Louisville & Nashville Railroad v. Cantrell

215 F. Supp. 229, 5 Fed. R. Serv. 2d 327, 49 L.R.R.M. (BNA) 2767, 1962 U.S. Dist. LEXIS 4061
CourtDistrict Court, M.D. Tennessee
DecidedJanuary 11, 1962
DocketCiv. Nos. 2867, 2891, 2931
StatusPublished
Cited by3 cases

This text of 215 F. Supp. 229 (Louisville & Nashville Railroad v. Cantrell) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisville & Nashville Railroad v. Cantrell, 215 F. Supp. 229, 5 Fed. R. Serv. 2d 327, 49 L.R.R.M. (BNA) 2767, 1962 U.S. Dist. LEXIS 4061 (M.D. Tenn. 1962).

Opinion

WILLIAM E. MILLER, Chief Judge.

Louisville & Nashville Railroad Company v. Cantrell, Civil Action 2867, is a declaratory judgment action instituted by the plaintiff for a judicial determination as to the method to be followed for arbitrating the claims of the defendants growing out of the merger of the Louisville and Nashville Railroad Company and Nashville, Chattanooga and St. Louis Railway. The action involves the same group of employees as involved in the cases of Arnold and others v. Louisville & Nashville Railroad Company, decided by this Court and reported in D.C., 180 F.Supp. 429, in addition to some twenty other employees, all employees occupying the same status as far as the legal issues here presented are concerned. In those cases it was held that the Court was without jurisdiction to adjudicate the claims of the employees for the reason that they were required to resort to arbitration, whether their claims be considered as deriving from the Interstate Commerce Commission’s order, or from the implementing agreement. It is the plaintiff’s insistence that the proper method for arbitration is the procedure provided for in the implementing agreement which was made and entered into by and between the plaintiff and a labor union as a representative of the employees. On the other hand, the defendants insist first, as they [231]*231did in the Arnold cases, that the Court has jurisdiction of their claims and that they are not bound by the terms of the implementing agreement. They further insist that if they are required to arbitrate, each individual employee has the right to designate his own representative to negotiate with the railroad to establish the proper method or machinery for arbitration. Before considering the basic issue in the case, a preliminary question of jurisdiction must be determined. Diversity of citizenship is duly established by the record but the defendants question whether the requisite jurisdictional amount is involved.

A substantial number of the employees have elected to take a lump sum settlement and it appears from the record that the settlement in the case of each individual employee would be in an amount less than $10,000. Other employees who have not made such election, or who made the election ánd later withdrew it, claim the monthly dismissal or coordination allowance which, without reduction, would cause their respective claims to exceed the jurisdictional amount of $10,000. However, the defendants insist that in the case of such employees their dismissal or coordination allowance must, under the Commission’s order, be reduced to the extent that they receive compensation from other employment and further to the extent that they receive unemployment compensation.

The liability of the plaintiff to the defendants being a several and not a joint liability, the claims cannot be aggregated for jurisdictional purposes, and the action may be sustained only with respect to those employees whose claims individually involve the requisite jurisdictional amount. 1 Moore’s Federal Practice, p. 888. The test for determining the amount in controversy is the value to the plaintiff of the right he is seeking to protect. 1 Moore’s Federal Practice, p. 827. But the jurisdictional amount is determined by the claim and not by the actual amount awarded. Collier v. Leedom Const. Co., D.C., 84 F. Supp. 348. “ * * * When it is necessary, in order to ascertain the amount involved in controversy, to consider conflicting testimony, or to decide disputed questions of law, this necessity alone gives the court jurisdiction. The court, under such circumstances, must hear the case, and reach its conclusion judicially; in other words, must take jurisdiction.” Stillwell-Bierce & Smith-Vaile Co. v. Williamston Oil & Fertilizer Co., 80 F. 68, 69. As stated by the Supreme Court, “[i]t must appear to a legal certainty that the claim is really for less than the jurisdictional amount to justify dismissal.” St. Paul Mercury Indemnity Co. v. Red Cab Co., 303 U.S. 283, 289, 58 S.Ct. 586, 590, 82 L.Ed. 845.

The plaintiff, although insisting that the implementing agreement governs the’ employees’ rights, denies that they have ever been entitled to lump sum settlements under the Commission’s order, assuming arguendo that the order governs such rights rather than the agreement. The contention is that such method of settlement comes into effect only after there has been a finding that the dismissal allowance under the Oklahoma conditions does not afford the employee the minimum four-year statutory protection. It is further insisted by the plaintiff that the employees have not made a timely election to accept a lump sum settlement at the time they were first adversely affected. Such an election is required both by the terms of the implementing agreement and the terms of the Commission’s order. Thus, regardless of whether the employees’ rights are founded upon the Commission’s order or the implementing agreement, the election to accept the lump sum benefits must be timely. The notices of the election in the present case were from two to five months after the date of the employees’ separation from employment and hence one issue involved is whether the election was timely. If it should be determined that the election was not timely, the employees would be barred from taking benefits under the lump sum provision. Further, the plaintiff insists that the employees, having made their elections, are [232]*232free to withdraw them at any time before final determination of their claims inasmuch as there has been no acceptance of the offers by the plaintiff. It is clear to the Court, therefore, that both issues of law and of fact are presented relative to the validity and effectiveness of the elections to acce'pt a lump sum settlement, with the result that as to these ■claims the requisite jurisdictional amount is involved. This is true for the reason that if the elections should be held to be ineffective, the employees would be relegated to the coordination allowance which potentially exceeds $10,-000 in the case of each employee. The defendants contend that the plaintiff’s potential liability for payment of the coordination allowance must be considered as reduced to the extent of each employee’s monthly earnings in other employment or by any benefits under any unemployment insurance law. On this basis, it is insisted that the several claims are reduced below the jurisdictional minimum of $10,000. This argument appears, however, to be without merit. The Railroad Unemployment Insurance Act conditions the benefits to be paid on days of unemployment. 45 U.S.C.A. § 352. The Act further provides that a “day of unemployment” shall not include any day on which remuneration is payable or accrues to the employee, the term “remuneration” meaning pay for services for hire. 45 U.S.C.A. § 351 (j, k). Coordination or dismissal allowance resulting from abandonment or coordination of unemployment facilities is remuneration within the meaning of the Act. 20 C. F.R., Sec. 322.7. It thus clearly appears that the employees who received the coordination or dismissal allowance are not entitled to unemployment compensation under the Railroad Unemployment Insurance Act. If such compensation benefits are paid to an employee and it is later determined that remuneration, such as the coordination allowance, is payable to such employee for any period for which any compensation benefits were paid, the remuneration so payable is required to be held in a special trust fund for the Railroad Retirement Board to the extent of the compensation benefits paid. 45 U.S. C.A. § 352(f).

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215 F. Supp. 229, 5 Fed. R. Serv. 2d 327, 49 L.R.R.M. (BNA) 2767, 1962 U.S. Dist. LEXIS 4061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisville-nashville-railroad-v-cantrell-tnmd-1962.