract at the end of September, 1997 and
thereupon terminated the employment of all bricklayers employed by it on the
site. Another sub-contractor, Colm Murphy (Murphy), who has a sub-contract for
the block and brick work on the super structure of the building, resumed super
structure works at the end of October 1997. Murphy did not re-employ the
Union's members who had hitherto been employed on the site. The Union
contended that this was in breach of the spirit of the agreement under which
the first interlocutory application was disposed of and sought to have its
members employed on the site to do the available work. The Plaintiff did not
accede to that request. Secondly, on 5th November, 1997 the Labour Court
issued its recommendation on a dispute, which had been referred to it in
September 1997 in consequence of the agreement reached in July 1997, as to
whether the Plaintiff was obliged to give an undertaking that the Union's
members who had worked for Lambe on the site would be retained by the Plaintiff
when the Lambe sub-contract expired. The Labour Court found that the workers,
the subject of the dispute, were employed by Lambe, not by the Plaintiff, and
the Labour Court's recommendation was that the Union's claim should not be
conceded. The Union rejected this recommendation. By letter dated 7th
November, 1997 the Union notified the Plaintiff that the trade dispute with the
Plaintiff remained unresolved and that its intention was to engage in a strike
or other industrial action.
5. On
17th November, 1997 a picket was placed at the entrance to the site. It is not
disputed that five men are picketing the site, three of whom, the second
Defendant, George Lamon and Brendan O'Sullivan, are Union officials. It is not
disputed that the other two picketers are David Leonard and Michael Deakin whom
the Union contends are former employees of the Plaintiff. The Plaintiff
contends that the five were joined by the fourth Defendant, Kenneth O'Connor,
but this is denied by the Union. There is no evidence that the picket is not a
peaceful picket. However, the evidence is that the effect of the picket is
that the entrance to the site is being obstructed, and that, while some workers
have passed the picket, no work is being carried out on the site whatsoever and
the Plaintiff is unable to obtain deliveries of materials.
6. The
Defendants contend that they are protected by Section 11 of the Industrial
Relations Act, 1990 (the 1990 Act) and that the Court is precluded from
granting the relief sought by virtue of Section 19 of the 1990 Act.
7. I
have been referred to a Transcript of an ex tempore judgment delivered by Keane
J. on 22nd March, 1994 in
Nolan
Transport (Oaklands) Limited -v- Halligan and Others
in which issues similar to the issues which arise in this matter arose. I
respectfully agree with views expressed by Keane J. as to the approach to be
adopted when the provisions of Section 19 are relied on in answer to an
application for interlocutory relief and I propose to adopt that approach.
8. Accordingly,
I propose considering first the applicability of Section 19. Sub-section (2)
of Section 19 provides:-
9. It
seems to me that in applying the foregoing provision I must determine whether
three pre-conditions - that a secret ballot was held, that its outcome favoured
industrial action and that the requisite notice was given - stipulated in the
provision have been fulfilled and, if they have, I must then decide whether the
Defendants have established a fair case that they were acting in contemplation
or furtherance of a trade dispute and, if they have, I must refuse the
Plaintiff's application.
10. Paragraph
(f) of subsection (2) provides that, as soon as practicable after the conduct
of the ballot, the Union shall take reasonable steps to make known to its
members entitled to vote in the ballot -
11. The
evidence before the Court as to compliance with the requirements of Section 14
and the rules of the Union is as follows:-
12. There
is no evidence whatsoever before the Court as to the outcome of the secret
ballot conducted by the Union and, in particular, there is no evidence that the
outcome favoured picketing the site. On this ground alone, I am satisfied that
there is no evidence before the Court that one of the pre-conditions stipulated
in Section 19(2) has been complied with. Therefore, it is not necessary to
express any view on whether-
13. Accordingly,
the Defendants have not established that they are entitled to rely on Section
19(2) and the Plaintiff's application falls to be decided on the basis of the
ordinary principles applicable to applications for interlocutory injunctions,
that is to say, the principles set out by the House of Lords in
American
Cyanamid Company v. Ethicon Limited
(1975) AC 396 as adopted by the Supreme Court in
Campus
Oil Limited v. Minister for Industry and Energy (No. 2)
(1983) I.R. 88.
14. The
first question which arises is whether there is a fair issue to be tried
between the Plaintiff and the Defendants. The Defendants contend that their
members, Messrs Leonard and Deakin, are entitled to the protection of
subsection (1) of Section 11 of the 1990 Act and that their officials, the
first Defendant, and Messrs Lamon and O'Sullivan, are entitled to the
protection of subsection (4) of Section 11. Section 11(1) provides:-
15. I
do not propose to rehearse in detail the very comprehensive arguments advanced
by Mr. Kerr on behalf of the Defendants for the proposition that the picketers
are entitled to the protection of Section 11(1) and by Mr. Horan on behalf of
the Plaintiff for the proposition that they are not so entitled. Suffice it to
say that the nub of Mr. Horan's argument is that, as regards the Union member
picketers, the Plaintiff is not
"their
employer"
in the context in which that expression is used in Section 11(1), whereas Mr.
Kerr contends that it is, having regard to the definition of
"employer"
in Section 8 of the 1990 Act which defines that word as meaning, inter alia,
"a
person for whom one or more workers ....... seek to work having previously
worked for that person"
.
On the evidence before me, I have no doubt that the Plaintiff's contention
that the picketers are not entitled to the protection of Section 11 raises a
fair issue to be tried between the parties. On the same basis, had the
Defendants established compliance with the pre-conditions stipulated in Section
19(2), I would have concluded that the Defendants have established a fair case
that they are acting in contemplation or furtherance of a trade dispute. I
think it is important to emphasise that, following the decision of the Supreme
Court in
Westman
Holdings Limited v. McCormack
(1992) 1 I.R. 151, having concluded that there is a fair issue to be tried
between the parties as to whether the protection of Section 11 is available to
the Defendants, I express no view whatsoever on the strength of the contending
submissions and, as enjoined by the Supreme Court, I proceed now to consider
the other matters which arise in regard to the granting of an interlocutory
injunction.
16. On
the basis of the evidence before me, I do not think that damages would
adequately compensate the Plaintiff for loss suffered between now and the trial
of the action, if the Plaintiff's application is refused and it succeeds at the
trial.. In my view, it is not just the monetary loss which the Plaintiff is
likely to incur if it is delayed in performing the main contract with DCU that
has to be considered, but also the damage to the Plaintiff's goodwill and
reputation if it is perceived to be incapable of completing a large
construction contract on time. Moreover, having regard to the size of the
project and the likely cost of delay in performing the contract, although this
point is not directly addressed in the evidence, I have misgivings as to the
availability of adequate funds to meet an award of compensation if the
interlocutory injunction is refused and it subsequently transpires at the trial
of the action that the Defendants are not entitled to the protection of Section
11.
17. Conversely,
if an interlocutory injunction is granted, I am of the view that damages would
adequately compensate the Defendants, should they be successful at the trial in
respect of any loss suffered due to the injunction being in force pending the
trial. Of course, as I am applying the ordinary equitable principles, an
interlocutory injunction will only be granted on the usual undertaking as to
damages being forthcoming from the Plaintiff. There is no suggestion on the
evidence that the Plaintiff would not be able to meet an award of compensation
on foot of its undertaking.
18. It
was contended by the Plaintiff that, as the inevitable consequence of the
picketing is to prevent Murphy's workers working and Murphy fulfilling his
obligations under his sub-contract with the Plaintiff, the picketing amounts to
an unlawful interference with the Plaintiff's business interests and economic
relations and an inducement to breach the Plaintiff's commercial contracts. I
reject this contention. There is no evidence whatsoever from which one could
infer the type of deliberate interference and intention to injure which are
essential ingredients of the type of tortious activity alleged by the Plaintiff.
20. Finally,
it is obvious from what has transpired since July last that this matter is not
going to be resolved without a plenary hearing. I will hear submissions from
the parties as to how I can assist them to get the earliest possible hearing
for this matter.