Longwood Investment Co., Inc.

National Labor Relations Board - Board Decisions

May 31, 1967

165 N.L.R.B. 138 (N.L.R.B. 1967)

138 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Longwood Investment Co., Inc. and The
Government Service Employees Union,
Local 536 of the Building Service
Employees International Union , AFL-CIO,
Petitioner . Case 5-RC-5817
May 31,1967
DECISION AND DIRECTION OF ELECTION
BY MEMBERS FANNING, JENKINS, AND ZAGORIA
Upon a petition duly filed under Section 9(c) of the
National Labor Relations Act, as amended, a
hearing was held before Hearing Officer M. Louise
Felton, on January 5, 1967. The Hearing Officer's
rulings made at the hearing are free from prejudicial
error and are hereby affirmed. Thereafter, the
Employer filed a brief with the National Labor
Relations Board.
Pursuant to the provisions of Section 3(b) of the
National Labor Relations Act, as amended, the
National Labor Relations Board has delegated its
powers in connection with this case to a three-
member panel.
1. The Employer, Longwood Investment Co.,
Inc., a Maryland corporation, herein called
Longwood, is engaged in the business of owning and
operating the Medical Arts Building located at 101
W. Read Street, Baltimore , Maryland. The building
is occupied generally by doctors and dentists
although several dental and medical laboratories are
located there. The Medical Arts Pharmacy, Inc., is
located on the main floor. Gross receipts of
Longwood for the fiscal year ending September 30,
1966, amounted to approximately $300,000. Of this
amount $10,000 was received in rent from the
pharmacy (which had gross receipts of $169,000 for
the calendar year 1965). The parking garage is
leased to Haar-win Parking Company from which
Longwood received $20,000 last year in rent.
S.L. Hammerman Organization, Inc., herein
called Hammerman,' is the rental agent for the
Medical Arts Building and is engaged in property
management , mortgage banking, and real estate
investments . Both Employers stipulate that
Hammerman is engaged in interstate commerce,
receiving gross receipts in excess of $50,000 from
companies outside the State of Maryland.2
Nevertheless the Employers contend that the Board
should not assert jurisdiction herein on the grounds
' Hammerman was served with a notice of hearing and
participated in the proceedings.
2 The stipulation was signed by Herman Hammerman,
secretary of Longwood , and Herman Hammerman , also, as vice
president of Hammerman.
3 S L Hammerman Organization , Inc , maintains its offices at
10 Light Street, Baltimore , Maryland
4 The shareholders of Longwood are the trustees (not identified
in the record) of the S Lawrence Hammerman Il, Trust, Amy Sue
Hammerman , Trust , Mark Hammerman, Trust, and landye
Hammerman, Trust The above-named are the minor children of
that Longwood is a separate business operation
entirely independent of Hammerman and standing
by itself does not meet the Board's applicable
jurisdictional standard for office buildings, requiring
gross yearly revenue of at least $100,000, of which at
least $25,000 must be derived from organizations
which meet the Board's jurisdictional standards.
The record herein shows that Longwood's offices
are located in the Medical Arts Building and their
books and records are kept there. Hammerman's
offices are not located in the building but, at the time
of the hearing there was a sign in front which read,
"S.L. Hammerman Organization, Inc., Manage-
ment." 3 Hammerman and Longwood have common
officers.' Eney, the building superintendent for
Longwood, when asked by whom he was hired,
replied that "as far as he knew" he was hired by
S.L. Hammerman.
The record shows that at the time Longwood
purchased the Medical Arts Building, it entered into
a contract with Hammerman. The contract was
signed by I.H. Hammerman II, on behalf of
Longwood, and Herman Hammerman, on behalf of
Hammerman. The contract is to be in force until
1971, and is then automatically renewable for a 10-
year term, and for succeeding 10-year terms, unless
either party exercises its option to terminate the
agreement by giving a written 60-day notice at the
end of the initial or succeeding 10-year terms. Under
the contract, Hammerman is given the exclusive
agency for managing the building and is responsible
for performing advertising, rental, collections, and
purchasing functions, as well as for hiring,
discharging, directing, and supervising the work of
employees. As consideration for discharging these
responsibilities and for services rendered by
Hammerman to Longwood in connection with
Longwood's purchase of the building, the contract
provides for the payment of $20,000 plus 5 percent of
Longwood's annual gross income.
Herman Hammerman testified that he discharges
Hammerman's responsibilities under the contract.
Though he testified that not all of the provisions of
the contract are being followed by Hammerman, he
conceded that Hammerman continues to receive the
consideration provided for in the contract.
Moreover, he also conceded that although Eney has
been given responsibility for day-to-day supervision
of the working force and management of the
building, he, Herman Hammerman, has the ultimate
I H Hammerman 11, who is president of Longwood The
children's grandmother, Esther Hammerman, is vice president
The shareholders of Hammerman are I H Hammerman II and
Esther Hammerman The corporate officers of the two companies
are as follows Longwood Investment Co , Inc ., I H Hammerman
II, president, Esther Hammerman, vice president-treasurer, and
Herman Hammerman , secretary , and S L. Hammerman
Organization , Inc , I H. Hammerman II, president , Herman
Hammerman , vice president , and Esther Hammerman , secretary-
treasurer
165 NLRB No. 18
LONGWOOD INVESTMENT CO.
responsibility for these functions, and that Eney
consults him about various matters including
proposed wage increases. Eney also performs the
rental agent duties which Hammerman contracted to
perform. Herman Hammerman admitted that if
Eney goes "haywire," he steps in.
As the foregoing demonstrates: Longwood and
Hammerman have common officers; Longwood is
operated for the beneficial interest of the minor
children and grandchildren of the controlling owners
and managers of Hammerman; Hammerman has
contracted to manage and operate the Medical Arts
Building, and to supervise and direct Longwood's
working force; Hammerman receives the payments
specified in the contract for performing such
services; and Herman Hammerman admittedly
exercises ultimate control over Eney's day-to-day
responsibilities in discharging Hammerman's
contractual responsibilities. In view of the foregoing,
we find, contrary to the Employer, that under the
management contract Hammerman is sufficiently
involved in the management and operation of the
Medical Arts Building, including the supervision and
direction of Longwood's working force, to justify
treating the two enterprises as joint employers of the
employees involved herein.5 Accordingly, since we
find that Longwood and Hammerman are joint
employers of Longwood's employees, and, on the
5 See Anderson-Rooney Operating Company, 134 NLRB 1480,
1485
6 Hammerman engages in the mortgage banking business, the
management of real estate , and in real estate investment In view
of its banking operations , we find that the standards governing
nonretail operations set forth in Stemons Mailing Service, 122
NLRB 81, apply to Hammerman's operations.
r An election eligibility list, containing the names and
addresses of all the eligible voters, must be filed by the Employer
139
basis of the record stipulation, that Hammerman is
engaged in interstate commerce, and that it annually
receives revenues in excess of $50,000 from
companies outside the State of Maryland, we find
that it will effectuate the policies of the Act to assert
jurisdiction herein.6
2. The Petitioner is a labor organization, claiming
to represent certain employees of the Employer.
3. A question affecting commerce exists
concerning the representation of certain employees
of the Employer within the meaning of Section 9(c)(1)
and Section 2(6) and (7) of the Act.
4. We find that the following employees of the
Employer, as stipulated by the parties at the hearing,
constitute a unit appropriate for the purposes of
collective bargaining within the meaning of
Section 9(b) of the Act:
All doormen, elevator operators, porters,
charwomen, painters, and maintenance employees
employed by the Employer at the Medical Arts
Building, 101 W. Read Street, Baltimore, Maryland,
but excluding licensed engineers, telephone
operators, office clerical employees, watchmen and
guards, professional employees, night forelady, and
other supervisors as defined in the Act.
[Text of Direction of Election' omitted from
publication.]
with the Regional Director for Region 5 within 7 days after the
date of this Decision and Direction of Election The Regional
Director shall make the list available to all parties to the election.
No extension of time to file this list shall be granted by the
Regional Director except in extraordinary circumstances Failure
to comply with this requirement shall be grounds for setting aside
the election whenever proper objections are filed Excelsior
Underwear Inc, 156 NLRB 1236