National Labor Relations Board v. World Evangelism, Inc.

FACTS'

In October 1978 World Evangelism, Inc. (“WEI”) acquired the El Cortez Center, a building complex occupying roughly one city block. The Center consisted of three motels, a swimming pool, a convention center, and a tower containing offices, hotel rooms, and restaurants. Prior to the acquisition, Handlery Hotels operated the Center, employing between five and nine engineers to operate its mechanical systems, including electrical, plumbing, heating and refrigeration, and the swimming pool. The engineers were represented by Operating Engineers Local 501 (“Local 501”), and covered by a contract in force from November 1, 1977 to November 1, 1980.

Shortly before the takeover WEI decided to retain the engineers. It did not state whether it would adopt Handlery’s contract. It notified Local 501 that it would not be a “successor” owner. When the engineers heard this, they notified Local 501’s Business Representative, Brown, that they would resign unless WEI adopted Han-dlery’s contract. WEI requested them to wait until its Executive Vice President, David Cerullo, could meet with them.

Undisputed evidence showed that at the meeting Cerullo claimed that the telegram had been sent to…