Anderson v. Twin City Rapid Transit Co.

84 N.W.2d 593, 250 Minn. 167, 1957 Minn. LEXIS 620
CourtSupreme Court of Minnesota
DecidedJuly 5, 1957
Docket37,045
StatusPublished
Cited by89 cases

This text of 84 N.W.2d 593 (Anderson v. Twin City Rapid Transit Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Twin City Rapid Transit Co., 84 N.W.2d 593, 250 Minn. 167, 1957 Minn. LEXIS 620 (Mich. 1957).

Opinion

Nelson, Justice.

This action by 33 former employees of defendants for breach of their employment contract was brought against the Twin City Rapid Transit Company, Minneapolis Street Railway Company, The St. Paul City Railway Company, The Minneapolis & St. Paul Suburban Railroad Company, Twin City Motor Bus Company, and The Transit Supply Company.

The defendant companies are engaged in the general public transportation business as carriers of passengers for hire over the streets and highways of St. Paul and Minneapolis and contiguous suburban areas. The defendants other than the defendant Twin City Rapid Transit Company are wholly owned, controlled, and operated subsidiaries of *170 the Twin City Rapid Transit Company. The plaintiffs are all members of the Twin Cities Division 1005, Amalgamated Association of Street, Electric Railway and Motor Coach Employees of America, which had been duly selected by the members thereof to be their bargaining representative in all matters between them and the defendants pertaining to their employment.

Early in 1953, amendments to the existing employment contract between the parties were agreed upon and adopted to cover the conversion from streetcars to buses. The contract as then amended provided for the use of a “conversion board” as follows:

“A board, consisting of one member chosen by the Company and one by the Union, shall determine dll questions with respect to the transfer of any employe from the Snelling Shops, Car Houses, Power Department and Track Department into the Bus Garage Mechanical Department, and lay-offs and promotions within such departments that may arise, pertaining to seniority, qualifications or other disputes in connection with the conversion affecting the employes in the above mentioned mechanical departments * * *. If the two members so chosen are unable to agree, a third member agreed upon by the two members shall be appointed, or if they are unable to agree on the third member, the third member shall be chosen from a panel of 5 submitted by the Minnesota State Labor Conciliator, * * (Italics supplied.)

The contract further provided:

“An employe in any department that may be consolidated or abolished because of the conversion from street car to bus operation, * * * shall be allowed to exercise his seniority, if qualified, to transfer to any other job doing work of a similar nature in another department. The period of employment for determining the seniority of such employe shall commence with the date of his hire for continuous service with the Company in the department from which he is to be transferred.”

Apparently, because of these amendments being made and because of the setting up of a conversion board, it was agreed that:

“There is to be no arbitration clause such as contained in Article 15 of the old contract, or as referred to in any other Article of the contract heretofore existing between the parties.”

*171 Another provision which was a part of the contract and which preceded in order of recital the provisions for the establishment of a conversion board, reads as follows:

“The employes required to operate Snelling Shops, Car Houses, Power Department and Track Department, until the discontinuance of street car operations, will be protected and provided with jobs where they can be fitted into the operations. They must bid on the jobs as they are posted to preserve any right to transfer to the Bus Garage. When an employe bids for a vacancy the Company may request that he stay on the job at which he is working. In the event the employe does so, then upon termination of street car operations, such employe shall be entitled to a position for which he is qualified, according to seniority based on date of hire, and shall have a right to replace a man with lower seniority if there is no vacancy.
% %
“The Company shall not be required to create jobs for employes for whom they have no need.” (Italics supplied.)

Other contract changes deal with wage increases, pension benefits, permanent disability, and vacations.

It would appear that the purpose and function of the conversion board was the determination of all questions with respect to transfer of employees from the Snelling Shops, etc. into the Bus Garage Mechanic Department and layoffs and promotions within such departments that might arise pertaining to seniority, qualifications, or other disputes in connection with the conversion affecting the employees in the mechanic departments, and thus limited to the employees the puiposes and the area of operations therein specifically designated. In other words, the establishment of this conversion board would provide a means of effecting transfers, layoffs, and promotions in the mechanic department designated therein including also other disputes that might arise in connection with the conversion affecting the said employees in the mechanic department.

The plaintiffs allege in their complaint that they are the beneficiaries of the contract as amended; that the defendants “wrongfully, fraudulently, wilfully, wantonly, maliciously and unlawfully, agreed, conspired *172 and joined together to break the said contract by discharging plaintiffs from their said employment and thereby to deprive them and to deny them their rights and privileges under the terms of said contract of employment with respect to all the rights, privileges and benefits above enumerated; and that pursuant to said agreement and conspiracy and in execution thereof defendants did in fact discharge plaintiffs from their said employment and thereby deprived plaintiffs of the said rights and privileges to which they were entitled and are entitled under said contract and the amendments thereof and additions thereto and denied to plaintiffs the said rights to which they were and are entitled thereunder”; and that they are entitled to general and exemplary damages by reason of being wrongfully discharged by defendants and demand judgment in such amounts in damages as alleged in their prayer of relief.

The defendants answering admit and allege that plaintiffs are beneficiaries of and are subject to and bound by the terms of the aforesaid “New Contract” and of the agreements relating to pensions, retirement, and group insurance. Defendants, except as to admissions or qualifications or otherwise having answered, deny each and every allegation of plaintiffs’ complaint. The answer of defendants, however, contains no allegation that the plaintiffs’ alleged discharges should have been arbitrated before the conversion board as a condition precedent to the maintenance of plaintiffs’ action. It appears without dispute that defendants herein neither demanded arbitration or moved for a stay of this action in order that arbitration might be had, and it also appears without dispute that defendants neither sought nor offered arbitration.

The provisions for a conversion board do not include either the word “discharge” or the words “discharge of employees” as a question for the conversion board’s determination.

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Cite This Page — Counsel Stack

Bluebook (online)
84 N.W.2d 593, 250 Minn. 167, 1957 Minn. LEXIS 620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-twin-city-rapid-transit-co-minn-1957.