L. Fatato, Inc. v. Beer Drivers Local Union 24
The defendant sought to dismiss the action, arguing the court lacked jurisdiction due to a lack of diversity of citizenship between the New York-based plaintiff and defendant. The plaintiff, a beer dealer engaged in interstate commerce, had brought the action under the Labor Management Relations Act of 1947, alleging the defendant labor union engaged in unlawful activities, including inducing employees to refuse to handle beer to compel cessation of business with the plaintiff. The central issue was whether diversity of citizenship is a prerequisite for federal jurisdiction under the Act. The court denied the motion to dismiss, concluding that Section 303 (29 U.S.C.A. § 187) establishes new substantive federal rights and causes of action that do not require diversity of citizenship, citing supporting federal court interpretations.