Amalgamated Society of Railway Servants v. Osborne

(Before the Earl of Halsbury , Lords Macnaghten , James of Hereford, Atkinson , and Shaw .)

Subject_ Trade Union — Rules — Ultra Vires — Parliamentary Representation — Compulsory Payments to Representatives — Trade Union Acts 1871 (34 and 35 Vict. cap. 31), and 1876 (39 and 40 Vict. cap. 22). Facts: A trade union altered its rules by adding as an object “to secure parliamentary representation.” The new rules also established for this purpose a money levy compulsory upon the members of the trade union, and provided that all parliamentary candidates “shall sign and accept the conditions of the Labour Party.”

Held that the rules imposing the levy were invalid and unenforceable, because such objects were ultra vires of the trade union, or ( per Lord Shaw) illegal as contrary to public policy.

Lord James of Hereford—After much consideration I have come to the conclusion that your Lordships' judgment should be given in favour of the respondent. But I desire to explain that the opinion which I thus express is founded upon one particular fact existing in the case. With much of the argument adopted by counsel at the bar on behalf of the appellants I agree. For instance, I think that it may well be in the interests of trade unionism and labour that the funds of a trade union Page: 616 ↓

Counsel for Appellants— Sir R. B. Finlay , K.C.— Peterson , K.C. — P. B. Abraham — E. Browne — A. Clement Edwards . Agents — Pattinson & Brewer , Solicitors.