Mueller v. Chicago & North Western Railway Co.

259 N.W. 798, 194 Minn. 83, 1935 Minn. LEXIS 937
CourtSupreme Court of Minnesota
DecidedMarch 22, 1935
DocketNo. 30,235.
StatusPublished
Cited by11 cases

This text of 259 N.W. 798 (Mueller v. Chicago & North Western Railway Co.) 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
Mueller v. Chicago & North Western Railway Co., 259 N.W. 798, 194 Minn. 83, 1935 Minn. LEXIS 937 (Mich. 1935).

Opinions

Stone, Justice.

Action for damages for breach of contract of employment wherein plaintiff, the employe, had a verdict. Defendant employer’s motion for a new trial was denied, but its alternative motion for judg-' ment notwithstanding the verdict granted. Judgment was entered, and plaintiff appeals.

For some time before April 5, 1929, plaintiff was in the employment of defendant as a “yardman” at Appleton, Wisconsin. April 5 he was discharged. His claim is bottomed upon defendant’s alleged breach of a contract, in force at the time, between defendant and other railroads on the one side and the four rail-way brotherhoods (of one of which plaintiff was a member) on the other. Under that contract, plaintiff’s “grievance,” resulting from his discharge, was submitted to arbitration. The result was in his favor— hence his claim that his dismissal by defendant was a breach of the latter’s contract with the brotherhoods; and that he is entitled to recover the damage resulting through loss of earnings following his discharge. His cause of action is based upon the decision of the arbitrators, which, it is argued, was final and binding.

In the background and as premise for the argument for plaintiff is the right of employes to bargain collectively. That right needs no reaffirmance. No statute is needed to make it the law of this state. George T. Ross Lodge No. 831 v. Brotherhood of R. R. Trainmen, 191 Minn. 373, 254 N. W. 590. It is almost axiomatic that what one may contract for individually many may contract for collectively. Bohn Mfg. Co. v. Hollis, 54 Minn. 223, 55 N. W. 1119, *85 21 L. R. A. 337, 40 A. S. R. 319. But when, as to a collective contract, the judicial function is invoked, decision must stand upon the same rules of interpretation and enforcement that prevail in other cases of contract. We do not have, and judges cannot make, one law for one class of contracts and another and different law for another, sort. The. truth of that can be no better exemplified than by this case. Plaintiff relies upon an “arbitration agreement,” and his argument here is put thereon as, “in effect, an agreement to arbitrate as at common law.” 2

Plaintiff’s right to sue is put upon the contract between defendant and the brotherhoods. He- claims the contract right to remain in defendant’s employ until rightfully discharged. Defendant’s argument is that plaintiff was not bound to remain in its employ, and defendant not bound to continue him therein, for any definite time: There is no occasion to construe the contract on this point because, as will later appear, the parties themselves have construed it as to this case. But it is plain that, the contract having been made by the representatives of the brotherhoods on behalf of the “employes in train, engine and yard service,” plaintiff is entitled to sue on the contract as one made in his behalf by a duly authorized agent; that is, this suit must be considered as one by a party to, rather than by a mere beneficiary of, the contract. The difference may not be important in result. But it is expedient, if not necessary, to indicate the premise upon which we consider the relevant provisions of the agreement. We hold that plaintiff has the right to sue, as a party to the contract, for any breach thereof by defendant.

*86 Defendant claims that the contract gave no authority to the board of adjustment over cases of dismissal as distinguished from those of mere discipline. Such a distinction was made in Stitt v. Locomotive Engineers’ M. P. Assn. 177 Mich. 207, 142 N. W. 1110. But defendant joined plaintiff in submitting their dispute to the board. Both considered the matter within the board’s jurisdiction under the contract. Such a practical construction of their agreement by contracting parties is controlling unless it is one which “a reasonable person” could not adopt. Bestatement, Contracts, § 235(e) and Minnesota Annotations; 2 Dunnell,, Minn. Dig. (2 ed. & Supps. 1932, 1934) § 1820. We are unable to say that the-joint action of the parties indicated an interpretation (that dismissal was “discipline”) not open to the mind of a reasonable person.

As already appears, the case must go to decision as one of arbitration at common law. That automatically eliminates certain questions Avhich might be present if the aivard in question Avere the result of statutory arbitration. 2 Mason Minn. St. 1927, § 9517. See Borum v. M. St. P. & S. S. M. Ry. Co. 184 Minn. 126, 238 N. W. 4. Arbitration is a favorite of the laAv and an aAvard not lightly to be interfered Avith. Arbitrators may go AAcrong and yet their decision be final. Larson v. Nygaard, 148 Minn. 104, 180 N. W. 1002; 1 Dunnell, Minn. Dig. (2 ed. & Supps. 1932, 1934) § 488. Arbitration is to be especially favored in the field of labor-relations and the differences between employers and employes which arise from them. Courts aaúII be reluctant to interfere with the decisions of arbitrators on such issues. But, when their jurisdiction is properly invoked, the appropriate judicial remedy cannot be denied any party Avho shows himself entitled to it.

Plaintiff Avas discharged April 5, 1929, by a notice reading as follows:

“You are hereby notified that after investigation of your appropriating and taking home a shovel, belonging to the Coated Paper Co. at Appleton on April 2, 1929, and for your cumulative record and general unsatisfactory service the folloAving discipline has been applied: Dismissal from seiwice.”

*87 The investigation mentioned was made by a trainmaster. The procedure was that contemplated by the contract with the brotherhoods. It required among other things that an employe under investigation, if he so desired, should have a fellow employe of his own choice present during the investigation. Plaintiff waived his right to have another employe present. The engineer and yard engine foreman, with and under whom plaintiff worked for some time, were also questioned. The .questions and answers were all recorded. As to the shovel incident, the statements taken tended on the one hand to prove plaintiff’s guilt and on the other to establish his innocence; that is, they made a question of fact. But on the question of his “general unsatisfactory service,” the evidence was all strongly against plaintiff. The statements of his two fellow employes showed that he was not only an incompetent but also a dangerous man to have on a yard crew. Plaintiff made no effort to meet the charge of “general unsatisfactory service” or to contradict the evidence thereof, in the statements of his felloAv employes, which showed numerous and convincing acts of incompetence and insubordination, dangerous not only to fellow employes but also to others outside defendant’s service.

The self-stated purpose of defendant’s contract with the brotherhoods is to settle grievances of employes “at home.” That failing, they are submitted to the “Train Service Board of Adjustment for the Western Region” Avith all “supporting papers.” Wherever possible, the contract contemplates that there shall be a “joint concrete statement of facts” and, if wanted, “additional evidence, either oral or written, from either side.”

Pursuant to such provisions, plaintiff and defendant joined in Avhat is miscalled a “Joint Statement of Facts.” It reads thus:

“Claim:

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Bluebook (online)
259 N.W. 798, 194 Minn. 83, 1935 Minn. LEXIS 937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mueller-v-chicago-north-western-railway-co-minn-1935.