Cadillac Gage Company, Inc. v. International Union, United Automobile, Aerospace and Agricultural Implement Workers of America

516 F.2d 169, 89 L.R.R.M. (BNA) 2369, 1975 U.S. App. LEXIS 14558
CourtCourt of Appeals for the Sixth Circuit
DecidedMay 23, 1975
Docket74-2333
StatusPublished
Cited by1 cases

This text of 516 F.2d 169 (Cadillac Gage Company, Inc. v. International Union, United Automobile, Aerospace and Agricultural Implement Workers of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cadillac Gage Company, Inc. v. International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, 516 F.2d 169, 89 L.R.R.M. (BNA) 2369, 1975 U.S. App. LEXIS 14558 (6th Cir. 1975).

Opinion

.PER CURIAM.

This appeal is from an order of the District Court granting a motion for summary judgment enforcing the award of an arbitrator for the payment of benefits under Cadillac Gage Company’s pension plan to its employee, Robert E. Jerome, who became totally and permanently disabled.

Cadillac Gage had filed suit in the District Court under the provisions of § 301 of the Labor Management Relations Act, 29 U.S.C. § 185, to vacate the arbitrator’s award, claiming that the arbitrator in making his award acted in excess of his contractual authority and therefore the award was null and void. United Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593, 597, 80 S.Ct. 1358, 4 L.Ed.2d 1424 (1960); United Steelworkers v. American Mfg. Co., 363 U.S. 564, 80 S.Ct. 1343, 4 L.Ed.2d 1403 (1960); United Steelworkers v. Warrior & Gulf Nav. Co., 363 U.S. 574, 80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960).

Prior to making application for his pension Jerome had applied for workmen’s compensation benefits under Michigan law, claiming that in the course of his employment he developed emphysema and other ailments which he attributed to the hazards of his employment. The arbitrator stated:

It is agreed by Company and Union that he became totally and permanently disabled.

The claim under the Workmen’s Compensation Act was settled by an Agreement to Redeem Liability, entered into between Jerome and Cadillac Gage, whereby Cadillac Gage agreed to make a lump sum payment to Jerome in the sum of $19,000, to redeem its potential liability under the Act. The agreement was approved by a Redemption Order entered by the Hearing Referee of the Workmen’s Compensation Commission. At the same time Jerome signed a Release and Waiver of Seniority, which provided:

Whereas Robert E. Jerome has filed a claim under the Workmen’s Compensation Act for injury alleged to have resulted from his employment, and whereas the employer, Cadillac Gage Co., has denied liability, the undersigned Robert E. Jerome, in consideration of a settlement of this claim through redemption proceedings with the Workmen’s Compensation Department, does hereby voluntarily quit his employment with the Cadillac Gage Co., waives any and all seniority rights he may have and releases any claim he may have for re-employment based on such seniority rights.

After the time for appeal from the Redemption Order of the Referee had expired, Cadillac Gage made payment of the sum of $19,000, which sum was distributed under the terms of the Order for the payment of medical bills, attorney’s fees and the balance to Jerome.

Following settlement of the Workmen’s Compensation claim Jerome applied to the company for a Total and Permanent Disability Pension, which application was transmitted to the Board of Administration of the Pension Plan. The function of the Board was to determine all disputes between the company and its employees over their pension claims. The Board consisted of three members appointed by the company and three members appointed by the International Union, and an Impartial Chairman or arbitrator in the event of disagreement of the other six Board members.

The company and union members became deadlocked over the question of allowance of the pension, and they agreed upon the Impartial Chairman or arbitrator to settle the dispute.

It was the position of the company that Jerome was no longer an employee of the company at the time he filed his application for a pension and that he waived all rights to a pension when he signed the Agreement to Redeem Liabili *171 ty for his Workmen’s Compensation benefits and the Release and Waiver of Seniority.

Article II, Section 4(a) of the Pension Plan provides in relevant part:

An employe who, subsequent to July 1, 1960, is determined to be totally and permanently disabled hereunder prior to attaining age 65, and who has at least 15 years of credited service, shall be eligible for a disability pension as hereinafter provided. .
Section 4(b) provides in part:
An employe shall be deemed to be totally and permanently disabled when, on the basis of medical evidence satisfactory to the Board, he is found to be wholly and permanently prevented from engaging in any regular occupation or employment .

The powers of the Board are contained in the Pension Plan which in part provided:

To make findings of facts and determinations as to the rights of any employe applying for retirement benefits, and to afford any such individual dissatisfied with any such finding or determination, the right to a hearing thereon.

The Board conducted hearings and adopted findings of fact and determinations as to the rights of Jerome. They are embodied in the written opinion of the Impartial Chairman or arbitrator. Essentially he found:

As Impartial Chairman, it appears to me that neither party has placed proper bearing on the one fulcrum on which decision must rest — the date upon which Jerome became eligible, if at all, for permanent and total disability pension. It was not on December 16. He had already waived his seniority rights on the first of that month. Nor was it December 1st. If he had any right to a disability pension, and I conclude that he did, it was on the date he suffered permanent and total disability. Note Section 4(a) of Article III: “An employee who ... is determined to be totally and permanently disabled hereunder prior to attaining age 65, and who has at least 15 years of credited service, shall be eligible for a disability pension,” (reduced to 10 years after September 1, 1961). Jerome, by the express language of this section, became eligible for á disability pension, not on December 1, not on December 16, but at the time he was “determined to be totally and permanently disabled.” The exact date may be indecisive, and certainly is not now susceptible of accurate ascertainment, but it had to occur before or during the progress of the proceedings in Workmen’s Compensation and thus before December 1, 1971. The Company so acknowledged at least tacitly when it entered into the Agreement of Redemption. It conceded as much during the hearings in this matter.
If it is accepted, as I believe it must, that Jerome’s eligibility for disability pension occurred at some such earlier period, then the dates of December 1 and 16, the waiver of re-employment rights, the waiver of seniority, the lack of Union representation, are all irrelevant to this issue.

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516 F.2d 169, 89 L.R.R.M. (BNA) 2369, 1975 U.S. App. LEXIS 14558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cadillac-gage-company-inc-v-international-union-united-automobile-ca6-1975.