W. R. Grace & Co. v. California Employment Commission

151 P.2d 215, 24 Cal. 2d 720, 1944 Cal. LEXIS 273
California Supreme Court·Decided August 18, 1944·No. S. F. 16839·Published·Cited by 57 cases

Opinions

TRAYNOR, J.

The claimants for unemployment insurance benefits herein are longshoremen, members of Local 1-10 of the International Longshoremen’s and Warehouse-men’s Union, District No. 1, who work under a collective bargaining agreement with the Waterfront Employers’ Association, an employers’ association with a membership substantially the same as that of the former Dock-Checkers Employers’ Association. (See Matson Terminals, Inc., v. California Employment Commission, ante, p. 695 [151 P.2d 691].) According to the findings of the Employment Commission the Ship Clerks ’ Union, a local belonging to the same international as the longshoremen’s union, became involved in a dispute with one of the employers, the Ameriean-Hawaiian Steamship Company, and on June 14, 1939, called a strike against that company and established picket lines at its dock in San Francisco. Relations were suspended between members of the union and members of the Dock-Checkers Employers’ Association, and because of this suspension of relations, checkers and ship clerks failed to report for work on June 17, 1939. The employers concede that because they /regarded thé strike against the Ameriean-Hawaiian Steamship Company a violation of their agreement with the union, they refused to employ any dock-checkers or ship clerks at the San [725] Francisco Bay ports from June 17,1939, until the termination of the strike on June 27, 1939.

On June 17th various gangs of longshoremen were dispatched by the hiring hall to docks operated by members of the employers’ association. At the docks some of the longshoremen were told not to start work unless they would- continue without checkers or ship clerks, while others were instructed by the employers or their agents to return to the hiring hall. Some gangs went to work aboard the ships but stopped when they reached that stage of the work where checkers were usually employed. The men worked who were dispatched to docks where union clerks and checkers were not customarily required. Dock checkers and ship clerks keep clerical records of the cargo for the employer, but do no physical work in the loading and discharging of vessels.

Approximately 5,000 longshoremen filed claims for unemployment benefits for the period from June 17, 1939, to June 27, 1939. The adjustment unit of the Division of Unemployment Insurance denied benefits on the ground that the claimants were disqualified under section 56 (a) of the Unemployment Insurance Act. (Stats. 1935, ch. 352, as amended; Deering’s Gen. Laws, Act 8780d.) Payments, however, were érroneously made to a number of the claimants. Claimants appealed from the adverse ruling, and the referee after hearing reversed the initial determinations and awarded benefits. Upon the employers’ appeal, the commission, with one member dissenting, affirmed the referee’s decision upon the ground that claimants were not disqualified under section 56 (a) of the act since the absence of checkers and ship clerks from docks where they were formerly customarily employed was a deviation from- the customary method of working and therefore constituted a violation by the employers of the requirement of the ’ collective bargaining agreement that “present practices are to continue in effect.” The commission held the claimants eligible to certify for the weeks of waiting period with respect to the unemployment involved, since they had not been previously unemployed long enough to render them eligible for benefits.

Most of the employers thereafter filed actions in the superior court to recover unemployment insurance contributions paid under protest. The employers also petitioned the District [726] Court of Appeal, First Appellate District, Division Two, for a writ of mandamus to compel the commission to vacate its decision and to correct its records by removing therefrom any charges against the employers for payments to claimants for the period from June 17 to June 27, 1939. The District Court of Appeal issued the writ and vacated the commission’s decision. Thereafter, upon the petition of the commission and of claimants, who are interveners in the proceeding, this court granted a hearing. By stipulation the case was submitted on the record of the proceedings before the commission with the reservation of the right to try before the court the question whether the parties should have the right to try the case de novo but the question as to this right was not argued.

The commission and claimants contend that the employers are not entitled to the writ, on the ground that they have not exhausted their administrative remedies and can secure adequate relief under the provisions of section 41.1 of the Unemployment Insurance Act. (Deering’s Gen. Laws, 1941 Supp., Act 8780d, §41.1; Stats. 1941, ch. 940, p. 2535, §2.) This contention is answered adversely in Matson Terminals, Inc., v. California Emp. Com., ante, p. 695 [151 P.2d 202].

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W. R. Grace & Co. v. California Employment Commission, 151 P.2d 215, 24 Cal. 2d 720, 1944 Cal. LEXIS 273 (Cal. 1944).

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