Coleman v. Outboard Marine Corp.Coleman v. Outboard Marine Corp.
The issue presented by this appeal is whether summary judgment should have been granted in this suit brought by an employee against the union and against his employer alleging breach of the duty of fair representation by the union and breach of the collective bargaining agreement by the employer. We hold that summary judgment should not have been granted.
William J. Coleman, the employee-plaintiff, served a summons and complaint upon his employer, Outboard
Issue was joined in February 1976. On March 29, 1977, the Union served and filed a notice of motion and motion for summary judgment on the grounds that there is no genuine issue as to any material fact. Documents were submitted in support of this motion but no affidavit describing the documents or otherwise setting forth evidentiary facts was submitted. The motion was based upon “the papers attached hereto and the pleadings filed herein and the exhibits attached which set forth eviden-tiary facts showing that the [Union] are entitled to summary judgment against the plaintiff.”
On April 14, 1977, Outboard moved for summаry judgment basing its motion upon the “papers and exhibits filed in support of the Motion for Summary Judgment dated March 29, 1977 filed by [the Union].” At the time of filing the motion, Outboard did not furnish a supporting affidavit. However on May 5, 1977, Outboard furnished an affidavit by one of its attorneys stating that “this motion is based upon the uncontro-verted facts set forth in the pleadings and the exhibits previously filed . . . [and that Outboard] believes that this action has no merit.”
Coleman submitted a brief in opposition to the motions for summary judgment, arguing that because of procedural improprieties, the motions should not be granted. Coleman’s brief did not argue the merits of the motions and did not file any ¡counter affidavits.
On May 10, 1977, the circuit court granted the defendants’ motions for summary judgment and ordered that Coleman’s complaint be dismissed. The circuit court concluded that “in briefs and at the hearing Coleman
On appeal, Coleman again objects to the granting of the motions for summary judgment on the ground that the motions did not comply with the applicable statutory requirements. Sec. 270.635, Stats. 1973,
2
governs summary judgment in actions commenced prior to January 1, 1976, and sec. 802.08, Stats.,
3
governs summary judg
Under both sec. 270.635, Stats. 1973, and sec. 802.08, Stats., summary judgment must be denied if there is a genuine issue as to any material fact. Because we hold that the documents submitted by the defendants show that there is a genuine issue as to a material fact and that it was error to grant summary judgment, we need not determine whether there is merit to Coleman’s objections to the motions on the grounds that defendants did not file appropriate documents or give him proper notice.
This court has in numerous cases set forth the procedure it follows in reviewing whether a summary judgment should have been granted. Initially the court must examine the pleadings to determine whether a cause of action has been stаted and whether a material issue of fact is presented.
If the complaint states a claim and the pleadings show the existence of factual issues, the court examines the moving party’s (in this case, the defendants’) affidavits and other proof to determine whether there are disputed material facts sufficient to entitle the opposing party to a trial. Sec. 270.635(2), Stats. 1973; sec. 802.08(3), Stats.
Ricchio v. Oberst,
The papers filed by the moving party are carefully scrutinized. The inferences to be drawn from the underlying facts contained in the moving party’s material should bе viewed in the light most favorable to the party opposing the motion. If the movant’s papers before the court fail to establish clearly that there is no genuine issue as to any material fact, the motion will be denied. 6 Moore on Federal Practice, 56.15 [3], p. 56-463
et seq.
(2d ed. 1976). If the material presented on the motion is subject to conflicting interpretations or reasonable people might differ as to its significance, it would be improper to grant summary judgment. 10 Wright & Miller,
Federal Practice & Procedure: Civil
sec. 2725, p. 515 (1973);
Kraemer Bros. Inc. v. United States Fire Insurance Co.,
We turn now to review Coleman’s complaint under these standards. The amended complaint alleges that
Coleman alleges that he appeared at the plant on July 14, 1975 and informed the Union that while hе agreed to return to work he wanted back pay and his record expunged. The amended complaint further recites that Coleman was not told that a settlement had been reached at the fourth step of the grievance procedure and that Coleman was led to believe that the Union was considering whether to go to arbitration (the fifth step of the grievance procedure) but that if he returned to work on July 14, 1975, arbitration would not be undertaken. Coleman did not return to work, and Outboard terminated him for failure to abide by the settlement reached at the fourth step of the grievance procedure.
Coleman’s complaint charges the Union with numerous acts which Coleman asserts are the basis for his allegation that the Union’s representation of him was arbitrary, discriminatory, and in bad faith and constituted
In order to recover from the Union, the complaint must state a claim that the Union breached its duty of fair representation. In order to recover from Outboard, the complaint must also state a claim that his discharge was contrary to the collective bargaining agreement.
See Mahnke v. Wisconsin Employment Relations Commission,
We will first consider whether summary judgment was appropriate with regard to the claim that the Union breached its duty of fair representation.
The employee does not have аn absolute right to arbitration. The fact that the Union settles a grievance short of arbitration does not, without more, constitute a breach of the duty of fair representation.
Mahnke v. WERC,
“A breach of the statutory duty of fair representation occurs only when a union’s conduct toward a member of the collective bargaining unit is arbitrary, discriminatory, or in bad faith. See Humphrey v. Moore [375 U.S.335 (1964)]; Ford Motor Co. v. Huffman [ 345 U.S. 330 (1953)]. . . .
“. . . It can well be doubted whether the parties to collective bargaining agreements would long continue to provide for detailed grievance and arbitration procedures of the kind encouraged by L. M. R. A. sec. 203(d), supra, if their power to settle the majority of grievances short of the costlier and more time-consuming steps was limited by a rule permitting the grievant unilaterally to invoke arbitration. Nor do we see substantial danger to the interests of the individual employee if his statutory agent is given the contractual power honestly and in good faith to settle grievances short of arbitration. For these reasons, we conclude that a union does not breach its duty of fair representation, and thereby open up a suit by the employee for breach of contract, merely becаuse it settled the grievance short of arbitration.”
The
Vaca
test was recently restated in
Ryan v. Newspaper Printing Pressman’s Union No. 2,
“THE LEGAL STANDARD OF FAIR REPRESENTATION
“A union has a statutory duty of fair representation under sec. 8 (b) of the Labor Management Relations Act, a breach of which entitles the aggrieved employee (s) to relief in the courts at law as well as before the National Labor Relations Board. Vaca v. Sipes,386 U.S. 171 ,87 S. Ct. 903 ,17 L. Ed.2d 842 (1967). In that leading case the Court circumscribed the duty, however, by stating that a breach occurs ‘only when a union’s conduct toward a member of the collective bargaining unit is arbitrary, discriminatory, or in bad faith.’ Id. at 190,87 S. Ct. at 916 . Not every breach resulting in unfairness, then, is remediable; it must have an additiоnal element to it. Thus, for example, in the grievance context a union may not ‘arbitrarily ignore’ a meritorious grievance or process it ‘perfunctor[ily],’ but the employee does not have ‘an absolute right to have his grievance taken to arbitration.’ Id. at 191,87 S. Ct. at 917 . ‘[Arbitrary orbad-faith conduct,’ id. at 193, 87 S. Ct. 903 , or ‘substantial evidence of fraud, deceitful action or dishonest conduct,’ Humphrey v. Moore,375 U.S. 335 , 348,84 S. Ct. 363 , 371,11 L. Ed.2d 370 (1964), is required to show a breach of the duty of fair representation. See Amalgamated Association of Street, Electric Railway & Motor Coach Employees v. Lockridge,403 U.S. 274 , 299,91 S. Ct. 1909 ,29 L. Ed.2d 473 (1971).
“This court has refined these concepts to stand for the proposition that, at least in negotiating and implementing a contract, a union may breach the statutory duty by arbitrary or irrational conduct, even in the absence of bad faith or hostility in the form of ill will or common law malitia; but although the employee may challenge actions other than those involving anti-minority animus or malice, nevertheless ‘the union has broad discretion to adjust the demands of competing groups within its constituency as long as it does not act arbitrarily.’ Jones v. Trans World Airlines, Inc.,495 F.2d 790 , 798 (2d Cir. 1974). We are not necessarily left with shifting ad hoc standards to be fashioned anew in each case, but we do have broad parameters of judgment that necessarily vary from context to context.”
See also Robesky v. Qantas Empire Airways, Ltd.,
We adopted the
Vaca
test in
Mahnke v. WERC,
Coleman’s complaint alleges conduct by the Union which if proved could be found to violate the duty of fair representation. The Union denied the conduct. Accordingly, the complaint states a claim and the pleadings show there are disputed facts. We must examine the material on file to determine whether there are disputed material facts sufficient to entitle the party opposing the motion for summary judgment to a trial.
Exhibit B, which summarizes the step 4 hearing, states that Coleman demanded back pay and that his record be cleared because he felt he was unjustly disciplined, although he admitted “I probably should have seen the parts. It was an oversight on my part.” After Coleman left the room, Outboard set forth its proposal: Coleman would be reinstated in his old job without back pay or the clearing of his record. According to the summary, Outboard stated that “If he does not return on July 14, 1975 for his shift, he will be removing himself from our rolls.” The Union’s representative responded: “This is agreeable. We will inform the employee.”
Exhibits D and E are excerpts from Coleman’s deposition taken by the defendants on September 10, 1976. Coleman stated that he informed the Union that he was accepting part of the offer and rejecting part of the offer (referring to the step 4 decision). The Union representative told him he had an option of “taking or leaving the whole thing.” Coleman said he interpreted this statement as meaning that the Union “just didn’t care what I did.” Coleman said that he asked the Union representative what the Union’s position was, and the Union representative responded that “we don’t know right now where we stand.” Coleman asserted he was feeling “lousy,” on the day he misworked the pieces and he conceded that although he tried to inspect each piece, “there was room for improvement” in his inspection operation. To the
Exhibit F is the decision of the Appeal Tribunal of the Department of Industry, Labor and Human Relations Commission, which denied Coleman’s unemployment claim. The evidence upon which the Tribunal based its decision is not part of the exhibit. The Tribunal found that Coleman had produced unacceptable parts and that Coleman’s allegation that the parts frequently had dents did not justify his acceptance of the parts in question. The Tribunal concluded that Coleman’s “actions in failing to meet the employer’s [parts] tolerances together with his failure to return to work on July 14, 1975, evinced a willful, intentional, and substantial disregard of the employer’s interests.”
Exhibit G are documents relating to Coleman’s charges before the National Labor Relations Board against Outboard for discriminating against him because of his union activities and against the Union for unfair representation. On the basis of its investigation (which is not set forth in the exhibit) the Regional Director of the NLRB refused to issue a complaint against Outboard, because it appeared that Outboard terminated Coleman because of poor workmanship and refusal to return to work; the charge against the Union was dismissed because it “appears that the Union acted within the wide range of reasonableness accorded a statutory bargaining representative in the administration of a collective bargaining agreement in refusing to take his grievance to arbitration.”
On the basis of these exhibits the circuit court, relying on
Powell v. Globe Industries, Inc.,
“As the Union’s decision not to take the plaintiff’s grievance to arbitration was based on their considered judgment that Globe’s settlement offer was the best they could do for the plaintiff, and as it does not appear that their handling of the plaintiff’s grievance was arbitrary, perfunctory, or in bad faith, the Court will grant the Union’s motion for summary judgment.” Powell v. Globe Industries, Inc., supra,431 F. Supp. at 1099-1100 .
As in Powell, the documents submitted by the defendants in the instant case attempted to show that Outboard had cause to suspend or terminate the employee and that the Union proceeded through step 4 and obtained as good a settlement as it could for Coleman.
However, the instant case is distinguishable from
Powell.
Coleman’s complaint alleges specific acts which Coleman asserts violated the duty of fair representation, namely Coleman’s complaint asserts that the Union breached its duty to represent him fairly by failing to tell him that a settlement between the Union and Outboard had been rеached at step 4, that his rejection of
In
Robesky v. Qantas Empire Airways, Ltd.,
We conclude that there is a genuine issue of material fact, and the Union’s motion for summary judgment should not be granted.
Because the circuit court concluded that a summary judgment should be granted to the Union, it granted summary judgment to Outboard without ruling on the question whether there is a genuine issue as to any material fact in regard to Coleman’s claim against Outboard that it breached the collective bargaining agreement when it suspended or terminated him. On appeal Outboаrd argues that even if the order granting summary judgment to the Union is overruled, summary judgment in favor of Outboard should be affirmed, because Coleman’s suspension and termination was not a violation of the collective bargaining agreement.
The collective bargaining agreement provides that Outboard could suspend or discharge an employee “for proper cause,” and that the issue of proper cause is subject to the five-step grievance procedure. 6 In the instant case Coleman was terminated at step 4.
Accordingly, the orders granting summary judgment and denying the motion to vacate the summary judgment should be vacated, and the judgment dismissing the complaint should be reversed.
By the Court. — Orders vacated, judgment reversed, and cause remanded for proceedings not inconsistent with this opinion.
Notes
The two unions will be referred to herein as the Union and Outboard and the Union are referred to herein as the defendants.
“270.635. [Stats. 1973] Summary judgment. (1) Summary judgment may be entered as provided in this section in any civil action or special proceeding. Notice of motion for summary judgment and the papers in support thereof shall be served within 40 days after issue is joined, subject to enlargement of time as provided in s. 269.45.
“(2) The judgment may be entered in favor of either party, on motion, upon the affidavit of any person who has knowledge thereof, setting forth such evidentiary facts, including documents or copies thereof . . . ; and, if on behalf of the defendant, such evidentiary facts, including documents or copies thereof, as shall show that his denials or defenses are sufficient to defeat the plaintiff, together with the affidavit of the moving party, . . . that the action has no merit . . . unless the opposing party shall, by affidavit or other proof, show facts which the court shall deem sufficient to entitle him to a trial.”
“802.08 Summary judgment (1) Availability. At any time after issue is joined but not later than the time provided in the
“(2) Motion. The motion shall be served at least 20 days before the time fixed for the hearing. The adverse party prior to the day of hearing may serve opposing affidavits. The judgment sought shall be rendered if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. A summary judgment, interlocutory in character, may be rendered on the issue of liability alone although there is a genuine issue as to the amount of damages.
“(3) Supporting papers. Supporting and opposing affidavits shall be made on personal knowledge and shall set forth such evidentiary facts as would be admissible in evidence. Copies of all papers or parts thereof referred to in an affidavit shall be attached thereto and served therewith, if not already of record. The court may permit affidavits to be supplemented or opposed by depositions, answers to interrogatоries, or further affidavits. When a motion for summary judgment is made and supported as provided in this section, an adverse party may not rest upon the mere allegations or denials of the pleadings but the adverse party’s response, by affidavits or as otherwise provided in this section, must set forth specific facts showing that there is a genuine issue for trial. If the adverse party does not so respond, summary judgment, if appropriate, shall be entered against such party.
“(4) When affidavits unavailable. Should it appear from the affidavits of a party opposing the motion that the party cannot for reasons stated present by affidavit facts essential to justify the party’s opposition, the court may refuse the motion for judgment or may order a continuance to permit affidavits to be obtained or depositions to be taken or discovery to be had or may make such other order as is just.”
Sec. 801.01(3) (b), Stats., provides:
“801.01(3) Effective dates, (a) Chapters 801 to 803 apply to all actions commenced on or after January 1, 1976. (b) Chapters 804 to 807 shall apply to all actions pending or commenced on or after January 1, 1976, except those actions in which trial has commenced prior to January 1, 1976 as to which the statutes and rules in effect prior to January 1, 1976, shall continue to apply.”
It does not appear in the record that 'Coleman objected to these exhibits on the ground that no proper foundation was laid for the documentary exhibits or on the ground that the exhibits did not contain facts admissible in evidence.
See Hamilton v. Keystone Tankship Co.,
“Sec. 3 . . . [of the collective bargaining agreement] 5. (a) The Union recognizes that the Management of the works and the direction of the working forces including the right to hire, suspend or discharge for proper cause, or transfer, and the right to relieve employees from duty because of lack of work, or for other legitimate reasons, and in general all other functions of Management not expressly limited by this agreement, are reserved to and vested exclusively in Evinrude [a division of Outboard]. The application of this section shall not conflict with the terms of this Agreement and shall not be used to nullify any of the provisions thereof, or in a discriminatory manner against any member or officer of the Union.”
“Section 12. Discharges.