Court Opinion

ID: 9456331
Source: CourtListenerOpinion
Date Created: 2023-08-04 19:49:39.351717+00
Date Added: 2024-06-11T17:34:56.404215
License: Public Domain

LAY, Circuit Judge
(concurring).
I agree with the majority that the judgment against the union should be affirmed. I concur, however, for different reasons. I do not agree with the majority that the contractor can assert the collateral source doctrine against the union’s argument that the plaintiff suffered no damage. Collateral source relates to gratuities by volunteers or to reimbursement by reason of a collateral investment previously made by the injured party. The doctrine is not applicable where the plaintiff is reimbursed and by reason of the reimbursement loses his complete interest in the claim, by transfer or otherwise, to his indemnitor. When this occurs the indemnitor is subrogated to the entire claim and becomes the only real party in interest. United States v. Aetna Cas. & Sur. Co., 338 U. S. 366, 380-381, 70 S.Ct. 207, 94 L.Ed. 171 (1949); Link Aviation, Inc. v. Downs, 117 U.S.App.D.C. 40, 325 F.2d 613 (1963); Annot. 13 A.L.R.3d 229, 239 (1967). To allow the plaintiff to assert the collateral source doctrine under such circumstances could subject a defendant in various situations to multiple claims arising out of the same damage.
The defendant union asserts that the plaintiff contractor has not been “injured in his business or property,” 29 U.S.C.A. § 187(b), because of its reimbursement of costs by the government through the cost plus fixed fee contract. *949This raises the question of whether the contractor is the real party in interest under Fed.R.Civ.P. 17(a). As Judge Gibson points out, however, at the time this action was commenced the Army had not yet reimbursed the contractor for its increased costs arising from the union’s misconduct of engaging in an improper jurisdictional dispute. When the lawsuit was commenced the contractor was the injured party and a proper party plaintiff. However, upon total reimbursement by the Army prior to trial under its cost plus contract, the contractor was no longer damaged1 and was divested of its status as the real party in interest. At this juncture the defendant could have moved for substitution of the parties or joinder of the United States2 under Fed.R.Civ.P. 25(c).3 Hyatt Chalet Motels, Inc. v. Salem Bldg. & Constr. Trades Council, 298 F.Supp. 699, 703-704 (D.Or.1968); Killebrew v. Moore, 41 F.R.D. 269 (N.D.Miss.1966); Wallis v. United States, 102 F.Supp. 211 (E.D.N.C.1952); United States v. Saunders Petroleum Co., 7 F.R.D. 608 (W.D.Mo.1947). The defendant did not move for joinder and must therefore be held to have waived any objection to the contractor’s prosecution of the claim. Cf. Unison Realty Corp. v. RKO Theatres, Inc., 35 F.R.D. 232 (S.D.N.Y.1964); 3B Moore’s Federal Practice (2d ed.) § 25.08 at 25-324 & 325 (1969). Upon final judgment in favor of the contractor any monies recovered will be held for the use and benefit of the government, which is the only party damaged. Link Aviation, Inc. v. Downs, supra.4

. Cf. Hanover Shoe, Inc. v. United Shoe Mach. Corp., 392 U.S. 481, 494, 88 S.Ct. 2224, 20 L.Ed.2d 1231 (1968).

. Congress has provided that “ [w] hoover shall be injured in his business or property” by an unfair labor practice may recover his damages. 29 U.S.C.A. § 187 (b). (Emphasis ours.) This is broad and inclusive language which has a plain and unambiguous meaning. United Brick & Clay Workers v. Deena Artware, Inc., 198 F.2d 637, 644 (6 Cir. 1952). Cf. Wells v. International Union of Operating Engineers, 303 F.2d 73, 75 (6 Cir. 1962); Schatte v. International Alliance, etc., 84 F.Supp. 669, 673 (S.D.Cal.1949), aff’d 182 F.2d 158 (9 Cir. 1950), cert. denied 340 U.S. 827, 71 S.Ct. 64, 95 U.Ed. 608 (1950). An injured party, such as a project owner, may recover damages under this section even if it is not the employer against which the unfair practices are directed. Pennsylvania Railroad Co. v. National Maritime Union, 206 F.Supp. 797 (E.D.Pa.1962). Therefore, the exclusion of the United States from the definition of “employer” would not, in my judgment, preclude recovery by it under statute.

. Rule 25(c) reads:
“In case of any transfer of interest, the action may be continued by or against the original party, unless the court upon motion directs the person to whom the interest is transferred to be substituted in the action or joined with the original party. Service of the motion shall be made as provided in subdivision (a) of this rule.”

. The contract between the Army and Mason-Rust provides in pertinent part:
“(f) The Contractor agrees that any refunds, rebates, credits, or other amounts (including any interest thereon) accruing to or received by the Contractor or any assignee under this contract shall be paid by the Contractor to the Government, to the extent that they are properly allocable to costs for which the Contractor has been reimbursed by the Government under this contract. Reasonable expenses incurred by the Contractor for the purpose of securing such refunds, rebates, credits, or other amounts shall be allowable costs hereunder when approved by the Contracting Officer. Prior to final payment under this contract, the Contractor and each assignee under this contract whose assignment is in effect at the time of final payment under this contract shall execute and deliver — •
“(i) an assignment to the Government, in form and substance satisfactory to the Contracting Officer, of refunds, rebates, credits, or other amounts (including any interest thereon) properly allocable to costs for which the Contractor has been reimbursed by the Government under this contract * *