828 F.3d 969
D.C. Cir.2016Background
- The International Union, Security, Police & Fire Professionals of America sued its former District Director Assane Faye, alleging breaches of fiduciary duties while he was employed and asserting claims under 29 U.S.C. § 501 (LMRDA), D.C. law, and LMRA (the LMRA claim was not pursued on appeal).
- Section 501(a) of the LMRDA declares federal fiduciary duties for union officers; § 501(b) expressly creates a federal derivative-style cause of action for union members to sue "for the benefit of the labor organization" only after the union "refuse[s] or fail[s] to sue" and after obtaining leave of court.
- The district court held that § 501 provides a federal cause of action only to individual union members (not to the union itself) and dismissed the union’s federal and supplemental state-law claims for lack of subject-matter jurisdiction.
- The union appealed, arguing § 501 implies a federal cause of action for the union itself; the court reviews de novo and treats the question as a merits issue (not jurisdictional) under Supreme Court authority.
- The D.C. Circuit majority relied on Weaver v. United Mine Workers, which allowed a union to assume control of a member-initiated § 501 suit, concluding Weaver’s reasoning necessarily means a union may sue under § 501 in the first instance; concurring judges separately explained statutory-text and stare-decisis reasons; the dissent argued Weaver did not decide the implied-action issue and would affirm dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 29 U.S.C. § 501 implies a federal cause of action allowing a union itself to sue its agents for breach of the duties declared in § 501(a) | The Union: § 501(a) creates federal rights belonging to the union; § 501(b)’s structure (requiring the union to be asked to sue before a member may) implies unions can sue in federal court; Weaver permits the union to be a plaintiff | Faye: Congress created an express federal remedy only for members; text and structure of § 501(b) show Congress intended member suits, not union suits in federal court; Weaver did not decide this question | The court (majority): Reverse. Weaver (and the statute’s text/structure as interpreted by concurrences) compels that unions may bring § 501 suits; supplemental jurisdiction supports state-law claims |
Key Cases Cited
- Weaver v. United Mine Workers of America, 492 F.2d 580 (D.C. Cir. 1973) (per curiam) (allowed a union to assume control of a member-initiated § 501 action)
- Alexander v. Sandoval, 532 U.S. 275 (U.S. 2001) (framework for implying private rights and remedies from statute)
- Lexmark Int’l, Inc. v. Static Control Components, Inc., 134 S. Ct. 1377 (U.S. 2014) (distinguishing absence of cause of action from lack of subject-matter jurisdiction)
- Arbaugh v. Y&H Corp., 546 U.S. 500 (U.S. 2006) (employee-numerosity rule as merits issue, not jurisdictional)
- Building Material & Dump Truck Drivers, Local 420 v. Traweek, 867 F.2d 500 (9th Cir. 1989) (no implied union cause of action under § 501)
- Int’l Union of Operating Engineers, Local 150 v. Ward, 563 F.3d 276 (7th Cir. 2009) (recognized implied union cause of action under § 501)
- Int’l Union of Electronic, Electrical, Salaried, Machine & Furniture Workers v. Statham, 97 F.3d 1416 (11th Cir. 1996) (recognized implied union cause of action under § 501)
- Seminole Tribe of Florida v. Florida, 517 U.S. 44 (U.S. 1996) (binding effect of prior precedent and necessary portions of earlier opinions)
- Karahalios v. Nat’l Fed’n of Fed. Employees, Local 1263, 489 U.S. 527 (U.S. 1989) (reluctance to imply causes of action where statute provides an express remedy)
