Kuzych v White

Since the leadership of the BISU was dominated by members of the Communist Party of Canada, the dispute was portrayed at the time as an individual worker opposed to radical unionism.

The dispute was driven by ideological differences within the union movement, and occupied the courts of British Columbia for close to a decade.

During the Great Depression, he became interested in socialism and was influenced by the thinking of Daniel De Leon, an American Marxist theoretician and trade union organizer.

[2]: 122–123 In 1942, Kuzych obtained a position as a welder in the North Vancouver Ship Repairs shipyard, which had a collective agreement with the BISU.

[3]: 2  In 1943 the provincial government set up a conciliation board to consider workplace issues at West Coast Shipbuilders, the last remaining open shop shipyard in Vancouver.

Kuzych appeared before the board and strongly criticized the concept of a closed shop, and the leadership of the union.

White concluded that Kuzych was either a paid operative of business groups, or an anti-union individual acting on his own.

"[2]: 118, 121 In addition to his appearance before the conciliation board, Kuzych spoke out against the closed shop policy at union meetings, and in letters to local newspapers.

[2]: 119 Kuzych also made some appearances on radio, discussing his opposition to the closed shop and automatic dues-checkoffs, which he saw as benefitting the union leadership, not the workers: A better set-up for procuring a comfortable living, without doing any work, can hardly be invented!

Once the workingmen are properly yoked into the closed shop and union dues and all the many extra assessments are checked off by the company time-keepers every month, regularly as death and taxes, the labor-dictator's worries are over!

[3]: 3  [4] The BISU then restarted the disciplinary proceedings and in 1945 again cancelled his membership, again resulting in his firing by North Vancouver shipyard.

He sought a declaration that he had not been validly expelled and was still a member in good standing; damages; and consequential relief.

Whittaker also commented on the serious consequences for Kuzych if his membership was cancelled: since he would not be able to work in closed shops, expulsion was "little less than a sentence of industrial death".

Justices O'Halloran and Robertson agreed with the trial judge's conclusion that the BISU discipline committee was biased against Kuzych from the start, believing him to be anti-union, and were determined to expel him.

[10]: 649  The basic ideological issues which had triggered the litigation, such as a closed shop and union democracy, were not part of the case before the Judicial Committee.

[10]: 649–650 Viscount Simon held on the second issue that "after anxious reflection", the law lords had concluded that Kuzych was required to rely on the union's internal appeal mechanism before he could apply to the courts.

Viscount Simon held that there was no reason to believe that the executive of the Shipyard General Workers' Federation would not treat the matter fairly and attempt to give the right final decision.

[11] On September 22, 1949, Justice Whittaker of the Supreme Court gave his decision ordering that Kuzych be re-instated as a member of the BISU.

On October 11, 1949, Kuzych made a formal demand on White to issue him a membership card in the new union.

On December 14, 1949, Justice Whittaker found White and Stewart in contempt and ordered them committed to jail.

[12]: 259–260  In dissent, Justice Sydney Smith held that the merger of the unions did not extinguish Kuzych's right of re-instatement, and therefore the order continued to apply.

A newspaper account indicated that the Federation dismissed the appeal because it was filed late, several years past the 60 days from the original BISU expulsion decision.

A second ground was that the BISU had merged with two other unions and had surrendered its charter with the Shipyard General Workers' Federation.

Alternatively, he claimed a declaration that he was a member in good standing of the Marine Workers' Union and the Federation.

Justice Clyne of the Supreme Court ruled that the objections did not apply at the preliminary stage, but could be raised as potential defences if the matter went to trial.

That application was heard by Justice Manson, who dismissed it on procedural grounds, without prejudice to return for a hearing on the merits.

They held that Justice Coady had correctly applied the law in staying the action until Kuzych paid the outstanding costs.

[17] The Judicial Committee decision in White v Kuzych continues to be cited in Canadian cases and law texts.

[18] The Judicial Committee decision has also been cited as applying generally in relation to internal appeals in other contractual associations.

[19] It has also been cited in texts relating to aspects of contract law such as injunctions and specific performance,[20] as well as damages.

Viscount Simon, who gave the decision of the Judicial Committee