International Brotherhood of Electrical Workers, Local 369, Afl-Cio, and Jesse F. Hargis v. Olin Corporation

471 F.2d 468, 82 L.R.R.M. (BNA) 2338, 1972 U.S. App. LEXIS 6239
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 18, 1972
Docket72-1386
StatusPublished
Cited by24 cases

This text of 471 F.2d 468 (International Brotherhood of Electrical Workers, Local 369, Afl-Cio, and Jesse F. Hargis v. Olin Corporation) 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
International Brotherhood of Electrical Workers, Local 369, Afl-Cio, and Jesse F. Hargis v. Olin Corporation, 471 F.2d 468, 82 L.R.R.M. (BNA) 2338, 1972 U.S. App. LEXIS 6239 (6th Cir. 1972).

Opinion

LIVELY, Circuit Judge.

Defendant-Appellant, Olin Corporation, appeals from a summary judgment of the District Court upholding the award of an arbitrator and directing that the Plaintiff, Jesse F. Hargis, recover back pay in the amount of $4,876.-80. On appeal the only question is whether Appellant is entitled to credit for earnings received from other employment by the Appellee Hargis during the period that Hargis was held by the arbitrator to have been wrongfully discharged from his employment.

The facts are relatively simple and undisputed. Following a fist fight which took place in the Doe Run Plant of Olin near Brandenburg, Kentucky, on December 10, 1969, the Company discharged Hargis, but the other employee with whom Hargis was fighting was suspended for thirty (30) days. Hargis was a member of International Brotherhood of Electrical Workers, Local 369, AFL-CIO, and was covered by a collective bargaining agreement between that Union and Olin Corporation. A grievance was filed on behalf of Hargis pursuant to the terms of the collective bargaining agreement, and an arbitration hearing was ultimately held on June 10, 1972. The award of the arbitrator was as follows:

AWARD: The grievance of Jesse Hargis is allowed as he was not discharged for proper cause.
*470 His discharge is set aside and held for naught. He is considered and awarded to have a 30 day disciplinary suspension effective December 13, 1969, and he is reinstated and shall be compensated for loss of normal earnings with credits to the employer as specified in Article XVII, Section F, of the Labor Agreement.
/s/ James J. Willingham, Arbitrator

Article XVII, Section F, provides as follows:

F. If, as a result of grievance or arbitration, it is determined that an employee was discharged without proper cause, the Company agrees to reinstate the employee without prejudice. If the arbitrator decides that he should be reimbursed, he shall be paid as directed by the arbitrator but not to exceed his normal earnings for the time lost less his vacation pay and any unemployment compensation received or receivable.

Olin promptly reinstated Jesse Hargis, but refused to reimburse him for back pay because Hargis had earned an amount from other employment slightly in excess of the amount he would have earned with Olin if he had not been discharged.

Hargis and the Union filed this action pursuant to Section 301(a) of the Labor Management Relations Act of 1947, as amended (29 U.S.C. Section 185 [a]), 1 to compel the Company to comply with the arbitration award. Among other defenses contained in its answer, the Company set up the interim earnings of Hargis from outside employment as a credit against any back pay due him by reason of the arbitrator’s award.

All parties made motions for summary judgment and the District Court granted such relief to the Plaintiffs-Appellees and further granted the Plaintiff Hargis a judgment in the amount of $4,876.-80 against Olin Corporation. This is the amount that Hargis would have earned as an employee of Olin during the period of discharge, less the thirty (30) days suspension given by the arbitrator, with credit for unemployment compensation payments which he received. No credit was given Olin for the outside earnings of Hargis.

On appeal Olin first argues that it was entitled to credit for all interim earnings of Hargis as a matter of law. This contention is supported by citations to cases and other authorities which hold that there is a general principle of damages in cases of breach of employment contracts which limits recovery to the difference between the agreed wages and the amount which a discharged employee earned or could have earned with reasonable diligence. 53 Am.Jur.2d Master and Servant, Section 62; Abrams v. Jackson County Board of Education, 230 Ky. 151, 18 S.W.2d 1000 (1929). Furthermore, it is asserted that it has been the consistent policy of the National Labor Relations Board to give credits to the employer for an employee’s interim earnings in unfair labor practice cases. Among the authorities cited in the brief are Phelps Dodge Corporation v. N. L. R. B., 313 U.S. 177, 61 S.Ct. 845, 85 L.Ed. 1271 (1941); N. L. R. B. v. Hudson Motor Car Company, 136 F.2d 385 (6th Cir. 1943), together with numerous arbitration cases in which this principal has been applied. The Appellant maintains that the purpose of back pay awards is to make a wrongfully discharged employee whole and to restore the economic status quo. N. L. R. B. v. J. H. Rutter-Rex Manufacturing Co., 396 U.S. 258, 263, 90 S.Ct. 417, 24 L.Ed.2d 405 (1969). To permit *471 an employee to retain all outside earnings in addition to his back pay would amount to a punitive award against the employer and a windfall to the employee, it contends.

On the other hand, the Appellees assert that there is no settled general law on the subject which applies in all cases, and that the arbitrator in this case was concerned only with the language of the Agreement under which he was appointed and was acting. They maintain that since the Agreement provided for two named credits (vacation pay and unemployment compensation) and was silent on the subject of outside interim earnings, under the legal maxim expressio unius est exclusio alterius it must be held that the contracting parties intended to exclude credits from outside earnings. In addition, the Appellees cite cases of arbitration awards where no credits have been allowed the employer for interim earnings. E. g., Brotherhood of Railroad Trainmen v. Central of Georgia Railway, 415 F.2d 403 (5th Cir. 1969), cert. denied, 396 U.S. 1008, 90 S.Ct. 564, 24 L.Ed.2d 500 (1970); Taylor v. Hudson Rapid Tubes Corporation, 362 F.2d 748 (3rd Cir. 1966).

The authorities relied upon by the parties herein do give limited support to their respective positions on this issue, but do not appear to us to dispose of the matter. In examining the Agreement, and particularly Section XVII F, we are struck by the fact that the words “normal earnings for the time lost” are most important. Yet, these words are not defined in the contract. Furthermore, neither side has cited a case defining “normal earnings” and we have found none, although this expression was used by this Court in N. L. R. B. v. Hudson Motor Car Company, supra. A number of cases have dealt with similar expressions.

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471 F.2d 468, 82 L.R.R.M. (BNA) 2338, 1972 U.S. App. LEXIS 6239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-brotherhood-of-electrical-workers-local-369-afl-cio-and-ca6-1972.