Ware v. Woodward Iron Company

124 So. 2d 84, 271 Ala. 462, 1960 Ala. LEXIS 504, 46 L.R.R.M. (BNA) 2947
CourtSupreme Court of Alabama
DecidedSeptember 8, 1960
Docket6 Div. 437
StatusPublished
Cited by1 cases

This text of 124 So. 2d 84 (Ware v. Woodward Iron Company) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ware v. Woodward Iron Company, 124 So. 2d 84, 271 Ala. 462, 1960 Ala. LEXIS 504, 46 L.R.R.M. (BNA) 2947 (Ala. 1960).

Opinion

SIMPSON, Justice.

The question presented by this appeal, as we see it, is whether the plaintiff’s employment by Woodward Iron Co. under a collective bargaining agreement with plaintiff’s union, is such a contract as to allow suits for successive breaches, or whether it is of that class of agreements which allows only one cause of action for its breach.

Woodward Iron Company, appellee, had a collective bargaining agreement with the United Mine Workers, Local 12019, covering production and maintenance workers at [464]*464its coke plant in Woodward, Alabama. Ware, appellant, was employed by Woodward and was also a member of Local 12019. On July 3, 1957 Ware was dismissed by Woodward. Ware filed suit in the Circuit Court of Jefferson County against Woodward for breach of contract. In his complaint Ware alleged that his employment as a production and maintenance worker was subject to the terms of the collective bargaining agreement between Woodward and the Union giving him certain benefits, such as seniority rights, and protecting him for three years from discharge without just cause. The suit was removed to United States District Court, Northern District of Alabama, on the ground of diversity of citizenship. On March 19, 1958 the jury gave a verdict of $1,845.40 in favor of Ware. Judgment was affirmed by the United States Court of Appeals, Fifth Circuit. Woodward Iron Company v. Ware, 5 Cir., 261 F.2d 138.

On January 9, 1959 Ware filed the complaint in the present case in the Circuit Court of Jefferson County. Fie alleged that the period of the entire breach of the collective bargaining agreement with Woodward was from July, 1957, the time of his dismissal without cause, until June, 1959, the time of the expiration of the collective bargaining agreement. He further alleged that the action in the instant case is to recover only for the remainder of the breach — the period from March, 1958, the time of the judgment in the first suit, until June, 1959.

The defendant, Woodward Iron Company, in the trial below, defended on the ground that the matter had been previously adjudicated in the first case in the U. S. District Court and prayed for a dismissal of the instant case. The trial court ruled in favor of the defendant and Ware has brought this appeal.

Basically appellant contends:

(1) That the collective bargaining agreement between Woodward and the Union constituted an employment contract between Woodward and himself for the duration of the agreement.

(2) That such contract was breached when he was discharged without cause in violation of Article 4, § 15 of the agreement which provides:

“15. Seniority rights of employees will terminate in the following ways:
“(a) Employees discharged for just and sufficient reasons * * *

(3) That the judgment in the prior suit does not bar this later suit, since it is for the recovery of wages under an installment contract for a definite period of time accruing since judgment was recovered in the first suit.

On the other hand appellee maintains that a collective bargaining agreement is not a contract of employment for a definite time and does not guarantee work, and that therefore, only one cause of action will lie for its breach in contra-distinction to the general principle that if you have a continuing contract you may sue for successive breaches.

We are persuaded, after serious study, that the trial court ruled correctly in sustaining the contention of defendant, Woodward Iron Co.

It is the general rule that an individual employee may sue his employer to enforce rights personal to the employee derived from a collective bargaining agreement. 56 C.J.S. Master and Servant § 28 (71) b. The cases are collected in Annotation 18 A.L.R.2d 352. See also Note 5, Ala. L.Rev. 309, 311; Cox, Rights Under a Labor Agreement; 69 Harv.L.Rev. 601 (1956) ; and Lenhoff, The Present Status of Collective Contracts in the American Legal System; 39 Mich.L.Rev. 1109 (1941). The application of this rule in Alabama is illustrated by Tennessee Coal, Iron & Railroad Co. v. Sizemore, 258 Ala. 344, 62 So.2d 459. There the agreement provided that the mine should be properly ventilated. The employer breached this provision of [465]*465the agreement and'as a result an employee was injured. We said:

“The contract * * * shows that it was made in respect to the ventilating system for the direct benefit of a class of which plaintiff was a member, and therefore he may sue for its breach when suffering damages as a third party beneficiary.” 258 Ala. at page 350, 62 So.2d at page 464.

It is also well settled that freedom from dismissal without just and sufficient cause is a right personal to, and therefore, enforceable by the employee. 56 C.J.S. Master and Servant § 28(71) b; Annotation 18 A.I.R.2d 352. 367.

Essentially appellant’s cause of action in both cases is premised on his wrongful discharge and Woodward’s failure to rehire him in violation of the seniority provision of the collective bargaining agreement of which he is a third party beneficiary. This is not the same as a cause of action for the breach of an individual employment contract for a definite time. There a wrongly dismissed employee may, by offer of performance or by holding himself ready and willing to perform the contracted-for services, recover the agreed-upon compensation. 35 Am.Jur., Master and Servant, § 53.

Nowhere does the agreement in question specify that it is an individual contract of employment with any employee for any period of time. To the contrary the courts have drawn a distinction between an individual employment contract and a collective bargaining agreement. The United States Supreme Court in J. I. Case Co. v. National Labor Relations Board, 321 U.S. 332, 334, 335, 64 S.Ct. 576, 579, 88 L.Ed. 762, 766, in making this distinction said:

“Collective bargaining between employer and the representatives of the unit, usually a union, results in an accord as to terms which will govern hiring and work and pay in that unit. The result is not, however, a contract of employment except in rare cases; no - one has a job by reason of it and no obligation to any individual ordinarily comes into existence from it alone.”

The Alabama Court of Appeals recently had this to say on the question:

“The original agreement * * * between the defendant and the Union acting for the employees, provides for the terms and conditions of work of the employees. The agreement is not a contract of employment.” Keystone Lime Works, Inc., v. Smitherman, 40 Ala.App. 20, 108 So.2d 371, 374, certiorari denied 268 Ala. 698, 108 So.2d 375.

In the concurring opinion in Parker v. Borock, 5 N.Y.2d 156, 162, 163, 182 N.Y.S. 2d 577, 582, 156 N.E.2d 297, 300, Justice Van Voorhis of the New York Court of Appeals said:

“The clause in this labor contract that no regular employee shall be discharged or disciplined without good and sufficient cause, is not equivalent to providing term employment for each employee until the expiration of the collective bargaining agreement.”

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Bluebook (online)
124 So. 2d 84, 271 Ala. 462, 1960 Ala. LEXIS 504, 46 L.R.R.M. (BNA) 2947, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ware-v-woodward-iron-company-ala-1960.