Jim Garvison v. Norman A. Jensen

This is an appeal from the portion of the judgment below which held that payments by appellee and other employers to the appellant Painters Pension Trust Fund and the appellant Painters Medical-Hospitalization Trust Fund were prohibited by section 302 of the Labor Management Relations Act. 29 U.S.C.A. § 186 (1964).

1. The district court held that both trusts violated the conditions for exemption found in section 302(c) (5) of the Act because both permitted the unions in their capacity as employers to make contributions to the trust for the' benefit of the unions’ employees. Jensen v. Garvison, 241 F.Supp. 523 (D.Ore. 1965). In reaching this conclusion the court relied principally upon Kroger Co. v. Blassie, 225 F.Supp. 300 (E.D.Mo. 1964), and Local 688, Int’l Bhd. of Teamsters v. Townsend, 229 F.Supp. 417 (E.D. Mo.1964). The latter were subsequently reversed on this issue by the Court of Appeals. Blassie v. Kroger Co., 345 F.2d 58 (8th Cir. 1965); Local 688, Int’l Bhd. of Teamsters v. Townsend, 345 F.2d 77 (8th Cir. 1965). We agree with the conclusion reached by the Court of Appeals.

2. The district court held that the Medical-Hospitalization Trust failed to comply with section…