Western Pacific Railroad v. Habermeyer

382 F.2d 1003
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 23, 1967
DocketNos. 20785, 21377
StatusPublished
Cited by2 cases

This text of 382 F.2d 1003 (Western Pacific Railroad v. Habermeyer) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Pacific Railroad v. Habermeyer, 382 F.2d 1003 (9th Cir. 1967).

Opinion

DUNIWAY, Circuit Judge:

Appellants are two of the railroads that are “employers” as defined in the Railroad Unemployment Insurance Act, 45 U.S.C. §§ 351-367, as amended, particularly § 351(a). They purport to sue, under Rule 23(a), F.R.Civ.P., on behalf of themselves and over 775 other railroads similarly situated.1 Appellees are the members of the Railroad Retirement Board, which administers the Act, the Director of its Bureau of Unemployment and Sickness Insurance, the Chief of its Division of Claims Operations, and its seven regional directors. There are two appeals, one from an order denying a motion for a preliminary injunction, the other from a summary judgment dismissing the action. The dismissal was based on essentially the same reasoning used in denying the motion. See Western Pacific Railroad Co. v. Habermeyer, N.D.Cal.S.D., 1965, 248 F.Supp. 44. We affirm.

The controversy relates to the payment of unemployment benefits to certain railroad firemen, referred to in the record as “C(6) firemen.” It arises in this way: In August, 1963, Congress took note of the long standing dispute between the railroads and the firemen relating to the railroads’ desire to eliminate many firemen’s jobs, and provided for the setting up of a special arbitration board to settle the matter. Pub.L. 88-108, 77 Stat. 132. On November 25, 1963, the arbitration board handed down its award. This provided for the elimination of certain jobs. Paragraph C(6) of the award covered firemen whose jobs were to be eliminated and who had more than two but less than ten years’ seniority. They were to retain their rights to engine service assignments, “unless and until offered by the carrier another comparable job (such as, but not limited to, engineer, fireman (helper), brakeman, or clerk in the same or another seniority district) for which they are, or can become, qualified.” If, when such a job was offered, it was not accepted, then the fireman’s “employment and seniority rights” were to be terminated and the fireman was to be entitled to a severance allowance, estimated by appellants to average in excess of $5,600. Appellants allege that over 3,000 C(6) firemen elected not to take the comparable job, but took the severance allowance. Most of them also applied for unemployment benefits under the Act.

Appellants do not in this proceeding seek review of a decision that a particular C(6) fireman is entitled to benefits. What they attack is the validity of a ruling of the Board’s then Director of Unemployment and Sickness Insurance, Carter, issued on June 5, 1964, and addressed to the Board’s Regional Directors. The Carter memorandum instructed them, [1006]*1006in substance, that a C(6) fireman’s choice of having his service terminated, with a severance allowance, does not disqualify him for unemployment benefits under the Act. The ruling says that such a fireman, making such a choice, is not to be regarded as having voluntarily left work without good cause within the meaning of section 354(a-2) (i) or as having failed to accept suitable work without good cause within the meaning of section 354 (a-2) (ii) of the Act.2 These views have been informally approved by the Board. Appellants seek an injunction prohibiting the payment of benefits to any C(6) fireman who terminated his employment under the arbitration award and a declaration that the Carter memorandum is in violation of the Act, that the Board’s procedure in deciding the cases of C(6) firemen is in violation of sections 354 (a-2) and 355(b) of the Act, that every C(6) fireman who terminated his employment left work voluntarily, that in the case of each, the Board must determine whether the leaving was with good cause, that as to each the Board must determine whether the comparable job offered was suitable work and, if so, whether he failed, without good cause, to accept it, and that all payments made without such determinations are unlawful.3

Appellants argue that section 354 (a-2) implicitly and section 355(b) explicitly command the Board to make specific findings of fact and conclusions of law on a claim by claim basis and that the blanket ruling of the Carter memorandum is in violation of these provisions. Section 355(b) reads:

“The Board is authorized and directed to make findings of fact with respect to any claim for benefits and to make decisions as to the right of any claimant to benefits. The Board is further authorized to hold such hearings, to conduct such investigations and other proceedings, and to establish, by regulations or otherwise, such procedures as it may deem necessary or proper for the determination of a right to benefits.”

This contention must be considered in perspective, in the light of the nature of the duty that the Board must perform in administering the Act.

The receiving, processing and granting or denying of claims for benefits is a [1007]*1007wholesale business. In 1964-65, there were 111,000 railroad workers who claimed and were paid benefits. Congress evidently knew that there would be this type of business for the Board. In section 362(f), it authorized the Board to delegate its powers. In section 362(i), procedure is established for the setting up of employment offices and the registration of unemployed workers. It provides :

“The Board may, when such registration is made personally by an employee, accept such registration as initial proof of unemployment sufficient to certify for payment a claim for benefits.”

The Board has set up seven Regional Offices and ninety District Offices. There is a large number of unemployment claims agents designated by the railroads, with whom employees may register. Registration is by filling out a form of application for unemployment benefits and employment service and a claim for unemployment benefits. The latter must be filed every two weeks. These are forwarded to the District Office, and unless there is reason to doubt the accuracy of the information given, or the claimant’s eligibility, the claim is certified for payment. This is, of necessity, the “findings of fact and conclusions of law” that the Board makes in the vast majority of cases When a large number of employees covered by the Act apply for benefits, and when their unemployment arises from some event that affects them all, it is the practice of those passing upon their claims to call upon the Board’s District Office, and of such offices in turn to call upon its Regional Offices, for advice. The latter, in turn, may seek advice from the Division of Adjudication in the Board’s Bureau of Unemployment and Sickness Insurance. The Bureau, if in doubt, calls upon the Board’s Bureau of Law. It was just such a situation that produced the Carter memorandum, here attacked. In following it, the Board and its agents necessarily make findings of fact and apply its conclusions of law in each case, however informal or brief or incorrect appellants may consider such findings and conclusions to be. As a practical matter, we find it difficult to see how else the Board could assure a reasonable degree of uniformity in the application of the Act to benefit claims. The Board’s method of finding facts and making conclusions of law may not resemble the method typically used by a court, but we think that the method is in line with the type of administration authorized by the Act.4

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Western Pacific Railroad Company v. Habermeyer
382 F.2d 1003 (Ninth Circuit, 1967)
Russell v. Travelers Indemnity Co.
244 F. Supp. 419 (W.D. Missouri, 1965)

Cite This Page — Counsel Stack

Bluebook (online)
382 F.2d 1003, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-pacific-railroad-v-habermeyer-ca9-1967.