Beauchamp v. Dorado Beach Hotel

98 P.R. 622
CourtSupreme Court of Puerto Rico
DecidedFebruary 12, 1970
DocketNo. R-69-236
StatusPublished

This text of 98 P.R. 622 (Beauchamp v. Dorado Beach Hotel) is published on Counsel Stack Legal Research, covering Supreme Court of Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beauchamp v. Dorado Beach Hotel, 98 P.R. 622 (prsupreme 1970).

Opinion

Mr. Justice Rigau

delivered the opinion of the Court.

There is no controversy over the facts. Gerzón Beauchamp was employed by the Dorado Beach Hotel as “apprentice croupier.” Subsequently he complained that in accordance with the collective bargaining agreement he should have been appointed “probationary croupier” and not “apprentice.” That type of appointment entails a difference in wages, since as apprentice croupier his monthly wage was of $300 while as probationary croupier it was of $520.

[623]*623The Unión de' Trabajadores de la Industria Gastronó-mica, Local 610, exclusive representative for collective bargaining purposes of defendant’s croupiers, filed a complaint before the Grievance Committee established by the collective bargaining agreement. When a deadlock was produced among the members of the Committee, the parties requested that the Conciliation and Arbitration Bureau of the Department of Labor appoint an arbitrator to take cognizance of the complaint. It was thus done, and they submitted to the latter the following submission agreement: “Whether or not the wage of $300 assigned to Gerzón Beauchamp, on November 24, 1964, was correct.”

On September 29, 1966 the arbitrator rendered his award. He concluded that appellant should have been employed as probationary croupier and not as apprentice croupier and ordered “the back payment of wages on the basis of the classification of Probationary Croupier, effective on the date of his appointment.”

Once the award was rendered the representatives of the parties met in order to execute the decision of the arbitrator. They reached an agreement but the payment of the sum equal to the unpaid amount for liquidation of damages as ordered in these cases by § 13 of Act No. 379 of 1948, as amended,-29 L.P.R.A. § 282, was not requested at that time.

On August 20, 1968 plaintiff, availing himself of the summary proceedings authorized by Act No. 2 of October 17, 1961, 32 L.P.R.A. § 3118 et seq., filed a complaint before the Superior Court claiming wages, requesting the court to order the payment of the above-mentioned additional sum, plus costs and attorney’s fees. Defendant answered establishing several questions of law as defense but there was no controversy concerning the facts. On February 28, 1969 plaintiff moved for a summary judgment. The court rendered summary judgment in favor of defendant and dismissed the [624]*624claim for the sum equal to the unpaid amount, object of the complaint.

Complainant assigns that the trial court erred in understanding that plaintiff was not entitled to claim the additional sum equal to the unpaid amount because that, question was not raised before the arbitrator and because it also understood that our decision in Pérez v. Water Resources Authority, 87 P.R.R. 110 (1963), has the scope of considering the right to the additional sum which the aforementioned Act. No. 379 grants to the-worker as waived if the latter resorts to the Grievance Committee and to arbitration.

Plain tiff-appellant is right. Whether or not the wage of $300 assigned to Beauchamp was correct was the question raised before the arbitrator. The arbitrator concluded that that wage was not correct. He concluded that Beauchamp was covered by Art. VI (5) of the collective agreement, which provides for a monthly wage of $520, and ordered the back payment of his wages on the basis of that scale. Speaking with exactness, in the light of the submission agreement— whether or not the $300 wage was correct — what the arbitrator decided was that it was not because Beauchamp was-covered by Art. VI (5) of the agreement. That is the strict answer to the submission agreement. The rest is a necessary conclusion of the arbitrator’s decision: If he was covered by Art. VI (5) of the agreement, the correct wage was $520 because that is the wage established by said article; and since Beauchamp had been paid at the rate of $300 monthly it was proper to pay him what they owed him.

The question of whether or not he should have been paid the additional sum did not have to be submitted to the arbitrator since that is an unavoidable consequence — since it is thus prescribed by law — of the arbitrator’s decision. Thus, for example, the arbitrator did not have to decide either that plaintiff had to be paid in legal tender money. Neither [625]*625could the parties bargain against the legal provision which orders the additional sum, nor could the arbitrator render it inoperative since the awards cannot violate the public policy, Labor Relations Board v. N.Y. & P.R. S.S. Co., 69 P.R.R. 730, 746 (1949), and the provisions of law on hours and wages embody the public policy of the country on those questions.

• In Encarnación v. Jordán, 78 P.R.R. 481 (1955) we stated the following at p. 489:

“[I]f the employer fails to pay his employees the stipulated wages he- shall be bound to pay them, in addition to the unpaid sum, an equal sum as liquidation of damages in addition to the costs, expenses and attorney’s fees. This, is so because the provision of § 13 as well as other such provisions of the aforesaid Act No. 379, such as the one fixing the legal working day, thé one providing compensation at double the rate for extra hours of work, the one declaring that the additional compensation on the basis of double time for extra hours of work may not be waived, etc., form a part of and must be considered as incorporated into the labor contract since any agreement to the contrary between the employer and his employees is superseded by . the statute.”

The payment , of the penalty, because it is ordered by law, and because it is considered a part of the employment contract, does not depend on resorting to a suit for it also lies when the debt for- wages — debt which gives- rise to the penalty —is established by a grievance committee or through arbitration.

Since in their briefs the parties resort to the cases of Pérez v. Water Resources Authority, supra, of Rivera v. Land Authority, 83 P.R.R. 251 (1961) and of L.R.B. v. Presbyterian Hospital, Inc., 96 P.R.R. 557 (1968), to support some of their arguments, we think it is convenient to state the following. Each one of the three aforementioned cases and also the case at bar are distinct cases which arose from different states of fact and that therefore each one required and require its own decision.

[626]*626In Rivera v. Land Authority, supra, we were dealing with a laborer member of the union who was discharged. Since the laborer did not agree with his discharge, the employer, pursuant to the provisions of the collective bargaining agreement, submitted the case to the Complaint and Grievance Committee and from there it went to the arbitrator. In contrast with the employer’s attitude, the laborer assumed the position that he did not consent in submitting the matter to arbitration and he resorted to the courts.

So that the question raised in Rivera was whether a laborer could disregard the provision of the collective bargaining agreement which provided the mechanism of a Complaint and Grievance Committee and arbitration for settling labor-management disputes. Of course, we decided that that could not be.

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98 P.R. 622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beauchamp-v-dorado-beach-hotel-prsupreme-1970.