Easthagen v. Naugle-Leck, Inc.

109 N.W.2d 556, 260 Minn. 198, 1961 Minn. LEXIS 563
CourtSupreme Court of Minnesota
DecidedMay 26, 1961
Docket37,988
StatusPublished
Cited by5 cases

This text of 109 N.W.2d 556 (Easthagen v. Naugle-Leck, Inc.) 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
Easthagen v. Naugle-Leck, Inc., 109 N.W.2d 556, 260 Minn. 198, 1961 Minn. LEXIS 563 (Mich. 1961).

Opinions

Thomas Gallagher, Justice.

Certiorari to review a decision of the Commissioner, Department of Employment Security, which approved findings of the department’s appeal tribunal that claimants, Claude Easthagen and 10 other employees of relator, Naugle-Leck, Inc., were not disqualified for benefits chargeable to relator’s experience-rating account for being separated from their employment between May 13 and May 25, 1959.

Relator contends that claimants were separated from their work not because of lack of work as the commission found but because of a strike that disqualified them for benefits under Minn. St. 268.09, subd. 1, which provides:

“An individual shall be disqualified for benefits:

* * ❖ * ❖

“(6) If such individual has left or partially or totally lost his employment with an employer because of a strike or other labor dispute. Such disqualification shall prevail for each week during which such strike or other labor dispute is in progress at the establishment in which he is or was employed, * *

Relator is engaged in general contracting with its executive offices at 714 Baker Building, Minneapolis. In January 1958 it commenced work as general contractor for construction of the First National Bank [200]*200Building in Minneapolis. Claimants were employed therein by relator as bricklayers, laborers, and ironworkers. The plumbing, heating, and air-conditioning contracts for this building had been sublet by relator to B. C. Company, a joint venture comprised of Bjorkman Brothers Plumbing and Heating Company and Commercial Air Conditioning, Inc. Both relator and the latter subcontractors were also engaged in similar construction projects elsewhere in Minneapolis.

On May 4, 1959, a strike was called by all union plumbers in the Twin City area. Its members included a number of plumbers working for B. C. Company on the First National Bank Building, and on that date all such plumbers left their work pursuant to orders from union officials. Their work had been under the supervision of relator’s superintendent and was in general interrelated to the work of relator’s employees.

Just prior to the strike, these plumbers had been engaged in setting metal sleeves where the concrete for the floors was to be poured, and in installing water, waste, and vent lines where the partitional walls would be constructed. The practice was to have such sleeves and lines in place in sufficient time to permit relator’s employees to pour the concrete and construct the walls without being required to chop out holes in the floors or to dislocate walls in the process.

Claimants had been employed by relator in pouring concrete; in setting and laying partition tiles; in laying wire mesh; and in the construction of wood forms for the concrete. After the plumbers left the job, no picket lines were established, and all employees of relator and of other subcontractors continued to report for work. Work continued normally for a number of days, claimants at first pouring concrete and constructing walls, and thereafter being transferred by relator from place to place on the project in an attempt to find work for all employees.

On May 13, 1959, relator ceased operations on the bank building and laid off in excess of 100 of its employees including claimants who thereupon left work until May 25, 1959, at which time relator resumed operations. After operations ceased, claimants filed claims for unemployment compensation benefits under the act. It is not disputed that they were not parties to the strike and had not engaged in any strike [201]*201activity during this period; that no labor dispute existed between them and relator; that no picket lines were established at the First National Bank Building; and that claimants did not fail or refuse to work, after the plumbers had left thé job, but continued reporting for work until they were “laid off” on May 13, 1959, because relator “ran out of work” for them.

Relator contends that claimants’ loss of employment was because of a work shortage arising out of the plumbers’ strike in progress at the establishment in which they were employed; that the term establishment in § 268.09, subd. 1(6), has reference to the physical location or situs of an employee’s work on the First National Bank Budding here; that under § 268.09, subd. 1(6), claimants are disqualified from receiving benefits under c. 268 regardless of the fact that they did not participate in the strike.

Claimants contend that their loss of employment was not because of a work shortage due to a strike or labor dispute at the establishment in which they were employed — the central or executive offices of relator at 714 Baker Building, Minneapolis.

In its findings and decision, the appeal tribunal stated:

“* * * Where claimants are employed by a separate concern * * * but happen to perform temporary construction work not on their own employer’s premises, but in the same area or on the same project as the striking employees, there is no possibility that, without more, their establishment becomes identical with that of the striking employees. The fact that the construction of the bank building was of a temporary nature, and did not provide a permanent place for claimants to work, substantiates the conclusion that where they were employed was instead the physical offices and properties of their employer.

«* * * the conclusion must be that they were separated from their employment for lack of work, which resulted from the failure of a third party employer to fulfill its obligations. That separation was involuntary on their part and served as a discharge under the Minnesota Law.” (Italics supplied.)

The legislative intent in enacting c. 268 relating to employment security may be ascertained from § 268.03, which provides in part:

[202]*202“* * * legislature, therefore, declares that in its considered judgment the public good and the general welfare of the citizens of this state will be promoted by providing, under the police powers of the state for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own.”

With this basic concept in mind, this court has held that the purpose of the act is to assist those who are unfortunate enough to be involuntarily unemployed, Di Re v. Central Livestock Order Buying Co. 246 Minn. 279, 74 N. W. (2d) 518; that the act’s design is to relieve hardship caused by unemployment due to no fault of an employee, Anson v. Fisher Amusement Corp. 254 Minn. 93, 93 N. W. (2d) 815; Nordling v. Ford Motor Co. 231 Minn. 68, 42 N. W. (2d) 576, 28 A. L. R. (2d) 272; that the provisions of § 268.09, subd. 1(6), relating to disqualifications should be construed in line with the legislative intent expressed in § 268.03, Bucko v. J. F. Quest Foundry Co. 229 Minn. 131, 38 N. W. (2d) 223; and that whether an employee’s loss of employment is voluntary or involuntary should be determined by whether the employee exercised a free-will choice and control in the matter, Hessler v. American Television & Radio Co. 258 Minn. 541, 104 N. W. (2d) 876.

Applying these same concepts to the construction of § 268.09, subd. 1(6), we have upheld certain employees’ qualifications for benefits where loss of employment was due to a local work shortage caused by a strike at an out-of-state assembly plant of their employer, Nordling v. Ford Motor Co. supra;

Free access — add to your briefcase to read the full text and ask questions with AI

Related

J.C. Penney Co. v. Commissioner of Economic Security
353 N.W.2d 243 (Court of Appeals of Minnesota, 1984)
Lehmann v. Western Airlines, Inc.
188 N.W.2d 883 (Supreme Court of Minnesota, 1971)
Noblit v. Marmon Group
181 N.W.2d 593 (Michigan Court of Appeals, 1970)
Adelsman v. Northwest Airlines, Inc.
125 N.W.2d 444 (Supreme Court of Minnesota, 1963)
Easthagen v. Naugle-Leck, Inc.
109 N.W.2d 556 (Supreme Court of Minnesota, 1961)

Cite This Page — Counsel Stack

Bluebook (online)
109 N.W.2d 556, 260 Minn. 198, 1961 Minn. LEXIS 563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/easthagen-v-naugle-leck-inc-minn-1961.