Crookham v. Consolidated Rail Corp.

489 F. Supp. 1, 1978 U.S. Dist. LEXIS 19957
CourtDistrict Court, N.D. Ohio
DecidedJanuary 25, 1978
DocketC77-1030
StatusPublished
Cited by5 cases

This text of 489 F. Supp. 1 (Crookham v. Consolidated Rail Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crookham v. Consolidated Rail Corp., 489 F. Supp. 1, 1978 U.S. Dist. LEXIS 19957 (N.D. Ohio 1978).

Opinion

MEMORANDUM OF OPINION

MANOS, District Judge.

The plaintiff has brought this action under the court’s diversity jurisdiction, 28 U.S.C. § 1332 (1970), and seeks the enforcement of certain employee protection provisions of Title V of the Regional Rail Reorganization Act of 1973 (RRRA), 45 U.S.C. §§ 771-779 (Supp. V 1975). The defendant maintains that employee claims under Title V of the RRRA can only be heard by the National Railroad Adjustment Board, and it has therefore moved for summary judgment on the ground the court lacks subject matter jurisdiction.

I.

The RRRA consolidated the assets of seven insolvent railroads in the midwestern and northeastern United States and created the Consolidated Rail Corporation (Conrail), the defendant in this action. Congress intended that Conrail would provide “a rail service system in the midwest and northeast regions which is adquate to meet the needs and service requirements of this region and of the national rail transportation system . . . .” 45 U.S.C. § 701(b) (Supp. Y 1975). Title V of the RRRA contains provisions designed to protect railroad employees who are adversely affected because of the reorganization of the railroads under Conrail. 45 U.S.C. §§ 771-779 (Supp. V 1975).

The plaintiff is the executrix of her late husband’s estate. In her complaint she alleges that her husband worked for the Erie-Lackawanna Railway Company for over 30 years and that he began working for Conrail when the Erie-Lackawanna Railway Company was consolidated into Conrail in 1976. She claims that an illness forced her husband to take a leave of ab *2 sence from work in April, 1977 and that Conrail abolished his job while he was absent. It is the plaintiff’s contention that Conrail should have paid her husband the separation allowance that Title V of the RRRA provides for protected employees.

Separation allowance. — A protected employee who is tendered and accepts an offer by the Corporation to resign and sever his employment relationship in consideration of payment to him of a separation allowance, and any protected employee whose employment relationship is severed in accordance with subsection (d) of this section, shall be entitled to receive a lump-sum separation allowance not to exceed $20,000 in lieu of all other benefits provided by this subchapter.

45 U.S.C. § 775(e) (Supp. V 1975). She further maintains that the jurisdiction of this court has been properly invoked because the following section of Title V gives her the option of bringing her husband’s claim before either the National Railroad Adjustment Board or a federal district court:

Arbitration
Any dispute or controversy with respect to the interpretation, application, or enforcement of the provisions of this sub-chapter [Title V] . may be submitted by either party to an Adjustment Board for a final and binding decision thereon as provided in section 153 Second of this title, in which event the burden of proof on all issues so presented shall be upon the Corporation or, where applicable, the Association.

45 U.S.C. § 777 (Supp. V 1975) (emphasis added).

Conrail maintains that section 777 mandates that all Title V disputes must be submitted to the National Railroad Adjustment Board. It bases its argument upon section 777’s reference to section 153 Second of the Railway Labor Act (RLA), 45 U.S.C. §§ 151 et seq. (1970), which has long been held to require compulsory arbitration of “minor” disputes under the RLA, and urges that Congress’ use of the term “may” should not be interpreted as a grant of federal jurisdiction over Title V disputes.

II.

The legislative history of the RRRA reveals that Congress did not intend for Title V disputes to be brought in federal district courts. Both the Senate and the Conference Committee’s report on the RRRA indicate that Title V disputes should be submitted to arbitration. S.Rep.No. 93-601, 93d Cong., 1st Sess__, reprinted in [1973] U.S.Code Cong. & Admin.News, pp. 3242, 3288; Conf.R.No. 93-744, 93d Cong., 1st Sess. _, reprinted in [1973] U.S.Code Cong. & Admin.News, pp. 3306, 3336. Furthermore, there is a significant Supreme Court decision on the interpretation of the RLA that undermines the plaintiff’s interpretation of section 777 of the RRRA.

In Slocum v. Delaware, Lackawanna & Western Railroad, 339 U.S. 239, 70 S.Ct. 577, 94 L.Ed. 795 (1950) the Court held that the National Railroad Adjustment Board had exclusive jurisdiction over a dispute between two unions that concerned the scope of their respective bargaining agreements with the Delaware, Lackawanna & Western Railroad Company. The Court held that neither state nor federal courts had jurisdiction over disputes involving railroad bargaining agreements even when the National Railway Adjustment Board had not acted. Id. at 240-241, 70 S.Ct. at 577-578. In so holding, the Slocum Court indicated that the following section of the RLA gave the National Railroad Adjustment Board its exclusive jurisdiction over such disputes:

The disputes between an employee or group of employees and a carrier or carriers growing out of grievances or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions . . shall be handled in the usual manner but, failing to reach an adjustment in this manner, the disputes may be referred by petition of the parties or by either party to the appropriate division of the Adjustment Board

45 U.S.C. § 153 First (i) (1970) (emphasis added). 339 U.S. at 240-241, 70 S.Ct. at *3 577-578; see also Andrews v. Louisville & Nashville Railroad, 406 U.S. 320, 92 S.Ct. 1562, 32 L.Ed.2d 95 (1972). The Court gave its reasoning as follows:

[I]n 1934 Congress, with the support of both unions and railroads . . . created a national Adjustment Board composed of representatives of railroads and unions. 48 Stat. 1189-1193. The Act thus represents a considered effort on the part of Congress to provide effective and desirable administrative remedies for adjustment of railroad-employee disputes growing out of the interpretation of existing agreements.

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Bluebook (online)
489 F. Supp. 1, 1978 U.S. Dist. LEXIS 19957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crookham-v-consolidated-rail-corp-ohnd-1978.