Miracle Adhesives Corp. v. Peninsula Tile Contractors' Ass'n

Defendant is an association of tile contractors. On behalf of its member contractors, it entered into a collective bargaining agreement with Bricklayers, Masons and Plasterers International Union, Local Number 19. One provision of the agreement reads:

Plaintiffs manufacture and sell tile adhesives of the type which constitutes “mastic or thin setting beds other than conventional methods” as described in the quoted agreement. Plaintiffs’ mastic is used as a substitute or alternative for mortar backing. While it can be used upon mortar, it is designed for use chiefly upon gypsum board or like surfaces which can be installed more cheaply than mortar. Since the mortar itself holds tile in place, the requirement of defendant’s contract reduces the use of plaintiff’s adhesives.

Upon finding these facts, the trial court concluded that the quoted contract provision was in violation of the Cartwright Act (Bus. & Prof. Code, § 16720 et seq.) and granted permanent injunction restraining defendant association and its members from “honoring, performing or enforcing” the questioned contract provision. Defendant appeals. The union with which appellant contracted is not a party to this action,…