New York City Omnibus Corp. v. Quill

189 Misc. 892, 73 N.Y.S.2d 289, 20 L.R.R.M. (BNA) 2532, 1947 N.Y. Misc. LEXIS 2999
CourtNew York Supreme Court
DecidedSeptember 11, 1947
StatusPublished
Cited by11 cases

This text of 189 Misc. 892 (New York City Omnibus Corp. v. Quill) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York City Omnibus Corp. v. Quill, 189 Misc. 892, 73 N.Y.S.2d 289, 20 L.R.R.M. (BNA) 2532, 1947 N.Y. Misc. LEXIS 2999 (N.Y. Super. Ct. 1947).

Opinion

Pecora, J.

This is an action for a declaratory judgment. The plaintiff corporations own and operate a number of bus lines [893]*893in the city of New York, which carry approximately 1,200,000 passengers daily. They will he referred to hereinafter as the Companies. The defendants are the officers of two labor unions — both unincorporated associations — many of whose members are employed as drivers and clerical personnel by the Companies. They will be referred to hereinafter as the Unions. The Unions are the collective bargaining agents of the drivers and clerical employees in their relations with the Companies.

A contract fixing the terms of employment between the Companies and the Unions expired on September 30,1946. Negotiations for a renewal of the contract were commenced. The inability of the parties to reach an agreement led to their appointment of one David L. Cole to arbitrate the demands of the Unions and the counterproposals of the Companies. The proceedings before the arbitrator were commenced on March 7, 1947. Over 2,000 pages of testimony and more than 100 exhibits were submitted to him. He made Ms award on June 18, 1947. The life of the contract of employment thereby formulated, by its own terms, is from July 1, 1947, to January 31, 1948.

Because of a difference of opinion between the parties respecting the meaning of only those provisions of the award which relate to a pension plan, the Companies instituted this action for a declaration of the rights of the parties under those provisions.

The evidence presented to this court consisted of the voluminous record of the proceedings before the arbitrator. Upon the trial the Unions proffered the testimony of the arbitrator, with the view of eliciting from him the meaning of the disputed provisions of his award. Such testimony is clearly inadmissible. It has uniformly been the rule that an arbitrator may not testify to the meaning and construction of his written award (Flannery v. Sahagian, 134 N. Y. 85; Citizens Bldg. v. Western Union Tel. Co., 120 F. 2d 982; Doke v. James, 4 N. Y. 568, 575; Campbell v. Western, 3 Paige Ch. 124). Consequently this court declined to receive Cole’s testimony.

It now devolves upon this court to construe the award in question. With the wisdom or correctness of the award, the court has not the slightest duty or concern. The matters in controversy between the parties before the arbitrator were decided when the arbitrator made his award (Fudickar v. Guardian Mutual Life Ins. Co., 62 N. Y. 392, 399). This court’s sole function is to determine and declare the meaning and intent of that portion of the arbitrator’s award which is in dispute.

[894]*894The Unions contend that the award made by the arbitrator grants a pension for life to the employees of the Companies who become eligible therefor during the period of the present contract of employment — that is, between July 1, 1947, and January 31,1948.

The Companies, on the other hand, maintain that the award merely grants to such eligible employees the right to receive, after retirement, periodical payments only up to the termination of the present contract on January 31, 1948, and no more.

This court is unable to adopt the view of the Companies. It is my firm opinion that the construction placed upon the award by the Unions is the only one which may be reasonably and logically made.

I construe the award in the light of the principles of interpretation long ago enunciated in Lord Coke’s Reports (Part VIII, p. 310), in the following trenchant language: The good expositor makes every sentence have its operation to suppress all the mischiefs; he gives effect to every word * ' * *; he

does not construe it so that anything should be vain and superfluous nor yet makes exposition against express words, but so expounds it that one part"may stand agreeable with the other and all may stand together.” These rules of construction have been followed by our courts (Poel v. Brunswick-Balke-Collender Co., 216 N. Y. 310, 322; Fleischman v. Furgueson, 223 N. Y. 235, 239; Wolkind v. Berman, 232 App. Div. 47, 50; People ex rel. Powott Corp. v. Woodworth, 260 App. Div. 168, 172).

The basic provision of the arbitral award in this case is to be found in the direction that the Company shall provide a pension plan similar to the Third Avenue Transit Plan, dated August 27, 1946 ”, and that “ the provisions of the Third Avenue Pension Plan ”, with some modifications not now material, are expressly incorporated herein by reference as though fully set forth herein.” Among the provisions of the Third Avenue Transit Plan thus adopted and made part of the award by the arbitrator, is the following: ‘1 The Company proposes to provide payment of pensions to its employees during their lives in accordance with the Plan as hereinafter set forth.”

To my mind, the meaning of that provision of the award is clear and unequivocal. I see in it, as a cardinal purpose of the arbitrator, a readily manifested intent to provide pension payments for life for all employees who may become entitled thereto during' the employment contract period — that is, between July 1, 1947, and January 31, 1948.

[895]*895There is nothing in any other portion of the award which compels or justifies a different conclusion. The preliminary discussion of the arbitrator contains — it is true — the following language: “ The pension issue at arbitration pertains to a contract which the arbitrator has determined shall continue until January 31, 1948. The award cannot by itself apply for a longer period * * *. This award imposes no obligation on the Company to be assumed after the contract expires * * *. In any event, it is not for the arbitrator at this time to settle the rights and obligations that shall be set up as of the expiration of the contract.”

That language, however, must be read together with the decretal portions of the award quoted above, and must be harmonized therewith, if possible. That course presents no real difficulty. It is plain that all that the arbitrator meant was that pension rights should accrue to the employees only so long as the contract term continued, but that, once accrued, those pension rights should continue during the respective lives of the pensioners. That construction recognizes that no pension rights can vest after the contract period has expired — that is, that “ the award [of pension rights] cannot by itself apply for a longer period,” and hence cannot impose new obligations to pay additional pensions initially arising thereafter. The present award does not require the Companies to “ assume ” obligations for pensions to which the rights may accrue after the present contract has expired, and which may be fixed by any subsequent contract between the Companies and the Unions. Only those pension rights vesting under the present contract are, by the award, to exist for the respective lives of the pensioners. The granting of pension rights to other employees after the expiration of the present contract must depend upon the terms of each successive contract. •

There is nothing in the language of the award which can reasonably be held to cut down the fundamental purpose of the award to grant pensions for life" to those becoming entitled thereto under the terms of the current contract established by the award.

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189 Misc. 892, 73 N.Y.S.2d 289, 20 L.R.R.M. (BNA) 2532, 1947 N.Y. Misc. LEXIS 2999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-city-omnibus-corp-v-quill-nysupct-1947.