833 F.3d 847
7th Cir.2016Background
- Patricia Rupcich, a 25-year Jewel employee and member of UFCW Local 881, was suspended then terminated after taking a 25-lb bag of birdseed in a store cart past the last point of sale on Jan. 19, 2012; she says it was an inadvertent mistake while rushing home for her sick grandson.
- Jewel’s loss-prevention investigation relied on video stills and reports; Jewel applied a misappropriation policy it described as strictly enforced and not requiring proof of intent; Novosel (Jewel) recommended termination.
- Local 881 filed a grievance on Rupcich’s behalf but, according to the CBA, failed to follow the CBA’s Step 1 grievance procedure and ultimately declined to pursue arbitration; Local 881 treated a prior, substantively similar member’s case (Mack) differently by taking it to arbitration.
- Rupcich produced corroborating evidence (doctor’s note, police statement) supporting her inadvertence defense; Local 881 did not interview store witnesses and received only photo stills (not full video) from Jewel.
- Rupcich sued in a hybrid §301 action alleging breach of the union’s duty of fair representation and breach of the collective bargaining agreement; the district court granted summary judgment to Local 881 and Jewel; the Seventh Circuit reversed as to the union and employer and affirmed denial of Rupcich’s summary judgment motions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Local 881 breached its duty of fair representation by abandoning the CBA grievance process and refusing arbitration | Local 881 ignored the CBA’s mandatory grievance steps, treated Rupcich differently than similar cases, and thus acted arbitrarily causing her harm | Union invokes broad deference in grievance handling and claims a long-standing practice of bypassing Step 1 justified its conduct | Reversed as to union: a reasonable juror could find the union’s conduct arbitrary and outside a wide range of reasonableness (trial required) |
| Whether Local 881 acted in bad faith in handling Rupcich’s grievance | Union acted from improper motives or concealed agreements with employer | Union denies improper motive; argues discretionary judgment | Held for union on bad-faith theory at summary judgment: plaintiff offered no direct evidence of improper motive |
| Whether Jewel’s termination of Rupcich was supported by “just cause” under the CBA given its misappropriation policy | Jewel lacked just cause because (1) policy is ambiguous on intent and unreasonable; (2) evidence supports inadvertence; arbitration likely would find no just cause | Jewel asserts a strict, non-intent-based misappropriation rule that mandates termination absent special circumstances | Reversed as to employer claim’s dismissal: because union claim may proceed, the hybrid §301 claim against Jewel cannot be resolved for summary judgment; factual issue of just cause inappropriate for summary judgment |
| Whether district court properly granted summary judgment to defendants and denied Rupcich’s summary judgment motions | District court erred because genuine disputes of material fact exist about arbitrariness and causation | District court had found union discretion warranted summary judgment for defendants | Seventh Circuit reversed defendants’ summary judgment, affirmed denial of Rupcich’s summary judgment (case remanded) |
Key Cases Cited
- Air Line Pilots Ass'n Int'l v. O'Neill, 499 U.S. 65 (standard: union breaches duty when actions are arbitrary, discriminatory, or in bad faith)
- Vaca v. Sipes, 386 U.S. 171 (union duty of fair representation and scope of discretion in grievance handling)
- DelCostello v. Int'l Bhd. of Teamsters, 462 U.S. 151 (hybrid §301 framework: plaintiff must prove both contract breach and union misconduct)
- Merk v. Jewel Food Stores Div. of Jewel Cos., Inc., 945 F.2d 889 (side agreements that contradict CBA are unenforceable and can be arbitrary union conduct)
- McKelvin v. E.J. Brack Corp., 124 F.3d 864 (plaintiff must show union’s position is not merely less persuasive but could be deemed not colorable to prove arbitrariness)