Wise v. Southern Pacific Co.

463 P.2d 426, 1 Cal. 3d 600, 83 Cal. Rptr. 202, 1970 Cal. LEXIS 335, 73 L.R.R.M. (BNA) 2360
CourtCalifornia Supreme Court
DecidedJanuary 20, 1970
DocketS. F. 22686
StatusPublished
Cited by14 cases

This text of 463 P.2d 426 (Wise v. Southern Pacific Co.) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wise v. Southern Pacific Co., 463 P.2d 426, 1 Cal. 3d 600, 83 Cal. Rptr. 202, 1970 Cal. LEXIS 335, 73 L.R.R.M. (BNA) 2360 (Cal. 1970).

Opinions

Opinion

BURKE, J.

In this action for wrongful discharge from employment plaintiff recovered judgment, and defendant railroad company appeals. As will appear, we have concluded that defendant failed to establish its asserted ground for discharging plaintiff, that no other error has been shown, and that the judgment should be affirmed.

[603]*603Plaintiff entered defendant’s employ in 1936. In February 1960, following a hearing required under the collective bargaining agreement between defendant and the union to which plaintiff belongs, plaintiff was discharged for violation of rule 803 of defendant’s General Rules and Regulations.1 This action for damages followed.

On an earlier appeal (Wise v. Southern Pac. Co. (1963) 223 Cal.App.2d 50, 58-59 [35 Cal.Rptr. 652])2 it was held that the state courts have jurisdiction and that as required by California law plaintiff employee had exhausted his administrative remedies required under his employment contract before he brought this action. We adhere to those rulings as the law of the case. (People v. Durbin (1966) 64 Cal.2d 474, 477 [50 Cal.Rptr. 657, 413 P.2d 433].)3

The collective bargaining agreement constituting plaintiff’s employment contract provides in rule 39 thereof that plaintiff was not to be dismissed by defendant except for a just cause and after written notice to plaintiff of “the precise charge” against him and a fair hearing before a proper officer of defendant company.4

In January 1960 defendant served plaintiff with notice that he was charged with the solicitation of various of defendant’s employees during the years 1957 and 1958 for the purpose of inducing such employees to bring personal injury lawsuits against defendant; the notice also advised plaintiff to present himself for formal hearing on the charges.5 Following [604]*604a hearing before an officer of defendant company, and review of the hearing transcript by two other such officers, defendant dismissed plaintiff from service in February I960.6

Plaintiff contends, and the trial court found and concluded, that defendant breached plaintiff’s employment contract in that the hearing accorded plaintiff was not a fair hearing and proof of a just cause for dismissal had not been produced in support of defendant’s charges against plaintiff.7

As grounds for reversal defendant urges that the hearing was fair, and. that the solicitation by plaintiff of personal injury litigation against his employer (the charge set forth in the notice to plaintiff, ante, fn. 5) and the rendering of assistance to his employer’s adversaries in litigation (an additional charge now made by defendant) constitute disloyalty as a matter of law and provide legally sufficient grounds for dismissing plaintiff.

At the outset it should be emphasized that defendant is a private corporation and not a governmental agency, and that plaintiff’s employment contract did not provide for a hearing before an impartial referee or board possessing the power to subpoena evidence and to swear witnesses. Thus comparisons between the hearing accorded plaintiff here, and the hearing to which statutes often entitle public employees, are not apposite. Rather, as defendant itself notes, there were no rules or prescribed forms to be followed by the lay hearing officer of defendant company, and the hearing accorded plaintiff was “not a trial. It is an opportunity to bring out all sides of a situation. It is an investigation rather than a prosecution.”

However, the employment contract did specify in rule 39 (ante, fn. 4) that plaintiff was to be dismissed only for just cause and after fair hearing upon notice of the precise charge against him. Thus as in any other action [605]*605in which plaintiff charges breach of contract by a defendant who undertook to unilaterally terminate the contractual relationship, as did defendant here, defendant if it is to prevail must establish in court that the termination was authorized under the terms of the contract. In the present case this means that to justify the dismissal of plaintiff as an employee, defendant must show that all of the contractual conditions were met: i.e., (1) plaintiff was given notice of the precise charge against him, (2) plaintiff was guilty as so charged, (3) the acts charged constituted a just cause for dismissal, and (4) the hearing on the charge was fair. Accordingly, in order to warrant disturbance by an appellate court of the trial court’s determination that proof of a just cause for dismissal had not been produced in support of defendant’s charge against plaintiff and that the hearing was not a fair hearing, defendant must demonstrate that the only reasonable view of the evidence is that all of the contractual conditions existed entitling it to discharge plaintiff. This defendant has failed to do.

Regardless of whether or not the hearing as conducted by defendant’s officials was shown to be a fair hearing, a point which we do not reach, the record indicates that defendant failed to produce before the court any evidence whatever which would compel a finding that plaintiff was guilty of the solicitation charged against him. At trial plaintiff offered the transcript of the hearing into evidence for the sole purpose of showing unfairness of the hearing, and not as evidence of the truth of the matters asserted therein, as to which matters plaintiff objected to the transcript as hearsay. The court admitted the transcript into evidence for the limited purpose proposed by plaintiff. Although certain of the testimony and written statements of employees of defendant which appear in the transcript could conceivably support the solicitation charge against plaintiff, the testimony and statements were not given under oath and at trial defendant agreed that the transcript was offered “to show . . . what took place at the hearing. . . . [Njobody is going to ask this Court to determine whether [the witnesses] spoke truthfully or anybody else there. ... In other words, our officers have made decisions based on the transcript.” Defendant itself offered no evidence before the court which would support the solicitation charge.

Additionally, at trial, and in plaintiff’s deposition introduced by defendant at trial, plaintiff testified with respect to each instance of alleged solicitation cited by defendant, explained the circumstances, and consistently denied that the acts charged took place. The trial court was, of course, entitled to believe plaintiff. Plaintiff’s testimony was to the effect that injured members of his union had sought his advice, as their union representative, with respect to injuries sustained on the job, and that on occasion he had recommended certain specific attorneys whom he con[606]*606sidered especially competent in the field. Such activity in assistance of his fellow employees not only did not constitute solicitation of such employees as charged by defendant, but was an activity protected under the rationale of Brotherhood of R.R. Trainmen, v. Virginia (1964) 377 U.S. 1, 5-6 [12 L.Ed.2d 89, 93, 84 S.Ct. 1625, 11 A.L.R.3d 1196].8

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Wise v. Southern Pacific Co.
463 P.2d 426 (California Supreme Court, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
463 P.2d 426, 1 Cal. 3d 600, 83 Cal. Rptr. 202, 1970 Cal. LEXIS 335, 73 L.R.R.M. (BNA) 2360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wise-v-southern-pacific-co-cal-1970.