Lead Opinion
We consider in this appeal issues of federal jurisdiction and labor law arising out of the attempt of a railroad worker, Daniel Graf, to sue his union, a local union of the Brotherhood of Railway Carmen, and his employer, the Elgin, Joliet and Eastern Railway.
Graf sustained a concussion in an accident at work. In the course of investigating the accident the railroad learned that when Graf had been hired two years earlier he had not disclosed on his employment and medical forms a previous job, an injury (to his knee) in that job, and a claim for compensation for that injury. All were items of information that the forms required him to disclose, on penalty of being fired if he did not. After an informal hearing before his supervisor, at which Graf was represented by Leo Evans, the chairman of Local 882 (the collective bargaining representative), the railroad fired Graf for having knowingly falsified the forms.
Graf filed suit in a state court against the company (Count I) and the union (Count II). Count I, which sought reinstatement and back pay, charged that the company had fired Graf for the sole and wrongful reason that Graf had sued it under the Federal Employers Liability Act, 45 U.S.C. §§ 51 et seq., for damages allegedly sustained as a result of the accident. Count II, which sought damages of $15,000, charged that the union had negligently failed to prosecute Graf’s grievance. This count originally named Evans as a codefendant but he has been dismissed from the case and Graf does not appeal the dismissal.
The union removed the suit to federal district court and moved for summary judgment. The district judge granted the motion and dismissed Count II on the ground that the union had not breached its duty of fair representation. The judge then dismissed Count I on his own initiative because breach of the union’s duty is a precondition to maintaining a suit against the company.
Graf’s state court complaint had not indicated under what law he was suing, and in removing the suit the union did not indicate why it thought Graf’s complaint was within the original jurisdiction of the federal district court. After removal Graf filed an amended complaint in the district court, but it was virtually identical to the original one and likewise did not indicate the legal basis for the suit. The district court never stated what it thought the basis of federal jurisdiction was either.
There is a natural assumption, based on section 301 of the Taft-Hartley Act, 29 U.S.C. § 185, that all suits to enforce collective bargaining agreements (including suits by individual workers, see Smith v. Evening News Ass’n,
If the complaint can be read to allege a violation of the Railway Labor Act itself rather than just of the collective bargaining agreement, then 28 U.S.C. § 1337 confers original federal jurisdiction. See, e.g., Raus v. Brotherhood of Railway Carmen,
The basis of federal jurisdiction over Count I, which alleges retaliatory discharge by the railroad, is less clear. There is no suggestion that the company participated in the union’s alleged violation of the statutory duty of fair representation; if it had, the basis of jurisdiction would be the same as over Count II. A claim that you have been retaliated against for exercising a federal right—the right to sue under FELA—might raise a federal question substantial enough to confer federal jurisdiction under 28 U.S.C. § 1331. It is unclear, though, what federal law such retaliation would violate. Apparently it would not violate the FELA itself, see Greenwood v. Atchison, Topeka & Santa Fe Ry.,
Diversity of citizenship was the ground on which a federal district court assumed jurisdiction over an employee’s suit against his employer for breach of the collective bargaining contract in Moore v. Illinois Central R.R.,
Now Graf, as we shall see, may not be able to get complete relief in his suit against the union. Complete relief may require bringing in the company as an additional defendant. If so, Rule 19 of the Federal Rules of Civil Procedure would authorize joinder. But Rule 19 is not a source of federal subject-matter jurisdiction, 3A Moore’s Federal Practice § 19.04(2.-2) at pp. 19-68 to 19-70 (1982). And although the same considerations that support joinder might appear to support federal jurisdiction over Graf’s claim against the company under the “pendent parties” concept, the current judicial hostility to that concept, illustrated by our recent decision in Hixon v. Sherwin-Williams Co.,
Language in Andrews, see
Nor does the fact that an activity is regulated by a federal statute, as collective bargaining in the railroad industry is regulated by the Railway Labor Act, mean that disputes between private parties engaged in that activity arise under the statute. See T.B. Harms Co. v. Eliscu,
Despite all these grounds for doubt we believe that Graf’s contract claim against the railroad does arise under federal law—federal common law. Although the Railway Labor Act neither establishes standards for interpreting collective bargaining agreements nor explicitly authorizes the federal courts to establish them, but instead gives responsibility for such interpretation to the arbitral boards, the Act has been construed to create a duty of fair representation, and so construed it sometimes requires the courts to interpret railroad collective bargaining agreements. Richins v. Southern Pac. Co.,
Since a federal common law of railroad collective bargaining contract interpretation is being applied in workers’ suits against unions, it makes sense to apply it also in the worker’s suit against his employer. This is obvious enough where, as in Glover v. St. Louis-San Francisco Ry.,
Now that the amount in controversy requirement has been abolished in federal question cases, it hardly matters whether this area of federal common law is regarded as a thing apart from the Railway Labor Act, so that federal jurisdiction is conferred by 28 U.S.C. § 1331, or as a part of the Act, so that jurisdiction also lies under section 1337. See Central Airlines, supra,
In Hoffman v. Lonza, Inc.,
But Graf also asks us to reexamine the standard adopted in Hoffman, and we think we ought to do so. That standard was
Vaca v. Sipes,
The proper standard cannot be determined by parsing ambiguous dicta, especially when none of the cases we have cited arose under the Railway Labor Act. Though the duty of fair representation is usually assumed to be the same under the different federal labor laws, see, e.g., United Parcel Serv., Inc. v. Mitchell,
Maybe, though, the precise choice of verbal formulas to define the duty of fair representation has little practical significance. The facts in this case are like the facts in Hoffman, where the panel, although unable to agree on the proper standard, was unanimous that the union had not breached its duty of fair representation. And Baldini is readily distinguishable, as it involved a deliberate rather than inadvertent failure to prosecute the plaintiff’s grievance. But there is so much litigation over the duty of fair representation that it seems worthwhile to specify the applicable standard as clearly as possible. We have therefore reexamined Hoffman, and having done so we have concluded that its standard is correct, at least for cases arising under the Railway Labor Act.
The standard is as follows. The union has a duty to represent every worker in the bargaining unit fairly but it breaches that duty only if it deliberately and unjustifiably refuses to represent the worker. Negligence, even gross negligence—a much-criticized standard, see, e.g., Prosser, Handbook of the Law of Torts 182 (4th ed. 1971)—is not enough; and, obviously, intentional misconduct may not be inferred from negligence, whether simple or gross. Although extreme recklessness is so close to intentional wrongdoing that the law treats it as the same thing, see, e.g., United States
The Hoffman standard is a narrow one— and properly so, especially in a case under the Railway Labor Act. That Act does not purport to create any private damage remedies against unions at all, and the courts should be cautious in inferring them, cf. Jackson Transit, supra,
A practical consideration in favor of a narrow standard of liability is suggested by the text of the appeal drafted by Evans. Most of the union officers who process grievances and commit the gaffes that propel the Grafs of this world into court are not professional advocates. They are hourly workers “grieving” on a part-time basis. It would not be realistic to try to hold them to the same standard as lawyers, who are liable in damages if they fail to file their clients’ appeals on time, and yet Graf wants us to judge Evans’ inaction by what amounts to a concept of professional malpractice. True, the standard of care in negligence cases (the “reasonable man” standard) is sometimes scaled down to reflect a realistic assessment of the defendant’s capabilities: if a ten year old is sued in tort, the standard of care applied is that of the average ten year old, not of the average person. See Prosser, supra, at 155. We could lower the standard of care applied in legal malpractice cases until it was a realistic standard to which to hold union grievers; but being remote from conditions on the shop floor, we would find it hard to set the right standard.
The representative character of the union and its officers must also be considered. Like any elected representative Local Chairman Evans must render an adequate level of “constituent service” to retain his position in the union; and the union must use competent grievers to retain its position as the workers’ collective bargaining representative. Both officer and union thus have incentives to exercise care that are independent of the incentives that liability for negligence would provide. This is especially so in the railroad industry. A railroad worker is not required to use a union “griever” to prosecute his grievance. He can prosecute it on his own. See 45 U.S.C. § 153 First (i); Essary v. Chicago & N.W. Transport. Co.,
That standard serves also to protect a long-standing objective of federal labor law by minimizing judicial intervention in labor disputes normally resolved by arbitration. Cf. United Steelworkers of America v. American Mfg. Co.,
The extent of judicial involvement would be disturbing even if a court never had to interpret a collective bargaining agreement in a suit against a union for violating the duty of fair representation (but it would, as we have seen), and even if the worker was not allowed to bring in the company as an additional defendant. Contrary to what the district court believed, the worker’s remedies against the union and against the railroad are logically separable. The court’s error, though, was a natural one. Most duty of fair representation cases come out of industries where collective bargaining contracts give unions the exclusive authority to prosecute grievances. In such industries the worker may not complain about a violation of the contract unless he shows that the union has violated its duty of fair representation. But a railroad worker is entitled to prosecute his grievances on his own.
This fact may seem to indicate that allowing the worker a broad right of action against the union for violation of the statutory duty of fair representation need not entangle the court in litigation over the company’s duty to the worker under the collective bargaining agreement. But the appearance is deceptive. The court as we have noted will have to interpret the agreement in the remedy phase of the suit against the union. Moreover, if the worker succeeds in proving that the union breached its duty to him, the court may not be able to provide an adequate remedy unless it allows him to litigate against the company as well. The problem is not just that the local union, if small, as many local unions are, may not be able to pay a damages judgment. Often the worker will, like Graf, be seeking reinstatement, which only the company can give him. Graf can try to haul the company before an arbitral board but he will get no satisfaction unless the board forgives noncompliance with the time limits in the agreement, which is unlikely. See Lazar, Due Process in Disciplinary Hearings: Decisions of the National Railroad Adjustment Board 353-65 (1980). A court reviewing a denial of an award on this ground is unlikely to compel such forgiveness either, owing to the extremely narrow scope of judicial review of the actions of those bodies. See Union Pac. R.R. v. Sheehan,
If for these reasons, which some courts have found persuasive, see, e.g., Shum v. South Buffalo Ry.,
We need not choose between these approaches since Graf failed to prove a breach of the union’s duty. But it is relevant to observe that the approach of Shum, which allows the worker to prosecute his grievance in federal court when the union has violated its duty of fair representation, has at least some apparent merit and some judicial support and, unless totally rejected, points toward using a narrow standard to determine the union’s liability—a Hoffman standard. (The approach of Raus is consistent with either a broad or a narrow standard.) Hoffman minimizes the occasions on which a federal district court has to take over the function of the arbitral boards and enforce a collective bargaining agreement. The court will do so only when the worker can prove intentional misconduct by the union in failing to prosecute his grievance.
We have given reasons for a narrow standard of liability but we cannot prove that the standard should be that of Hoffman. The sense that it should be narrow is pretty much universal. No court thinks simple negligence would be a proper standard. The courts that reject Hoffman, that use a standard midway between simple negligence and intentional misconduct, have adopted in effect gross negligence. But as noted earlier that standard is criticized as too vague. This consideration tips the balance in favor of Hoffman. Count II was correctly dismissed.
The district judge dismissed Count I on his own initiative because he thought it had to fall when Count II fell. This was not quite correct. What is true is that unless the union has breached its duty of fair representation, a worker may not sue in court for breach of a collective bargaining contract; the Railway Labor Act confines him to arbitration and to the narrow judicial review of arbitration which the Act provides. Order of Railway Conductors of America v. Pitney,
The judgment dismissing Count II of the complaint is affirmed. The judgment dismissing Count I in its entirety is vacated and the case is remanded for further proceedings consistent with this opinion. No costs in this court.
So Ordered.
Concurrence Opinion
concurring in part and dissenting in part.
My disagreements with Judge Posner’s majority opinion are not serious.
Since the jurisdictional issue considered by Judge Posner was not raised, briefed or argued by the parties in the district court or in this court I hesitate to embrace his discussion of that issue although it may very well be a correct analysis. If I saw a serious question about our jurisdiction apparently overlooked by the parties, as I do not in this case, I would prefer to give the parties some additional opportunity to be heard on the issue before resolving it in a precedential opinion.
Judge Posner also reads Count I as possibly alleging a tort under federal or state law, and therefore vacates its dismissal and remands. Plaintiff, however, had not made that suggestion. In his complaint he alleged that he “was prevented from exhausting his administrative remedies as against” the railroad because of the Union’s failure to timely appeal his dismissal. Plaintiff’s own approach has been to tie the fate of Count I to Count II. Since it appears to me that the plaintiff narrowly viewed his own complaint, as did the other parties and Judge Grady, I would not endeavor to re-characterize it for him as sounding in tort at this stage. I would affirm the dismissal of Count I alternatively under Andrews v. Louisville and Nashville R. Co.,
Therefore I would affirm on all issues, respectfully dissenting from the partial disposition of Count I.
