Nelson v. General Electric Company

145 A.2d 576, 1958 D.C. App. LEXIS 286, 36 Lab. Cas. (CCH) 65,004
CourtDistrict of Columbia Court of Appeals
DecidedNovember 12, 1958
Docket2225
StatusPublished
Cited by2 cases

This text of 145 A.2d 576 (Nelson v. General Electric Company) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson v. General Electric Company, 145 A.2d 576, 1958 D.C. App. LEXIS 286, 36 Lab. Cas. (CCH) 65,004 (D.C. 1958).

Opinions

QUINN, Associate Judge.

Appellant is president of Local 506 of the United Electrical, Radio and Machine Workers of America, located at Erie, Pennsylvania. This union is the certified bargaining representative for appellee’s employees working in its Erie plant. On December 9, 1953, appellee adopted a “policy” which declared in part that any of its employees who invoked the Fifth Amendment before a congressional committee and refused to testify concerning various communist activities would be subject to suspension and discharge. Appellant, an employee of appellee at that time, invoked the Fifth Amendment before a committee of Congress and was suspended in December 1953. Ninety days later he was discharged in accordance with the “policy.”

Contending that this discharge was a violation of the collective bargaining agree- . ment then in effect between appellee and the union, both appellant and the union brought suit against appellee in the United States District Court for the District of Columbia seeking declaratory and injunc-tive relief and damages. After a full trial the court found for appellee on the merits.1 On appeal, the United States Court of Appeals 'for the District of Columbia Circuit ruled that the district court had no jurisdiction of any claims the union might have against appellee.2 As for appellant’s individual claim, the court stated:

“An employee discharged in violation of a collective bargaining contract, may have a claim that is judicially enforceable. Marranzano v. Riggs National Bank, 1950, 87 U.S.App.D.C. 195, 184 F.2d 349. But the claim is not enforceable in the United States District Court for the District of Columbia unless the amount in controversy exceeds $3,000. Smaller claims are within the exclusive jurisdiction of the Municipal Court for the District of Columbia. D.C.Code (1951) § 11-755. Appellant Nelson’s claim does not meet the District Court’s jurisdictional requirement. During the last full year of his employment by the Company, most of his time was spent on Union work for which he was not paid or entitled to be paid by the Company, and his earnings from the Company were $618.51. It does not appear that his Company employment and earnings would have been larger in the future, or that his Company discharge affected his Union employment and earnings. Cf. Friedman v. International Ass’n of Machinists, 95 U.S.App.D.C. 128, 220 F.2d 808. * * * ”3

The Supreme Court denied certiorari.4

Appellant then brought this suit in the Municipal Court asking damages for breach of contract and restoration by way of injunction to his former position. At the conclusion of his evidence the trial court, sitting without a jury, granted appellee’s mo[579]*579tion to dismiss the action and this appeal followed.

The settled rule is that an employer has the right to select or discharge his employees at will, unless that right has been restricted by the specific contract of employment or by legislation.5 There is no statute applicable to the instant case which has had such an effect. Accordingly, relying on this general principle, appellee attempted to justify its dismissal of appellant on two alternative grounds: (1) that the collective bargaining agreement contained no limitation on its general right to discharge; (2) even if its right was restricted by the contract, invocation of the Fifth Amendment before a congressional committee was a ground for discharge embraced by the terms of the limitation.

The typical contract provision limiting an employer’s right to discharge recites that no employee may be discharged except for “cause,” or “proper cause,” or “just cause.” Since no such explicit term appears in the collective bargaining agreement in force at the time of appellant’s dismissal, appellee urges that its right to discharge was unlimited. Appellant contends that a “cause” provision is necessarily implied in this contract by virtue of the following clause:

“Article XV
Grievance Procedure
íjí ijí ¡(í
“3. Procedure for Disciplinary Cases
(a) Before any penalty is imposed upon any employee following Warning Notices, except for discharge for obvious cause, such employee shall be notified one week in advance during which time he may refer the matter to the Local representative and, if the Local so desires, the matter may be negotiated with the Management. If no satisfactory agreement is worked out during the period of such notice, the Management shall retain the right to impose such penalty pending final settlement of the case.
“(b) In the event it is determined that an employee has been improperly penalized, he will be reimbursed for any loss of wages sustained as a result of the imposition of the penalty.”

Appellee reads this provision as procedural only, imposing no substantive limits on its right to discharge. On the other hand, appellant argues that the words “negotiated” and “settlement” presuppose a limit on the power to discharge; that the phrase “improperly penalized” contemplates that a discharge can be predicated only on “proper cause.”

In a memorandum opinion the trial judge took the position that this disputed clause in no way restricted appellee’s right to discharge. The court interpreted Section 3(a) as meaning only that in any discharge the employee is entitled to a week’s notice, except discharge for “obvious cause,” in which case he receives no notice. The court also felt that the phrase “improperly penalized” in Section 3(b) was meant to apply only to situations in which the employer discharged an employee because of a mistake as to the facts, and that determination of the propriety of the reason for discharge was left to the sole discretion of appellee.

It is apparent that Article XV, Section 3 is ambiguous. We do not think it can possibly be said that any one of these interpretations is plainly demanded as a matter of law. It becomes necessary, therefore, to ascertain the proper meaning of this clause; and the nature of this inquiry, within the bounds of the accepted standards of interpretation, is to a considerable extent factual. In view of this point, we might consider ourselves bound by the trial court’s interpretation of Article XV, Sec[580]*580tion 3 but for the existence of another circumstance, which forms the basis for appellant’s principal contention on appeal: the exclusion by the court of certain evidence offered by him bearing on this question.

As Wigmore has pointed out, the general principle of interpretation is that “all the circumstances must be considered which go to make clear the. sense of the words *. * 6 The collective bargaining agreement, which appellant alleged his discharge has violated, was entered into in 1953. Appellant attempted to show that this contract was the successor of a series of previous contracts between the union and appel-lee extending back to 1945, each of which contained verbatim the language of Article XV, Section 3 of the 1953 agreement.

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Related

Sigismondi v. Queens Transit Corp.
38 A.D.2d 71 (Appellate Division of the Supreme Court of New York, 1971)
Nelson v. General Electric Company
145 A.2d 576 (District of Columbia Court of Appeals, 1958)

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Bluebook (online)
145 A.2d 576, 1958 D.C. App. LEXIS 286, 36 Lab. Cas. (CCH) 65,004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-general-electric-company-dc-1958.