Union Pacific Railroad v. Price
Dissenting Opinion
The basic question in this case is the one reserved in Elgin, J. & E. R. Co. v. Burley, 325 U. S. 711, 719, 720. It is whether an award that denies a claim for money damages comes within the exception of § 3 First (m) of the Railway Labor Act which provides that “the awards shall be final and binding upon both parties to the dispute, except insofar as they shall contain a money award.”
It was pointed out in the dissent in that case (325 U. S., at 760-761) that the provision for finality of these awards
“Since both Acts came out of the same Congressional Committees one finds, naturally enough, that the provisions for enforcement and review of the Adjustment Board’s awards were based on those for reparation, orders by the Interstate Commerce Commission. Compare Railway Labor Act, § 3, First (p) with Interstate Commerce Act, as amended by § 5 of the Hepburn Act, 34 Stat. 584, 590, 49 U. S. C. § 16 (1), (2). If a carrier fails to comply with a reparation order, as is true of non-compliance with an Adjustment Board award, the complainant may sue in court for.enforcement; the Commission’s order and findings and evidence then become prima facie evidence of the facts stated. But a denial of a money claim by the Interstate Commerce Commission bars the door to redress in the courts. Baltimore & Ohio R. Co. v. Brady, 288 U. S. 448; I. C. C. v. United States, 289 U. S. 385, 388; Terminal Warehouse v. Pennsylvania R. Co., 297 U. S. 500, 507.”
Since the decision in the Burley case the situation described in the dissenting opinion has changed. Subsequently, United States v. Interstate Commerce Comm’n, 337 U. S. 426, was decided; and it held, contrary to earlier precedents cited in the dissent in the Burley case, that orders in reparations cases which denied the claims of shippers were reviewable in the federal courts. It pointed out that the “negative order” doctrine, which we abandoned in Rochester Tel. Corp. v. United States, 307 U. S. 125, had greatly influenced those prior decisions.
We refused to follow that discarded doctrine there; and it should find no place here. An award of iio damages is, as I see it, as much a “money award” as an award of 6 cents. The words “money award” are descriptive of the
Tolerance of judicial review has been more and more the rule as against the claim of administrative finality.
Respondent argues that it would be grossly unfair to construe § 3 First (m) so as to deny judicial review to a defeated employee but not to a defeated railroad. That would indeed be the result if an employee asserting a money claim cannot get court review if he loses, while the employer can obtain it if the employee wins. It is difficult for me to believe that Congress designed and approved such a lopsided, preferential system. No rhyme or reason is apparent for such discrimination. The attempt throughout was to equalize the advantages of the contending parties, not to prefer the employer who had long been dominant. Washington Terminal Co. v. Boswell, 75 U. S. App. D. C. 1, 6-7, 124 F. 2d 235, 240-241. Some have said that an award denying payment cannot be a “money award” in the intendment of the Act. Berryman v. Pullman Co., 48 F. Supp. 542. But that is a narrow reading, not' in keeping with the harmony of the Act. I would read § 3 First (m) so as not to preclude judicial
It is true that the Act does not provide the method of review in a case of this kind. Section 3 First (p) only covers the case where an award has been granted an employee and the carrier “does not comply.” In that case the order of the Board “shall be prima facie evidence of the facts therein stated.” § 3 First (p). But this action is properly maintainable if the District Court otherwise has jurisdiction. No question of election of remedies is involved because of the express provision in the Act that the award of. the Board is not final. Since there is no provision in the Act that specifies what judicial review may be obtained, there are preserved whatever judicial remedies are available. One of those is a suit for damages for wrongful discharge. In three' separate decisions we 'have said that actions for wrongful discharge can be maintained in the courts by the employee. Moore v. Illinois Central R. Co., 312 U. S. 630; Slocum v. Delaware, L. & W. R. Co., 339 U. S. 239, 244; Transcontinental Air v. Koppal, 345 U. S. 653, 661. We stated in the Slocum case that “A common-law or statutory action for wrongful discharge differs from any remedy which the Board has power to provide . .'. .” The Board has power to reinstate the discharged employee and award back pay; and that was the relief which this employee sought before the Board. But the common-law action for wrongful discharge may include other items of damages as well. Here the employee claimed not only lost earnings but future earnings, seniority rights, retirement rights, hospitalization rights, and transportation rights. Whether Nevada law that , governs this contract would grant as much is not now important. The point is that the measure of the recovery in a suit for damages is not necessarily the same and may in fact be greater, including an
In my view the Court’s contrary reading of § 3 raises questions of constitutional magnitude. For if an employee is to be denied any review of the Board’s decision when the railroad prevails, while the latter can obtain judicial review with a jury trial before complying with a Board order, there would appear to be an unjustifiable discrimination in violation of- the Due Procéss Clause of the Fifth Amendment. It is not the usual practice in this country to permit one party to a lawsuit two chances to prevail, while the other has only one, nor to permit one party but not the other to get a jury determination of his case, See Pennsylvania R. Co. v. Day, ante, p. 554 (dissent).
The result is that I would remand the case to the District Court for trial.
Cases like Switchmen’s Union v. Mediation Board, 320 U. S. 297, and General Committee v. M-K-T R. Co., 320 U. S. 323, are no true exception, for those cases involved mediation, not adjudication— mediation being-“the antithesis of justiciability.” 320 U. S., at 337.
See, e. g., Wis. Stat. Ann., § 103.39 (3); Tex. Civ. Stat., Art. 2226. Cf. Fair Labor Standards Act, § 16 (b); 29 U. S. C. § 216 (b).
Opinion of the Court
delivered the opinion of the Court.
This is a diversity common-law action brought by the respondent, a former employee of petitioner railroad, in the United States District Court for the District of Nevada to recover damages from the railroad for allegedly wrongfully discharging him in violation of the collective bargaining agreement between it and the Brotherhood of Railroad Trainmen. The validity of the discharge was previously challenged upon the same grounds before the National Railroad Adjustment Board, First Division, in a proceeding brought by the Brotherhood on respondent’s behalf under § 3 First (i) of the Railway Labor Act,
The respondent was employed, by petitioner as a swing brakeman (an extra brakeman who is not a regularly assigned member of a train crew) and was a member of
On July 12, 1949, the respondent was called to “deadhead” on Train No. .37 from Las Vegas, Nevada, to Nipton, California, at which point he was to detrain and await assignment to another train traveling to Las Vegas. Train No. 37 arrived at Nipton at 10:30 p. m., and the train dispatcher assigned respondent to train No. X 1622E> which was due to arrive at Nipton around 4 a. m., en route to Las Vegas. The respondent complained that there were no facilities available in- Nipton for eating or sleeping and told the dispatcher he would go back to Las Vegas and return after getting something to eat. The. dispatcher refused to release him and orderéd him to wait the arrival of train X 1622E. The respondent disobeyed this instruction and deadheaded back to Las Vegas on a train which left Nipton at 11:10 p.m.
The railroad suspended the respondent on the morning of July 13. On July 16 he received a notice to appear at 10 a. m. on July 17 before an Assistant Superintendent of the railroad for an investigation. At the respondent’s request the investigation was postponed to the morning of July 18, at which time the respondent requested a further postponement until his representative, the Brotherhood’s Local Chairman, could be present. A postponement was again granted, until 2:30 p. m. of the 18th, but
The Brotherhood processed respondent’s grievance through the required management levels, and when settlement could not be reached, nor agreement arrived at for a joint submission to the National Railroad Adjustment Board, the Brotherhood, in January 1951, filed an ex parte submission with the Board’s First Division.
We do not agree with the Court, of Appbals’ holding that the Board’s award was based solely on its decision that Article 33 (á) was. not violated by. the railroad because respondent’s dismissal followed a “thorough investigation.” Rather we think the award also reflects the Board’s determination that respondent was discharged for good cause. Thus we agree with Judge Healy, dissenting in the Court of Appeals, that on the face of the customárily brief findings of the Board
The purpose of the Railway Labor Act was to provide a framework for peaceful settlement of labor disputes between carriers and their employees to “insure to the public continuity and efficiency of interstate transportation service, and to protect the public from the injuries and losses consequent upon any impairment or interruption of interstate commerce through failures of managers and employees to settle peaceably their controversies.” H. R. Rep. No. 328, 69th Cong., 1st Sess., p. 1. Congress did not, however, in the original 1926 Act, create the National Railroad Adjustment Board or make the use of such an agency compulsory upon the parties; rather the Act contemplated that settlement of disputes would be achieved through “machinery for amicable adjustment of labor disputes agreed upon by the parties . . . .” S. Rep. No. 606, 69th Cong., 1st Sess., p. 4. Congress, therefore, provided that adjustment boards should be “created by agreement between any carrier or group of carriers, or the carriers as a whole, or its or their employees.” § 3 First of the Railway Labor Act of 1926, 44 Stat. 678. These adjustment boards, intended for use in settling what are termed minor disputes in the railroad industry, primarily grievances arising from the application of collective bargaining agreements to particular situations, see Railroad
But the 1926 Act provided no sanctions to force the carriers and their employees to make agreements establishing adjustment boards and many railroads refused to participate on such boards or so limited their participation that the boards were ineffectual.
The railroad labor organizations were particularly dissatisfied. They urged that effective adjustment of grievances could be attained only by amendments to the 1926 Act that would' establish a National Adjustment Board in which both carriers and employees would be required to participate, that would permit an employee to compel a carrier to submit a grievance to the Board, that would provide for a neutral person to break deadlocks occurring when the labor and management representatives divided equally, and, finally, that would make awards binding on the parties and enforceable in the courts, when favorable to the employees.
The labor spokesman for the proposal made it crystal clear that an essential feature of the proposal was that Board awards on grievances submitted by or on behalf of employees were to be final and binding upon the affected employees. The employees were willing to give up their remedies outside of the statute provided that a workable and binding statutory scheme was established to settle grievances. Mr. George Harrison, President of the Brotherhood of Railroad Clerks, stated: “Grievances come about because the men file them themselves. Railroads don’t institute grievances. Grievances are instituted against railroad officers’ actions, and we are willing to take our chances with this national-board because we believe, out of our experience, that the national board is the best and most efficient method of getting a determination of these many controversies . . . .” Hearings before the Senate Committee on Interstate Commerce on S. 3266, 73d Cong., 2d Sess., p. 33. “[W]e are now ready to concede' that we can risk having our grievances-go to a board and ge.t them determined . . . [but] if we are going to get a hodgepodge arrangement by law, rather than what is suggested by this bill,.then we don’t want to give up that right, because we only- give up the right because we feel that we will get a measure of justice by this machinery that we'suggest here.” Id., at 35; Mr. Eastman echoed this thought : “decisions of the adjustment board . . . are made final and binding by the terms of this act, and as I understand it, the labor organizations, none of them, are objecting to that provision. They have their day in court and they have their members on the adjustment board, and if an agreement cannot be reached between the parties
Thus the employees considered that their interests would be best served by a workable statutory scheme providing for the final-settlement of grievances by a tribunal composed of people experienced in the railroad industry. The employees’.representatives made it clear that, if such a statutory scheme were provided, the employees would accept the awards as to disputes processed through the schemé as final settlements of. those disputes which were not to be raised again.
Despite the conclusion compelled by the over-all scheme of the Railway Labor Act and its legislative history, it is suggested that because an enforcement proceeding against a noncomplying carrier under § 3 First (p) affords the defeated carrier some opportunity to relitigate the issues decided by the Adjustment Board,
Plainly the statutory scheme as revised by the 1934 amendments was designed for effective and final decision of grievances which arise daily, principally as matters of the administration and application of the provisions of collective bargaining agreements. This grist of labor relations is such that the statutory scheme cannot realistically- be squared with the contention that Congress did not purpose to foreclose litigation in the courts over grievances submitted to and disposed of by the Board, past the action under § 3 First (p) authorized against the noncomplying carrier, see Washington Terminal Co. v. Boswell, 75 U. S. App; D. C. 1, 124 F. 2d 235, aff’d by an equally divided Court, 319 U. S. 732, or the review sought of an award claimed to result from a denial of due process of law, see Ellerd v. Southern Pacific R. Co., 241 F. 2d 541; Barnett v. Pennsylvania-Reading Seashore Lines, 245 F. 2d 579, 582. So far as appears, all of the Courts of Appeals
We therefore hold that the respondent’s submission to the Board of his grievances as to the validity of his discharge precludes him from seeking damages in the instant common-law action.
The judgment of the Court, of Appeals is reversed and the case is remanded with direction to affirm the judgment of the District Court.
It is-so ordered.
Section 3 First (i) of the Railway Labor- Act, 48 St at. 1191, 45 U. S. C. § 153 First (i), provides:
“The disputes between an employee or group of employees and a carrier or carriers growing out of grievances or out of the inter-, pretation or application of agreements concerning rates of pay, rules, or working conditions, including cases pending and unadjusted on June 21, 1934, shall be handled in. the usual manner up to and including the chief operating officer of the carrier designated to handle such disputes; but, failing to reach an ádjustméiít in this manner, the disputes may be referred by petition of the parties or by either party to the appropriate division of the Adjustment Board with a full statement of the facts and all supporting data bearing upon the disputes.”
It is conceded that respondent authorized the Brotherhood to bring his claim before the Adjustment Board. Compare Elgin, J. & E. R. Co. v. Burley, 325 U. S. 711, aff’d on rehearing, 327 U. S. 661.
The pertinent excerpts from the findings are the following:
“If the carrier is to have efficient operations on its railroad, employees must be relied on to obey operating instructions and orders. Claimant was found to have wilfully disobeyed his orders. This was insubordination and merited discipline.
“The employee . . . seeks complete vindication on the grounds that he was denied the investigation-provided by the rules of agreement. Thus, the only question for review is whether there was substantial •compliance with the investigation rule.
“Basically, the complaint is that the hearing was held when the claimant was not present.
“. . . The right of the employee to be heard before being disciplined is a personal right which he can waive by action, inaction, or failure to act in good faith. . . .
"... his position here would have been strengthened had he personally appeared at all stages of the proceeding to labor as best*605 he could to preserve his record and to get his story to us first hand. All that the transcript reflects does claimant no credit, but leaves us with the feeling that the things of which he now complains Were planned by him that way.”
Garrison, The National Railroad Adjustment Board: A Unique Administrative Agency, 46 Yale L. J. 567, 584, describes the awards of the' First Division of the National Adjustment'.Board as follows:
“It will be noted that, except for the purely jurisdictional recitals, the findings consist of a single sentence (‘The evidence indicates that the movements made did not constitute switching under Article I-R’) which constitutes the nub of the whole decision. Rarely does this central finding consist of more than a sentence or two. To a lay reader the sentence quoted above is meaningless. In order that it may be more intelligible the findings in their printed form are preceded by the employees’ statement of facts taken from their submission, and a statement of their position (likewise extracted from the submission), followed by the management’s statement of facts*607 and a statement of its position derived similarly from its submission. From these rival statements it is easy to determine what' the controversy is about, but it is not easy to determine from the laconic findings'the real basis upon which the decision was reached.”
In an interpretation announced on November 26, 1958, sought by the railroad under § 3 First (m) of the Railway Labor Act, the Board declared that its award reflected its conclusion that the railroad was justified in discharging respondent. This interpretation was not before the Court of Appeals in this case, and we refer to it only as further substantiation of our conclusion based on the iecord in the case.
Since respondent, instead of bringing his claim in court as was his right under Moore v. Illinois Central R. Co., 312 U. S. 630, chose to pursue that claim before the Adjustment Board, he does not even argue that a holding that the Railway Labor Act precludes a relitigation of that claim in the courts would deprive him of any constitutional right to a jury trial.
48 Stat. 1191-1192, 45 U..S. C. § 153 First (m). That section provides:
“The awards of the several divisions of the Adjustment Board shall be stated in writing. A copy of the awards shall be furnished to the respective parties to the controversy, and the awards shall be final and binding upon both parties to the dispute, except insofar as they shall contain a money award. In case a dispute arises involving an interpretation of the award the division of the Board upon request of either party shall interpret the award in the light of the dispute."
Despite the clear import of the statutory language and the legislative history the respondent argues that this Court’s holding in Moore v. Illinois R. Co., 312 U. S. 630, requires us to hold that the instant suit is not precluded. However, the holding in Moore was simply that a common-law remedy for damages might be pursued by a discharged employee who did not resort to. the statutory remedy before the Board to challenge the validity of his dismissal. A different question arises here where the employee obtained a determination from the Board, and, having lost, is seeking to relitigate in the courts the same issue as to the validity of his discharge.
See Hearings' before the Senate Committee on Interstate Commerce on S. 3266, 73d Cong., 2d Sess., p. 15. The Chairman of the United States Board of Mediation described § 3 First of the 1926 Act as follows: “The provision in the present [1926] act for adjustment boards is in practice about as near a fool provision as anything could possibly be. I mean this — that on the face of it they shall, by. agreement, do so and so. Well,-you can do pretty nearly anything by agreement, but how can you get them to agree ?” Hearings before the Senate Committee on Interstate. Commerce on S. 3266; 73d Cong., 2d Sess., p. 137.
Provision for judicial enforcement of awards against employees was thought to be unnecessary since grievances are usually asserted by employees challenging some action by the carrier, and if the grievance is not sustained by the Board, the award simply denies the claim and requires no affirmative action by the employee. If an
For discussion of the statutory scheme enacted in the Railway Labor Act and the 1934 amendments thereto, see Elgin, J. & E. R. Co. v. Burley, 325 U. S. 711; Railroad Trainmen v. Chicago River & I. R. Co., 353 U. S. 30; Washington Terminal Co. w. Boswell, 75 U. S. App. D. C. 1, 124 F. 2d 235, aff’d by an equally divided Court, 319 U. S. 732.
Section 3 First (p) of the Railway Labpr Act, 48 Stat. 1192, '45 U. S. C. § 153 First (p), provides:
“If a carrier does not comply with an order of a division of the Adjustment Board within the .time limit in such order, the petitioner . . . may file in the District Court of the United States . . . a petition setting forth briefly the causes for which he claims relief, and the order of the division of the Adjustment Board in the premises. Such suit in the District Court of the United States shall proceed in all respects as other civil suits, except that on the trial of such suit the findings and order of the division of the Adjustment'Board shall be prima facie evidence of the facts therein stated, and except that the petitioner shall not be liable ~for costs in the district court nor for costs at any subsequent stage of the proceedings, unless they accrue upon his appeal, and such costs shall be paid out of the appropriation for the expenses of the courts of the United' States.. If the petitioner shall finally prevail he shall be allowed a reasonable attor*615 ney’s fee, to be taxed arid collected as a part of the costs of the suit. The district courts are empowered, under the rules of the court governing actions at law, to make such order and enter such judgment, by writ of mandamus or otherwise, as may be appropriate to enforce or set aside the order of the division of the Adjustment Board.”
Barnett v. Pennsylvania-Reading Seashore Lines, 245 F. 2d 579 (C. A. 3d Cir.); Bower v. Eastern Airlines, Inc., 214 F. 2d 623 (C. A. 3d Cir.); Michel v. Louisville & N. R. Co., 188 F. 2d 224 (C. A. 5th Cir.); Reynolds v. Denver & R. G. W. R. Co., 174 F. 2d 673 (C. A. 10th Cir.); Washington Terminal Co. v. Boswell, 75 U. S. App. D. C. 1, 10, 124 F. 2d 235, 244 (C. A. D. C. Cir.), aff’d by an equally divided Court, 319 U. S. 732.
Weaver v. Pennsylvania R. Co., 141 F. Supp. 214 (D. C. S. D. N. Y.), aff’d per curiam, 240 F. 2d 350 (C. A. 2d Cir.); Byers v. Atchison, T. & S. F. R. Co., 129 F. Supp. 109 (D. C. S. D. Cal.); Greenwood v. Atchison, T. & S. F. R. Co., 129 F. Supp. 105 (D. C. S. D. Cal.); Farris v. Alaska Airlines, Inc., 113 F. Supp. 907 (D. C. W. D. Wash.); Parker v. Illinois Central R. Co., 108 F. Supp. 186 (D. C. N. D. Ill.); Futhey v. Atchison, T. & S. F. R. Co., 96 F. Supp. 864 (D. C. N. D. Ill.); Kelly v. Nashville, C. & St. L. R. Co., 75 F. Supp. 737 (D. C. E. D. Tenn.); Ramsey v. Chesapeake & O. R. Co., 75 Supp. 740 (D. C. N. D. Ohio); Berryman v. Pullman Co., 48 F. Supp. 542 (D. C. W. D. Mo.).
Reference
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