Miracle Adhesives Corp. v. Peninsula Tile Contractors' Ass'n

DRAPER, J.

Defendant is an association of tile contractors. On behalf of its member contractors, it entered into a collective bargaining agreement with Bricklayers, Masons and Plasterers International Union, Local Number 19. One provision of the agreement reads:

“At no time shall tile be installed in mastic or thin setting beds other than conventional methods unless all requirements and specifications contained in Handbook K-400 pertaining to types of such installations have been complied with. The adhesive shall be used according to the manufacturers’ specifications and shall bear commercial standard seal 181-152 of the Bureau of Commerce.

“Without limiting the generality of the foregoing and in order to protect the public from failures resulting from inferior installations, no tile will be applied in any shower, tub back, or other areas exposed to water unless setting beds are first installed in mortar backing by qualified tile layers in accordance with the latest accepted specifications of the Tile Handbook superseding basic specifications for tile work K-30 and Tile Handbook I of the Tile Council of America.”

Plaintiffs manufacture and sell tile adhesives of the type which constitutes “mastic or thin setting beds other than conventional methods” as described in the quoted agreement. Plaintiffs’ mastic is used as a substitute or alternative for mortar backing. While it can be used upon mortar, it is designed for use chiefly upon gypsum board or like surfaces which can be installed more cheaply than mortar. Since the mortar itself holds tile in place, the requirement of defendant’s contract reduces the use of plaintiff’s adhesives.

Upon finding these facts, the trial court concluded that the quoted contract provision was in violation of the Cartwright Act (Bus. & Prof. Code, § 16720 et seq.) and granted permanent injunction restraining defendant association and its members from “honoring, performing or enforcing” the questioned contract provision. Defendant appeals. The union with which appellant contracted is not a party to this action, and is in no way before the court.

[593]

Persons “whose interests, rights, or duties will inevitably be affected by any decree which can be rendered in the action” are indispensable parties, and the action cannot proceed without them. The law also recognizes a class of parties who are termed “necessary,” but without whom a given case may, in certain circumstances, proceed to judgment