Western Pacific Railroad v. Habermeyer

248 F. Supp. 44, 1965 U.S. Dist. LEXIS 9179
CourtDistrict Court, N.D. California
DecidedNovember 24, 1965
DocketNo. 44304
StatusPublished
Cited by2 cases

This text of 248 F. Supp. 44 (Western Pacific Railroad v. Habermeyer) is published on Counsel Stack Legal Research, covering District Court, N.D. California 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, 248 F. Supp. 44, 1965 U.S. Dist. LEXIS 9179 (N.D. Cal. 1965).

Opinion

SWEIGERT, District Judge.

Plaintiffs, Western Pacific Railroad Company, Southern Pacific Company, suing on their own behalf and on behalf of 775 other similarly situated railroads, have brought this action against defendants, as members and officials of the Railroad Retirement Board (Railroad Retirement Act of 1937, as amended 45 U.S. C. §§ 228a to 228z-l) for a declaratory judgment and for an injunction enjoining defendants from paying any unemployment benefits out of a Railroad Unemployment Insurance Account created by the Railroad Unemployment Insurance Act (45 U.S.C. § 352) to firemen who terminated their railroad employment by accepting severance pay in lieu of other employment as provided in Part C(6) of an Arbitration Award of November 26, 1963, made under an Act of Congress in August of 1963 (Public Law 88-108, 88th Congress, 77 Stat. 132).

The case is presently before the Court upon plaintiffs’ motion for a preliminary injunction based upon the verified complaint, an affidavit of Burnham Enersen, one of counsel for plaintiffs, and upon plaintiffs’ Memorandum of Points and Authorities.

The defendants oppose the motion upon the basis of the pleadings, an affidavit of Lawrence Garland, Secretary of the Railroad Retirement Board, an affidavit of Abraham Niessen, Chief Actuary for the Railroad Retirement Board, a letter dated September 24, 1964, from Myles F. Gibbons, its General Counsel, to the General Counsel of the Association of American Railroads, and upon defendants’ Memorandum of Points and Authorities.

Part C(6) of the Arbitration Award provided that certain firemen, who had more than two but less than ten years seniority and whose job was eliminated under the Award, shall retain their seniority rights unless and until offered by the carrier another comparable job for which he was or might become qualified. Under the Award a fireman who accepted a comparable job retained his seniority rights for a period not exceeding five years but, a fireman who declined to accept such comparable job, forfeited his employment relationships and seniority rights and became entitled to a “severance allowance” which, in the case of the average fireman, amounted to about $5,600.

The Railroad Unemployment Insurance Act, 45 U.S.C. § 354, provides that an applicant for unemployment benefits who left work “voluntarily” is ineligible unless he left work voluntarily with “good cause” and, further, that an applicant who fails, without good cause, to accept “suitable” work available and offered to him, becomes ineligible for a period of 30 days.

The Railroad Retirement Board is charged with the administration of the program of unemployment benefits for railroad workers established by the Railroad Unemployment Insurance Act (45 U.S.C. §§ 351-367).

In a memorandum of June 5, 1964, addressed to Regional Directors and Chief of Claims Operations of the Railroad Retirement Board, the Director of Unemployment and Sickness Insurance of the Board advised that a fireman who was offered comparable work but who, declining to accept it, elected to take the separation allowance instead, was not to be considered as having left work “voluntarily without good cause,” within the meaning of the Railroad Unemployment Insurance Act 45 U.S.C. § 354 and, further, that refusal of a fireman to accept a “comparable” job was not to be considered to be a failure, without good cause, to accept “suitable” work — within the meaning of that section.

The Court finds that defendants have been and now are paying out and will continue to pay out substantial sums of money each week from the Unemploy[47]*47ment Insurance Account pursuant to said administrative ruling.

Plaintiffs contend that this interpretation of the Railroad Unemployment Insurance Act as applied to the provisions of Part C(6) of the Arbitration Award, is improper and unlawful and, further, that in any event the Retirement Board is obliged to but has failed to determine with respect to each fireman applicant whether he left work “voluntarily” with or without “good cause” and whether he failed, “without good cause” to accept “suitable work”; that the Railroad Unemployment Insurance Fund to which they are required by law to make contributions, 45 U.S.C. § 358, and out of which benefits are paid, will be adversely affected by these improper payments and that the time when plaintiffs can expect to enjoy a lower percentage payment will be delayed.

Defendants contend that their interpretation and administration of The Railroad Unemployment Insurance Act is proper and lawful; that it correctly reached the general conclusion that firemen accepting the severance allowance could not be regarded as having acted without good cause either with respect to voluntarily leaving or failing to accept suitable work.

The Board justifies its general ruling of June 5, 1964, upon the ground that the provisions of Section 354, concerning voluntary leaving of “work” without good cause, is properly referable only to the particular work in which the employee had been engaged, i. e., the “job” he held at the time he separated from railroad employment, as distinguished from leaving general railroad employment status under the elective provisions of Part C (6) of the Arbitration Award; that the leaving of a job, which became non-existent under the Award, could not under any circumstances be deemed “voluntary”.

The Board further justifies its general ruling upon the ground that a fireman, who is given a choice under the Arbitration Award of either separation of his employment status or acceptance of another comparable job, and who chooses separation, could not be considered under any circumstances as having refused, without good cause, to accept “suitable” work within the meaning of Section 354.

Upon this interpretation of the law, as applied to the so-called C(6) firemen, the Board contends it would be irrelevant and idle to inquire into, and make findings upon, the specific issues in each case of “voluntariness,” “suitable work” or “good cause.”

Defendants further contend that plaintiffs have no right or standing in this action to subject the decision of the Retirement Board to review and that, in any event, plaintiffs are unable to establish any certain, immediate or irreparable damage.

For the purposes of the pending motion for a preliminary injunction it is not necessary for the Court to finally determine the propriety and lawfulness of the Board’s interpretation and administration of the Unemployment Insurance Act so far as these C(6) firemen are concerned.

The substantiality of plaintiffs’ contentions on that issue is relevant to the motion for preliminary injunction only insofar as it bears upon the question whether there is reasonable possibility that the plaintiffs will prevail in the action.

The Court finds that in this matter the Board has acted well within the limits of the discretion vested in it by law; See Udall v.

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Related

Western Pacific Railroad Company v. Habermeyer
382 F.2d 1003 (Ninth Circuit, 1967)
Western Pacific Railroad v. Habermeyer
382 F.2d 1003 (Ninth Circuit, 1967)

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Bluebook (online)
248 F. Supp. 44, 1965 U.S. Dist. LEXIS 9179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-pacific-railroad-v-habermeyer-cand-1965.