Local 1330, United States Steelworkers of America v. United States Steel Corp.

Nature of the Case

This was a dispute over the closing of steel plants.

Facts

U.S. Steel Corp. (D) closed two large steel production facilities and laid off the employees. The Local 1330 trade union (P) sued to enjoin the closure of the facilities, or to compel U.S. Steel to sell the facilities to the plaintiff. U.S. Steel claimed the facilities were unprofitable and asserted an absolute right to discharge its employees and abandon the facility. U.S. Steel was initially restrained from closing the plants but a formal opinion was entered holding the plants were unprofitable. The plaintiff appealed the court’s judgment for the defendant.

Issue

Does a community acquire a property right in businesses such that the business cannot completely abandon its obligation to that community because certain vested rights have arisen out of a long relationship and institution?

Holding and Rule of Law

No. A community does not acquire a property right in businesses such that the business cannot completely abandon its obligation to that community because certain vested rights have arisen out of a long relationship and institution.

There is no law or any common law principle that would make this statement true. There is no legal basis for judicial relief.

Disposition

Dismissed.

Notes

In Europe, companies must provide lengthy notice and other compensation prior to closing plants. In the United States however there are no community rights unless the community has some type of written contract with the corporation.