Pirone v. Penn Central Co.

53 F.R.D. 574, 79 L.R.R.M. (BNA) 2071, 1971 U.S. Dist. LEXIS 10571
CourtDistrict Court, S.D. New York
DecidedDecember 1, 1971
DocketNo. 68 Civ. 3148
StatusPublished
Cited by1 cases

This text of 53 F.R.D. 574 (Pirone v. Penn Central Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pirone v. Penn Central Co., 53 F.R.D. 574, 79 L.R.R.M. (BNA) 2071, 1971 U.S. Dist. LEXIS 10571 (S.D.N.Y. 1971).

Opinion

MEMORANDUM

BRIEANT, District Judge.

Plaintiffs in each of the two above entitled consolidated actions have moved pursuant to Civil Rule llA(e) for a determination under Rule 23(c) (1) of the F.R.C.P. as to whether the action herein is to be maintained as a class action and if so, the membership of the class.

For the reasons hereinafter set forth, the Court is of the opinion that the action may be maintained as a class action and that there are two subclasses with respect to which the issues are required to be litigated separately.

[575]*575The Pirone action was commenced on August 2, 1968. On February 1, 1968, the former Pennsylvania Railroad (“PRR”) and the former New York Central Railroad (“NYC”) combined their operations in what was then described as the PANYC merger. Throughout the railroad system generally, the crafts and brotherhoods worked for the resulting railroad on a “dovetailed” seniority list where the lists were merged and treated as a single list, and each employee of the constituent railroads had credit for his years of service prior to the merger in determining the “dovetailed” list. Elaborate procedures were evolved for the purpose of protecting employees from dislocations as a result of the merger.

The Pirone plaintiffs in the first above entitled action were employees of NYC in its marine division. They were not represented by the railroad brotherhoods but rather by defendant Seafarers International Union of North America (“SIU”). It appears that the marine terminal of NYC in New York Harbor was closed, and the work physically transferred to the marine terminal of PRR which had theretofore been maintained at a separate location, and at that marine terminal, the seniority rosters were combined in such a way that all of the NYC men in order of their NYC seniority were placed at the bottom of the seniority list of PRR, which was continued as before rather than being dovetailed.

It appears that this arrangement was made as a result of collective bargaining between the merged railroad and the SIU, and we are told that this procedure, at great variance from the procedure followed elsewhere in the PANYC system, was ratified by ordinary democratic procedures within the union, or a vote of the membership. The defendant Penn Central Company disclaims any part in this decision and states in effect that it was determined by the union.

About a year later, the New Haven Railroad marine properties were transferred to the merged Penn-Central system. New Haven also had a marine division in New York Harbor in which the employees were represented by SIU. Here again, physically, the marine facilities of New Haven, its wharves and piers, were closed and its operations transferred physically to the former PRR location. Here again, the New Haven employees were placed at the bottom of the prior combined roster, so that all New Haven men were junior in seniority to all NYC men, and both the NYC and New Haven men were junior to all PRR men. Here again we are told that this was effectuated as a result of collective bargaining and a vote of the union membership through ordinary procedures for self-government of the union. These proceedings took place at a different and later time than the proceedings where the NYC men’s rights are supposed to have been determined.

The NYC employees in the Pirone case, and the former New Haven employees in the Scofield case, each brought their actions against the railroad and the union, claiming in effect that they were not fairly represented by their union, which should have held out for dovetailing of seniority, as was done elsewhere in the PANYC system and that the railroad was a party to such unfair or improper arrangement. The employees may now be said to be classified in three categories; (1) former PRR employees who will lose seniority if the plaintiffs in the Pirone case or in the Schofield case prevail, (2) former NYC employees who will lose position on the seniority list if the New Haven employees prevail, and (3) persons who have severed or retired, or who have been fired or quit the employment of the merged railroad.

The first above category, those persons who benefited by the procedure which was followed, are adequately represented in this litigation by their un[576]*576ion, which will seek to sustain as correct and proper the procedure which was followed. The NYC plaintiffs who lost out as a result of the manner in which the seniority lists were combined are an aggrieved subclass, even as to those who have continued working, and are entitled to have their status adjudged by a class action. The same is true with respect to the New Haven employees, a fortiori. The fact issues are not common as between the New Haven employees and the NYC employees because different union proceedings occurring at different times and presumably under different circumstances of due process, were followed and if the physical fact concerning the nature and extent of the operations in New York Harbor of the prior independent railroads is relevant, and it has been suggested that it is, then there may be different issues of law and fact affecting the former New Haven terminal than will affect the former NYC terminal.

The Court, on the argument of this motion, asked counsel to state by letter whether it was possible under any conceivable theory of law or fact, that the NYC employees could secure dovetailing after the trial of this action, and the New Haven employees fail to obtain the same relief. If this be impossible, then there is no reason why the plaintiffs in the Pirone case (NYC employees), and the plaintiffs in the Scofield case (New Haven employees) may not be treated as one class and represented by single counsel.

Counsel for the defendant union has advised the Court that the question posed must be answered in the negative. Counsel point out that the pleadings filed in behalf of each of the two groups rest upon the same theory of law, namely that plaintiffs were deprived of their rights in that the union failed to discharge its duties to represent them fairly and in doing so to obtain dovetailing of the seniority list. While the position of the union would seem correct from a surface evaluation of the issue, the same question was answered by counsel for the railroad as follows:

“It is entirely possible that at the trial there could be a different disposition on the merits as to former NYC employees and former NH employees. The merger between PRR and NYC became effective February 1, 1968 and the first agreement with which this litigation is concerned as to seniority and a merged list took place within a few months thereafter. My information is that this was ratified at a union meeting. The acquisition of the New Haven assets, including the harbor operations, took place January 1, 1969 after the first merged list was in effect. Some months later the further agreement for a further merged list was negotiated and I am informed likewise ratified at a union meeting. It is entirely possible that former NYC employees were among those ratifying the second arrangement for a merged seniority list.
In any event, the two successive arrangements were reached at separate times under separate conditions and ratification had separate histories. It should also not be forgotten that the considerations as to how reasonable the arrangement was in view of business conditions and the condition of the equipment formerly belonging to NYC and NH are different.”

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Related

Pirone v. Penn Central Co.
54 F.R.D. 542 (S.D. New York, 1972)

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Bluebook (online)
53 F.R.D. 574, 79 L.R.R.M. (BNA) 2071, 1971 U.S. Dist. LEXIS 10571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pirone-v-penn-central-co-nysd-1971.