794 F.2d 909 | 3rd Cir. | 1986
Lead Opinion
OPINION OF THE COURT
At issue on this appeal is whether section 301 of the Labor Management Relations Act of 1947 (LMRA), 29 U.S.C. § 185(a) (1982), preempts an employer’s state-law claims for breach of an oral contract of employment, intentional infliction of emotional distress, fraudulent misrepresentation, and intentional interference with contract and also preempts a derivative action by the employee’s wife for loss of consortium. The district court reasoned that the state-law claims were dependent upon a collective bargaining agreement and therefore held that the claims were preempted by federal law. Although the court went on to construe the complaint as alleging claims under § 301 of the LMRA, it grant
This appeal arises out of a labor dispute in which the plaintiff, Sam Malia, sought to be reinstated to a job within a collective bargaining unit after Malia had been promoted to a supervisory position.
Whether a state-law claim is preempted by federal law is a question of congressional intent. Malone v. White Motor Corp., 435 U.S. 497, 504, 98 S.Ct. 1185, 1190, 55 L.Ed.2d 443 (1978). Section 301 of the LMRA provides a federal right of action for violations of contracts between an employer and a labor organization representing employees. 29 U.S.C. § 185(a) (1982).
questions relating to what the parties to a labor agreement agreed, and what legal consequences were intended to flow from breaches of that agreement, must be resolved by reference to uniform federal law, whether such questions arise in the context of a suit for breach of contract or in a suit alleging liability in tort.
Id. at 1911. Thus, in Allis-Chalmers the Court held “that when resolution of a state-law claim is substantially dependent upon analysis of the terms of an agreement made between the parties in a labor contract, that claim must either be treated as a § 301 claim or dismissed as pre-empted by federal labor-contract law.” Id. at 1916 (citation omitted). The focus of inquiry in determining § 301 preemption, therefore, is on the nature of the state-law claims be
When an employee has established seniority privileges in an occupational classification within the Bargaining Unit and is or has been thereafter transferred or promoted to another position which is not within the Bargaining Unit, in the event such employee is again restored to a position within the Bargaining Unit, such employee shall be deemed to have retained but not accumulated seniority privileges within the Bargaining Unit in accordance with Article 56, provided that the privilege of returning to the Bargaining Unit shall be extended to all employees so affected.
Supplementary Local Agreement between RCA and Local 178 at 1156.04, reprinted in Joint Appendix at 58 (emphasis supplied). A careful reading of this paragraph reveals that the district court was mistaken. Paragraph 56.04 of the Local 178 collective bargaining agreement does not govern the right to be reinstated. Rather it governs the issue of seniority if an employee is reinstated to the bargaining unit.
Thus, because we construe Malia’s Complaint as alleging a state-law breach of contract claim based on an oral employment contract we conclude that that claim and Malia’s state-law tort claims, which derive from the breach of the oral contract, are independent of and do not interfere with the Local 178 collective bargaining agreement. We, therefore, hold that the district court erred in concluding that Malia’s state-law claims were preempted by § 301 of the LMRA. Given this conclusion, the district court’s decision concerning the statute of limitations is irrelevant. The six-month statute of limitations applicable to claims under § 301 of the LMRA does not govern state-law contract and tort claims. The summary judgment will, therefore, be reversed.
. Because this is an appeal from a summary judgment we accept the facts as pleaded in Ma-lia's complaint as true. See United States v. Athlone Industries, Inc., 746 F.2d 977, 981 (3d Cir.1984). Our discussion should not, therefore, be construed as bearing on the question of whether the oral contract alleged by Malia has been established as a factual matter.
. Subsection (a) of § 301 reads,
ta) Suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this chapter, or between any such labor organizations, may be brought in any district court of the United States having jurisdiction of the parties, without respect to the amount in controversy or without regard to the citizenship of the parties.
29 U.S.C. § 185(a) (1982).
. Focusing on the clause — "provided that the privilege of returning to the Bargaining Unit shall be extended to all employees so affected"— the dissent interprets section 56.04 of the collective bargaining agreement as “establishing a right to reinstatement for all employees who have left the bargaining unit.” Dissenting opinion at 914. The clause that the dissent relies upon, however, is more logically interpreted as a provision dealing with group transfer situations. For example, if RCA transferred a group of employees to another occupational classification outside the bargaining unit, section 56.04 would require that if one former unit member was restored to the unit and given her old seniority, the rest of the group would have the option of also returning to the bargaining unit with their old seniority. Thus the clause upon which the dissent relies does not provide a per se right of reinstatement, rather it provides a right for union employees to be treated equally. Equal treatment among union members is often an objective of collective bargaining agreements. Moreover, the dissent's interpretation of section 56.04 would give supervisors — employees who the LMRA expressly excludes from its statutory protection, see infra footnote 4 — the protection of a collective bargaining agreement.
. The LMRA expressly excludes a "supervisor" from its definition of an "employee.” See 29 U.S.C. § 152(3) (1982). As § 301 is concerned with a contract between employers and organizations representing "employees,” 29 U.S.C. § 185(a) (1982), § 301 is not affected by a contract between an employer and a supervisor.
RCA cites Redmond v. Dresser Industries, Inc., 734 F.2d 633 (11th Cir.1984) (per curiam) for the proposition that former bargaining unit members cannot bring state-law claims based on an individual employment contract. Brief for RCA at 9. RCA, however, has misinterpreted the Redmond decision. Redmond involved a suit based on a collective bargaining agreement. See 734 F.2d at 635-36; Mason v. Continental Group, Inc., 763 F.2d 1219, 1223-24 (11th Cir.1985) (discussing the Redmond decision), cert denied, — U.S. —, 106 S.Ct. 863, 88 L.Ed.2d 902 (1986). It would be illogical to preempt an employment contract merely because the employee had formerly been a member of a collective bargaining unit. Only where the former unit member relies on the collective bargaining agreement — the situation in Redmond — would such a rule be consistent with the Supreme Court’s reasoning in Allis-Chalmers.
Dissenting Opinion
dissenting.
In this case we are called upon to determine whether the Malias’ claims, which are framed as state common law issues, in fact arise under a collective bargaining agreement. If the claims depend on the collective bargaining agreement, they must be resolved under federal law, pursuant to § 301 of the Labor Management Relations Act, 29 U.S.C. § 185. Allis-Chalmers Corp. v. Lueck, 471 U.S. 202, 105 S.Ct. 1904, 85 L.Ed.2d 206 (1985); Teamsters v. Lucas Flour Co., 369 U.S. 95, 82 S.Ct. 571, 7 L.Ed.2d 593 (1962), and they are time barred. See Del Costello v. Teamsters, 462 U.S. 151, 169-72, 103 S.Ct. 2281, 2293-94, 76 L.Ed.2d 476 (1983).
The majority characterizes the Malias’ claims as allegations of breach of an oral contract that is independent of the collective bargaining agreement, and therefore holds that the claims may properly be brought under state law. Because I believe that the right to reinstatement that the Malias seek to enforce is governed by the collective bargaining agreement, and is therefore preempted by federal labor law, I respectfully dissent.
Mr. Malia left his position as a laborer for RCA, in which he was a member of a collective bargaining unit, to accept a position as inventory coordinator. Mr. Malia’s new job was a managerial position not within the bargaining unit, and Mr. Malia alleges that he accepted it on the strength
After only a short time at his new position, Mr. Malia found that the job of inventory coordinator was not to his liking and requested reinstatement to the bargaining unit. When this request was denied, Mr. Malia brought suit under several common law theories, seeking to enforce his oral contract with Mr. May.
At issue here is whether a claim for reinstatement to the bargaining unit is covered by the terms of the collective bargaining agreement. Section 56.04 of the collective bargaining agreement sets forth the seniority privileges of persons who return to the bargaining unit after leaving it. According to the majority, this section does not govern the right to be reinstated to the bargaining unit, but only the right of seniority if an employee is reinstated. Under this interpretation, the right to reinstatement is not covered by the collective bargaining agreement, and hence Mr. Malia was free to enter into an independent contract for reinstatement and to sue for enforcement of that contract at common law.
I do not agree with the majority’s reading of § 56.04. The last clause of the portion of § 56.04 that is quoted by the majority indicates that the right to be reinstated is indeed governed by that section of the collective bargaining agreement. Section 56.04 provides that an employee who returns to the bargaining unit:
shall be deemed to have retained but not accumulated seniority privileges within the Bargaining Unit in accordance with Article 56, provided that the privilege of returning to the Bargaining Unit shall be extended to all employees so affected.
Supplementary Local Agreement between RCA and Local 178 at p. 56.04, reprinted in Joint Appendix at 58 (emphasis added). I read the emphasized clause as establishing a right to reinstatement for all employees who have left the bargaining unit. I recognize that the purport of the clause upon which I rely is not immediately clear. However, I believe that my interpretation is the most reasonable reading; indeed, it appears to be the only way to make sense of the clause.
Moreover, any close question about the scope of the coverage of the collective bargaining agreement should be resolved in favor of a broad reading because strong federal policy interests support such coverage. If an issue is covered by a collective bargaining agreement, it not only falls within federal jurisdiction, but, assuming the agreement contains an arbitration provision, it is resolved in the first instance by an arbitrator. Thus, a conclusion that an issue is governed by the collective bargaining agreement furthers “interpretive uniformity and predictability,” Allis-Chal-mers, 105 S.Ct. at 1911, and the preservation of the central role of arbitration in our system of industrial self-government. Id. at 1915.
The majority characterizes the oral contract between Mr. Malia and Mr. May as one that related solely to the terms and conditions of the managerial position of inventory supervisor. It points out that the oral contract is therefore not “preempted by the rule prohibiting members of a collective bargaining unit from negotiating inconsistent individual contracts,” for “[njothing in the LMRA prevents an indi
I would affirm the judgment of the district court.
. The district court apparently assumed that by merely addressing the issue of seniority upon reinstatement, the collective bargaining agreement preempted the entire area of reinstatement. The district court did not determine whether § 56.04 provided for a right to reinstatement, but found that the Malias’ claims were preempted by federal law because they were "dependent upon an interpretation of whether paragraph 56.04 of said local agreement confers an unabridged right to reinstatement in the collective bargaining unit upon any union employee who takes a managerial position and then wishes to resume his former status." Joint Appendix at 81-82. Under this approach, it appears that even if the federal court found that § 56.04 conferred no such right, it would not then decide the issue under state common law. I need not go so far as this approach because I find that § 56.04 does confer a right to reinstatement in the bargaining unit upon any employee who wishes to return.
. The majority states that "[i]t would be illogical to preempt an employment contract merely because the employee had formerly been a member of a collective bargaining unit." Majority opinion, at 913, n. 4. This is certainly true. However, it does not follow that "[o]nly where the former unit member relies on the collective bargaining agreement would such a rule be consistent with the Supreme Court’s reasoning in Allis-Chalmers." Id. (emphasis added). The rule is that no employee may contract independently for a condition of employment that is covered by the collective bargaining agreement. Reinstatement to the bargaining unit is such a condition. Mr. Malia cannot enforce an oral contract concerning reinstatement because that area of employment relations has been preempted by the collective bargaining agreement. Therefore, it does not matter that he is not relying on the collective bargaining agreement, but rather on an oral contract.