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PUBLIC LAW BOARD N0. 1974
Award No. 12
Docket No. NFEC-1223
Parties United Transportation Union - E
to and .
Dispute: Consolidated Rail Corporation
Statement Appeal dismissal of Fireman (Helper) J. F. Collins date of July 28, 1978,
of as a result of an investigation held July 21, 1978, with reinstatement with
Claim: full seniority rights, vacation privileaes remain unimpaired and payment
be made
of
all monies lost as a result thereof.
Findings: The Board, after hearing upon the whole record and all evidence, finds
that the parties herein are Carrier and Employee within the meaning of the
Railway Labor Act, as amended, that this Board is duly constituted by
Agreement dated May 9, 1977, that it has jurisdiction of the parties and
the subject matter, and that the parties were given due notice of the
hearing held.
Claimant Fireman was regularly assigned to a Hostler Job in Carrier's
Frontier Yard, Buffalo, New York. Upon completion
of
his tour of duty .
on June 5, 1978, Claimant marked off. Claimant is also the United
Transportation Union (E) Local Chairman and is a practicing Attorney-at
Law.
Claimant, on June 9, 1978, was sent a notice to attend an investigation
on June 14, 1978, charged as follows:
"Disloyalty to the Consolidated Rail Corporation in
representing as an Attorney a person having interests
adverse to those of the Consolidated Rail Corporation -
in particular, the case of John De Freitas, Civil Action
File No. CIVIC-78-278, vs. Consolidated Rail Corporation
dated May 26, 1978, and received by Consolidated Rail
Corporation at 1:45 PM on June 6, 1978."
The investigation correnced on June 14, 1978 but neither Claimant nor
his representative was present. However, during the proceedings
thereof, Claimant's Local Chairman contacted Carrier and requested that
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-1971
said investigation be recessed and reconvened at a later date which was
done.
Claimant was subsequently notified to attend the reconvened investigation
scheduled for July 21,
1978,
by letter reading:
"Arrange to be present at a formal investigation to be held
. in Room
126,
Penn Central Terminal,
July 21, 1978
at 10:00 AM.
This investigation was originally scheduled for June
14, 1978,
and recessed due to the fact that you were out of town and unable
to attend."
As a result of such investigation Claimant was notified, July 28,
1978,
in effect, that he was guilty as charged, to wit - he was disloyal because
he had represented as an attorney an employee suing the Corporation.
Claimant was dismissed in all capacities as discipline therefore.
The instant case apparently arose because of the several hats worn by
Claimant, to wit - that of an employee, that of a Local Chairman
representing engine service employees and as an attorney admitted to the
bar and licensed to practice law in the State of New York.
_ It is clear that the activities carried out by an employee while acting
in the performance of his duties as a union representative, which activities
properly fall within the duties of such union representative, are protected
activities. Therefore, generally speaking,in such circumstance such an
activity is something that an employee cannot be disciplined for because
they are notr!atters which normally would provide a proper basis far a
charge of disloyalty.
The law, generally speaking, does not protect the activities of an
employee, who, as such, asserts or takes a course of action which is
inimical to that of his employer. Such an adverse act could provide
a basis for an employer to bring a charge of disloyalty against such an
employee. ,
It is likewise clear that when an employee-attorney takes the case of
another employee and ,on behalf of such employee sues his employer, he
thereby, as an advocate, asserts an interest inimical to that of his
Page
3 Award
No. 12 -/q7,y
employer and creates a basis for a charge of disloyalty.
The Supreme Court in UTU vs Virginia, 377 U.S. 1, defined, if not confined,
the role of an employee to giving
advice, when in pertinent part, it held:
"The right of members to consult with each other in a fraternal
organization necessarily includes the right to select a spokesman
from their number who could be expected to give the wisest counsel.
That is the role played by the members who carry out the legal aid
program. And the right of the workers personally were or through
a special department of the Brotherhood to advise concerning the
need for legal assistance--and, most importantly, what lawyer a
member could confidentially rely on--is an inseparable part of
this constitutionally guaranteed right to assist and advise each
other."
The factual circumstances of each case would, of course, govern each
case. Generally speaking such right of counsel would not permit an
employee to solicit the personal injury suits against a Carrier from among
Carrier's employees. See, for instance, Second Division Award 1884. There,
the Board held that the Claimant had improperly used his employment relationship with the Carrier to further a course of action clearly inimicable
to his employers interests. Therefore, as a result Carrier was under no
obligation to retain such an employee in its service.
The legal principle involved in such a course of action is set forth in
Master and Servant, 56 Corpus Juris Secundum, page 430,
"One who asserts an interest or performs acts adverse or
disloyal to his employer commits a breach of an implied
condition of a contract of employment which may warrant discharge."
The line between an employee and that of a representative can be confusirg
as pointed out by Third Division Award 5787. Therein, the Board in
restoring Claimant ,who was the BRC (Clerks) District Chairman, held:
"It is apparent that Joseph's difficulties arose out of
a situation wherein he was act;ng in dual capacity... In his
conception of his duty to Gibson as his representative, Joseph
breached his duty to the Carrier as its employee ...No person
should act in a dual capacity..."
Award 5787 further held that either the Carrier or the Claimant should
have resolved this anomalous situation.
Similarly, in Award 6116, a BRC District Chairman, employed as a clerk
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in Carrier's general office, accompanied outsiders into the office
after hours, where certain pictures of a staircase were taken with the
thought of their use in a persona] injury suit against the Carrier. Said
Chairman was dismissed. Claimant was not charged with any specific rule
violation. Despite the claim being sustained, when an action was
brought to enforce said Award in the U. S. District Court, Eastern District
of North Carolina, Raleigh Division, No. 876, July 29, 1957, 154 F Supp.
71, that Court refused to enforce the Award, holding, in part, "The Award
ignores the 'Cardinal Rule of Conduct.' The Claimant was charged with
improper conduct detrimental to the interests of his employer." The
U. S. Court of Appeals, No. 7541 decided March 3, 1958, 253 F 2nd 753,
affirmed the holding of the District Court and in part held:
" ..The Board was manifestly in error in holdinq that the
discharge was wrongful merely because no rule of the current
bargaining Agreement had been violated. Philips was accorded
the hearing required by that Agreement; and we agree with the
District Judge that the nature of the charge against him were
'thoroughly u,iiderstood at the time of the hearing. The Judge
found that his discharge was not arbitrary or unreasonable on
the part of the railroad in view of the attitude of his
disloyalty which he had manifested; and we cannot hold this
finding to be clearly erroneous."
Judge Thomas Ntaybry was the Neutral Member of System Board of Adjustment
No. 18 which denied a similar claim in Decision No. 3310 involving the
dismissal of a Claimant Locomotive Fireman who was also an attorney, and
who had participated in a law suit in which he represented an employee
against the Southern Pacific Company. Said Claimant was dismissed by the
Company who had contended that such action on the part of Claimant constituted disloyalty to the Company.
TheretClaimant had gathered evidence on behalf of the plaintiff and assisted
another attorney actively in the prosecution of the personal injury suit.
Incidently, the verdict was in favor of the Carrier and against the Plaintiff
in the law suit. Judge Mayby therein held:
"Me can think of no more willful violation of Operating Rule 803
then this. This is certainly to be classified as willful disregard
of the company's interest and therefore as an act of disloyalty
to the company. ;he law suit presented a situation in which the
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-:777
client was clearly antagonistic, and hostile, to that of
the company. The litigation quite appropriately demanded
claimant's full and complete dedication (under his oath as
an attorney-at-law and the. code of ethics of the profession)
to the interost of.the client, as against all other conflicting,
or opposing interests.
This loyalty so required of claimant in his professional
capacity could not be shared with the defending company, or
sparingly observed. It had to be an all out effort on the
part of claimant, restricted only by the requirements of
pro
fessional ethics. The profession of law is a jealous mistress.
It will accept of no divided loyalty. It permits no philandering.
An attorny's attachment must; be complete and non-seducible.
Claimant must,. because of the very nature of his employment as
an attorney, put entirely aside consideration of all opposing
interests which might conflict with those of his client . . . ." .
Judge Maybry referred to Third Division Award 6166 and Second Division
Award 3253 in support of his findings. Said Award 3253 (Hornbeck)
involved a Coach Cleaner employed by the former New York, New Haven and
Hartford Railroad Company and who also was an attorney. He was dismissed,
after a hearing,on a charge that he "improperly used or was using his
employment relationship for the purpose of furthering a course of action
clearly inimicable of the interests of his employers." Award 3253
denied Claimant's request for reinstatement finding in part:
"Mr. Good accepted employment in his professional capacity
as a lawyer to his. fellow workmen who made claims against
the company growing out of personal injury suffered by them
while on duty. Both claims were presented to the Carrier and
suits instituted on one of them under the Federal Employers
Liability Act...
But his employment afforded access to the property of the
Carrier to association with its employees and to its methods
and manner of mechanical operation of its Railway.
If by reason of these contacts he could advantage himself by
accepting professional employment against his company, he
would be subjected to the urge to avail himself of that
opportunity. When he took such employment, made possible,
at least in part, by his connection with his company, and pursued
claimants against, it, his loyalty was divided. The interests
of his clients and his interests were adverse to the carrier.
If they succeeded, the company suffered financial loss.
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Such diverse relationships were incompatible, adverse and
inimitable to the employer's interest and cannot be reconciled
with the obligation implicit in the contract of employment
between Mr. Good and the Carrier."
We note that the charge in this case is identical to and apparently predicated upon the charge found in Award No. 337 of Public Law Board No. 550
(Yagoda) on the former Penn Central Railroad. There, Claimant was a
passenger conductor,who was also a lawyer admitted to practice in New
York and New Jersey and was employed as an attorney in a New Jersey law
firm.
Another employee, as a result of a personal injury, instituted civil action
against the Carrier. In the course of that suit a Pre-Trial Order was
issued by the Judge having jurisdiction. The document was counter-signed
by the various attorneys involved and shows for the Plaintiff, the
signature of the Claimant made on behalf of the law firm.
There,Carrier's position was that Claimant, by acting in a lawyers
capacity on behalf of a litigant against the railroad company, had put
himself, for pay, in the service of an activity inimicable to the employers
and in direct conflict with his obligations of loyalty to Carrier.
The Board agreed therewith and held that:
"Claimant's action in professional service of a fellow
employee as a litigant against Carrier is not erased by
Claimaeit's testimony that Mr. McIntyre was not his 'personal
client' or that the complaint was not drawn by him nor that
he would not try the issue at fact in later action..."
In the instant case, Carrier asserts that Claimant testified that he was
a practicing member of the law firm of Collins, Collins and DiNata and
that it was said law firm which was representing Mr. De Freitas, the
Plaintiff in the law suit against Consolidated Rail Corporation.
Carrier further submits that whether-Claimant signed the complaint or not,
such fact would not absolve him of his involvement in the lawsuit in view
of his membership in the law firm.
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_ Carrier also argued that the question of which particular attorney in
the firm of Collins, Collins and DiNata may have been retained by the
Plaintiff in
the litigation is actually immaterial as to the determination
of Claimant's guilt in the instant case. In support of such contention,
they quote from Corpus Juris Secundum, page 839, Attorney and Client:
"A valid contract of partnership may be made between two or more
" duly qualified attorneys, but not between an attorney and a
person not admitted to practice.
A firm of law practitioners, as
such, are reaarded as a single entity and the general principles cites
f
the law o partpersh p applies to lawyers with the same force
that they did to partnerships engaged in other occupations and
professions.
In the absence of a special agreement, each member of the firm
asummes the duty as given to its business all of its time, skill
and ability, as far as reasonably necessary to the success of the
common enterprise, and consequently, in the absence of an express
agreement to the contrary,
any professional services rendered
a member of a fi
rm of lawyers wi 1 be presume to he or the
benefit o
f the firm .... Fees earned by one member under a irm
contract belongs
to
the firm, and an Award
of
counsel fees must
.. be considered as being made to the firm." (Underscoring supplied.)
Carrier cited several law cases in support of that same position and, in
particular, Eggleton v. Boardman, 37 Mich. 14, wherein it was held:
"A client is entitled to the personal service of his
attorney upon the argument. But the retainer of one member
of the `irm is a retainer of
all,
and unless otherwise
sty u'ated, the cause ma be argued and con ucte by any
of them." (Underscoring supplied.)
The Board finds that Claimant was accorded the due process to which entitled
by agreement. He was given a timely notice. Carrier's primary burden,
aside from the adequacy thereof, in that connection is to prove only that
the Notice of Investigation had been sent to the person charged and not
that it had been received by him. The use of certified mail is but a
means of such proof. We are satisfied that the notice had been sent. The
second letter to Claimant,, as to the. reconvened investigation, was sent to
the same address as was the first Notice of Investigation. However, it
was received at the same address. Said second letter represented a
reaffirmation of the agreed upon continuance of the June 14, 1978
investigation. No rule has been show that in such circumstances, the
Claimant is entitled to a particularized second Notice of Investigation.
Page 8 . Award No. 12 -l ql 7
Y
We therefore find that Claimant has been given proper notice.
Claimant was more than adequantely, if not overly, represented. He had
the benefit of two practicing attorneys, including himself, as well as the
service of his Local Chairman.
The official transcript, i.e., that taken by Carrier, provides the basis
of this appeal.
We find that Claimant does not, as alleged, have the right of access to
copy of all correspondence and communications had between
Carrrier officials
concerning the incident being investigated. Nothing in any rule to so
provide was shown to the Board. The investigation conducted was held in
a private, industrial employer-employee setting and not in a court of law.
Claimant had every opportunity to present evidence favorable to himself.
He was accorded the right to have and present witnesses, which right he
exercised. In fact, Claimant participate in the examination and crossexamination of witnesses, as well as in the appellate proceeding of his
case.
The Claimant offered Award No. 1 of Public Law Board 2184 (Edwards) in
support of his case. We find the facts of such Award are opposite to
that herein. There, the Claimant was a brakemen, an attorney-at-law,
Vice General Chairman of the UTU-General Committee and legal counsel to
the General Committee. There, Claimant had merely advised the Carrier's
Claim Agent, by letter, that he was the representative of an injured
brakeman"re: personal injuries and lost wages and to address any further
questions in connection therewith to himt" There was no litigation involved
only the notice. That Board held, in part:
"The Board is not convinced that the Carrier sustained its
burden of proof that Mr. Finnerty represented Mr. Scott in
a legal action against the Carrier."
We can agree with the findings of said Award for, unlike here, Carrier
had moved prematurely as no law suit had been instituted to place Claimant
Finnerty in the conflicting role of employee-adversary.
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The Employee Representative, at our hearing of this case, skillfully
and artfully,pointed out that Carrier's arguments possibly might be
supportive (ji a charge other than that actually placed against Claimant.
He argued that the Board should view all the evidence in light of
Carrier's alleged narrow charge. Award No.19235 of the First Division
was offered in support of such contention.
We find some merit in that contention. Carrier, as the moving party,
has complete control over the charge it desires to place against an
employee. Here, Carrier chose to place a charge, to wit = "Disloyalty
...in representing as an attorney... in particular, the case of John
DeFreitas.
.. "
Undoubtedly, Carrier followed the charge which had been placed against
the Claimant-Conductor-Attorney found in Award No. 337 of Public Law
Board No. 550, wherein Carrier's position was sustained. However, the
factual circumstances there differ somewhat from those herein.
The instant record, particularly Exhibits B, H, I and J, as well as the
testimony of John T. Collins, Esq., and that of his secretary, clearly
and adequately support the conclusion that John T.Collins, Esq. was the
attorney selected by Plaintiff De Freitas and that he and not the
Claimant was the attorney of record. Claimant apparently did not
actively participate in the case. Although it is to he noted that as a
partner in 'the law firm, he nonetheless stood to benefit therefrom. Hence,
he is not without blame.
Said Award 19235 (Sembower) held:
" ..It is axiomatic in all criminal proceedings that the
defendant must be found guilty exactly as charged. Criminality
is not involved in such an instance as this, of course, yet
there are such significant analogies between the infliction of
the so-called "supreme penalty" in employer-employe relations
of discharge that such proceedings may be deemed to have much
in common. Consequently, the Division always has been concerned
that the verdicts against employes be pursuant to proper notice
and charge and in full accord with the accredited standards of
due process ...."
There, the Board, because of the vagueness of the charge and the
A
Page 10 Award No. 12 - (q7(
inconsistency of the testimony therein, caused Claimant to be reinstated
but without back pay.
In the instant case, Claimant was in fact disloyal. However, it was not
because he was the attorney of record, or had directly participated in
the litigation. Rather it was because he was a partner and member in a
law firm which on behalf of an employee, was sueing Claimant's employer
Consolidated Rail Corporation. The distinction in the nature of Claimant's
disloyalty is almost without difference. However, when the penalty assessed
therefor is separation from service we must be ever vigilant to protect
the relevancy or linkage between the charge, the evidence and the
conclusion.
Consequently, as in First Division Award 19235, we will reinstate Claimant
with all rights unimpaired but without pay, subject of course to his
passing the usual return to service examination.
Award: Claim disposed of as per findings. ,
Order: Carrier is directed to make this Award effective within thirty (30)
days of issuance shown below.
Ct.
G. H. Bun Employee
M
~ber N. M. Berner; Carrier Member
rt ur . ~ a~ at nnan
and Neutral Member
issued at Salem, New Jersey, February 23, 1980.