Fullerton v. Lamm

• Decision Date: 26 September 1945
• Citation: 177 Or. 655,163 P.2d 941,165 P.2d 63
• Parties: FULLERTON <I>v.</I> LAMM ET AL.
• Court: Oregon Supreme Court

177 Or. 655

163 P.2d 941

165 P.2d 63

FULLERTON

v. LAMM ET AL.

Supreme Court of Oregon.

Argued June 5, 1945.

Reargued September 26, 1945.

Reversed November 20, 1945.

Rehearing denied January 15, 1946.

Limitation of actions

1. Where there was no federal statute of limitations applying to action for overtime and penalties under Fair Labor Standards Act of 1938, appropriate state statute of limitations applied.

Limitation of actions

2. Action for overtime pay and penalties under Fair Labor Standards Act of 1938 is an action on "liability created by statute" within the second subdivision of the six-year limitation statute, rather than one upon a "contract or liability, expressed or implied", within the first subdivision of the statute.

Master and servant

3. Provisions of Fair Labor Standards Act of 1938 are remedial and must not be interpreted or applied in a narrow grudging manner.

States

4. State legislation manifestly hostile to exercise of rights granted by a federal statute cannot stand.

Limitation of actions

5. The statute limiting actions for recovery of overtime or other premium pay and penalties thereunder was intended to operate retroactively as well as prospectively.

Limitation of actions

6. Statutes of limitation are ordinarily construed to be only prospective in operation, but, when contrary legislative intent is manifested, such intention will be given effect.

Limitation of actions

7. The statute providing a six months' limitation period on an action for the recovery of overtime or premium pay "accrued or accruing" means that recovery of statutory benefits shall be permitted only for work performed within six months immediately preceding commencement of action to recover such benefits, irrespective of whether that period in whole or in part antedates the day after the effective date of the statute, except that no cause of action which had accrued at or before the effective date of the statute shall be barred if the action thereon be brought within 90 days after that date.

Limitation of actions

8. The statute providing a six months' limitation period on an action for recovery of overtime or premium pay accrued or accruing, including penalties thereunder required or authorized

by statute, would be assumed to be intended to extend to actions for the recovery of liquidated damages under the federal Fair Labor Standards Act and that the Legislature used the word "penalties" in a broad sense without regard to technical distinctions between a penalty and liquidated damages.

Statutes

9. The court is not bound by the views of a private litigant as to interpretation of a law enacted by Legislature.

Limitation of actions

10. Where a statute of limitations is silent on the point, the law will imply that the limitation period shall begin to run from the time the cause of action accrues.

Constitutional law

11. The court is not authorized to rewrite a statute or ignore the plain meaning of unambiguous words, and the legislative purpose and intent to enact a valid and constitutional law must be assumed.

Statutes

12. The province of the court in construing a statute is to ascertain what the Legislature intended from the language used, with such aid as may be found in rules of interpretation and legitimate extrinsic sources to construe statutes, not to enact them, to declare what the Legislature has done and not what it should have done.

Statutes

13. The rule that the clear letter of a statute will be departed from where absurd results would otherwise follow does not justify a court in amending the statute or giving it a meaning to which its language is not susceptible, merely to avoid what the court believes are inequitable or unwise results.

Master and servant

14. Under the Fair Labor Standards Act of 1938, a cause of action accrues to an employee when an employer becomes liable for payment of that which the act requires, and he is liable at the end of each regular pay period.

States

15. State Legislature may not validly impose such conditions as it sees fit in respect of rights created and causes of action conferred by an act of Congress.

Constitutional law

16. Where construction of statute contended for would require that statute be stricken down as an unwarranted attempt by the state Legislature to abridge rights conferred by an act of Congress, the court must avoid such construction and give effect to the statute as one of limitations if possible.

States

17. The statute limiting time for actions for overtime, which must be construed as meaning that action must be brought within six months after performance of work, so that period of limitation would vary, depending upon regular periods of payment, cannot be sustained as applied to action under Fair Labor Standards Act of 1938 to recover overtime compensation and liquidated damages, since it is an attempt to control substantive rights granted by act of Congress and as such is unconstitutional or it is void for indefiniteness and uncertainty.

Statutes

18. The statute limiting actions for recovery of overtime or premium pay including penalties being invalid as applied to actions under Fair Labor Standards Act of 1938, the saving clause falls with it.

BELT, C.J., dissenting.

ON PETITION FOR REHEARING

Statutes

19. The statute limiting actions for recovery of overtime or premium pay including penalties being invalid as applied to actions under Fair Labor Standards Act, the savings clause governing claims which had accrued at time of enactment of the statute, though in itself free from constitutional objections, cannot be separated from rest of the statute and given effect but falls with it.

Statutes

20. Generally, a statute may be constitutional in one part and unconstitutional in another part, and if the invalid part is severable from the rest, the portion which is constitutional may stand while that which is unconstitutional is rejected.

Statutes

21. In determining whether unconstitutional part of a statute is severable from the rest, the inquiry is primarily one of legislative intention.

                  Recovery of wages and penalties under Federal Fair Labor
                Standards Act and state acts in conformity therewith, note, 130
                A.L.R. 272; see also 31 Am. Jur. 1061; 11 Am. Jur. 834; 59 C.J
                Statutes, § 205; 16 C.J.S., Constitutional Law, § 98
                

IN BANC.

Appeal from Circuit Court, Lane County.

G.F. SKIPWORTH, Judge.

Action by J.P. Fullerton against W.E. Lamm and others, copartners doing business as Deschutes Lumber Company, to recover overtime pay and penalties under the Fair Labor Standards Act of 1938. From a judgment for defendants, plaintiff appeals.

REVERSED. REHEARING DENIED.

Herbert W. Lombard, of Cottage Grove, for appellant.

Wilber P. Riddlesbarger, of Eugene (Harris, Bryson & Riddlesbarger, of Eugene, on the brief), for respondents.

R.N. Kavanaugh, R.R. Morris, David L. Davies, Hugh L. Biggs, Hart, Spencer, McCulloch & Rockwood, Hampson, Koerner, Young & Swett, Carl C. Donaugh and J. Mason Dillard, all of Portland, amici curiae.

LUSK, J.

This case presents the question of the validity of Ch. 265, Oregon Laws 1943, prescribing certain limitations with respect to actions for the recovery of overtime or premium pay and penalties authorized by any statute.

Plaintiff sued to recover overtime pay and penalties pursuant to the provisions of Public Law No. 718, 75th Congress, known as the "Fair Labor Standards Act of 1938", (hereinafter referred to as F.L.S.A.) 52 Stat. 1060, 29 U.S.C. §§ 201 et seq. The act covers employees "engaged in commerce or in the production of goods for commerce". Section 6 establishes minimum wages to be paid by employers to such employees. Section 7 establishes maximum hours for such employees and prohibits employment in excess of the number of hours specified "unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed." Section 16 (b) provides:

"Any employer who violates the provisions of section 6 or section 7 of this Act shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages. Action to recover such liability may be maintained in any court of competent jurisdiction by any one or more employees for and in behalf of himself or themselves and other employees similarly situated, or such employee or employees may designate an agent or representative to maintain such action for and in behalf of all employees similarly situated. The court in such action shall, in addition to any judgment awarded to the plaintiff or plaintiffs, allow a reasonable attorney's fee to be paid by the defendant, and costs of the action."

Plaintiff filed his complaint in the Circuit Court for Lane County on October 13, 1943. He alleged that he was employed by the defendants in the production of goods for commerce from April 19, 1939, to September 20, 1942, at various rates of pay which are stated, and that during that period he worked overtime (i.e., in excess of the legal maximum fixed by the F.L.S.A.) a specified number of hours which, at one and one-half times the regular rate at which he was employed, entitled him to receive from his employers the sum of $6,239.71, only $124.57 of which had been paid. He asked judgment for $6,115.41, the difference between these two amounts, and an additional equal sum as liquidated damages, and $1,200.00 attorneys' fees. The defendants demurred on the ground that the action was not commenced within the time limited by Ch. 265, Oregon Laws 1943. The circuit court, being of the opinion that the action was barred, sustained the demurrer and entered judgment for the defendants. Plaintiff has appealed.

Chapter 265, Oregon Laws 1943, took effect March 10, 1943, and is as follows:

"AN ACT

"To limit...