The rules of an association, called the Tea Clearing House, the members of which were dock companies and tea warehouse keepers carrying on the business of warehousing tea in bond, provided (rule 11) that every member should charge on teas the respective rates and adhere to the terms and conditions specified in a schedule to the rules, and should not be at liberty to depart from them in any way, except that a discount not exceeding 10 per cent, might be allowed on the said rates. No other discount, no money gratuities, and no advantages, direct or indirect, should be offered or allowed by any member to any merchant, broker, or other person in connection with any matter or thing in anywise relating to the Tea Clearing House agreement.
By rule 14, No subscriber should be entitled to warehouse or deposit tea with, or employ in connection with tea, any dock company or tea warehouse keeper who was not a member of the Clearing House, or to purchase or sample any tea from the warehouse of any non-member.
By rule 15, Any member breaking or failing to observe any of the rules was to be liable to expulsion by resolution of the committee.
The committee passed a resolution expelling the plaintiffs for an alleged breach of the rules, and they brought an action against the members of the committee to restrain them from acting on the resolution, on the ground (inter alia) that the plaintiffs had not had an opportunity of being heard in their defence. Kekewich J. granted an interlocutory injunction.
Held, on appeal, that the association was a ‘trade union’ within the meaning of s. 16 of the Trade Union Act Amendment Act, 1876 ; that its objects were illegal independently of the Trade Union Act, 1871, and that s. 4 of that Act prevented the Court from directly enforcing the agreement between the members:
Held, also, that by granting the injunction the Court would be directly
enforcing the agreement.
The injunction was accordingly dissolved.
(1900) 2 Ch 605, [1900] UKLawRpCh 147
Commonlii
England and Wales
Cited by:
Cited – Yorkshire Miners’ Association and Others v Howden and Others HL 14-Apr-1905
A miners’ association, registered under the Trade Union Act 1871, made certain payments from its funds to its members, who were out of employment, in circumstances which involved a direct contravention of the rules of the association. Held (Lords . .
Lists of cited by and citing cases may be incomplete.
Employment, Company, Commercial
Updated: 12 November 2021; Ref: scu.653366