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828 F.3d 969
D.C. Cir.
2016
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Background

  • 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)
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Case Details

Case Name: International Union, Security, Police & Fire Professionals of America v. Faye
Court Name: Court of Appeals for the D.C. Circuit
Date Published: Jul 15, 2016
Citations: 828 F.3d 969; 424 U.S. App. D.C. 147; 2016 U.S. App. LEXIS 12983; 2016 WL 3853871; 206 L.R.R.M. (BNA) 3569; 15-7084
Docket Number: 15-7084
Court Abbreviation: D.C. Cir.
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    International Union, Security, Police & Fire Professionals of America v. Faye, 828 F.3d 969