Butler v. Yellow Freight System, Inc.

• Decision Date: 03 April 1974
• Docket Number: Civ. A. No. 20374-3.
• Parties: Billy G. BUTLER, Plaintiff, v. YELLOW FREIGHT SYSTEM, INC., and Local Union No. 823, International Brotherhood of Teamsters, Chauffeurs, Warehousemen, and Helpers of America, Defendants.
• Court: U.S. District Court — Western District of Missouri

374 F. Supp. 747

Billy G. BUTLER, Plaintiff, v. YELLOW FREIGHT SYSTEM, INC., and Local Union No. 823, International Brotherhood of Teamsters, Chauffeurs, Warehousemen, and Helpers of America, Defendants.

Civ. A. No. 20374-3.

United States District Court, W. D. Missouri, W. D.

April 3, 1974.

COPYRIGHT MATERIAL OMITTED

Dana B. Badgerow and John A. Biersmith, Kansas City, Mo., for plaintiff.

John J. Kitchin, Kansas City, Mo., for Yellow Freight System, Inc.

Daniel J. Leary, Joplin, Mo., for Local Union No. 823.

ORDER DENYING DEFENDANTS' MOTIONS FOR STAY OF PROCEEDINGS TO ENFORCE JUDGMENT, DENYING DEFENDANTS' MOTIONS TO DISSOLVE THE TEMPORARY RESTRAINING ORDER, DENYING DEFENDANTS' MOTIONS FOR JUDGMENTS NOTWITHSTANDING THE VERDICT AND FOR A NEW TRIAL, AND PERMANENTLY ENJOINING DEFENDANTS

WILLIAM H. BECKER, Chief Judge.

This is an action authorized by Vaca v. Sipes, 386 U.S. 171, 87 S.Ct. 903, 17 L.Ed.2d 842 (1967), involving alleged violations of the collective bargaining contract between the defendant employer and the defendant labor organization. Jurisdiction is based on Section 185, Title 29, United States Code, commonly known as Section 301 of the National Labor Management Relations Act.

On June 18, 1973, a jury returned a verdict in favor of the plaintiff and against both defendants. The jury assessed plaintiff's actual damages against defendant Yellow Freight System, Incorporated in the amount of $28,000.00 and exemplary or punitive damages were assessed against the same defendant in the amount of $7,000.00. With respect to defendant Local Union No. 823, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (hereinafter referred to as Local Union No. 823), the jury assessed plaintiff's actual damages in the amount of $6,500.00 and exemplary or punitive damages were assessed against this same defendant in the amount of $30,000.00.

On June 27, 1973, defendant Local Union No. 823 filed herein its "Motion for Judgment Notwithstanding the Verdict and for New Trial," including therewith suggestions in support thereof.

On June 27, 1973, defendant Yellow Freight System, Incorporated filed herein its "Motion for Judgment Notwithstanding the Verdict and for New Trial," including therewith suggestions in support thereof.

On June 28, 1973, plaintiff filed herein, pursuant to the provisions of Rule 60 of the Federal Rules of Civil Procedure, a "Motion for Correction of Judgment," therein stating that "... through clerical mistake, oversight, omission or inadvertence said form of judgment was by the clerk entered immediately following the verdict of the jury pursuant to Rule 58 as though the only relief to be granted plaintiff were for the recovery of money whereas the plaintiff was also held to be entitled to other relief as set forth in the form of judgment proposed by plaintiff and again submitted herewith as Exhibit B."

On July 3, 1973, defendant Yellow Freight System filed herein suggestions in opposition to plaintiff's motion for correction of judgment.

Thereafter, on July 11, 1973, an amended judgment was entered, therein declaring and providing, among other things, that "... the plaintiff's company seniority date is May 6, 1959 for all purposes and to be dovetailed with such seniority date among all other over-the-road truck driver employees of defendant Yellow Freight System, Inc. at its Baxter Springs, Kansas terminal."

On July 18, 1973, defendant Local Union No. 823 filed herein an amended motion for judgment notwithstanding the verdict and for new trial, therein challenging the entry of the amended judgment on the grounds (1) that there was "nonsufficient, competent and probative evidence upon which the Court could find and determine that plaintiff was entitled to a seniority date of May 6, 1959"; (2) that as a "matter of law plaintiff cannot be entitled to a seniority date of May 6, 1959"; and (3) that the "... Court erred in granting plaintiff's Motion For Correction of Judgment without making proviso for the addition as parties of all those drivers on Yellow's seniority roster at Baxter Springs, Kansas affected by the grant of seniority to May 6, 1959 to participate in the proceedings herein."

On July 18, 1973, Yellow Freight System also filed herein an amended motion for judgment notwithstanding the verdict and for new trial, therein stating that the "... Court erred in allowing plaintiff to amend his Complaint for monetary damages after all the evidence was concluded and during the instruction conference to seek declaratory relief that he was entitled to his seniority date from May 6, 1959, and further in granting the plaintiff that seniority by the amended judgment entered July 11, 1973."

A hearing on defendants' post-trial motions, including the present motions for judgment notwithstanding the verdict and for a new trial, was held on August 21, 1973. Other post-trial proceedings and additional briefs have ensued since the argument with respect to the original post-trial motions. The last letter brief was received March 22, 1974, accompanied by a relevant decision of the United States District Court for the District of Kansas in Dudley v. Woods Industries, Inc., et al., Civil Action No. KC-3491 (D.Kans., March 20, 1974).

With insignificant exceptions and variations, defendants' numerous contentions in support of the motions for judgment notwithstanding the verdict and for a new trial may be summarized into the following general contentions: (1) that the Court erred in not permitting certain testimony as to the meaning of the collective bargaining agreement and the Change of Operations Committee decisions; (2) that plaintiff's action is barred by the statute of limitations; (3) that the Court erred in its instructions to the jury as to interpretation of the contract; (4) that the Court erred in allowing plaintiff to amend his complaint and that the granting of declaratory and compensatory relief was in error; and (5) that the Court erred in submitting the issue of exemplary or punitive damages to the jury.

Defendants initially contend that witnesses Karsten, Kitts, Pickens, Melton and Bath should have been allowed to testify as to the meaning and effect of the applicable sections of the collective bargaining agreement and the Change of Operations decisions. In support thereof, defendants assert that "... the courts have consistently allowed oral testimony from the parties to a collective bargaining contract as to their understanding of the terms, provisions and procedures under the agreement, as well as to various oral agreements made thereunder." In support of that statement defendants cite the single case of Watson v. International Brotherhood of Teamsters, 399 F.2d 875 (5th Cir. 1968). The Watson case is factually distinguishable to the case at bar. That case involved a preexisting oral agreement between the parties which was not abrogated by the subsequent nonintegrated written agreement. The written instrument even contained a provision which provided that such previous agreements be continued.

The issue whether a contract is ambiguous or otherwise subject to extrinsic interpretation is a matter of law for initial resolution by the trial court. Motor Carriers Council of St. Louis, Inc. v. Local Union No. 600, 486 F.2d 650 (8th Cir. 1973); Metropolitan Paving Co. v. City of Aurora, 449 F.2d 177, 181 (10th Cir. 1971); Pipkin v. FMC Corp., 427 F.2d 353, 356 (5th Cir. 1970); Steele v. McCargo, 260 F.2d 753, 758 (8th Cir. 1958). The contract in the case at bar in its material terms, when considered as a whole, was not ambiguous, and did not otherwise require the testimony of the lay witnesses to determine the interpretation and construction of terms contained therein. Cf., Motor Carriers Council of St. Louis, Inc. v. Local Union No. 600, 486 F.2d 650, 653 (8th Cir. 1973). Section 3 of Article 5 clearly delineated the agreement of the parties, expressly describing what was to be done in the precise circumstances of this case. That agreement was correctly applied by the Change of Operations Committee in its decision of June 16, 1965. In a case of this type, neither Mr. Kitts nor any other individual could properly have been permitted to testify to any practice, intent or subsequent action contrary to the terms of the basic agreement. Further, any proffered evidence, even if otherwise admissible, would not have been competent to divest this plaintiff of those seniority rights guaranteed him by the written collective bargaining agreement. The proffered testimony was conclusory, argumentative, and otherwise inadmissible.

Defendants' second contention is that plaintiff's cause of action is barred by the statute of limitations.

Defendants correctly state that the applicable statute of limitations in an action under Section 301 of the Labor Management Relations Act is that limitation period set forth in the applicable state statute. International Union, United Auto Workers v. Hoosier Cardinal Corp., 383 U.S. 696, 86 S.Ct. 1107, 16 L.Ed.2d 192 (1966). Defendants then proceed with a lengthy debate as to whether Kansas or Missouri law is to be applied. That choice of law question need not be considered nor decided with respect to the case at bar for the result is the same, regardless of the choice. Both Kansas¹ (K.S.A. Section 60-511) and Missouri (R.S.Mo. Section 516.120) apply a five year limitation period with respect to written contracts. Therefore, because this action is based on a written contract, a five year limitations period must apply. See, Sandobal v. Armour and Company, 429 F.2d 249, 251 (8th Cir. 1970). The only question to be determined is whether the plaintiff's cause of action had matured or vested fully by June 8, 1967.

The record reveals that plaintiff did not file his grievances until July 5, 1967. The grievances were denied by the Joint Conference on August 2, 1967. Therefore, it does not appear from the record and facts presented tha...