Opinion ID: 1285977
Heading Depth: 1
Heading Rank: 2

Heading: reopening the prior settlement agreement

Text: 4. In considering this issue, we have carefully reviewed the 1958 proceedings which formed the basis of the so-called agreements on behalf of Shelby and Walker. We conclude that the union and the railroad misconstrued the proceedings being conducted at that time. The issue before the FEPC was admission to the union. The questions of seniority and backpay were not considered, except as delineated in the agreements negotiated by the union and railroad without the participation of the affected employees. The function of the FEPC in 1958 and in 1960 was to effectuate negotiations between the parties to seek elimination of unlawful discrimination by means of education, conference, conciliation, and persuasion. The FEPC was not empowered to approve the settlements, either by statute, or by Shelby or Walker. In closing Shelby's file as satisfactorily adjusted the FEPC was acting in an administrative capacity only and disposed of the sole issue before it, namely, admission to the union. Thus, we regard the reliance by the railroad and the union on Anchor Cas. Co. v. Bongards Co-op. Creamery Assn., 253 Minn. 101, 91 N.W.2d 122, 73 A.L.R.2d 933 (1958), to be misplaced. That case stands for the proposition that the jurisdiction of administrative agencies to reverse their adjudications which appear to be erroneous lasts until jurisdiction is lost by appeal or certiorari or until a reasonable time has run which would be at least coextensive with the time required by statute for review. However, as the issue here under consideration was not considered in the 1958 proceedings, the commissioner of human rights, as the successor of the State Commission Against Discrimination, is not precluded from investigating the settlement agreements. In addition, neither the union nor the railroad has shown any prejudice resulting from the state's scrutiny of the 1958 and 1960 agreements. If the pay rates set in the agreements were discriminatory, the union and railroad are only being required to repay what they illegally withheld. And the compelling of a seniority date based on plaintiffs' employment date will merely restore plaintiffs to the seniority positions which they deserve. The union asserts that its good faith reliance on the finality of the settlement agreements has resulted in great detriment to its legitimate interests. The asserted elements of good faith and legitimate interests are lacking. Also, as the hearing examiner's order is framed so as to place Shelby and Walker in the positions they would have been in but for the discrimination of the union and railroad, there is no showing of great detriment. Finally, reliance on the doctrine of equitable estoppel is misplaced. The agreements sought to be upheld were the product of racial discrimination and worked to perpetuate it. Illegal agreements (or those void as against public policy) will not be validated by resort to an equitable remedy. See, Seitz v. Michel, 148 Minn. 80, 181 N.W. 102 (1921).