UNION PACIFIC RAILROAD CO. v. PRICE
No. 414
Supreme Court of the United States
Argued March 31, 1959.—Decided June 29, 1959.
360 U.S. 601
Samuel S. Lionel argued the cause and filed a brief for respondent.
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
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 ordered 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.2 Hearing was waived by the parties and the submission was considered on the papers filed by them. The Adjustment Board, on June 25, 1952, rendered its award “Claim denied,” with supporting findings.3
We do not agree with the Court of Appeals’ holding that the Board‘s award was based solely on its decision that Article 33 (a) 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 customarily brief findings of the Board4 it appears “plain that
The purpose of the
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.9 Moreover, the boards which were created were composed of equal numbers of management and labor representatives and deadlocks over particular cases became commonplace. Since no procedure for breaking such deadlocks was provided, many disputes remained unsettled. As reported to Congress in 1934 by Mr. Eastman, Federal Coordinator of Transportation: “Another difficulty with the present law [the 1926 Act], even where an adjustment board has been established, is that, although its decisions are final and binding upon both parties, there can be no certainty that there will be a decision.” Hearings before Senate Com-
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.10 These views prevailed in the Con-
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 get 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 scheme as final settlements of those disputes which were not to be raised again.
Despite the conclusion compelled by the over-all scheme of the
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
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.
MR. JUSTICE DOUGLAS, with whom THE CHIEF JUSTICE and MR. JUSTICE BLACK concur, dissenting.
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
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 no 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.1 See Shields v. Utah Idaho R. Co., 305 U. S. 177, 183; Stark v. Wickard, 321 U. S. 288, 309-310; Harmon v. Brucker, 355 U. S. 579, 581-582; Leedom v. Kyne, 358 U. S. 184, 190. The weight of the
Respondent argues that it would be grossly unfair to construe
It is true that the Act does not provide the method of review in a case of this kind.
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 Process 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.
