TRANSPORT
WORKERS OF
V.
TRANSIT
AUTHORITY OF THE CITY OF OMAHA, DOING BUSINESS AS
METRO
AREA TRANSIT, APPELLANT.
205
Filed
December 11, 1979, No. 42512
1. Commission of Industrial Relations:
Jurisdiction. Where the Commission of Industrial Relations has no jurisdiction
in the subject matter of the action, all proceedings in such action are void.
2. Commission of Industrial Relations:
Administrative Law. The Commission of Industrial Relations is not a court and is
in fact an administrative body performing a legislative function.
3. Administrative Law: Jurisdiction. An
administrative agency cannot enlarge its own jurisdiction nor can jurisdiction
be conferred upon the agency by parties before it. Accordingly, it is held that
deviations from an agency's statutorily established sphere of action cannot be
upheld because based upon agreement, contract, or consent of the parties, nor
can they be made effective by waiver of estoppel.
4. Commission of Industrial Relations: Labor
and Labor Relations: Jurisdiction. A uniquely personal termination of employment
does not constitute an industrial dispute over which the Commission of
Industrial Relations has jurisdiction.
5. Commission of Industrial Relations: Public
Policy: Statutes. The public policy of the Commission of Industrial Relations is
expressed in section 48-802, R. R. S. 1943, of the act and points out that the
act is intended to provide public employees who do not otherwise have the right
to strike an opportunity to mediate and arbitrate matters of employment which
have not yet been agreed to by the employer.
6. Commission of Industrial Relations: Labor
and Labor Relations: Breach of Contract: Jurisdiction. The Commission of
Industrial Relations' authority to resolve disputes concerning terms, tenure, or
conditions of employment is limited to situations in which the parties have not
yet reached agreement. Once an agreement is reached and a subsequent breach is
alleged to have occurred, the parties are required to litigate their dispute in
a competent court having jurisdiction of the matter.
7. Administrative Law: Powers: Constitutional
Law: Legislature. As a general rule administrative agencies have no general
judicial powers, notwithstanding they may perform some quasi-judicial duties.
Moreover, unless permitted by the Constitution, the Legislature may not
authorize administrative officers or bodies to exercise powers which are
essentially judicial in their nature, or to interfere with the exercise of such
powers by the courts.
Appeal from the Court of Industrial
Relations. Reversed and remanded with directions.
Soren S. Jensen of Swarr, May, Smith &
Andersen, for appellant.
John P. Grant of Robert E. O'Connor & Associates, for appellee.
Heard before KRIVOSHA, C. J., BOSLAUGH,
MCCOWN, CLINTON, BRODKEY, WHITE, and HASTINGS, JJ.
KRIVOSHA, C. J.
This is an
appeal by the Transit Authority of the City of Omaha, doing business as Metro
Area Transit (MAT), from an opinion and order of the Court of Industrial
Relations, now the Commission of Industrial Relations (CIR), resolving an
alleged industrial dispute between MAT and the Transport Workers of America,
Local 223, AFL-CIO (Union), pursuant to section 48-801 et seq., R. R. S. 1943
(the Act). The plaintiff Union represents employees of MAT in the
Union
instituted these proceedings before the CIR by filing a petition which in
summary alleged that Union and MAT had executed a collective bargaining
agreement which was in full force and effect; that by Article XIII of said
agreement MAT agreed to provide a short-term disability benefit for all
participating employees; and that MAT now refused to pay the short-term
disability benefit for all participating employees. Union therefore prayed that
the CIR conduct a hearing and declare the rights, duties, and obligations of the
parties under their agreement and, upon completing such declaration, order MAT
to render an accounting of all amounts due and owing to participating employees
under the agreement.
The parties
stipulated in writing: "Insofar as the Court is required to resolve the
industrial dispute between the parties, the only issue which is to be submitted
to the Court for decision is whether employees who are receiving workmen's
compensation benefits are also entitled to receive short term disability
benefits as provided in the relevant collective bargaining agreements."
(Emphasis supplied.)
On September
6, 1978, the CIR entered an opinion and order in which it found that the
provisions of the contract were clear and unambiguous and did not require
interpretation in that the contract required payment for short-term disability
for either work-related or nonwork-related accidents from the first day. In
essence, the CIR declared the rights, duties, and obligations of the parties
under the agreements, finding that MAT had breached its contract with
Thereafter, on
November 13, 1978, the CIR vacated its order of September 6, 1978, and entered a
new opinion and order which was identical in all respects to the previous order
except it did not contain the final paragraph which made the opinion and order
instructive and not a final order. Simply stated, the dispute involved in this
case was a question of whether MAT had breached its contract with
MAT maintains
the order of the CIR was erroneous in several respects. However, the first issue
which must be decided before proceeding to consider the various assignments of
error raised by MAT, and a matter of first impression, is whether the CIR had
jurisdiction to declare the rights, duties, and obligations of the parties under
an existing agreement and to order an accounting in connection therewith. If, in
fact, the CIR is without jurisdiction to declare the rights, duties, and
obligations of the parties under an existing agreement and thereafter grant
equitable relief in the form of an accounting, we need not consider any
assignment of error claimed by MAT.
We have
earlier held that where the CIR has no jurisdiction in the subject matter of the
action, all proceedings in such action are void.
We have
heretofore said the CIR is not a court and is in fact an administrative body
performing a legislative function. American Assn. of University Professors v.
Board of Regents, 198 Neb. 243, 253 N. W. 2d 1.
An
administrative board has no power or authority other than that specifically
conferred by statute or by a construction necessary to accomplish the plain
purpose of the act. City of Auburn v. Eastern Nebraska Public Power Dist.,
179 Neb. 439, 138 N. W. 2d 629; Slosburg v. City of Omaha, 183 Neb. 839, 165 N. W. 2d 90;
City of Schuyler v. Cornhusker P. P. Dist., 181 neb. 704, 150 N. W. 2d 588.
"An
administrative agency cannot enlarge its own jurisdiction nor can jurisdiction
be conferred upon the agency by parties before it. Accordingly, it is held that
deviations from an agency's statutorily established sphere of action cannot be
upheld because based upon agreement, contract, or consent of the parties, nor
can they be made effective by waiver or estoppel." 2 Am. Jur. 2d,
Administrative Law, § 331; Bair v. Blue Ribbon, Inc., 256
The authority
of the Commission of Industrial Relations is carefully circumscribed. Its
procedures are prescribed by statute. Its jurisdiction is clearly defined and is
limited to what are clearly legislative concerns. University Police Officers
Union v.
If the CIR has
authority to hear cases involving an alleged breach of contract, declare rights,
duties, and obligations of parties and grant equitable relief such as an
accounting, that authority must be found in the Constitution and statutes
creating and authorizing the CIR. We are unable to find such authority.
While it is
true that section 48-801 (7), R. R. S. 1943, defines an "industrial
dispute" to include "any controversy concerning terms, tenure or
conditions of employment," a reading of the entire Act, as well as our
earlier decisions, discloses that not every controversy concerning terms,
tenure, or conditions of employment is indeed an industrial dispute under the
Act giving jurisdiction to the CIR. A uniquely personal termination of
employment may in fact involve a controversy concerning terms, tenure, or
conditions of employment, yet we have heretofore held that such uniquely
personal termination of employment does not constitute an industrial dispute
over which the CIR has jurisdiction. Nebraska Dept. of Roads Employees Assn. v.
Department of Roads, supra. Likewise, a reading of the pertinent statutes
concerning teachers discloses that a teacher under contract to a school
district, who is thereafter discharged in alleged breach of her contract, may
not seek enforcement of that contract or damages for breach thereof by filing an
action in the CIR even though the controversy may concern terms, tenure, or
conditions of employment. See, §§ 79-1254 and 79-1259, R. R. S. 1943;
Alexander v. School Dist. No. 17, 197 Neb. 251, 248 N. W. 2d 335; Witt v. School District No.
70, 202 Neb. 63, 273 N. W. 2d 669.
The public
policy of the CIR is expressed in section 48-802, R. R. S. 1943, of the Act and
points out that the Act is intended to provide public employees who do not
otherwise have the right to strike an opportunity to mediate and arbitrate
matters of employment which have not yet been agreed to by the employer.
By providing
for a forum in which a public employer and a public employee may discuss future
wages, hours, and conditions of employment or terms of employment without
interruption of necessary public service, the Legislature has sought to protect
"its citizens from any dangers, perils, calamities, or catastrophes which
would result" from interruption or termination of public service. §
48-802, R. R. S. 1943.
It is the
public interest in having uninterrupted public service that is principally
sought to be protected by the creation of the Act and not the creation of a
specialty forum for the trying of breach of contract cases by public employees.
That the
authority of the CIR is limited to disputes between a public employer and a
public employee absent an agreement is made even clearer when we examine the
provisions of sections 48-818 and 48-819, R. R. S. 1943. Section 48-818
specifically limits the findings and orders of the CIR to establishing or
altering "the scale of wages, hours of labor, or conditions of employment,
or any one or more of the same." Specifically, section 48-818 provides:
"In making such findings and order or orders the Court of Industrial
Relations shall establish rates of pay and conditions of employment which are
comparable to the prevalent wage rates paid and conditions of employment
maintained for the same or similar work of workers exhibiting like or similar
skills under the same or similar working conditions." The mandate language
of section 48-818 does not lend itself to any suggestion that the CIR could
alter or modify the terms of an existing agreement during the life of the
agreement, any more than either party could unilaterally do so.
Likewise,
under the provisions of section 48-819, R. R. S. 1943, the CIR has no authority
to enforce its own orders, such orders only being enforceable in an appropriate
proceeding in courts of this state. It would indeed be an anomaly if the CIR had
jurisdiction to find that one of the parties had breached the agreement but
could not order the necessary remedy occasioned by the breach.
Section
48-819, R. R. S. 1943, provides that orders, temporary or final, entered by the
CIR are enforceable in appropriate proceedings in the courts of this state. What
would be an appropriate proceeding to be brought in the District Court to
collect money ordered paid by the CIR as damages for breach of contract?
Certainly, mandamus would not be. Public officials, in the absence of a specific
law, are not required to pay judgments so as to entitle a citizen to seek a writ
of mandamus. § 25-2156, R. R. S. 1943. See, also, State v. Merrell, 43
Neb. 575, 61 N. W. 754. Nor could an execution against public property be
levied. Obviously, before one can attempt to collect damages from a governmental
subdivision, one must obtain a judgment in an appropriate court of competent
jurisdiction and file a claim with the appropriate public body. §§ 24-329,
14-804, 14-813, 15-840, 15-841, 16-726, 16-727, R. R. S. 1943.
The balance of
section 48-819, R. R. S. 1943, offers no further help. That portion provides
that contempt shall be in a District Court for a failure to comply with an order
of the CIR if a similar failure to comply with an order of a District Court
would constitute a contempt of the District Court. Yet the failure to pay a
money judgment resulting from a breach of contract is not grounds for contempt
in the District Court. It appears to us that the Act has not in any manner
attempted to grant the CIR powers to resolve breach of contract cases even if
the breach concerns itself with terms, tenure, or conditions of employment. Once
an agreement is reached and a subsequent breach is alleged to have occurred, the
parties are required to litigate their dispute in a competent court having
jurisdiction of the matter.
A second and
equally material reason requires our action in this case. The CIR has no
authority to grant either declaratory or equitable relief such as an accounting.
As a general
rule administrative agencies have no general judicial powers, notwithstanding
they may perform some quasi-judicial duties. Moreover, unless permitted by the
Constitution, the Legislature may not authorize administrative officers or
bodies to exercise powers which are essentially judicial in their nature, or to
interfere with the exercise of such powers by the courts. 73 C. J. S., Public
Administrative Bodies and Procedures, § 36. See, also,
"
The entering
of a declaratory judgment and the ordering of an accounting are clearly judicial
functions. See, § 25-21,149 et seq., R. R. S. 1943; Cook v. Wilkie, 181
Neb. 596, 150 N. W. 2d 124; 1 Am. Jur. 2d, Accounts and Accounting, § 44;
22 Am. Jur. 2d, Declaratory Judgments, § 2.
If we were to
hold that the Legislature had in fact granted to the CIR judicial powers, we
would be compelled to find that such delegation violated the Constitution of the
State of
It is a
long-recognized principle of statutory construction that where a statute is
susceptible of two constructions, one of which renders it constitutional, and
the other unconstitutional, it is the duty of the court to adopt the
construction which, without doing violence to the fair meaning of the statute,
would render it valid. State ex rel. Meyer v.
The CIR
performs an important and vital function in resolving impasses in the public
sector. It is not, however, a substitute for the District Court with regard to
existing and agreed terms, tenure, and conditions of employment. It has not been
made a court by the Legislature. The proper forum to resolve this dispute is the
courts.
The order,
therefore, is reversed and the cause remanded to the CIR with directions to
dismiss the petition of
REVERSED AND REMANDED WITH DIRECTIONS.