American Federation of State, County & Municipal Employees (AFSCME) Local 1922 v. State

444 N.W.2d 10, 1989 S.D. LEXIS 115, 1989 WL 73620
CourtSouth Dakota Supreme Court
DecidedJuly 5, 1989
Docket16354
StatusPublished
Cited by19 cases

This text of 444 N.W.2d 10 (American Federation of State, County & Municipal Employees (AFSCME) Local 1922 v. State) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Federation of State, County & Municipal Employees (AFSCME) Local 1922 v. State, 444 N.W.2d 10, 1989 S.D. LEXIS 115, 1989 WL 73620 (S.D. 1989).

Opinions

DOBBERPUHL, Circuit Judge.

This appeal arises from an action brought by the American Federation of State, County and Municipal Employees, Local 1922 (union), against the State of South Dakota, the Department of Transportation (DOT), the Bureau of Personnel (BOP), and the Career Service Commission (CSC) (collectively, state). Union sought a declaratory judgment that state violated their collective bargaining agreement by imposing unilateral midstream changes on certain DOT employees. The circuit court held for state. We affirm.

Union has been the certified formal representative of certain engineering and maintenance employees of DOT since 1971. Union and DOT have entered into collective bargaining agreements in all but one year since 1972. The agreement in question was dated September 6, 1985. The agreement contained, among other things, provisions concerning wages, hours and conditions of employment for union members who were also Career Service employees.

After the September 6 agreement was entered into, and partially in response to Garcia v. San Antonio Metropolitan Transit Authority, 469 U.S. 528, 105 S.Ct. 1005, 83 L.Ed.2d 1016 (1985), CSC, over the objection of union and DOT, promulgated new personnel rules to bring the State of South Dakota into compliance with the Fair Labor Standards Act. 29 U.S.C.A. 201 et seq. On December 28, 1985, prior to the expiration of the agreement, DOT implemented the new CSC rules for all its employees including union’s members. Certain provisions were in conflict with terms of the collective bargaining agreement.

On a stipulation of facts and a trial to the court which presented evidence of past practices, negotiations, and intent of the [12]*12parties, the circuit court ruled for state. Specifically, the court ruled: 1) it was the intent of the parties to allow midstream changes; 2) CSC did not infringe on contractual rights of the parties; 3) SDCL 3-6 and 3-6A govern SDCL 3-18; 4) there is a rational basis for treating state’s employees differently than employees of local governmental units; and, 5) there was no impairment of the contract.

The crux of this case is whether CSC may impose midstream rule changes which affect terms of a collective bargaining agreement. The trial court ruled that under this contract, midstream changes may be effected. The issue can be dealt with in several different ways. First, does the contract itself, properly interpreted, allow such changes? Second, are there statutory restrictions which prohibit such changes? Third, are there constitutional bars to such changes?

The first aspect of this case deals with the proper interpretation of the contract and the proper rules of construction to apply to collective bargaining agreements. Union argues that the intent of the parties, determined by past history, practice and usage, as related to the pertinent clauses, is paramount to the written language. Simply because this is a collective bargaining agreement, union asserts, the ordinary rules of contract construction do not apply, and we must go beyond the four corners of the contract. For this proposition, union cites MEA/AFSCME Local 519 v. City of Sioux Falls, 423 N.W.2d 164 (S.D.1988). Union has misconstrued MEA/AFSCME.

In MEA/AFSCME, this court stated: “In interpreting collective bargaining agreements, it is often necessary to look beyond the four corners of the contract itself ...” MEA/AFSCME, citing, International Union v. White Motor Corp., 505 F.2d 1193, 1197 (8th Cir.1974). This court did not hold that the language of the collective bargaining agreement is meaningless. Nor did we hold that in each instance one leaves the written word aside to go beyond the four corners of the contract. Specifically, we did say that if the language is ambiguous, and does not speak to a subject it would normally be expected to, then the court may go beyond the four corners of the contract.

Other jurisdictions have recognized this rule. When a latent ambiguity in the terms or language of an agreement exists, extrinsic sources such as bargaining history and past practices may be considered. Where a contract is not clear on its face, extrinsic evidence may be admitted. Ozark Air Lines, Inc. v. Air Line Pilots Association, 744 F.2d 1347 (8th Cir.1984); International Union v. White Motor Corp., supra. Arizona Laborers Etc. v. Conquer Cartage Co., 753 F.2d 1512 (9th Cir.1985); N.L.R.B. v. Intern. Bro. of Elec. Wkrs. Local, 772 F.2d 571 (9th Cir.1985).

Further, the Montana Supreme Court has stated:

Except in the rather narrow field of suits to compel performance of arbitration agreements, we have found no federal authority “suggesting that the nebulous body of decisional law envisioned in [Textile Workers Union u] Lincoln Mills [353 U.S. 448, 77 S.Ct. 912, 1 L.Ed.2d 972 (1957)] was to -be formulated in derogation of the common law of contracts.” Hence, we see no reason not to apply the same rules of construction in cases involving collective bargaining contracts as we apply in cases dealing with contract law generally, (citations omitted).

Massett v. Anaconda Company, 630 P.2d 736, 738 (Mont.1981).

Under both state and federal jurisdictions, the rule is identical. When a contract is clear and unambiguous and speaks to a subject it is expected to, there is no need to go beyond the four corners of the contract. Thus, we will look to the language of the contract

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Bluebook (online)
444 N.W.2d 10, 1989 S.D. LEXIS 115, 1989 WL 73620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-federation-of-state-county-municipal-employees-afscme-local-sd-1989.