Nature of the Case
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Facts
Kerin had labor problems. Between November 1955 and mid-January, 1956, the Kerin companies were confronted with organizational activities on the part of four unions. Representatives from Teamster Local 210 threatened to organize the companies by 'putting pickets out' and 'stopping shipments' if management did not agree to organize the employees on behalf of their local. Some six weeks later a picket appeared at the delivery and shipping entrance in the rear of the Kerin premises, carrying a placard reciting that one of the Kerin companies was unfair to members of Teamster Local 138. No representative from that local ever contacted management, and all its officials testified that they had not authorized a picket line at the premises. Local 1601 also appeared with the consent of management. Confusion existed as to what the employees should do. Meanwhile, truck drivers from two companies refused to cross refused to cross picket lines. Kerin's lawyer, Coogan, met with McNamara through his brother-in-law, a law professor. In private, McNamara suggested, 'that something might be done, but that it would be expensive * * * it could run five to ten thousand dollars.' At dinner, Holt approached the table and was introduced as an attorney. He was an officer of Teamster Local 805 and not a member of the Bar. McNamara stated: 'This looks to me to be the kind of a situation which Equitable can help out,' to which Holt nodded an affirmative. Coogan reported that * * * for a payment of ten thousand dollars, the whole matter could be settled, and settled almost immediately.' If not, a complete shutdown would ensue. Kerin, Sr., agreed to a meeting. McNamara and Holt met with the three Kerin officers in a private dining room at the Manhattan Club. Holt soon suggested that Kerin, Sr., and McNamara 'step outside and have a chat.' McNamara assured Kerin, Sr., that his troubles could be ended, and would be, if he did three things: (1) 'joined up' with McNamara's Local 295, (2) paid $3,500 to Equitable to defray expenses incurred to organize the companies, and (3) retained Equitable as labor consultant at $100 per month for which the companies 'would get counsel and advice * * * in any matter that was pertinent or related to labor or labor relationships'. McNamara repeatedly assured Kerin, Sr., that the picketing would stop immediately and the companies would be guaranteed labor peace if his program were accepted. Kerin, Sr., protested against the proposed payment of $3,500. It was intimated that the money was required if we are going to avoid further trouble and further difficulties. Sr. finally agreed. That Monday no picket or organizer appeared, and McNamara came to the office delivered two letter agreements between Equitable and the Kerin companies, signed by D. McNamara insisted on immediate receipt of $3,500, and checks in that amount were handed over to him. There was no mention of reimbursement to the unions for their cost of organization. Equitable did not participate in any way in the negotiation of the union contract, and its consulting services were never requested or used by the Kerin management. The Kerin companies continued to pay Equitable $200 until they were instructed by the District Attorney's office to discontinue the payments. D was convicted of extortion. On appeal, the conviction was overturned, and the State of New York (P) appealed.
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