Amalgamated Transit Union, Local Division 1338 v. Dallas Public Transit Board

430 S.W.2d 107, 69 L.R.R.M. (BNA) 2177, 1968 Tex. App. LEXIS 2231
CourtCourt of Appeals of Texas
DecidedMay 31, 1968
DocketNo. 17097
StatusPublished
Cited by18 cases

This text of 430 S.W.2d 107 (Amalgamated Transit Union, Local Division 1338 v. Dallas Public Transit Board) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amalgamated Transit Union, Local Division 1338 v. Dallas Public Transit Board, 430 S.W.2d 107, 69 L.R.R.M. (BNA) 2177, 1968 Tex. App. LEXIS 2231 (Tex. Ct. App. 1968).

Opinion

CLAUDE WILLIAMS, Justice.

This is an appeal from a judgment of the district court construing and reforming a pension Plan and Trust agreement.

FACTS

For a number of years there has existed a system of public mass transportation for the general public of Dallas, contiguous unincorporated areas and adjoining municipalities, same being commonly known as the Dallas Transit System. This transit system was formerly owned and operated by a privately owned company, the Dallas Transit Company (hereinafter referred to as Company). The bus operators and mechanics employed by the Company were represented in collective bargaining by Division 1338, of the Amalgamated Transit. Union1 (hereinafter called Union). On April 6, 1960, following collective bargaining, the Company and the Union, representing certain employees of the Company who were members of the Union, jointly established a pension Plan and Trust agreement providing pension benefits for the Transit System’s employees “who were eligible for Union membership and * * * regularly and continuously employed by the Company * * The Plan and Trust provided for contributions by both the employer and the employees in specified percentages of income and designated the Mercantile National Bank at Dallas (here[110]*110inafter called Trustee Bank) as trustee of the pension funds. Pursuant to the Trust Agreement and the Plan, the principal administrative duties of the Plan, with instructions to the Trustee Bank, are concentrated in the hands of a retirement committee consisting of a chairman and three additional members, two to be designated by the Company and two by the Union.

The Plan provided that all acts, decisions and determinations of the retirement committee shall be made with the consent and approval of the majority of the members thereof and that in the event a majority cannot agree such items in disagreement will be referred to the Plan actuary who is designated an impartial arbiter whose decisions shall be binding on all parties. Another provision of the Plan provides that the Company and the Union shall have the right, by mutual consent, to amend the Plan, such amendment being evidenced by a written instrument executed in the name of the Union and of the Company.

On December 9, 1963, the City Council of the City of Dallas enacted Ordinance No. 10086 which provided that there was thereby created a department of the City of Dallas to be known as the Dallas Public Transit Department, the purpose and function of which was to acquire, maintain and operate a system of public mass transportation for the general public of Dallas, contiguous unincorporated areas and adjoining municipalities. The ordinance, in Section 2 thereof, created the Dallas Public Transit Board (hereinafter called Board) dor the purpose of the control, management, operation and administration of this department * * This ordinance was enacted pursuant to the authority of Art. 1118w, Vernon’s Ann.Civ.St. of Texas.2

On December 23, 1963 the City of Dallas entered into a contract of sale with the Company, by the terms of which the City purchased all of the physical assets comprising the bus and trolley coach transit system in the City and County of Dallas, for the sum of $5,500,000. Section V of the contract provided that the Company would transfer to the City:

“ * * * its rights, if any, as now exist or may hereafter accrue in the properties, physical assets and records belonging to the various retirement systems of the officers and employees so that the same may be administered by purchaser or the trustee, as the case may be, for the benefit of those for whom these retirement systems were established.”
Section XIII provided:
“The purchaser, however, is not assuming or recognizing any union contracts.”

Thereafter the City of Dallas assumed the retirement Plan and continued to make payments thereunder but expressly refused to assume any Union contract and the Trustee Bank was advised that the City and representatives of the Board, pursuant to Art. 5154c, V.A.C.S.,3 and Section 2(2) of the [111]*111National Labor Relations Act, as amended by 29 U.S.C.A. Sec. 152(2), would refuse to recognize the Union as representing the employees covered by the Plan; refuse to recognize the Union as having any standing to appoint members of the retirement committee; and refuse to recognize the Union as having any right to take any action with respect to said retirement Plan and Trust.

Sec. 2 of Art. 1118w, V.A.C.S. expressly authorized cities to issue bonds and notes which could be sold to secure revenues for the acquisition, purchase, construction, improvement or extension of such transportation system. Pursuant to this statute the City enacted Ordinance No. 10134 on January 8, 1964 which authorized the issuance of $5,500,000 of transit system revenue bonds, the same ordinance ratifying and approving the execution of a deed of trust by the Mayor, City Manager and City Secretary securing the payment of the bond by transfer to the First National Bank at Dallas, as Trustee of the transportation system and all property of every kind used or acquired in connection with the system. This ordinance provides that the system shall be operated by the Dallas Public Transit Board, created by the deed of trust. The deed of trust provided that the management and control of the system during such time as the obligations are outstanding and unpaid shall be vested in a Board of Trustees designated “Dallas Public Transit Board.” It further provided that the Board of Trustees shall have absolute and complete authority and power with reference to the control, management and operation of the system.

On February 15, 1965, the City of Dallas enacted Ordinance No. 10874 for the avowed purpose of “more clearly defining the powers and duties of the Board and its relation to the City Council of Dallas.” This ordinance provided that the Board shall “maintain and operate” the transit system and “shall be vested with the control, management, operation and administration of said system under the terms and conditions provided in this ordinance and by the terms and conditions of the deed of trust as amended by the supplemental deed of trust.” This ordinance provides, inter alia, that the Board members would be subject to the provisions of the charter of the City of Dallas and other laws applicable to the members of the City Council; that members of the Board must reside within the city limits of the City of Dallas; that the Board must have the approval of the City Council before making any capital improvements to the system; that the City Council shall have final control of fares, charges [112]*112and tolls; that the Board must file a monthly financial report for the City Council ; that the Board shall keep accounts and records in accordance with the provisions of the charter of the City of Dallas; that all contracts shall he made in the name of the City of Dallas for the benefit of the Dallas Transit System and the contract shall he signed by the City Manager and attested by the City Secretary and countersigned by the City Auditor; that all revenues shall be deposited with the City Treasurer; that the General Manager and officers and employees shall be subject to the provisions of the charter of the City of Dallas concerning a conflict of interests;', and that the City Attorney is to represent the system in all legal matters.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

in the Matter of Troy S. Poe Trust
Texas Supreme Court, 2022
Elness Swenson Graham Architects, Inc. v. RLJ II-C Austin Air, LP
520 S.W.3d 145 (Court of Appeals of Texas, 2017)
Alpert v. Riley
274 S.W.3d 277 (Court of Appeals of Texas, 2009)
Conte v. Ditta
287 S.W.3d 28 (Court of Appeals of Texas, 2007)
Vineyard v. Irvin
855 S.W.2d 208 (Court of Appeals of Texas, 1993)
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1983
Opinion No.
Texas Attorney General Reports, 1983
Elizondo v. Williams
643 S.W.2d 765 (Court of Appeals of Texas, 1982)
General Telephone Co. of the Southwest v. Carver
474 S.W.2d 582 (Court of Appeals of Texas, 1971)
AMALGAMATED TR. U., LOC. DIV. 1338 v. Dallas Pub. Tr. Bd.
430 S.W.2d 107 (Court of Appeals of Texas, 1968)

Cite This Page — Counsel Stack

Bluebook (online)
430 S.W.2d 107, 69 L.R.R.M. (BNA) 2177, 1968 Tex. App. LEXIS 2231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amalgamated-transit-union-local-division-1338-v-dallas-public-transit-texapp-1968.