Texas & New Orleans Railroad Co. v. Brotherhood of Railway and Steamship Clerks

Since September 1918, the Brotherhood of Railway and Steamship Clerks (brotherhood) (plaintiff) had been the authorized union of railway clerks working for the Texas and New Orleans Railroad Company (railroad) (defendant). In November 1925, the brotherhood applied to the railroad for a wage increase. The railroad denied the brotherhood’s application. The brotherhood then requested mediation from the United States Board of Mediation. While the request was pending, the railroad created a new union called the Association of Clerical Employees—Southern Pacific Lines (the association). The railroad attempted to coerce members of the brotherhood into making the association their authorized representative. The brotherhood sought an injunction against the railroad under the Railway Labor Act of 1926, and the district court granted a temporary injunction in favor of the brotherhood. Following the issuance of the temporary injunction, however, the railroad began recognizing the association as the authorized representative of its employees. The district court found this to be a violation of the temporary injunction. At a contempt proceeding, the district court ordered the railroad to dissolve the association and recognize the brotherhood until railroad employees could authorize a new representative by secret ballot. The district court made the injunction permanent, and the court of appeals affirmed. The railroad appealed, arguing (1) that Congress had not intended a provision in the act forbidding parties from influencing each other in the selection of representatives to be enforced and (2) that the provision was unconstitutional.