International Broth. of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local 145 v. Shapiro

• Decision Date: 26 June 1951
• Citation: 138 Conn. 57,82 A.2d 345
• Court: Connecticut Supreme Court
• Parties: INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREHOUSEMEN AND HELPERS OF AMERICA, LOCAL 145 v. SHAPIRO et al. Supreme Court of Errors of Connecticut

Page 345

82 A.2d 345

138 Conn. 57

INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS WAREHOUSEMEN AND HELPERS OF AMERICA, LOCAL 145 v. SHAPIRO et al.

Supreme Court of Errors of Connecticut.

June 26, 1951.

Theodore I. Koskoff, Bridgeport, with whom was Sidney Shapiro, Bridgeport, for the appellants defendants.

William S. Gordon, Jr., Hartford, with whom was Mary C. Fitzgerald, Hartford, for the appellee plaintiff.

Before BROWN, C. J., and JENNINGS, BALDWIN, INGLIS and O'SULLIVAN, JJ.

O'SULLIVAN, Judge.

Pursuant to § 8160 of the General Statutes, the plaintiff, hereinafter called the union, applied to the Superior Court for an order confirming two arbitration awards involving the union and the defendants. The latter were operating as a partnership under the name of Purity Food Company. We shall refer to them as the company. The court granted the application, and from the judgment entered thereon the company has appealed.

The court found the following unchallenged facts: On October 28, 1947, after a request by the union for recognition had been denied, a picket line was established in front of the company's premises. By midday, the company receded from its former position by agreeing to recognize the union. The picketing immediately ceased and the employees returned to their work. Shortly thereafter, the parties entered into negotiations which culminated on November 26, 1947, in a collective bargaining contract for the term of two years. Under article 21 each party reserved 'the right to re-open this contract as pertaining to wages and hours as of October 16, 1948.' Article 20 recited: 'It is agreed that should any charge of violation of this agreement or any charge of discrimination or any other grievance or dispute arise between the parties hereto an attempt shall be made between the parties to settle such controversy amicably. In the event that such controversy cannot be settled amicably, same shall be referred to the State Board of Mediation and Arbitration at the request of either party. The decision of said Board shall be final and binding upon both parties.'- For almost a year and a half after the contract was executed, the parties dealt with each other in conformity with its provisions. It was not until April, 1949, during the course of a hearing before the state board of labor relations, that the company, for the first time, questioned the validity of the contract. Its contention then was that it had executed the instrument while under duress. After hearing evidence on the matter, the labor board ruled that the claim was without merit. The company did not appeal from that decision.

During the summer of the preceding year, namely, on August 11, 1948, the union had notified the company that it was exercising its right under article 21 to re-open the contract for the purpose of revising the schedules of wages and hours. Because an agreement thereon could not be reached, the union, acting under the provisions of article 20, submitted the controversy on May 25, 1949, to the state board of mediation and arbitration, hereinafter called the board. At the same time, the union submitted another dispute arising out of article 2. We shall ignore the latter since it raises no legal issue which our discussion of the former does not cover.

The board set a hearing for July 26, 1949. The parties were given proper notice and appeared at the designated time and place. At the very outset, the company attacked the legality of the proceeding, again asserting that, as it had been compelled to sign under duress, it would not be bound by the contract. Confronted by this challenge of its power, the board decided to recess. It subsequently canceled a further hearing, set for August 24, since it was in doubt as to its authority to act. This doubt having been later removed, the board notified the parties that the proceedings would be resumed on October 13. The company replied that it saw no point in any such resumption in view of its previously stated position. The board, however, advised the company that the hearing would be held as scheduled. The union's representatives were present when the board convened but those of the company failed to appear. The board received evidence, submitted solely by the union, first upon the validity of the contract and then upon the two submissions. On November 15, the board made its awards, mailing them to each of the parties and filing copies with the city clerk of Bridgeport.

By one award the board revised the schedule of wages upward, making the increases retroactive to October 16, 1948, and by the other, it held that the company had violated article 2. On January 3, 1950, the union applied to the Superior Court for an order to confirm the awards. Thereafter, the company filed an answer raising the question of their validity, and by a counterclaim it sought to have them declared to be of no legal effect. The court found all the issues for the union and rendered judgment confirming the awards.

The first claim made by the company is that the board was without authority to act until the union had obtained an order of the Superior Court compelling the company to proceed. The point of the argument is that, when the company refused to take part in the proceedings on the ground that duress had been practiced upon it, arbitration was legally impossible until the validity of the contract had first been judicially established by the union. The claim has its source in § 8153 of the General Statutes. ¹ The company's position is sound only if the provisions of the statute are mandatory.

Prior to 1929 arbitration had been described as a desirable method of avoiding the formalities, delay, expense and vexation of ordinary litigation. In re Curtis-castle Arbitration, 64 Conn. 501, 511, 30 A. 769. It is true that, from the earliest times, the validity of agreements to arbitrate existing disputes was upheld. 1 Swift's Digest 463 et seq.; 3 Blackstone's Commentaries 16, 17. The effectiveness of such agreements, however, was greatly circumscribed, for, unless the submission was made a rule of court, it was revocable at any time before an award had been made. First Ecclesiastical Society v. Besse, 98 Conn. 616, 621, 119 A. 903; 1 Swift's Digest 465. The revocation, to be sure, was deemed to be a violation of the agreement, but the injured party was without a practical remedy. He could not obtain specific performance; 6 Corbin, Contracts, p. 751; and he was entitled at law to no more than nominal damages for the breach; Restatement, 2 Contracts § 550, comment a; or, at most, the expenses to which he was put in preparing for the arbitration 1 Swift's Digest 465. Worse still was the status of agreements to arbitrate disputes which had not yet arisen. They found no favor with the courts. They were declared invalid. Chamberlain v. Connecticut Cent. R. Co., 54 Conn. 472, 487, 9 A. 244; but see Hall v. Norwalk Fire Ins. Co., 57 Conn. 105, 114, 17 A. 356.

In 1929 the General Assembly eliminated the weakness inherent in written agreements to arbitrate existing disputes and removed from those to arbitrate future disputes the taint of illegality with which judicial fiat had previously marked them. Public Acts, 1929, c. 65 (Rev.1949, c. 398). By virtue of this chapter, the arbitration clause of the contract between the union and the company became 'valid, irrevocable and enforceable,' unless, as the statute further provides, a sufficient cause existed at law or in equity for the avoidance of contracts generally. General Statutes § 8151. Duress would be such cause. Mills v. Swords Lumber Co., 63 Conn. 103, 105, 26 A. 689. Thus, the statute expressly reserved to the company the right to attack the validity of the contract and, we add, the company was entitled to a judicial determination of that question. Colt's Industrial Union v. Colt's Mfg. Co., 137 Conn. 305, 307, 77 A.2d 301. We note, parenthetically, that the board undertook to pass upon this question. In doing so, it went beyond its authority. This transgression, however, had no effect upon the awards which it legally could make.

When the company refused to take part in the arbitration, the union could have applied to the Superior Court for an order compelling the company to participate. General States § 8153. Had the union done so and had the company then raised the issue, the court would have passed upon the validity of the contract. The union was under no obligation, however, to pursue that course. The statute is not stated in mandatory terms. It merely provides that the willing party 'may' apply to the court. Miller v. Phoenix State Bank & Trust Co., 138 Conn. 12, 81 A.2d 444. If he elects not to do so, he may still present his case to the arbitrators, and, if they comply with the requirements of § 8156 relating to notice, they may hear evidence and, as § 8157 expressly provides, make their award thereon, even though the other party refuses to appear.

Occasions may arise when application to the court must be made under § 8153 if the arbitration is to proceed. For example, it may be necessary to compel the unwilling party to perform an essential affirmative act, such as to name an arbitrator. That situation did not prevail here. The parties had already selected the board, and while the record does not disclose the manner by which its personnel was determined, no question has been raised on that score. See General Statutes, Sup.1949, § 603a.

When the board undertook to hear the controversy notwithstanding the union's failure to invoke the statute, the company had an opportunity to take some affirmative step on its own behalf, if it desired to test the validity of the contract prior to a hearing on the submissions. Thus, it might have instituted an action to have the contract declared invalid and might have sought a restraining order until an adjudication had been had thereon. It chose not to do so. Or, it could have appeared before the...