BUTTE TEACHERS UNION v BD OF TR

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No. 82-186 I N THE SUPREME COURT O F THE STATE O F MONTANA BUTTE TEACHERS' UNION LOCAL NO. AFL-CIO, 332, P l a i n t i f f and A p p e l l a n t , BOARD OF T R U S T E E S O F BUTTE SCHOOL D I S T R I C T NO. 1 O F S I L V E R BOW COUNTY, MONTANA, D e f e n d a n t and R e s p o n d e n t . Appeal from: D i s t r i c t C o u r t of t h e Second J u d i c i a l D i s t r i c t , I n and f o r t h e C o u n t y of S i l v e r Bow H o n o r a b l e G o r d o n B e n n e t t , Judge p r e s i d i n g . C o u n s e l of R e c o r d : For A p p e l l a n t : J.Brian Tierney, B u t t e , Montana F o r Respondent: P o o r e , R o t h & R o b i n s o n , B u t t e , Montana D o n a l d C. R o b i n s o n , B u t t . e , M o n t a n a S u b m i t t e d on b r i e f s : S e p t e m b e r 2 3 , Decided: Filed: 3EC f 6 19@ ----- jL. Clerk 1982 December 1 6 , 1 9 8 2 M r . J u s t i c e F r a n k B. Court. M o r r i s o n , J r . , d e l i v e r e d t h e O p i n i o n of t h e The S e c o n d J u d i c i a l D i s t r i c t C o u r t , J u d g e Gordon B e n n e t t p r e siding, entered appellant's judgment declaratory in favor judgment c o l l e c t i v e bargaining agreement. of respondent claim based and on dismissed the parties' B u t t e T e a c h e r ' s Union Local N o . 332 a p p e a l s . On March brought 23, 1981, T r u s t e e s of Teacher's judgment declaratory a Butte claim B u t t e S c h o o l D i s t r i c t No. alleging that retiring teachers, package under the parties' Union Local against No. 332 the Board of 1 of S i l v e r Bow C o u n t y , as p a r t o f t h e i r s e v e r a n c e pay collective bargaining agreement, s h o u l d r e c e i v e s e v e r a n c e p a y f o r unused " a d d i t i o n a l " s i c k l e a v e . The p r o v i s i o n s on w h i c h t h e claim was p r e m i s e d s t a t e i n p e r t i n e n t part: " A r t i c l e 23: Severance Pay: Section 1 S c h o o l D i s t r i c t N o . 1 s h a 3 T pay-tld--ceac%er upon h i s o r h e r r e t i r e m e n t or d e a t h , o n e - h a l f o f a n y u n u s e d p o r t i o n of t h e a c c u m u l a t e d s i c k l e a v e remaining i n h i s o r h e r account. S i c k n e s s -- d D e a t h -- n F a m--an - i ily " A r t i c l e 32: 1: A t e a c h e r s h a l l be a l l o w e d L e a v e S e- t i o n c -each year an annual f i f t e e n (15) days s i c k leave with f u l l s a l a r y cumulative f o r t e n ( 1 0 ) y e a r s o r one hundred f i f t y ( 1 5 0 ) d a y s , p l u s a n a d d i t i o n a l f i v e ( 5 ) d a y s s h a l l be a l l o w e d i n which t h e t e a c h e r r e c e i v e s t h e d i f f e r e n c e b e t w e e n h i s o r h e r r a t e of p a y and $18 p e r d a y , a c c u m u l a t e d up t o t h i r t y - f i v e d a y s . . . ." The Union sought a declaration t h a t the t o make payment duty of additional school d i s t r i c t has a sick leave to r e t i r e d and r e t i r i n g t e a c h e r s r e t r o a c t i v e t o 1 9 7 7 , which was when t h i s C o u r t issued i t s o p i n i o n i n S c h o o l D i s t r i c t No. 1 7 5 Mont. 555, 5 6 8 P.2d 1 v. Driscoll (1977)r 1 4 9 , whereby a s i m i l a r p r o v i s i o n in a s e p a r a t e c o l l e c t i v e b a r g a i n i n g a g r e e m e n t b e t w e e n t h e d i s t r i c t and s c h o o l a d m i n i s t r a t o r s was c o n s t r u e d include leave unused due and additional owing sick every to r e q u i r e t h e d i s t r i c t to leave in the administrator The s c h o o l d i s t r i c t a n s w e r e d , d e n y i n g accumulated upon sick retirement. " a n y l i a b i l i t y of any or n a t u r e whatsoever kind members f o r payment of The Union and retiring teacher s i c k l e a v e upon r e t i r e m e n t . " along w i t h a from its c o u n s e l a t t e s t i n g t h a t (1) s i n c e school year, pursuant t o t h i s Court's decision i n supra, Driscoll, additional retired f i l e d a m o t i o n f o r summary j u d g m e n t s u p p o r t i n g a££ i d a v i t t h e 1977-1978 to t h e the d i s t r i c t has paid a l l retiring principals and a d m i n i s t r a t o r s a d d i t i o n a l s i c k l e a v e as p a r t of t h e i r r e t i r e ment b e n e f i t s ; ( 2 ) no r e t i r i n g o r r e t i r e d t e a c h e r members h a v e b e e n p a i d a d d i t i o n a l s i c k l e a v e as p a r t of t h e i r s e v e r a n c e benef i t s s i n c e 1977-1978; and ( 3 ) t h e s c h o o l d i s t r i c t h a s r e f u s e d to p a y s u c h b e n e f i t s a f t e r demand w a s made p u r s u a n t t o t h e p r o v i s i o n s of the parties' c o l l e c t i v e bargaining agreement and the Driscoll d e c i s i o n . The s c h o o l d i s t r i c t o p p o s e d t h e summary j u d g m e n t m o t i o n and filed in response S u p e r i n t e n d e n t of emphasized the additional sick included an affidavit from S c h o o l D i s t r i c t No. following leave facts: and William 1. (1) t h a t severance pay i n c o n t r a c t s between t h e p a r t i e s ; Milligan, C. Milligan's a£ f i d a v i t s i n c e 1964, provisions similar had been ( 2 ) t h a t s i n c e 1964, n o r e t i r i n g t e a c h e r had r e c e i v e d from t h e s c h o o l d i s t r i c t a d d i t i o n a l s i c k l e a v e as p a r t o f t h e i r s e v e r a n c e p a y ; ( 3 ) t h a t a t no t i m e d u r i n g i n t e r m i t t e n t n e g o t i a t i o n s b e t w e e n t h e p a r t i e s had t h e Union p r o p o s e d t h a t t h e s e v e r a n c e p a y p r o v i s i o n be a d m i n i s t e r e d t o i n c l u d e a d d i t i o n a l s i c k l e a v e ; and D r i s c o l l case w e r e d i s t i n g u i s h a b l e ( 4 ) t h a t t h e f a c t s of from t h e the i n s t a n t controversy b e c a u s e D r i s c o l l , b e i n g t h e f i r s t a d m i n i s t r a t o r to r e t i r e u n d e r t h e first c o l l e c t i v e b a r g a i n i n g agreement between a d m i n i s t r a t o r s and the school district, immediately challenged the school d i s t r i c t ' s a p p l i c a t i o n o f a c o m p a r a b l e s e v e r a n c e pay p r o v i s i o n i n the administratorst contract. The D i s t r i c t C o u r t c o n c l u d e d t h e r e were no g e n u i n e i s s u e s of m a t e r i a l f a c t b u t d e n i e d t h e U n i o n ' s p r a y e r f o r summary j u d g m e n t . I n i t s memorandum and o r d e r t h e t r i a l j u d g e e x p l a i n e d t h a t " t h e l o n g a c q u i e s c e n c e of t h e [ U n i o n ] i n t h e [ s c h o o l d i s t r i c t ' s ] con- sistent and s y s t e m a t i c e x c l u s i o n of l e a v e from s e v e r a n c e p a y , the contract, agreement to Thereafter , the a waiver of the provision and an t o allow f o r s u c h e x c l u s i o n . " contract was judgment cumulative s i c k c o n t r a r y t o t h e e x p r e s s p r o v i s i o n of constituted amend additional entered for the school The Union c o n t e n d s t h e D i s t r i c t C o u r t e r r e d district. i n denying its m o t i o n f o r summary j u d g m e n t and e n t e r i n g j u d g m e n t f o r t h e s c h o o l district. V i o l a t i o n s o f t h e p a r o l e v i d e n c e r u l e and R u l e 56 ( c ) , M.R.Civ.P., are a s s e r t e d . a f f i d a v i t was i n a d m i s s i b l e The Union a r g u e s t h a t M i l l i g a n ' s u n d e r t h e p a r o l e v i d e n c e r u l e b e c a u s e it v i o l a t e s t h e c l e a r and unambiguous w r i t t e n c o n t r a c t terms. supporting and opposing Under R u l e 56 ( c ), M.R.Civ. P. affidavits on a motion for summary j u d g m e n t may o n l y s e t f o r t h f a c t s as would be a d m i s s i b l e i n e v i dence a t t r i a l . relevance and A d m i s s i b i l i t y m u s t be the applicable rules of determined i n terms of evidence, including the s u b s t a n t i v e law t h a t w r i t t e n c o n t r a c t s may n o t be v a r i e d by p a r o l evidence. To admitted whether an in ascertain action a necessarily be plaintiff claim thereto. In I s on reviewed for extrinsic written to and S e e s e c t i o n s 28-2-905, -1602, the i n s t a n t matter, contract, determine relief evidence the the can pleadings nature defendant's be must of the defenses MCA. t h i s Court cannot review the lower c o u r t ' s i m p l i c i t r u l i n g on t h e U n i o n ' s o b j e c t i o n to t h e a d m i s s i o n o f p a r o l e v i d e n c e b e c a u s e t h e s t a t e o f t h e p l e a d i n g s a t t h e time of t h e s u b m i s s i o n o f t h e a f f i d a v i t was s u c h t h a t t h e q u e s t i o n of waiver was not properly i n issue. R u l e 8 ( c ) , M.R.Civ.P., af f irmatively school plead. district's cross-motion Consol., for Inc. v. Here, answer summary or waiver was raised by judgment. Borax C o n s o l . , 196, 205, c e r t . d e n . cited r e q u i r e s t h a t t h e d e f e n s e o f w a i v e r be i n Rambur v . 340 U.S. Ltd., neither a Cf. Suckow (9th Cir. Inc. in the subsequent motion 9 4 3 , 9 5 L.Ed. D i e h l Lumber C o . plead Borax or Mines 1 9 5 0 ) , 1 8 5 F.2d 680, 7 1 S.Ct. ( 1 9 6 4 ) , 1 4 4 Mont. 506, 84, 9 0 , 394 P.2d A l l e g a t i o n s o f w a i v e r were i n t h e f i r s t 745, 749. instance presented to the D i s t r i c t C o u r t v i a a memorandum and s u p p o r t i n g a f f i d a v i t i n o p p o s i t i o n t o t h e U n i o n ' s m o t i o n f o r summ a r y j udgment . a t no t i m e d i d Additionally" join i n the waiver B e f o r e t h e d i s t r i c t and a p p e l l a t e c o u r t s , issue. t h e Union t h e Union h a s m a i n t a i n e d i t s o b j e c t i o n t o t h e s c h o o l d i s t r i c t ' s a l l e g a t i o n s of w a i v e r as b e i n g v i o l a t i v e o f t h e p a r 0 1 e v i d e n c e r u l e . Therefore, i t c a n n o t be s a i d t h a t a n i s s u e n o t r a i s e d b y t h e p l e a d i n g s w a s t r i e d by t h e e x p r e s s o r implied c o n s e n t of 1 5 ( b ) , M.R.Civ.P. would p e r m i t . Mont. 1 4 5 , 4 0 5 P.2d Cf. the p a r t i e s , as R u l e R e i l l y v . Maw ( 1 9 6 5 ) , 1 4 6 4 4 0 , w h e r e i n i m p l i e d c o n s e n t was f o u n d o n t h e b a s i s t h a t e v i d e n c e e x t r i n s i c t o t h e claim p l e a d , was a d m i t t e d -- t a t- l- w i t h o u t - - t i o n . r i ao b j -c e . . . . large Without an i s s u e r e g a r d i n g w a i v e r , .- portion of Milligan's because i t is district has retiring t e a c h e r s under af f i d a v i t is inadmissible a simply i r r e l e v a n t to t h e q u e s t i o n of w h e t h e r t h e s c h o o l a duty to pay the unused terms o f sick leave to retired and the c o l l e c t i v e bargaining ll a g r e e m e n t and t h e D r i s c o-- o p i n i o n . G i v e n t h e d i s p o s i t i o n of t h e f i r s t i s s u e , w e need n o t a d d r e s s t h e s e c o n d a r g u m e n t on a p p e a l . T h i s C o u r t h e r e b y v a c a t e s t h e j u d g m e n t below and r e m a n d s t h e case w i t h summary instructions judgment before the court. to motion the court to r e c o n s i d e r i n t h e c o n t e x t of the the Union's issues properly Amendment o f t h e s c h o o l d i s t r i c t ' s a n s w e r to i n c l u d e a f f i r m a t i v e d e f e n s e s i n a v o i d a n c e of t h e c o n t r a c t is n o t p r e c l u d e d by t h i s o p i n i o n . W concur: e Mr. Justice John C. Sheehy, specially concurring: I concur in the opinion, but disagree that an amend- ment to the pleadings to include waiver is permissible in this case. Waiver is a voluntary and knowing relinquish- ment of a right. I do not see how waiver, if waiver occurred, by the Union could be binding upon the individual teacher-members of the Union on their severance. While the Union is the agent of the teachers in the bargaining which results in the contract, it can hardly be the agent of its members for the purpose of waiver when the school board violates the terms of the contract.

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