Copeland v. PENSKE LOGISTICS LLC
2012 U.S. App. LEXIS 6916
7th Cir.2012Background
- Penske Logistics provided transportation services for the Indianapolis Star from 1999 to 2009.
- As the Star bid, Penske lost the contract and announced cessation of operations on May 19, 2009.
- The Star was Penske’s only customer, so business shutdown followed by expiration of the CBA two days later.
- Plaintiffs asserted a hybrid §301 claim alleging breach of the CBA and union duty of fair representation for the severance package.
- District court granted summary judgment, finding no breach of the CBA and no viable DFR claim.
- On appeal, district-court reasons about jurisdiction and the scope of §301 were reviewed; judgments on ancillary logistics issues were remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the hybrid §301 claim is cognizable here | Copeland asserted breach of CBA and union DFR for severance | No breach of the CBA and no viably pled DFR claim | Hybrid claim partly affirmed; jurisdictional issues remanded |
| Whether §1367(a) provides jurisdiction for the logistics agreement claim | Plaintiffs are third-party beneficiaries seeking broader benefits | No aggregate amount, no diversity, no common controversy | Remand for lack of subject-matter jurisdiction; vacate |
| Whether the union's bargaining conduct is within this court's §301 jurisdiction | Union failed to bargain hard enough for enhanced benefits | Unfair labor practice claims fall to the NLRB, not §301 | Within Board's exclusive jurisdiction; §301 claims not viable |
| Whether the union’s alleged failure to bargain for extra severance falls under unfair-labor-practice provisions | Union breached its DF R by not pushing for more severance | That claim is an unfair-labor-practice, not a contract claim | Outside §301; Board has primary jurisdiction |
| Whether the district court correctly resolved the logistics agreement claims | Star would cover severance costs via logistics agreement | No coverage under §301; independent contract dispute | Remanded to dismiss for lack of jurisdiction |
Key Cases Cited
- First National Maintenance Corp. v. NLRB, 452 U.S. 666 (1981) (effects bargaining permitted; only remedies via NLRB for unfair labor practices)
- Vaca v. Sipes, 386 U.S. 171 (1967) (hybrid §301 action requires breach of contract and DF R breach)
- Marquez v. Screen Actors Guild, Inc., 525 U.S. 33 (1998) (unfair-labor-practice remedies rest with NLRB; Board remedies primary)
- Communications Workers v. Beck, 487 U.S. 735 (1988) (board-exclusive remedies for unfair labor practices during bargaining)
- Textile Workers v. Lincoln Mills, 353 U.S. 448 (1957) (§301 suits enforce contracts; scope of contract-based relief)
- Motor Coach Employees v. Lockridge, 403 U.S. 274 (1971) (§301 claims can be ancillary to contract breach; not standalone DF R claim)
- San Diego Building Trades Council v. Garmon, 359 U.S. 236 (1959) (preemption by NLRB where labor-law issues predominate; preemption as defense)
- Brown v. Pro Football, Inc., 518 U.S. 231 (1996) (jurisdiction preserved where labor-law issues intersect with antitrust)
- Smith v. Evening News Association, 371 U.S. 195 (1962) (concurrent jurisdiction; Board and courts interact over labor-contract disputes)
