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Matter of Russell v. Patterson

Appellate Division of the Supreme Court of New York, Second Department
Dec 13, 1976
55 A.D.2d 619 (N.Y. App. Div. 1976)

Summary

In Russell v. Patterson Co., 232 Pa. 113, the action of directors in voting increased salaries to two of their number was held only voidable, if the increase was reasonable and honest, and that such action could be ratified by majority vote of the stockholders, and that, as stockholders, the interested directors had the right to vote upon such ratification.

Summary of this case from Putnam v. Juvenile Shoe Corporation

Opinion

December 13, 1976


In a proceeding pursuant to CPLR article 78, inter alia, to compel respondents to recognize the right of members of a union local to be represented by the law firm of Richard Hartman in "Step 3" of grievance proceedings arising out of a collective bargaining agreement entered into between the parent union and the State of New York, petitioner appeals from a judgment of the Supreme Court, Nassau County, dated April 12, 1976, which denied the application and dismissed the petition. Judgment affirmed, with $50 costs and disbursements to respondent Council 82. In the absence of an allegation of fraud or of other impropriety undermining the caliber of representation afforded members of Local 1793 in grievance proceedings with the employer unit, they are without authority to retain outside counsel to represent them, collectively or individually, in grievance proceedings without the assent of the parent union. Council 82 is the duly elected and certified "exclusive representative" of the "employee organization" of which Local 1793 is a part "for the purpose of collective negotiations and the settlement of grievances", and, as such, is the only party authorized by the contract to pursue a grievance to "Step 3". Under these circumstances, to permit a given local or employee to retain outside counsel to act at a "Step 3" grievance proceeding would not only do violence to the contract language, but would undermine the exclusivity of representation which is the purpose of PERB certification and a cornerstone of the Taylor Law's approach to the normalization of labor relations between public employers and employees (see Civil Service Law, art 14, esp §§ 206-208; cf. Civil Serv. Forum v New York City Tr. Auth., 4 A.D.2d 117, 125, 127, affd 4 N.Y.2d 866). Hopkins, Acting P.J., Damiani, Rabin, Shapiro and Hawkins, JJ., concur.


Summaries of

Matter of Russell v. Patterson

Appellate Division of the Supreme Court of New York, Second Department
Dec 13, 1976
55 A.D.2d 619 (N.Y. App. Div. 1976)

In Russell v. Patterson Co., 232 Pa. 113, the action of directors in voting increased salaries to two of their number was held only voidable, if the increase was reasonable and honest, and that such action could be ratified by majority vote of the stockholders, and that, as stockholders, the interested directors had the right to vote upon such ratification.

Summary of this case from Putnam v. Juvenile Shoe Corporation

In Russell v. Patterson Co., 232 Pa. 113, 81 A. 136, 36 L.R.A. (N.S.) 199, where the directors had voted to themselves a salary, and the majority of the stockholders, including the directors who were shareholders, ratified the allowance in a meeting over the protest of a minority of the stockholders, the court held that such transaction was only voidable and subject to ratification of the majority vote of the stock.

Summary of this case from Pruitt v. Westbrook
Case details for

Matter of Russell v. Patterson

Case Details

Full title:In the Matter of ROLAND J. RUSSELL, Individually and as President of the…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Dec 13, 1976

Citations

55 A.D.2d 619 (N.Y. App. Div. 1976)

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