Brotherhood's Relief & Compensation Fund v. Ryan V. Rafferty

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Rel: 04/01/2011 Notice: T h i s o p i n i o n i s s u b j e c t t o f o r m a l r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance s h e e t s o f Southern R e p o r t e r . R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e R e p o r t e r o f D e c i s i o n s , A l a b a m a A p p e l l a t e C o u r t s , 300 D e x t e r A v e n u e , M o n t g o m e r y , A l a b a m a 3 6 1 0 4 - 3 7 4 1 ((334) 2 2 9 - 0 6 4 9 ) , o f a n y t y p o g r a p h i c a l o r o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may b e made b e f o r e t h e o p i n i o n i s p r i n t e d i n Southern R e p o r t e r . ALABAMA COURT OF CIVIL APPEALS OCTOBER TERM, 2010-2011 2090113 Brotherhood's R e l i e f & Compensation Fund v. Ryan V. R a f f e r t y Appeal from J e f f e r s o n PITTMAN, C i r c u i t Court, Bessemer D i v i s i o n (CV-06-573) Judge. An u n i n c o r p o r a t e d a s s o c i a t i o n , & Compensation the Jefferson Fund the Brotherhood's Relief ("the F u n d " ) , a p p e a l s f r o m a j u d g m e n t o f Circuit C o u r t , Bessemer D i v i s i o n , r a i l r o a d w o r k e r , Ryan V. R a f f e r t y awarding a ("the e m p l o y e e " ) , benefits 2090113 allegedly due him as a c t i o n taken against R a i l r o a d Company the Fund did employee's disciplinary the B u r l i n g t o n Northern Santa arbitrarily in the constituted a conclude determining willful or that that the intentional employer's r u l e s w i t h i n the scope Fund's i n t e r n a l c o n s t i t u t i o n b a r r i n g f o r s u c h v i o l a t i o n s , we remand t h e Fe reverse the of the trial cause w i t h i n s t r u c t i o n s . r e c o r d r e v e a l s t h a t t h e Fund m a i n t a i n s a s o c i e t y f o r and p r o t e c t i v e p u r p o s e s t h a t i s open, acceptance brotherhoods of an workers or a p p l i c a t i o n and who unions. c o n s t i t u t i o n that provides the adverse act of the transportation for an B e c a u s e we j u d g m e n t and beneficial upon by of employer"). award of b e n e f i t s The him conduct v i o l a t i o n o f one court's result ("the not a p r o v i s i o n of a benefit of are affiliated The Fund with dues, to railroad a t h a t moneys p a i d i n t o t h e Fund are and is of by i t s members, s p e c i f i e s t h a t a member may payment conditioned that governed document further make a c l a i m f o r b e n e f i t s , among o t h e r r e a s o n s , when t h a t member i s " h e l d o u t o f s e r v i c e , " t h a t is, of " r e l i e v e d b y [ t h e member's] e m p l o y e r f r o m t h e ... usual duties." However, t h e performance Fund's c o n s t i t u t i o n a l s o s p e c i f i e s t h a t t h e t e r m " h e l d o u t o f s e r v i c e " does n o t 2 include 2090113 employer discipline "because of any willful or intentional v i o l a t i o n o r i n f r a c t i o n o f any o r d e r o r o r d e r s , r u l e o r regulation or regulations, member's] e m p l o y e r " expressed on duty exception of or implied, of [the (emphasis added). I n 2005, t h e e m p l o y e r had while or rules, on railroad the i n force a rule providing that employer's property, police officers, with " e m p l o y e e s must have f i r e a r m s o r o t h e r d e a d l y weapons." not employer a l s o had i n f o r c e a r u l e p r o h i b i t i n g d i s h o n e s t and i m m o r a l c o n d u c t . On October 18, 2005, holding a hearing an investigation the circumstances f o u n d i n s i d e a c a s e on one the of the employer's e m p l o y e e f r o m i t s employment on t h e s t a t e d b a s i s t h a t he had employer's 2005, under which a the the O c t o b e r 7, and dismissed violated on conducting concerning l o a d e d p i s t o l was locomotives after The the employer firearm-possession and dishonesty rules. The employee then p r e s e n t e d a c l a i m t o t h e Fund f o r " h e l d out o f s e r v i c e " b e n e f i t s , a v e r r i n g i n h i s c l a i m t h a t he by accident, locomotive. left An a pistol official in of the his bag Fund, on the after had, employer's studying the t r a n s c r i p t o f t h e d i s c i p l i n a r y h e a r i n g , r e s p o n d e d by l e t t e r t o 3 2090113 the employee's c l a i m could n o t be and i n f o r m e d t h e e m p l o y e e t h a t approved because of p r o v i s i o n s constitution barring benefit awards the of the based claim Fund's upon acts c o n s t i t u t i n g m i s r e p r e s e n t a t i o n o f f a c t s t o an e m p l o y e r o r a c t s amounting t o w i l l f u l or i n t e n t i o n a l r u l e v i o l a t i o n s . to pertinent employee board of review provisions appealed from directors. reviewing the a v a i l a b l e adverse January a 2006, decision [c]ourt" decision and of an Fund's board, after the constitution. s p e c i f i e s that i t s board allege to the d e t e r m i n a t i o n t h a t t h e employee's was n o t v a l i d u n d e r t h e Fund's The Fund's c o n s t i t u t i o n by decision i n f o r m a t i o n r e g a r d i n g t h e employee's claim, upheld the o f f i c i a l ' s claim o f t h e Fund's c o n s t i t u t i o n , t h e that In Pursuant of abuse directors of a party may discretion aggrieved "appeal to i n making a i f c e r t a i n p r o c e d u r a l d e a d l i n e s a r e met; however, t h e Fund's c o n s t i t u t i o n a l s o s p e c i f i e s t h a t "no a p p e a l s h a l l l i e " f r o m a d e t e r m i n a t i o n by t h e b o a r d t h a t an o f f e n s e i s w i l l f u l or i n t e n t i o n a l . I t i s undisputed that t h e employee initiated an a c t i o n i n t h e t r i a l c o u r t i n c o m p l i a n c e w i t h t h e p r o c e d u r a l deadlines action, specified the i n the employee, Fund's alleging 4 constitution. breach-of-contract In that claims, 2090113 s o u g h t an award o f b e n e f i t s n o t o n l y from t h e Fund, b u t a l s o from a s e p a r a t e e n t i t y ( L o c o m o t i v e E n g i n e e r s and C o n d u c t o r s M u t u a l P r o t e c t i v e A s s o c i a t i o n , I n c . ("LEMPA")) as a r e s u l t o f his dismissal. In the judgment; trial however, court employee's trial, trial court, that the Fund motion a n d was n o t r u l e d was upon. f a v o r ; however, orally the t r i a l u n t i m e l y by t h e on t h e of the 1 A bench f o r judgments declined i n their to rule on motions and i n s t e a d d i r e c t e d " a l l p a r t i e s t o submit orders." The t r i a l employee and against both proposed to defendants, ruling that i n t h e amount o f $20,160. a p p e a l e d from t h a t judgment, amounts those c o u r t e n t e r e d a judgment i n f a v o r o f t h e d e f e n d a n t owed b e n e f i t s judgment summary trial moved court deemed for a At the conclusion c l a i m s was t h e n h e l d . both defendants moved an 2 The Fund a s s e r t i n g that the t r i a l erroneous interference each court's with i t s We n o t e t h a t u n d e r R u l e 5 6 ( b ) , A l a . R. C i v . P., a m o t i o n f o r a summary j u d g m e n t may be made b y a d e f e n d a n t " a t any t i m e " ; a l t h o u g h R u l e 1 6 ( b ) ( 2 ) , A l a . R. C i v . P., a u t h o r i z e s a t r i a l court t o l i m i t the time i n a p a r t i c u l a r case f o r the f i l i n g o f m o t i o n s , no s u c h s c h e d u l i n g o r d e r a p p e a r s i n t h e r e c o r d on a p p e a l . 1 LEMPA s a t i s f i e d t h e j u d g m e n t as t o i t s l i a b i l i t y a n d h a s not appealed. 2 5 2090113 i n t e r n a l operations trial court's and an i m p e r m i s s i b l e interpretation intentional violation" that of the s u b s t i t u t i o n of the phrase or 3 phrase. The claim asserted f o r t h e Fund's own "willful by t h e e m p l o y e e was Fund h a d b r e a c h e d a c o n t r a c t by f a i l i n g he claimed Alabama l a w , were 4 due i n t e r p r e t a t i o n of under t h e Fund's simply that t o pay b e n e f i t s constitution. the that Under the c o n s t i t u t i o n of a v o l u n t a r y a s s o c i a t i o n such as t h e Fund i s i n d e e d deemed t o be i n t h e n a t u r e o f a b i n d i n g contract between the association and i t s members. E.g., Mackey v. Moss, 278 A l a . 55, 59, 175 So. 2d 749, 752 (1965). However, w h a t e v e r f r e e h a n d t h e j u d i c i a r y may o t h e r w i s e have T h e Fund has a b a n d o n e d on a p p e a l any r e l i a n c e upon t h e p r o v i s i o n i n i t s c o n s t i t u t i o n b a r r i n g b e n e f i t s when a c l a i m i s b a s e d , i n w h o l e o r i n p a r t , upon m i s r e p r e s e n t a t i o n o f f a c t s t o an e m p l o y e r ; t h u s , we w i l l n o t a d d r e s s t h a t p r o v i s i o n . 3 A l t h o u g h t h e Fund's c o n s t i t u t i o n e x p r e s s l y s t a t e s t h a t any a l l e g e d a b u s e o f d i s c r e t i o n on t h e p a r t o f t h e Fund's b o a r d o f d i r e c t o r s i s t o be " a d j u d g e d i n a c c o r d a n c e w i t h t h e s t a t u t e s and d e c i s i o n o f t h e Commonwealth o f P e n n s y l v a n i a " and t h a t t h e m u t u a l r i g h t s o f t h e Fund and i t s members a r e t o be d e t e r m i n e d u n d e r P e n n s y l v a n i a l a w , n e i t h e r t h e Fund n o r t h e e m p l o y e e a s s e r t e d , p u r s u a n t t o R u l e 44.1, A l a . R. C i v . P., t h e p o t e n t i a l a p p l i c a b i l i t y of P e n n s y l v a n i a law t o t h e i r d i s p u t e ; t h u s , l i k e t h e t r i a l c o u r t d i d , we w i l l a p p l y A l a b a m a l a w . B r a d ' s I n d u s . , I n c . v. C o a s t Bank, 429 So. 2d 1001, 1003 ( A l a . 1983). 4 6 2090113 in interpreting a contract courts are enjoined internal operations "substitute b e t w e e n two n a t u r a l p e r s o n s , t h e by p r e c e d e n t n o t t o " i n t e r f e r e w i t h of a voluntary their own organization" construction bylaws, c o n s t i t u t i o n s , or other of formal rules, member o f a v o l u n t a r y claimed errors regulations, i n t e r p r e t a t i o n s are not c o n t r a r y t o the law or p u b l i c p o l i c y . " ( A l a . 1981). and n o t t o agreements f o r t h a t of t h e o r g a n i z a t i o n where t h e o r g a n i z a t i o n ' s 403 So. 2d 214, 217 W i l s o n v. S p r u e l l , Thus, a c i v i l a c t i o n by a a s s o c i a t i o n m a k i n g a l l e g a t i o n s as t o or omissions occurring i n the association's b u s i n e s s c o n d u c t , t h e r e f o r e , must f a l l upon d e a f e a r s in cases such jurisdiction." So. 2d voluntary 414, as the fraud, arbitrary ruling or "except lack of M c N u l t y v. H i g g i n b o t h a m , 252 A l a . 218, 221, 40 416 (1949). McNulty further notes a s s o c i a t i o n s u c h as t h e Fund h a s p l e n a r y i n t e r p r e t and a d m i n i s t e r that a power t o i t s own r u l e s a n d r e g u l a t i o n s , that t h e d e c i s i o n o f s u c h an a s s o c i a t i o n i s t o be p r e s u m e d c o r r e c t , and that courts may not interpret r e g u l a t i o n s i n a manner r e s e r v e d association. Id. 7 and apply rules and t o t h e g o v e r n i n g body o f t h e 2090113 A n o t a b l e e x a m p l e o f t h e a p p l i c a t i o n o f t h e p r i n c i p l e s we have d i s c u s s e d i s B r o t h e r h o o d o f R.R. T r a i n m e n v . B a r n h i l l , 214 A l a . 565, 108 So. 456 ( 1 9 2 6 ) , upon w h i c h t h e Fund in the t r i a l brief. c o u r t and a g a i n c i t e d i n i t s p r i n c i p a l In B a r n h i l l , railroad workers relied appellate a member o f a v o l u n t a r y b r o t h e r h o o d o f prevailed at t r i a l on a claim that the brotherhood had breached a c o n t r a c t t o remit " s t r i k e b e n e f i t s " a l l e g e d l y payable from a p r o t e c t i v e f u n d t o t h e member, who h a d c o n t i n u e d t o r e m a i n on s t r i k e a f t e r t h e b o a r d o f d i r e c t o r s of t h e b r o t h e r h o o d had v o t e d t o t e r m i n a t e a s t r i k e . The r u l e s of t h e b r o t h e r h o o d p r o v i d e d t h a t i t s b o a r d o f t r u s t e e s had t h e authority, in brotherhood's to event of disagreement between p r e s i d e n t and i t s g e n e r a l g r i e v a n c e d e c i d e whether event The the t h e board's to terminate a s t r i k e , d e c i s i o n would the committee, and t h a t i n that be b o t h b i n d i n g a n d f i n a l . j u d g m e n t i n f a v o r o f t h e member was r e v e r s e d on t h e b a s i s that i t contravened the rules of the brotherhood: "[T]he power through the provisions of the b r o t h e r h o o d l a w t o make t h e d e c i s i o n o f t h e i r own o f f i c i a l s and t r i b u n a l s c o n c l u s i v e i n r e s p e c t t o t h e e x t r a o r d i n a r y p r o t e c t i v e fund and a l l i t s s t r i k e b e n e f i t s u n d e r i t s l a w ... [ i s ] c o n c l u s i v e on t h e members, no fraud being charged. These institutions, o p e r a t i n g f o r t h e i r members o r a reasonable c l a s s i f i c a t i o n t h e r e o f f o r reasons of 8 2090113 p o l i c y and t h a t o f i t s w e l f a r e , may a d o p t l a w s f o r t h e i r g o v e r n m e n t , t o be a d m i n i s t e r e d by t h e m s e l v e s t o i t s members, and r e q u i r e f o r t h e g e n e r a l b e n e f i t t h e s u r r e n d e r o f no r i g h t t h a t an i n d i v i d u a l may n o t waive. And [ a member] i s b o u n d by t h a t a u t h o r i t y and law o n l y so l o n g as [ t h e member] c h o o s e s t o recognize that authority. Any other r u l e would impair the u s e f u l n e s s of such i n s t i t u t i o n s , and render the d u l y c o n s t i t u t e d t r i b u n a l s of such order p r a c t i c a l l y useless." 214 A l a . a t 572, The owed 108 So. trial duty a court, to a t 462 (citations omitted). i n i t s judgment, o p i n e d t h a t the employee not to be the Fund "arbitrary c a p r i c i o u s " i n d e c i d i n g w h e t h e r t h e e m p l o y e e ' s c l a i m was and p r o c e e d e d t o c o n c l u d e , corporate are not payable," that that actually considered. acted valid of the Fund's r e p r e s e n t a t i v e t o t h e e f f e c t t h a t "weapons a t work because, supports b a s e d upon t e s t i m o n y or the court trial the Fund's stated, We the decision employee's cannot conclude was arbitrary i n t e n t was that court's ultimate conclusion the not record t h a t the Fund arbitrarily. At claim, the time i t had investigative the before hearing Fund at which a denied the employee's t r a n s c r i p t of i t the the employer's employee's connection concerning w i t h the presence of the hearing, initially the f i r e a r m on union the locomotive. representative 9 appeared At that on the 2090113 e m p l o y e e ' s b e h a l f , t h e e m p l o y e r ' s B i r m i n g h a m t e r m i n a l manager (who was also t h e employee's supervisor) concerning t h e employee's i n t e n t i o n w i t h a on t h e e m p l o y e r ' s p r o p e r t y ; firearm testified, i n two r e s p o n s e s d u r i n g was respect questioned to bringing the terminal that l i n e manager of questioning, t h a t t h e e m p l o y e e h a d o r i g i n a l l y m e n t i o n e d t h a t he h a d b r o u g h t the pistol " t o show surmised that the p i s t o l carry the p i s t o l . special somebody" agent had f a l l e n the t h e employee had out o f t h e bag used t o Although another witness with solutions" unit, and t h a t employer's at the hearing, a "resource protection t e s t i f i e d t h a t t h e employee had s t a t e d he h a d " f o r g o t t e n " t h e p r e s e n c e o f t h e p i s t o l that i n h i s b a g when he r e p o r t e d t o work, t h a t t r a n s c r i p t i n d i c a t e s t h a t t h e a g e n t spoke w i t h t h e employee o n l y after t h e employee had spoken w i t h t h e t e r m i n a l manager. When questioned manager's t e s t i m o n y brought the p i s t o l at the hearing about the terminal t h a t t h e e m p l o y e e h a d s t a t e d t h a t he h a d t o work to display t o coworkers, the e m p l o y e e t e s t i f i e d t h a t he h a d made t h a t s t a t e m e n t " i n p a n i c " after having been awakened from two h o u r s of sleep by a c o w o r k e r who h a d t e l e p h o n e d t o r e p o r t t h a t t h e p i s t o l h a d b e e n 10 2090113 found. Further, a l t h o u g h t h e e m p l o y e e m a i n t a i n e d t h a t he h a d gone " t a r g e t s h o o t i n g " as to explain employee friend with a f r i e n d before the presence d i d not present to corroborate of the p i s t o l any t e s t i m o n y i n h i s bag, the from t h e employee's account. reference i n the employer's regarding misrepresentations dismissal the pertinent Finally, the letter indicates deemed one o r more o f t h e s t a t e m e n t s regarding h i s work s h i f t so to the rule that t h e employer made b y t h e e m p l o y e e h i s i n t e n t i o n s t o have been u n t r u t h f u l . P u r s u a n t t o t h e Fund's c o n s t i t u t i o n , t h e Fund's r e v i e w o f an e m p l o y e e ' s c l a i m f o r b e n e f i t s b a s e d upon a l l e g e d l y h a v i n g been " h e l d o u t o f s e r v i c e " i n c l u d e s n o t o n l y a n y t r a n s c r i p t o f an e m p l o y e r ' s i n v e s t i g a t i o n , b u t a l s o t h e c l a i m n o t i c e and itself " a l l m a t t e r s s u b m i t t e d b y t h e member f o r c o n s i d e r a t i o n . " However, t h e e m p l o y e e s u b m i t t e d no s u c h a d d i t i o n a l m a t e r i a l t o the Fund. Thus, t h e r e c o r d on w h i c h t h e F u n d ' s d e c i s i o n t o deny b e n e f i t s was made c o n t a i n e d evidence i n d i c a t i n g that the employee, c o n t r a r y t o h i s c l a i m s o f i n a d v e r t e n c e , planned order to bring a firearm onto to display i t . 11 had a c t u a l l y t h e employer's property i n 2090113 E v e n i f i t i s t r u e , as t h e e m p l o y e e s u g g e s t s and as t h e trial court determined in i t s judgment, t e s t i m o n y o f t h e Fund's p r e s i d e n t that deposition p r o v e s t h a t t h e F u n d has a p a t t e r n and p r a c t i c e o f n o t g r a n t i n g any " h e l d o u t o f s e r v i c e " claims involving possession of firearms alone would not support a conclusion t o deny t h e e m p l o y e e ' s c l a i m i n this was more r e c e n t l y n o t e d i n t h e c o n t e x t "'[w]here there arbitrary and even 26 So. 3d 1127, 1140 v. D e p a r t m e n t o f H e a l t h , that case i s a r b i t r a r y . of attorney i s room f o r two o p i n i o n s , capricious 5 fact t h a t t h e Fund's d e c i s i o n though e r r o n e o u s c o n c l u s i o n has been r e a c h e d . ' " Hallett, a t work, As discipline, [ a n ] a c t i o n i s not one may believe an A l a b a m a S t a t e B a r v. ( A l a . 2009) ( q u o t i n g Heinmiller 127 Wash. 2d 595, 609, 903 P.2d 433, The t r i a l c o u r t d e t e r m i n e d t h a t t h e Fund had s i m p l y c o n c l u d e d t h a t b e n e f i t s were n o t p a y a b l e f o r t h e s o l e r e a s o n t h a t t h e i n c i d e n t h a d i n v o l v e d a weapon. The r e c o r d as a w h o l e , h o w e v e r , does n o t s u p p o r t t h a t d e t e r m i n a t i o n ; t h e record instead r e f l e c t s that, i n denying b e n e f i t s to the e m p l o y e e , t h e F u n d r e l i e d on i t s b e l i e f t h a t t h e e m p l o y e e ' s a c t i o n i n c a r r y i n g t h e weapon o n t o work p r e m i s e s was w i l l f u l . T h a t t h e F u n d may a l s o h a v e h a d o t h e r r e a s o n s f o r d e n y i n g b e n e f i t s t o t h e e m p l o y e e (some o f w h i c h , t h e F u n d b e l i e v e d , were s u f f i c i e n t i n and o f t h e m s e l v e s t o j u s t i f y i t s d e c i s i o n ) does n o t p e r m i t t h e c o n c l u s i o n t h a t t h e F u n d d i d n o t a l s o deem i t s d e c i s i o n t o deny t h e e m p l o y e e ' s c l a i m t o be p r o p e r i n l i g h t o f t h e s u b m i s s i o n s t o t h e F u n d t e n d i n g t o show t h a t t h e employee's a c t i o n had been w i l l f u l . 5 12 2090113 440 (1995)). The f a c t s of the e m p l o y e e ' s c l a i m as presented t o t h e b o a r d w o u l d , a t l e a s t , l e a v e enough room f o r r e a s o n a b l e people to form c o n f l i c t i n g o p i n i o n s intent. Further, as we have regarding noted, the only employee's the board of d i r e c t o r s ' o p i n i o n r e g a r d i n g the employee's i n t e n t i s m a t e r i a l because the Fund's c o n s t i t u t i o n renders discretionary decision regarding basis o f an w h e t h e r an employment a c t i o n g i v i n g r i s e service" benefits claim i s w i l l f u l erred in s u b s t i t u t i n g i t s judgment respect the in benefits claim offense board's made to a "held for to the judgment i n f a v o r of the that of trial the p a y a b i l i t y of contravention e m p l o y e e on of 6 of Alabama precedents mandating deference to the board's d e c i s i o n . court's the out conclude t h a t the Fund's b o a r d o f d i r e c t o r s w i t h employee's the or i n t e n t i o n a l . F o r t h e r e a s o n s s t a t e d h e r e i n , we court final his That breach-of- Our c o n c l u s i o n o b v i a t e s c o n s i d e r a t i o n of other reasons c i t e d by t h e Fund's c o r p o r a t e manager i n h i s deposition t e s t i m o n y as a r g u a b l y f a l l i n g w i t h i n t h e two p r o v i s i o n s o f t h e Fund's c o n s t i t u t i o n c i t e d by t h e Fund as a u t h o r i t y f o r d e n i a l of the employee's c l a i m . B u t see C e n t r a l o f G e o r g i a R.R. v. R u s h , 286 A l a . 333, 339, 239 So. 2d 763, 768 (1970) (Harwood, J., dissenting) ("The employment o f t h e p l a i n t i f f d i d n o t r e q u i r e h i s exposure to the r i s k of c a r r y i n g a p i s t o l i n h i s s h i r t p o c k e t , and t h e p l a i n t i f f ' s p e r s o n a l a c t i n c a r r y i n g t h e p i s t o l was e x t e r n a l t o t h e c o u r s e o f h i s e m p l o y m e n t . " ) . 6 13 2090113 contract claim erroneous. against We r e v e r s e t h e Fund i s , therefore, necessarily t h e j u d g m e n t a n d remand t h e c a u s e f o r the Jefferson Circuit Court t o enter the a judgment i n f a v o r o f Fund on t h e e m p l o y e e ' s c l a i m . REVERSED AND REMANDED WITH INSTRUCTIONS. Thompson, P . J . , a n d Thomas a n d Moore, J J . , c o n c u r . Bryan, J . , concurs i n the r e s u l t , without 14 writing.

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