New Castle County Vocational Technical Education Ass'n v. Board of Education of the New Castle County Vocational Technical School District

451 A.2d 1156, 1982 Del. Ch. LEXIS 400
CourtCourt of Chancery of Delaware
DecidedSeptember 17, 1982
StatusPublished
Cited by4 cases

This text of 451 A.2d 1156 (New Castle County Vocational Technical Education Ass'n v. Board of Education of the New Castle County Vocational Technical School District) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Castle County Vocational Technical Education Ass'n v. Board of Education of the New Castle County Vocational Technical School District, 451 A.2d 1156, 1982 Del. Ch. LEXIS 400 (Del. Ct. App. 1982).

Opinion

*1157 LONGOBARDI, Vice Chancellor.

The New Castle County Vocational Technical Association (“Association”) is the exclusive negotiating representative of the public school employees of the New Castle County Vocational Technical School District. On July 1, 1979, the Association entered into a collective bargaining agreement with the Board of Education of the New Castle County Vocational Technical School District (“Board”). Article 9 of that agreement concerns “Compensation and Fringe Benefits.” Section 9:5.4 specifically addresses Blue Cross-Blue Shield benefits and reads in pertinent part, “State pays for individual membership and the district pays 100% of family plan beginning with employment.” Article 21 concerning “Negotiation of Successor Agreement” deals with the apparent duration of the agreement with Section 21:1 and Section 21:2 discussing both the time frame for renegotiation of the contract and the effectiveness of the contract during the period of negotiation.

21:1. The parties agree to enter into negotiations over a successor Agreement in accordance with Chapter 40, Title 14, Delaware Code. Such negotiations shall begin upon mutual agreement no. later than 90 days prior to the expiration of this Agreement. Such request to begin negotiations shall be initiated by the employees. Any agreement so negotiated shall apply to employees covered by this Agreement, be reduced to writing, and be submitted for ratification by the employees and the Board.
21:2. This Agreement shall be for a minimum period of three years from the effective date; and negotiations concerned with the terms of this Agreement shall not be reopened during that time except as provided for by this Agreement. This Agreement shall remain in effect until agreement is reached on a succeeding Agreement.

The final Article of the contract, Article 22, is entitled “Duration of Agreement” and discusses the chronological parameters of the agreement as well as the scope of the commitments it has created.

22:1. This Agreement shall be effective as of July 1, 1979 and shall continue in effect until June 30, 1982. This Agreement constitutes the full and complete commitments between the parties, and no subject, whether contained herein or not, shall be reopened for negotiation during the life of this Agreement except by mutual agreement of the parties. This Agreement shall not be extended orally; and it is expressly understood that it shall expire on the date indicated unless it is extended in writing.

Pursuant to Article 21 of the contract, the Board and Association entered into negotiations on a successor agreement on March 30,1982. While negotiations were in progress, the District Superintendent, Dr. Conrad C. Shuman, sent letters to all the professional staff represented by the Association, but not to the Association itself, which informed them that the State Treasurer’s Office had notified the Board of new rate increases for Blue Cross coverage effective July 1, 1982. The increases varied according to the type of coverage. The District’s contribution for “individual” coverage was to increase by $2.26 per month, for “adult and child” coverage by $3.72 per month and for “family” coverage by $5.60 per month. Shuman noted that since the teacher contract expired June 30,1982, “the costs could be passed on to the employee.” The Board, however, was deferring the final decision on passing on the cost until the next regular school board meeting scheduled for September 15, 1982. The letter also noted that the benefit provision of the teacher contract “is a negotiable item and this memo is intended to point out that continued coverage under this program and any increased cost associated with the benefits is not assured.” (Shuman affidavit, Exhibit B).

On August 13,1982, the Association filed a complaint with this Court alleging that the District was “contemplating refusing to honor § 9:5.4 of the contract” (Complaint, ¶9) and praying for injunctive relief because its members would suffer irreparable harm by being “without health insurance *1158 coverage” (Complaint, ¶ 12) if the District proceeded as threatened. The Association requests an order directing the Board to continue to pay the 1981-1982 health insurance rates as well as the increases effective July 1, 1982.

Plaintiff’s argument is twofold. First, the Association contends that the language of Article 22 setting the expiration date of the contract as June 30, 1982, must be viewed in light of Article 21, specifically Section 21:1 which reads “[t]his Agreement shall remain in effect until agreement is reached on a succeeding agreement.” The Association argues that the health insurance benefits, including post-expiration increases, should thereby be continued during negotiations. Considering the guarantee of 100% coverage of family plan benefits in Section 9:5.4, Plaintiff feels that the alleged threatened repudiation will irreparably harm a demonstrated contractual right.

Secondly, the Association argues that unilateral alteration of benefits by the Board prior to an impasse in negotiations violates federal standards of fair dealing which have been applied to the state statutes addressing public school employee negotiations by Delaware courts. Plaintiff cites Milford Education Association v. Board of Education of the Milford School District, Del.Super., 811 Civil Action 1976 (unreported decision of Taylor, J., dated February 24, 1977), in which Judge Taylor discussed two United States Supreme Court cases dealing with an employer's unilateral alteration, prior to impasse, of matters which are the subject of current negotiations. These cases, N.L.R.B. v. Katz, 369 U.S. 736, 82 S.Ct. 1107, 8 L.Ed.2d 230 (1962), and Fibreboard Corp. v. NLRB, 379 U.S. 203, 85 S.Ct. 398, 13 L.Ed.2d 233 (1964), prohibit such unilateral alteration prior to impasse. Judge Taylor found the “principles of fair dealing” established by these cases applicable to the standards for good faith negotiation contemplated by 14 Del.C. Ch. 40. Additionally, the Association relies on a decision by the then Vice Chancellor Brown which relies in part on Judge Taylor’s opinion in Milford Education Association v. Board of Education, 811 Civil Action 1976. In Caesar Rodney Education Association v. The Board of Education of Caesar Rodney School District, Del.Ch., Civil Action No. 5635 (unreported decision of Brown, V.C., dated July 5, 1978), Chancellor Brown granted in part a temporary restraining order against that Board prohibiting them from terminating existing Blue Cross benefits available under the expired contract in an effort to maintain the status quo during negotiations which had not yet reached impasse. These cases, the Association insists, support an injunction prohibiting any possible alteration of its members’ health coverage including post-expiration increases which the Board has voluntarily paid and which the Board now wishes to reconsider. It is this interference with the right of “fair dealing” which the Plaintiff contends is a basis for preliminary injunctive relief in order to maintain the status quo.

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451 A.2d 1156, 1982 Del. Ch. LEXIS 400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-castle-county-vocational-technical-education-assn-v-board-of-delch-1982.