Howe v. Pacific Electric Railway Co.

413 P.2d 442, 64 Cal. 2d 464, 50 Cal. Rptr. 666, 1966 Cal. LEXIS 275, 62 L.R.R.M. (BNA) 2195
California Supreme Court·Decided April 25, 1966·No. L. A. No. 28063·Published

Opinion

BURKE, J.

Plaintiffs are more than 300 retired former employees of defendant railway company. They appeal from the judgment of the trial court dismissing “for want of jurisdiction” their action for declaratory relief and to recover pension benefits to which they claim to be entitled under the private pension plan maintained by defendant prior to enactment of the Railroad Retirement Act of 1937, hereinafter sometimes called “the Retirement Act.” (45 U.S.C.A. §§ 228a-228z-1.) We have concluded that the trial court correctly viewed plaintiffs’ claims as falling within the exclusive jurisdiction of the National Railroad Adjustment Board, and that the judgment should be affirmed.

In substance plaintiffs allege in their complaint (first amended) that (1) they were employed by defendant prior to adoption of the Retirement Act; (2) they had established rights under the private pension plan by reason of defendant’s representations made in connection therewith at the time plaintiffs accepted such employment; (3) plaintiffs are entitled to receive pension benefits under the private plan (in amounts detailed in the complaint) in addition to those paid them under the Retirement Act, but defendant claims it has no obligation to pay any plaintiff any pension benefits except to the extent that benefits under the private plan would exceed those payable under the Retirement Act;1 and (4) by reason of false and misleading statements of defendant, relied upon by plaintiffs, their action is not barred by laches or by any applicable statute of limitations.

Defendant moved for summary judgment on the ground, among others, that under provisions of the Railway Labor Act (45 U.S.C.A. § 151 et seq.)2 the National Railroad Adjustment [466] Board (the board) has exclusive jurisdiction of plaintiffs’ claims. The trial court concurred in this view and dismissed the action.

In Moore v. Illinois Central R.R. Co. (1941) 312 U.S. 630, 635-636 [61 S.Ct. 754, 85 L.Ed. 1089], the United States Supreme Court held that a railroad employee who claimed that under the terms of a collective bargaining agreement he had been wrongfully discharged, could resort to a court action against his employer for damages without first seeking adjustment of his controversy by the board under the Railway Labor Act. Thereafter, in Slocum v. Delaware, L. & W. R.R. Co. (1950) 339 U.S. 239 [70 S.Ct. 577, 94 L.Ed. 795], the court found occasion to comment on Moore. Slocum held that a railroad faced with jurisdictional disputes over certain jobs between two unions, with both of which it had collective bargaining agreements, could not properly seek declaratory relief in court, as the jurisdiction of the board to interpret the agreements and “to adjust grievances and disputes of the type here involved is exclusive.” Further, said the court, “Our holding here is not inconsistent with our holding in Moore .... Moore was discharged by the railroad. He could have challenged the validity of his discharge before the Board, seeking reinstatement and back pay. Instead he chose to accept the railroad’s action in discharging him as final, thereby ceasing to be an employee, and brought suit claiming damages for breach of contract. As we there held, the Railway Labor Act does not bar courts from adjudicating such cases. . . .” (P. 244 of 339 U.S.)

On the same day, in Order of Railway Conductors v. Southern Ry. Co. (1950) 339 U.S. 255 [70 S.Ct. 585, 94 L.Ed. 811] it was held that the board has exclusive primary jurisdiction over claims by railroad employees that under the terms of their collective bargaining agreement they were entitled to extra pay. (See also Gainey v. Brotherhood of Railway & Steamship Clerks (1960) 275 F.2d 342, 343-344.)3

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Howe v. Pacific Electric Railway Co., 413 P.2d 442, 64 Cal. 2d 464, 50 Cal. Rptr. 666, 1966 Cal. LEXIS 275, 62 L.R.R.M. (BNA) 2195 (Cal. 1966).

413 P.2d 442 (Howe v. Pacific Electric Railway Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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