Tennessee Enamel Mfg. Co. v. Hake

194 S.W.2d 468, 183 Tenn. 615, 19 Beeler 615, 1946 Tenn. LEXIS 245
CourtTennessee Supreme Court
DecidedMay 4, 1946
StatusPublished
Cited by17 cases

This text of 194 S.W.2d 468 (Tennessee Enamel Mfg. Co. v. Hake) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tennessee Enamel Mfg. Co. v. Hake, 194 S.W.2d 468, 183 Tenn. 615, 19 Beeler 615, 1946 Tenn. LEXIS 245 (Tenn. 1946).

Opinion

Mr. Justice Prewitt

delivered the opinion of the Court.

The complainant, Tennessee Enamel Manufacturing Company, filed its bill in the Chancery Court of Davidson County assailing the constitutionality of that portion of the Unemployment Compensation Act as codified in Section 6901.5, subsection (3), of Williams’ Code (Section 8, subsection (d) (3), Chapter 131, Public Acts 1939), which provides, in substance, that an employee who is out of work for a period of four weeks by reason of a labor dispute shall be entitled to the benefits of the act beginning with the sixth week, one week being a waiting period.

The bill set out that complainant is a Tennessee corporation engaged in the enamel business and the manufacture of stoves.

The bill further set forth that at the time of its filing on February 20,1946, complainant had in its employ about 400 employees who were on strike which began on January 14, 1946; that these employees had left their jobs by reason of a labor dispute but that the strike was not brought about by complainant; that complainant had been contributing to the state unemployment compensation fund since its enactment in 1936, and was paying, in compliance with the act, 2.4 per cent of the average yearly wages of its employees.

*617 The bill charged that the maximum amount which complainant could he required to pay under the act was 3.3 per cent of the average yearly wages of its employees, and that it was accordingly to the interest of complainant to. maintain the best record possible, since the percentage of wages it had to pay to the fund was dependent upon its experience; that at all times complainant was anxious for its employees to work and their jobs were at all times available but that the employees refused to return to work, and as a result complainant had not been able to operate.

The bill further charged that the defendant is the commissioner of the employment security of the State and has charge of the administration of the Unemployment Compensation Act; that a majority of the employees who went out on strike were still on strike and refused to return to work and had made application to the defendant for unemployment compensation payments; and that ■defendant had informed complainant that he had no discretion in the matter as to whether or not these payments should be made, for the act was mandatory and those employees who were on strike would be paid as soon as their applications could be processed by him.

The bill further charged that the aforesaid section of the act was unconstitutional in that it violated Article 1, section 8, of the State Constitution, in that payments to the employees under said act would amount to the taking of property without due process of law and a confiscation of complainant’s property.

The bill also set out that many of the employees were not seeking other employment, were idle, had made no effort to get employment, and were daily on the picket line about complainant’s plant, and that if the employees were paid it would amount to complainant paying them *618 while they were idle and away from their jobs, which were at all times available for them.

The bill prayed for an injunction. The chancellor issued a stay order.

The defendant filed a motion to dismiss the cause on two grounds: (1) That complainant had an adequate remedy at law under the administrative provisions of the act; and (2) that the bill did not show it was absolutely certain that complainant would suffer any wrong, as it was not shown that any of the persons concerned in the strike would be entitled to compensation payments.

After a hearing, the chancellor dismissed the bill on March 6, 1946. The complainant moved for an order preserving the status quo of the cause pending the appeal and the final decree of this Court but that application was denied, and this appeal resulted.

By section 6901.6 of Williams’ Code (section 6 of the Act, Pub. Acts 1936, Ex. Sess. ch. 1) it is provided that when a claim is filed which involves the question of a labor dispute, a deputy in the commissioner’s office shall make a findings of fact with respect to the labor dispute and send it to -the commissioner, who shall affirm, modify,' or set aside such findings of fact by the deputy, and that the parties have the right to appeal such findings of fact to the appeal tribunals. This section further provides for an appeal to the board of review from any decision of an appeal tribunal, and also provides for judicial review by filing a petition for certiorari in the chancery court.

, Complainant contends that it would be an idle ceremony for it to follow the procedure outlined in section 6 because the administrative officers would not admit that the section of the act under attack is unconstitutional. However, the act provides a remedy for the complainant, (and this portion of the act is not under attack), in which *619 it can make whatever legal defense it sees fit, and finally for the courts to pass upon said defense.

The complainant further contends that the defendant stated that he had no discretion in the allowance of claims but would have to put the applications in the proper channels for payment, and the payments would he made by him as soon as they were processed.

Section 6901.4 of Williams’ Code (section 4 of the Act) requires the commissioner to make certain findings with respect to claimants’ eligibility to benefits and in so doing the commissioner must exercise his own discretion in passing on the claims. This Court cannot assume that the defendant would fail to carry out the duties required of him by .the act.

The complainant contends that it is entitled to injunc-tive relief to prevent a multiplicity of suits. The act provides that the manner in which disputed claims shall be presented shall be'in accordance with the regulations of the board of review, and it is reasonable to assume that the board of review would be as much interested as the complainant in preventing a multiplicity of suits and in permitting' complainant to present its defense that the act violated the constitution, in one proceeding.

The act in question requires complainant to resort to the remedies set forth therein as a condition precedent to having a court of review. The plainer sections of the Unemployment Act were construed by this Court in Block Coal, etc., Co. v. United Mine Workers, 177 Tenn. 247, 148 S. W. (2d) 364, and Queener v. Magnet Mills, Inc., 179 Tenn. 416, 167 S. W. (2d) 1. In each of those cases the Court looked to the declared intention of the act as set forth in Section 2 in aid of the construction placed thereon. Also, see State ex rel. v. American Trust Co., 161 Tenn. 570, 32 S. W. (2d) 1036; Kutsche & Co. v. Keith, *620 169 Tenn. 399, 88 S. W. (2d) 454; and Porter v. Investors’ Syndicate, 286 U. S. 461, 52 S. Ct. 617, 76 L. Ed. 1226.

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Bluebook (online)
194 S.W.2d 468, 183 Tenn. 615, 19 Beeler 615, 1946 Tenn. LEXIS 245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tennessee-enamel-mfg-co-v-hake-tenn-1946.