Case Title: LCL 2390 WARE v CITY OF BILLING

Citation: 

Docket Number: 

State: montana

Court: Montana Supreme Court

Date: 1976-10-22T00:00:00Z

Document:
No. 13325 I N T H E SUPREME C O U R T OF THE STATE O F M O N T A N A 1976 L O C A L 2390 O F AMERICAN FEDERATION O F STATE COUNTY, MUNICIPAL EMPLOYEES, A.F.L. - C.I.O. and Mrs. Ruth Ware, P l a i n t i f f s and Respondents, -VS - CITY O F BILLINGS, M O N T A N A , a quas i-municipa 1 corporation, Defendant and Cross Complainant and Respondent ROBERT M. COOKINGHAM, and BRUCE L. ENNIS, DUANE SMITH, ROXANE LEE, W A L T LESNIAK, NANCY LeCAPTAIN, a s members of the BOARD O F TRUSTEES OF T H E BILLINGS CITY LIBRARY, Defendants and Cross Defendants and Appellants. Appeal from: D i s t r i c t Court of t h e Thirteenth J u d i c i a l D i s t r i c t , Honorable W. IJ. Lessley, Judge presiding. Counsel of Record : For Appellants : Crowley, Haughey, Hanson, Gallagher & Toole, B i l l i n g s , Montana Robert Edd Lee argued, B i l l i n g s , Montana For Respondents: Rosemary Boschert argued, B i l l i n g s , Montana Jones, Olsen and Christensen, B i l l i n g s , Montana Frank C. Richter argued, B i l l i n g s , Montana Submitted: September 10, 1976 Decided OC12 2 ,.! , .I. . cr-,yz;c Filed: - - l . l M r . Chief J u s t i c e James T. Harrison d e l i v e r e d t h e Opinion of t h e Court. This i s a n appeal from t h e d i s t r i c t c o u r t of Yellow- stone County. The Union and M r s . Ware i n s t i t u t e d t h e a c t i o n a g a i n s t t h e City of B i l l i n g s . The d i s t r i c t c o u r t ordered t h a t t h e t r u s t e e s of t h e B i l l i n g s Public Library be made p a r t i e s . The C i t y cross-claimed a g a i n s t t h e t r u s t e e s , who then counter- claimed a g a i n s t t h e City. The case was submitted t o t h e d i s t r i c t c o u r t on t h e following s t i p u l a t e d f a c t s : Respondent, Ruth Ware, was terminated from her job a t t h e B i l l i n g s City Library on September 10, 1974, by t h e l i b r a r y d i r e c t o r with t h e approval of t h e a p p e l l a n t s , t h e board of t r u s t e e s of t h e B i l l i n g s C i t y Library. O n September 26, 1974, t h e B i l l i n g s C i t y personnel d i r e c t o r d i r e c t e d t h e a p p e l l a n t s t o r e i n s t a t e Ruth Ware, however t h e a p p e l l a n t s refused t o comply with h i s d i r e c t i v e . A t t h i s time a v a l i d c o l l e c t i v e bargaining agreement e x i s t e d between t h e respondent Union and t h e C i t y of B i l l i n g s , h e r e i n a f t e r r e f e r r e d t o a s t h e City. The termination of Ruth Ware c o n f l i c t e d with t h e t e r m s of t h i s agreement. The union had been e s t a b l i s h e d as t h e exclusive bargaining agent f o r t h e c i t y employees i n an e l e c t i o n January 2 0 , 1972, i n which Ruth Ware p a r t i c i p a t e d . O n April 8 , 1974, t h e Board of Personnel Appeals made an a p p r o p r i a t e u n i t determination of c i t y employees, which included t h e l i b r a r y personnel. A t t h e t i m e of her t e r m i - nation, Ruth Ware was a dues paying member of t h e union. The a p p e l l a n t s alleged t h a t t h e agreement between t h e C i t y and t h e union was not binding upon t h e a p p e l l a n t s , because they had n e i t h e r negotiated it nor r a t i f i e d it. However, t h e d i s t r i c t c o u r t held c o n t r a r y t o t h i s p o s i t i o n , and entered two judgments, one i n favor of t h e union and Ruth Ware a g a i n s t t h e C i t y and t h e appel- l a n t s , t h e o t h e r i n favor of t h e C i t y on a cross-complaint, a g a i n s t t h e appellants. Appellants appeal both judgments. The only issue determinative of this appeal is whether Ruth Ware's "public employer", within the meaning of the Collec- tive Bargaining For Public Employees Act, sections 59-1601 et seq., R.C.M. 1947, was the City or the appellants. In the latter situation, the agreement would not be binding on the appellants, since a separate and autonomous employer cannot be bound to a contract he has neither negotiated or ratified. Fabijanic v. Sperry Gyroscope Division, 370 F.Supp. 62 (1974). On the other hand, should her "public employer" be the City, the appellants are bound by the agreement. The appellants contend that they are the "public employer" of Ruth Ware by way of section 44-223, R.C.M. 1947, which states: " * * * With recommendation of the chief li- brarian the board shall employ and discharge such other persons as may be necessary in the administration of the affairs of the library, fix and pay their salaries and compensation and prescribe their duties." This is the first time we have been asked to define "public employer" within the meaning of the Collective Bargain- ing For Public Employees Act. The Act grants the right of col- lective bargaining to public employers and public employees in much the same manner as the Labor Management Relations Act, 1947, 29 USCA S141 et seq., does to employers and employees in the private sector. For this reason, we adopt the doctrine established by the United States Supreme Court to define such terms, as set forth in National Labor Rel. Bd. v. Hearst Publications, 322 U.S. " * * * In this light, the broad language of the Act's definitions, which in terms reject con- ventional limitations on such conceptions as 'employee,' 'employer,' and 'labor dispute,' leaves no doubt that its applicability is to be determined broadly, in doubtful situations, by underlying economic facts rather than technically and exclusively by previously established legal classifications." To properly define "public employer" we must appreciate t h e economic r e a l i t i e s a s w e l l a s t h e aims of t h e l e g i s l a t u r e sought by t h e C o l l e c t i v e Bargaining For P u b l i c Employees A c t and t h e Library Systems A c t , s e c t i o n s 44-212, e t seq., R.C.M. 1947, and r e c o n c i l e any d i f f e r e n c e s i f p o s s i b l e . W e cannot l i m i t our examination of t h e l e g i s l a t i v e in- t e n t of t h e Library Systems A c t t o t h e s e c t i o n c i t e d by t h e a p p e l l a n t s , b u t w e must consider t h e e n t i r e A c t . When s o an- alyzed t h e l i b r a r y and i t s board of t r u s t e e s i s n o t a wholly independent and autonomous e n t i t y s e p a r a t e and a p a r t from t h e l o c a l governing body. The l o c a l governing body and i t s e l e c t o r s decide whether t o c r e a t e a l i b r a r y ( s e c t i o n 44-219, R.C.M. 1947); t h e mayor appoints t h e members of t h e board of t r u s t e e s ( s e c t i o n 44-221, R.C.M. 1947); t h e l o c a l governing body e s t a b l i s h e s t h e levy, w i t h c e r t a i n l i m i t a t i o n s , f o r a s p e c i a l t a x on t h e p r o p e r t y owners t o c r e a t e a l i b r a r y fund ( s e c t i o n 44-220, R.C.M. 1947); t h e governing body d e c i d e s whether t o i s s u e bonds f o r t h e erec- t i o n and b u i l d i n g of l i b r a r y b u i l d i n g s and t h e purchase of land t h e r e f o r ( s e c t i o n 44-220, R.C.M. 1947); t h e board of t r u s t e e s must submit an annual f i n a n c i a l statement t o t h e l o c a l governing body and a l s o an annual budget i n d i c a t i n g what support and main- tenance w i l l be r e q u i r e d from p u b l i c funds ( s e c t i o n 44-222, R.C.M. 1947); t h e t r e a s u r e r of t h e c i t y handles t h e l i b r a r y fund i n accord w i t h t h e o r d e r s and warrants of t h e board of t r u s t e e s ( s e c t i o n 44-220, R.C.M. 1947); and t h e l o c a l governing body may c r e a t e a l i b r a r y d e p r e c i a t i o n r e s e r v e fund from moneys a l l o c a t e d t o t h e l i b r a r y during t h e year but n o t expended by t h e end of t h a t y e a r , and i n v e s t such moneys(sections 44-230, 44-231, R.C.M. 1947). Considering t h e e n t i r e scheme of t h e L i b r a r y Systems A c t , t h e board of t r u s t e e s of t h e B i l l i n g s C i t y Library i s g r a n t e d independent powers t o manage and o p e r a t e t h e l i b r a r y , b u t they a r e s t i l l an a d j u n c t of t h e l o c a l government, t h e C i t y of B i l l i n g s . The s a m e answer t o t h i s unique i s s u e was reached by New J e r s e y i n Board of T r u s t e e s of t h e Free Pub. Lib. v. Union C i t y , 112 N.J.Super. 484, 271 A.2d 728 . The New J e r s e y Court based its d e c i s i o n upon v a r i o u s f a c e t s of interdependence i n t h e i r l e g i s - l a t i v e scheme, which i s very s i m i l a r t o o u r s . The economic r e a l i t i e s show t h a t t h e C i t y , n o t t h e board of l i b r a r y t r u s t e e s , u l t i m a t e l y provides t h e s a l a r i e s and wages of t h e l i b r a r y personnel. The C i t y has a s u b s t a n t i a l l e g i t i m a t e i n t e r e s t i n t h e o p e r a t i o n of t h e l i b r a r y , which qual- i f i e s t h e C i t y a s t h e " p u b l i c employer" of t h e B i l l i n g s C i t y Library personnel, including Ruth Ware. W e hold t h e r e i s no inconsistency between t h e L i b r a r y Systems A c t and t h e C o l l e c t i v e Bargaining f o r P u b l i c Employees A c t . Under t h e L i b r a r y Systems A c t , as a whole, t h e board of t r u s t e e s is given independent powers t o manage and o p e r a t e t h e l i b r a r y . However, t h i s does n o t q u a l i f y t h e Board a s a " p u b l i c employer" w i t h i n t h e meaning of t h e C o l l e c t i v e Bargain- i n g For P u b l i c Employees A c t , b u t merely a s "supervisory employees" as defined i n s e c t i o n 59-1602(3), R.C.M. 1947. Finding t h e C i t y t o be t h e " p u b l i c employer" of Ruth Ware, w e a l s o f i n d t h e c o l l e c t i v e bargaining agreement between t h e C i t y and t h e union was binding upon t h e a p p e l l a n t s . The judgments fle concur: --- D ~ S t r i c t . P e t e r G. ~ e l o b s i t t i n g i n ce of M r . Frank I. H a s w e l l . M r . J u s t i c e Wesley Castles d i d n o t p a r t i c i p a t e i n t h i s Opinion.