NATIONAL RAILROAD ADJUSTMENT BOARD
THIRD DIVISION Docket Number CL-21522
William G. Caples, Referee
(Brotherhood of Railway, Airline and
( Steamship Clerks, Freight Handlers,
( Express and Station Employes
PARTIES TO DISPUTE:
(The Texas and Pacific Railway Company
STATEMENT OF CLAIM: Claim of the System Committee of the Brotherhood,
GL-8083, that:
1. Carrier violated the Agreement between the parties when on
February 24, 1975, it dismissed Mrs. Darlene Presswood, Clerk, Mineola,
Texas, from service of the Texas and Pacific Railway Company following
formal investigation held on February 20, 1975.
2. Carrier's action in dismissing Mrs. Presswood from the
service of the Carrier was unjust, unreasonable, arbitrary, capricious,
and an abuse of its discretion.
3. Carrier shall now be required to reinstate Mrs. Presswood
to the service of the Carrier with seniority and all other rights unimpaired _
with compensation for all wages and all other losses sustained by Mrs.
Presswood due to her unjust dismissal from Carrier's service.
OPINION OF BOARD: On August 5, 1974, Carrier issued a draft made payable
to Claimant in the amount of $926.25. Attached to
and a part of the draft was a piece of paper entitled "Statement of Payment"
which showed "Loss & Damage Claim," twice, in amounts of $507.00 and
$419.25, and a "Payee No. 10581." The Carrier alleges the payment was
made to Claimant through a clerical error and should have been made to a
customer as settlement of two loss and damage freight claims totaling
$926.25; that the clerical error occurred in Carrier's freight claim
office at Palestine, Texas, through using Claimant's employe payee code
No. 10531 instead of the customer's code No. 10581. On August 13, 1974,
Claimant endorsed the draft, under this statement,"By acceptance hereof
payee acknowledges payment in full of items identified on attached stub,"
and deposited the amount thereof in her personal checking account. In
November 1974, the customer made inquiry of Carrier about non payment of !
its loss and damage freight claims and Carrier then discovered the error
which led to the issuance of the draft to Claimant. On November 22, 1974,
Carrrier's General Freight Claim Agent wrote Claimant as follows:
"We regret to advise you MP draft 193332, August 5, 1974,
for $926.25 was issued to you in error due to an incorrect
claimant code number being used. Since payment was made to
you in error, please refund $926.25. Please show claim
numbers (shown as the subject of the letter) on your check."
Award Number 21371 Page 2
Docket Number CL-21522
I
Claimant on November 27, 1974, answered the General Freight Claim
Agent as follows:
i
"I received your letter dated November 22, 1974, requesting
that I send you a check for $926.25. This has me very
puzzled because the check which I received in August of
this year was made out to me with no explanation as to what
it was for except two claim numbers.
Over the years I have turned in many time claims for having
been handled in violation of my working agreement while
working as clerk at Longview, Texas. Some of these claims
would amount to a great deal of money, which I am entitled
to, due to the length of time that the violations continued.
When I received the check in August, naturally I assumed
that I had been awarded some of these time claims, since
there was no other explanation on the check as to what it
was for. I cashed the check in good faith and have long
since used the money.
Since I have not claimed any compensation fraudulant7y (sic)
or in any incorrect manner, I do not think that I have
any
cause to send you a check for the amount you request."
The record does not disclose any response to Claimant's letter
of November 27, 1974, a point to which the Organization gives great weight.
Subsequently Carrier's representative called asking Claimant's intentions
and there were conferences between the Carrier's representative and Claimant
and her husband about the matter in which the Carrier's position was stated
and restitution asked. A payroll withholding was suggested but an amount
of withholding not agreed to. The Carrier asserts, "Neither Mrs. Presswood
nor her husband authorized any deduction to be made from payroll earnings
and it was, therefore, necessary that Carrier effect the necessary withholding, which was accomplish
and the second half of March 1975. On January 27, 1975, a notice of a
formal investigation to be held February 7, 1975, was sent to Claimant
"to develop facts in connection with your allegedly accepting Missouri
Pacific Railroad Co. Draft, Audit No. 193332 dated 08-05-74, sent to you
in error and which was identified as payment of Loss & Damage Claims No.
071068 and 071069 and your failure to return said Draft to point of origin
and to place responsibility, if any, in connection with the charge that
you converted said Draft for your personal use." The formal investigation
was postponed to February 20, 1975, at which time it has held. Subsequently,
on February 24, 1975, Carrier advised Claimant in writing that her record
had been assessed with dismissal effective 12:01 a.m.. February 24, 1975,
"for your accepting Missouri Pacific Railroad Co. Draft Audit No. 193332
dated August 5, 1974, and which was identified as payment of Loss and
Damage No. 071068 and 071069, your failure to return said draft to point -
Award Number 21371 page
3
Docket Number
CL-21522
of origin, and your converting said draft for your own personal use, per
formal investigation held Mineola, Texas, February 20,
1975.
Your record
now stands Dismissed."
The assessment of dismissal has been appealed by the Organization
without change by the Carrier until it reaches this Hoard.
It is the position of the Organization that Claimant responded
promptly to Carrier's original letter, that she assumed the check to cover
her claims against the Carrier and did not think there was cause to return
the money, that the letter of November
22, 4974
did not allege the serious -_
--offenses
set-
forth
In
the
letter
of January
27, 1975,
tha£ the
Carrier
'as derelict in not following up and clarifying the issues raised in the
letter of November
27, 1974."
It is the Carrier's position that the Claimant converted to her
own personal use a
$926.25
loss and damage claims draft which had been
sent to her in error and this act is sufficient to warrant permanent
dismissal.
It is well established that the Board is bound to follow the
action of dismissal taken by the Carrier unless the action was unjust,
unreasonable, arbitrary, capricious or an abuse of its discretion.
We must, therefore, examine what Claimant's original intent
might have been when a draft was sent to her in error but which was clearly
marked as to its purpose and her actions after receipt of the Draft. The
Claimant had been employed as a Clerk by Carrier for six years in two
locations and was married to another employe of Carrier whose experience
had been such as to give them knowledge of railroad practice and terminology. The assertion was made
been sent to her in error that she assumed it was for claims she had made,
but evidence at the investigation showed that in six years she had had
only three such claims and these in modest amounts compared with the
amount of the claims shown on the stub accompanying the Draft. The Carrier
sustained its burden of proof that the act of depositing the Draft without
inquiry as to the reason for Claimant's receipt of it was, in fact, a
conversion of the money to her own use as this was the only positive action
taken.
Although the method used for restitution is questionable, it is
not a matter over which this Board has jurisdiction.
The amount of discipline is questioned as being arbitrary and
capricious. There is no evidence in the record to sustain this, thus,
having found the Claimant's action subject to discipline, the amount of
the discipline is a matter of Carrier's discretion and not of the Board.
Award Number 21371 Page
4 ('
Docket Number CL-21522
~
We do not substitute our judgment for that of the Carrier (See Awards
5032, 9422, 17914)
where there is substantial evidence that the offense
charged was committed. j
The action of the Carrier was not arbitrary or capricious, as
is supported by the record and this Hoard will not upset it.
FINDINGS: The Third Division of the Adjustment Hoard, upon the whole
record and all the evidence, finds and holds:
That the parties waived oral hearing;
That the Carrier and the Employes involved in this dispute are
respectively Carrier and Employes within the meaning of the Railway Labor
Act, as approved June
21, 1934;
That this Division of the Adjustment Hoard has jurisdiction over
the dispute involved herein; and
That the Agreement was not violated.
A W A R D
Claim denied.
NATIONAL RAILROAD ADJUSTMENT BOARD
By Order of Third Division
ATTEST: ~~
Executive Secretary
Dated at Chicago, Illinois, this 28th day of January 1977.
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