Walker v. Southern Railway Co.

Mr. Justice Harlan, whom Mr. Justice Stewart and Mr. Justice White join,

dissenting.

I dissent because I believe this Court’s decision in Republic Steel Corp. v. Maddox, 379 U. S. 650, requires the explicit overruling of Moore v. Illinois Central R. Co., 312 U. S. 630, a case that has already been all but completely vitiated by subsequent decisions.

In Moore, a railroad trainman brought an action for damages based upon an alleged wrongful discharge without first exhausting administrative remedies. Federal jurisdiction was invoked on the ground of diversity; at that time an employment contract under the Railway Labor Act was thought to be governed, like ordinary contracts, by state law. The applicable law in that case — that of Mississippi — did not require exhaustion of remedies. The Court held that nothing in the Railway Labor Act required a contrary result.

The premise of the Moore decision, that state law was applicable to this type of labor contract, was removed in a series of decisions holding that labor contracts governed by the Labor Management Relations Act, 1947, and the Railway Labor Act are subject to federal substantive law, not state law. Textile Workers v. Lincoln Mills, 353 U. S. 448; International Assn. of Machinists v. Central Airlines, Inc., 372 U. S. 682. In Maddox, supra, the doctrine of exhaustion of remedies was declared by *200this Court to be a part of this federal labor law: “As a general rule in cases to which federal law applies, federal labor policy requires that individual employees wishing to assert contract grievances must attempt use of the contract grievance procedure agreed upon by employer and union as the mode of redress.” 379 U. S., at 652. Strong policy arguments were adduced in Maddox to support this general rule. See 379 U. S., at 652-653; Cox, Rights Under a Labor Agreement, 69 Harv. L. Rev. 601, 647-652 (1956).

I can see no reason why this rule should be thought inapplicable to cases under the Railway Labor Act. Although the Maddox decision did not explicitly cover such cases, the single dissenting Justice recognized that the Court, “. . . while declining expressly to overrule . . . [Moore and its progeny] in this case, has raised the overruling axe so high that its falling is just about as certain as the changing of the seasons.” 379 U. S., at 667. The only two courts of appeals to deal with the impact of Maddox on Moore have concurred in declaring that exhaustion of remedies is now required in the railway labor field. Walker v. Southern R. Co., 354 F. 2d 950 (C. A. 4th Cir.); Neal v. System Bd. of Adjustment, 348 F. 2d 722 (C. A. 8th Cir.). A Pennsylvania appellate court has refused to permit a suit like this one in state court on the ground that since Maddox, “We cannot see how the Moore case is still effective to permit a recovery in a state court suit in this case.” Beebe v. Union R. Co., 205 Pa. Super. 146, 153, 208 A. 2d 16, 20. Other state courts have reached the same conclusion. Buchanan v. St. Louis Southwestern R. Co., 400 S. W. 2d 362; Caffery v. New York Central R. Co., 24 App. Div. 2d 1075, 265 N. Y. S. 2d 742.

The rule of exhaustion of contractual and administrative remedies is a salutary one in an area in which specialization is important and the expertise of certain arbitral *201bodies is recognized. In Whitehouse v. Illinois Central R. Co., 349 U. S. 366, 371, the Court noted that “ ‘The railroad world is like a state within a state. Its population of some three million, if we include the families of workers, has its own customs and its own vocabulary, and lives according to rules of its own making.' Garrison, The National Railroad Adjustment Board: A Unique Administrative Agency, 46 Yale L. J. 567, 568-569.” It is true of course, as the Court observes, that in the Labor Managment Relations Act cases arbitration is imposed contractually while under the Railway Labor Act arbitration by the Adjustment Board is mandatory for all “minor” contractual disputes. If anything, this distinction weighs in favor of respecting Congress’ determination that disputes as to proper practices under a railroad labor contract be settled — at least initially — through direct negotiation between the affected parties and, that failing, by Adjustment Board arbitration.

The Court’s only rationale for refusing to take the step of formally overruling Moore at this time, a step to which current precedent, logic, and policy all so persuasively point, is that there has apparently been some dissatisfaction with the speed of the Board’s procedures and with the statute’s scope of appeal. This dissatisfaction is properly the subject of congressional concern. It is in my view, however, unsound for this Court to make the question whether exhaustion of remedies applies depend upon our decision as to how effectively we think the Board is functioning. It should be enough, as a unanimous Court said just last Term, that Congress “. . . invested the Adjustment Board with the broad power to arbitrate grievances and plainly intended that interpretation of these controversial provisions should be submitted for the decision of railroad men, both workers and management, serving on the Adjustment Board with their long experience and accepted expertise *202in this field.” Gunther v. San Diego & A. E. R. Co., 382 U. S. 257, 261-262. The Court there stated: “This Court time and again has emphasized and re-emphasized that Congress intended minor grievances of railroad workers to be decided finally by the Railroad Adjustment Board.” Id., at 263.

We need not even go back to last Term for such an expression of confidence in the workings of the Railroad Adjustment Board as the central organ of Railway Labor Act contract interpretation. In today’s decision in Transportation-Communication Employees Union v. Union Pacific R. Co., ante, p. 157, the Court holds that the jurisdiction of the Board extends to settlement of tripartite work-assignment disputes. “The railroad, the employees, and the public, for all of whose benefits the Railway Labor Act was written,” the Court says, “are entitled to have a fair, expeditious hearing to settle disputes of this nature.” Ante, at 162. To meet arguments that the Board is not capable of dealing with such complex problems, the Court rightly notes that the Board can “. . . with its experience and common sense, handle this entire dispute in a satisfactory manner in a single proceeding.” Ante, at 165.

I can see no reason why the Board, for purposes of the simple run-of-the-mill contract dispute raised in the present case, is suddenly deemed so incapable of adequately handling the question that the familiar labor law doctrine of exhaustion of remedies is ignored in this instance.

I would affirm the judgment of the Court of Appeals.