National Labor Relations Board v. Indiana & Michigan Electric Co.

Background

In 1938 the business manager of Local B-9 of the International Brotherhood of Electrical Workers filed charges with the National Labor Relations Board against Indiana & Michigan Electric Company. During the long Board proceedings several transmission towers and poles were dynamited, and some participants were later arrested and convicted. The Company asked the Board to reopen the record to introduce this new evidence; the Board refused and the federal appeals court ordered a remand for additional testimony.

Reasoning

The central question was whether the appeals court abused its discretion in ordering the Board to receive the new evidence. Justice Jackson’s opinion held the remand was not arbitrary. The Court explained that unlawful violence connected with ongoing proceedings could be material to witness credibility, the fairness of the hearing, and whether the Board’s findings should have final effect. The Court also made clear that union misconduct does not automatically strip the Board of authority, but that courts may require the Board to hear material evidence under the statute that allows additional testimony.

Real world impact

The decision lets federal courts require the Labor Board to reopen hearings when criminal acts or intimidation arise during a case, which can delay enforcement and change credibility findings. Employers, unions, and affected employees may receive further fact-finding before a Board order becomes final. The ruling preserves the Board’s power to act while protecting parties’ rights to a fair hearing.

Dissents or concurrances

Justice Black (joined by Justices Douglas and Murphy) dissented, arguing the Board had excluded any benefit to the offending union and that reopening for peripheral criminal inquiries would punish innocent employees and cause unnecessary delay.