American Federation of State, County and Municipal Employees, AFL-CIO v. Shaffer, 66 Misc. 2d 272 (N.Y. Sup. Ct. 1971)
An unsigned collective bargaining agreement can be binding if evidence demonstrates both parties acquiesced to its terms and intended it to be a binding contract, even without formal execution.
Summary
This case addresses whether a collective bargaining agreement is binding when it has not been formally signed. The American Federation of State, County and Municipal Employees sought to enforce an agreement with New York City despite the lack of signatures. The court held the agreement enforceable, finding that the City had demonstrated its acceptance through conduct and intent, making a signed document unnecessary. The key issue was whether there was sufficient evidence of mutual assent and intent to be bound, notwithstanding the missing signatures, thus deviating from a strict requirement of formal execution.
Facts
The American Federation of State, County and Municipal Employees (the Union) engaged in collective bargaining with New York City. After negotiations, an agreement was reached concerning the terms of employment for certain city employees. The agreement included a parity provision. Although the terms were agreed upon, the agreement was never formally signed by either party. The Union sought to enforce the terms of the unsigned agreement, claiming the City had acquiesced to the terms and intended to be bound by it.
Procedural History
The case originated in the trial court, which granted summary judgment to the Union, enforcing the unsigned agreement. The Appellate Division affirmed this decision, holding that no factual issue existed regarding the City’s acceptance and intent to be bound. The case then reached the New York Court of Appeals. The Court of Appeals was divided, with the majority affirming the lower courts’ decisions.
Issue(s)
Whether an unsigned collective bargaining agreement is enforceable when there is evidence of both parties’ acquiescence to its terms and an intent to be bound by it, even without formal signatures.
Holding
Yes, because the evidence demonstrated that the City had acquiesced to the terms of the agreement and intended to be bound by it, despite the absence of a formal, signed contract.
Court’s Reasoning
The court reasoned that a strict requirement of a signed, formal document would be unworkable in the context of public sector collective bargaining. The critical factor is whether the parties manifested a mutual intent to be bound by the agreement’s terms. Evidence of such intent can include conduct, correspondence, and other actions demonstrating acceptance of the agreement. The court noted that the City’s actions indicated it had accepted the agreement’s terms. In his dissenting opinion, Chief Judge Fuld emphasized the lower courts’ findings of fact that the city acquiesced to the parity provision and intended a binding agreement. The dissent highlighted that absent an “inexorable rule” requiring a formal signed document, the summary judgment for the plaintiffs should be affirmed based on the established facts.