Union Pacific Railroad v. Mason
Union Pacific Railroad v. Mason
Opinion of the Court
This is a suit for declaratory relief under ORS 28.010 to 28.160. The plaintiff railroad appeals from a decree in the circuit court which dismissed a proceeding to litigate the validity of a release given the railroad by an injured workman.
On or about April 18, 1961, Mason, the defendant here, filed in the Circuit Court for Multnomah County a complaint in an action at law for damages for injuries which he alleged were suffered in the course of his employment with the railroad. The railroad did not file an answer in that action, but on May 5, 1961, filed the complaint in the case at bar.
The complaint in the case at bar was successfully attacked by demurrer below. The complaint alleged facts which the railroad contended entitled it to equitable relief as well as to a declaration of rights under ORS 28.010 et seq. The prayer was first for a determination that the release agreement was binding. There was a further prayer that Mason be enjoined from prosecuting his action then pending in the same court. In the alternative, if the release be found to be subject to recission by Mason, then the railroad prayed that he be ordered to restore the consideration which had been paid therefor.
Mason’s demurrer was based on these grounds: (1) the complaint did not state facts sufficient to constitute a cause of suit; (2) the court had no jurisdiction of the subject of the suit; and (3) there was another action pending between the same parties for the same cause. The trial court sustained the demurrer. Since it appeared from the complaint that the validity of the release could be litigated in the
On appeal, the railroad relies on the assumption that only by means of this suit can the “long arm of equity” do complete justice. Essential to the railroad’s position is the assumption that it cannot obtain complete relief in the law action, and therefore it must have equitable relief in any event. The railroad assumes that if Mason should prove that the release is invalid the law action will be an imperfect instrument for the determination of the right to restitution. The trial court treated this assumption as too hypothetical to invoke the aid of equity. The trial court said the matter of restitution was subject to so many factual and legal qualifications that the complaint could not be said to have stated sufficient facts to make out a cause of suit. The court was of the opinion, as noted, that bare declaratory relief was foreclosed by the existence of another action. Thereby, in effect, the court held that the complaint did not allege grounds for any relief at all.
In Employers Mut. Liability v. Bluhm, 'supra, Bluhm had received injuries while in the course of his employment with Chemical Lime Co. Chémical Lime had rejected state compensation and provided private insurance coverage for its employees through Employers Mutual. Following his injury, Bluhm executed a document which coupled a compensation agreement between Bluhm and Employers Mutual with a release-of-liability agreement between Bluhm and Chemical Lime. After receiving for nearly two years the monthly payments provided under the compensation agreement, Bluhm and his wife instituted 'separate actions for damages against 'Chemical Lime.
Union Pacific seeks to distinguish the Bluhm case by pointing opt that there the payment for the release had been only partially executed, whereas in the instant ease the consideration for the release has been fully paid. Further, the railroad points- out, in the Bluhm case the matter of restitution was never presented to this court nor discussed in the opinion. Accordingly, the railroad urges, the aid of equity was not invoked, and the only issue there was whether the validity of the release could be determined in the declaratory proceedings.
The distinctions mentioned, while real enough, do not afford a sufficient basis for reaching -a different result in the ease at 'bar. It is true that the Bluhm ease primarily involved declaratory relief, while the case at bar contains a 'stronger plea for equitable relief as well. It is also true that the Bluhm case was grounded on the proposition that where one court already has before it a case in which it can determine all the issues that can be raised between the
The same fundamental policy against multiplicity of litigation, however, has equal application here. A law action is already pending in the same court in which the declaratory relief is 'being sought. In that action, the validity of the release may be decided. If the release is valid, it will bar the action. The right to equitable relief for either of the parties, and the extent thereof, does not become material until after an initial determination that the release is bad. If it is good, then an injunction is not needed, because the release would be a bar to the law action. If the release is bad, restitution may or may not be available to the railroad, depending upon a number of contingencies. Cf. Franklin v. Webber, 93 Or 151, 158, 182 P 819 (1919). As noted, these contingencies are largely speculative. The release has not been pleaded in the law action and the issues thereon have not been joined.
Inasmuch as the validity of the release is the fundamental issue, in either case, and inasmuch as it very well may be determined in the pending law action, we adhere to the principle set forth in the Bluhm case and hold that no error was committed in sustaining the demurrer to the complaint. Possible issues on restitution, or the ultimate collectibility of a judgment therefor, may well be disposed of in the law action. If any issues cannot be worked out in the law action or proceedings supplemental thereto, they are so hypothetical and speculative that they do not afford a basis for engaging in a separate suit in equity at this time.
The railroad advances another reason why it believes the Bluhm case should not be controlling in
Because we are applying the Bluhm case to the case at bar, it is again unnecessary to decide the legal effect of CBS 28.090, which gives a right to a jury trial in certain types of declaratory-judgment proceedings.
Mason contends that since his law action is brought under the Federal Employers’ Liability Act, 45 U'SC §§51-60 (¡1958), all questions of fact, including the validity of the release, must be determined by the jury that tries the law action. We find it unnecessary now to decide whether, under the FELA, the validity of a release must be determined by the same jury, and, if so, by the same verdict that disposes of the questions of negligence and damages. Those questions appear to have been left open
We turn to another basis for equitable relief urged in the case at bar. The railroad says that if it is required to plead its release in the law action as a defense, it will be forced to waive its right to restitution. This argument assumes that the release ultimately might be found to be one subject to rescission under circumstances in which equity, but for such a pleading, ordinarily would have made restitution of the consideration a condition precedent to rescission. We believe this fear to be too speculative to justify the intervention of equity in this case. The contention is based on Oregon cases which have followed the rule that the pleading of a release as a defense in an action for damages is a waiver of any right to the tender of restitution of the consideration should the release later be held to be subject to unilateral rescission by the person who signed it. See, e.g., Franklin v. Webber, supra, 93 Or at 159, and Woods v. Wikstrom, 67 Or 581, 600-602, 135 P 192 (1913). These cases proceed on the well-known principle that the law does not require an idle act, and that a tender that obviously would be refused need not be made. In the case at bar, of course, we do not know whether the railroad will plead its release in the law action, or, if it does so, whether it will do so in a manner that will permit possible issues of restitution on the question of rescission to be kept open. Again, the question of the actual recovery of restitution may never arise. If such a question does arise, there will be time enough then to decide whether the pleading of a re
Other cases are cited by Union Pacific, in each of which a declaratory proceeding was employed to test the validity of a release. They are not in point. In none of the cited cases was any other action pending at the time the declaratory judgment was requested. Cf. Zayatz v. Southern Ry. Co., 248 Ala 137, 26 So2d 545, 167 ALR 426, cert. den. 329 US 789, 67 S Ct 353, 91 L Ed 676 (1946); Union Pacific R. R. Co. v. Zimmer, 87 Cal App2d 524, 197 P2d 363 (1948).
Affirmed.
Reference
- Full Case Name
- UNION PACIFIC RAILROAD COMPANY v. MASON
- Status
- Published