Strickland v. AMERICAN BAKERY & CONFECTIONERY WORKERS UNION & INDUSTRY NATIONAL WELFARE FUND

1974 OK 111, 527 P.2d 10
CourtSupreme Court of Oklahoma
DecidedSeptember 24, 1974
Docket46009
StatusPublished
Cited by11 cases

This text of 1974 OK 111 (Strickland v. AMERICAN BAKERY & CONFECTIONERY WORKERS UNION & INDUSTRY NATIONAL WELFARE FUND) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Strickland v. AMERICAN BAKERY & CONFECTIONERY WORKERS UNION & INDUSTRY NATIONAL WELFARE FUND, 1974 OK 111, 527 P.2d 10 (Okla. 1974).

Opinion

LAVENDER, Justice:

The plaintiff, Anna Strickland, brought this action as the named beneficiary to recover an additional $2,500.00 as death benefits from the American Bakery and Confectionery Workers Union and Industry National Welfare Fund, the defendant. Originally Travelers Insurance Company was a defendant in a second cause of action seeking the same recovery. The appeal as to that party has been dismissed. That part of the case is not presently before this court.

The parties shall be identified the same as in the court below with the plaintiff sometimes referred to as the “beneficiary” and the defendant as the “Fund.”

Vernon Strickland was employed by a baking company and was a member of the union. The union was the collective bargaining agent between the employees and the employer. A welfare fund and benefit program had been established as the result of collective bargaining between the union and the employer. This Fund was administered through union trustees. Strickland, the employee, was a participant in this benefit program. Plaintiff was his named beneficiary. He became disabled while in the active employment of the employer and qualified for disability benefits under what was entitled Plan G of the Fund. He remained totally disabled and so qualified to receive benefits until his death in November, 1969. After his disability, Plan G was replaced by Plan K and later by Plan Q-8. This last plan was in effect at the time of Strickland’s death. Plan G provided for $4,000.00 life insurance. Plan K changed the life insurance to a death benefit 1 and increased the amount to $5,500.00. Plan Q-8 increased the amount of the death benefit to $6,500.00.

On the death of Strickland, the beneficiary was paid $4,000.00 as provided in Plan G by the life insurance company. This was the plan in effect at the time of the deceased’s disability. The beneficiary seeks recovery of an additional $2,500.00 under Plan Q-8, the plan in effect at the time of the death of Strickland. That plan called for a death benefit in the amount of $6,500.00.

Before trial, both parties filed a motion for summary judgment together with a supporting affidavit. None of the facts in the affidavits are controverted. The trial court sustained the motion for summary judgment of the defendant Fund and overruled plaintiff beneficiary’s like motion. The court’s order dismissed the action as to the defendant Fund and stated the ruling was based “on the ground that the Court finds the documents in question to be unambiguous * *

The sole question to be determined on this appeal is whether the beneficiary is entitled to a death benefit of $4,000.00, which she has been paid, or $6,500.00, in which event she would be entitled to recover an additional $2,500.00. The amount of the death benefit is in controversy and not the right to receive such a benefit.

The defendant Fund issued a booklet explaining benefits to the members as each plan was effective. Each booklet began with a statement from the defendant Fund to the member. It reads in part:

*12 “Dear Member:
This booklet describes the benefit program provided for you as the result of the collective bargaining agreement between your ABC Local Union and your Employer. * * *”

The defendant Fund included in its supporting affidavit filed with its motion for summary judgment either all or a part of the collective bargaining agreements entered into between the union and the employer baking company as to the welfare fund. There was such an agreement for each plan. 2 It provides the formula under which the employer contributes to the welfare fund as to each separate plan. As the benefits (including death benefit) were raised by each subsequent plan, so was the employer’s contribution.

Each plan’s separate booklet explained to the member that plan’s death benefit, or life insurance. After setting out the conditions of eligibility under total disability, this language is contained:

“* * * and upon your death the amount of Death Benefit then in force will be payable to your beneficiary.”

As a part of the record in this case, there is another booklet. It contains the Rules and Regulation of the Fund. It too has an introductory statement to the covered employees and participating local unions. This booklet advises the Fund and the benefits of the Fund belong to the participants ; and that the benefits are the result of collective bargaining agreements between ABC Local Unions and Employers. The introductory statement is concluded with information that booklets are available as to the plan of benefits applicable to each group based on the contribution rate in their collective bargaining agreement. Article V of the Rules deal with death benefits. It reads in part:

“Section 1-Death Benefit Generally
If death shall occur while the Employee is eligible and is covered by a Plan providing death benefits, the amount of death benefits at the date of death will be paid to the beneficiary designed in the Employee; * *
* ‡ * * ;ji
“Section 3-Death Benefit Coverage During Permanent Total Disability.
⅛: ⅜ ⅜ ⅜ ⅜
B. Subject to receipt * * * of due proof of the continuance of such disability * * * the death benefit coverage on such Employee shall continue without payment of contribution from year to year thereafter during the period of such permanent total disability.”

Plaintiff’s position is based on the argument the language found in the booklets of “and upon your death the amount of Death Benefit then in force will be payable” and “the amount of death benefits at the date of death will be paid” is at best ambiguous and should be construed against the Fund. This should then allow the beneficiary to receive death benefit of $6,500.00 as provided in Plan Q-8, the plan in effect at time of death.

*13 The defendant Fund argues each plan must be considered and construed in conjunction with the collective bargaining agreement or clause as to the welfare fund in effect at the time the particular plan was operative. We agree with that position.

48 Am.Jur.2d § 1205 states:

“Where one accepts employment under the collective bargaining agreement, he thereby ratified and accepts its terms, and his rights and his employer’s rights are to be measured and adjudged by that contract. 3 A member of the bargaining unit is bound by and entitled to the benefits of the collective bargaining agreement to the benefits of the collective bargaining agreement to the same extent as if he had entered into it individually. 4

In the case at bar the union as a part of the collective bargaining process acted on behalf of the members of the union. Strickland was a union member.

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Cite This Page — Counsel Stack

Bluebook (online)
1974 OK 111, 527 P.2d 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strickland-v-american-bakery-confectionery-workers-union-industry-okla-1974.