Lead Opinion
Steven Gerhardson, Ron Hanek, Mike Johnson, and Jim Costello (collectively, drivers) were unionized delivery drivers covered by a collective bargaining agreement (CBA). The CBA established a pension plan operated by a third-party pension management firm. A dispute arose in 2006 after the drivers’ employer and union renegotiated the CBA. The drivers sued their employer, the union, and the pension management firm for various breaches of duty. On summary judgment motions, the district court
I. BACKGROUND
A. Facts
Gopher News Company (Gopher News) operated a print media wholesale distribution business in the Minneapolis/St. Paul, Minnesota area. Gopher News’ unionized workers were classified under two separate bargaining units — the drivers unit and the warehouse unit. Local No. 638 of the Miscellaneous Drivers, Helpers & Ware-housemen’s Union (International Brotherhood of Teamsters) (union) represented both units. Gerhardson, Hanek, Johnson, and Costello belonged to the drivers unit.
Central States, Southeast and Southwest Area Pension Fund (Central States) operated a defined benefit pension plan benefit-ting Gopher News employees. Upon retirement, the participants’ monthly benefit payments under the plan depended on the age at which they retired and their term of service. Employees who retired after thirty years of service were eligible for the maximum monthly payment of approximately $3,000. Central States’ plan included an “adverse selection” rule, which prohibited Gopher News from excluding younger workers from the plan.
Before 1992, both the drivers unit and the warehouse unit participated in the pension plan. In 1992, the warehouse unit elected to transition to a company-sponsored 401 (k) plan, and Gopher News terminated the warehouse unit’s pension plan. Although Gopher News also encouraged the drivers unit to accept a 401(k) plan, the drivers unit chose to retain the pension plan.
During the 1990s, the print media distribution business changed, and, as a result, Gopher News needed fewer full-time drivers. Gopher News began hiring “combination” workers to perform both driving and warehouse duties. These combination workers were classified under the warehouse unit’s CBA and did not participate in the drivers’ pension plan. Because the combination workers were able to make deliveries, Gopher News stopped hiring full-time drivers. By 2008, the parties here indicate the four appellants were the only remaining active members of the drivers unit.
During 2005, Gopher News, the drivers, and the union renegotiated the drivers’ CBA. Although Gopher News favored transition to a 401(k) plan, the drivers bargained to continue participating in the pension plan for six more years, at which time all four drivers would qualify for the thirty-year pension payments. The union, negotiating on behalf of the drivers, made maintaining the drivers’ pension plan a priority. During these negotiations, Central States became concerned Gopher
Gopher News, the union, and the drivers adopted a new CBA, effective June 1, 2005. On January 3, 2006, the union sent a copy of the new CBA to Central States. Two days later, Central States informed Gopher News that Central States would audit Gopher News to (1) “[i]dentify all eligible plan participants,” and (2) “[vjerify that contributions were properly reported for all eligible plan participants.” Central States ultimately concluded Gopher News’ use of combination workers to perform driving functions violated the adverse selection rule.
On January 31, 2007, Central States announced it was terminating Gopher News’ participation in the pension plan, effective February 25, 2007. The drivers each requested that Central States reconsider its termination decision. Central States denied the requests in a letter dated April 18, 2007, and denied the drivers’ appeal of that decision in a letter dated June 20, 2007.
B. Procedural History
On December 12, 2006, Central States sued Gopher News in the United States District Court for the Northern District of Illinois.
On February 26, 2008, the drivers filed the present action against Gopher News, Central States, and the union: The drivers sued (1) Central States for breach of fiduciary duty, (2) the union for breach of the duty of fair representation, and (3) Gopher News for breach of contract and a violation of the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1451. Gopher News filed a crossclaim against the union, alleging fraud and conspiracy and seeking declaratory judgment, indemnification, and contribution from the union for damages and costs incurred by Gopher News arising out of the union’s alleged misconduct.
On March 31, 2011, the district court found the drivers’ claims were untimely and granted summary judgment to Gopher News and the union on all of the drivers’ claims. On August 29, 2011, the district court dismissed Gopher News’ crossclaims against the union for lack of jurisdiction. The drivers appeal the dismissal of their claims and Gopher News cross-appeals the district court’s denial of their crossclaims against the union. All claims by or against Central States have been resolved, and are not relevant to this appeal.
II. DISCUSSION
A. Drivers
We review de novo the district court’s grant of summary judgment on statute of limitations grounds, construing all evidence in the light most favorable to the nonmoving party. See Roemmich v. Eagle Eye Dev., LLC,
The drivers characterize their suit against Gopher News and the union as a “hybrid § 301/fair representation” claim arising out of § 301 of the Labor Management Relations Act (LMRA), 29 U.S.C. § 185, and § 10(b) of the National Labor Relations Act (NLRA), 29 U.S.C. § 160. See DelCostello v. Int'l Bhd. of Teamsters,
The drivers argue the statute of limitations should be tolled for the period during which the drivers unsuccessfully sought to intervene in the Northern District of Illinois litigation. The drivers claim, “[t]he general rule is that the filing of a motion to intervene tolls the running of the statutes of limitation,” and the district court erred in failing to apply this general rule in the present case.
The authorities the drivers cite do not support their position. The drivers rely on cases allowing successful motions to intervene to toll the limitations period for the successfully joined claims. See, e.g., United States ex rel. Canion v. Randall & Blake,
The district court concluded the drivers’ untimely and unsuccessful motion to intervene should be treated, for tolling purposes, as a dismissal without prejudice, which does not toll the statute of limitations, citing Garfield v. J.C. Nichols Real Estate,
Although some ... cases speak in terms of the filing of the motion to intervene “tolling” the statute of limitations, a more accurate description is that the date of filing of a successful intervention motion is taken to be the date the action is brought, for limitations purposes---The rule would not seem to be applicable to a case, such as that presented here, in which intervention was denied and thus did not initiate the bringing of an action, and what is actually sought is the tolling of the statute of limitations for a new, different action brought subsequent to the denial of the motion to intervene.
Korwek v. Hunt,
The drivers suggest Korwek means something other than what it plainly says. The drivers fail to convince us the Korwek approach, which has been adopted by all the courts addressing the issue, is incorrect.
The drivers also propose we adopt the special tolling rale articulated by the Supreme Court in American Pipe & Construction Company v. Utah,
courts have generally refused to extend the tolling doctrine in most circumstances.”). We decline to adopt this proposal for expanding the application of American Pipe.
The statute of limitations on the drivers’ claim accrued no later than June 20, 2007, and the drivers did not initiate the present action until February 26, 2008. Because the drivers failed to establish equitable tolling applies, their complaint was untimely and the district court’s summary judgment dismissal was proper.
B. Gopher News
Gopher News argues the district court erred in dismissing Gopher News’ cross-claims against the union. We disagree.
Under the preemption doctrine announced by the Supreme Court in San Diego Building Trades Council Millmen’s Union, Local 2020 v. Garmon,
Gopher News makes two arguments as to why the district court erred in applying the doctrine of Garmon preemption to its claims. We reject both arguments.
First, Gopher News argues Garmon preemption is not relevant in this case because Gopher News asserted its claims against the union in connection with the drivers’ § 301(a) claim to enforce the CBA. See, e.g., William E. Arnold Co. v. Carpenters Dist. Council of Jacksonville & Vicinity,
Gopher News’ argument is based on Textron Lycoming Recip. Engine Div., Avco Corp. v. United Auto., Aerospace, and Agric. Implement Workers of Am.,
Textron explicitly recognized it is sometimes appropriate for federal courts to consider the validity of CBAs, reasoning § 301(a)
simply erects a gateway through which parties may pass into federal court; once they have entered, it does not restrict the legal landscape they may traverse. Thus if, in the course of deciding whether a plaintiff is entitled to relief for the defendant’s alleged violation of a contract, the defendant interposes the affirmative defense that the contract was invalid, the court may, consistent with § 301(a), adjudicate that defense. Similarly, a declaratory judgment plaintiff accused of violating a collective bargaining agreement may ask a court to declare the agreement invalid. But in these cases, the federal court’s power to adjudicate the contract’s validity is ancillary to, and not independent of, its power to adjudicate “suits for violation of contracts.”
Id. at 658,
Gopher News argues its claims against the union enter court through Textron’s “gateway,” because the drivers’ suit to enforce the collective bargaining agreement properly invoked the court’s § 301(a) jurisdiction. However, Textron only permits a litigant to raise the validity of a contract as an affirmative defense; it does not allow such claims to be asserted offensively. See id. Textron relied solely on Kaiser Steel Corp. v. Mullins,
Gopher News suggests Trs. of the Twin City Bricklayers Fringe Benefit Funds v. Superior Waterproofing, Inc., 450 F.3d
In Superior Waterproofing, we reasoned that “once any party to an action asserts a contractual violation there is broad subject matter jurisdiction under § 301 to adjudicate related issues of contract validity such as fraud.” Id. at 330. While this passage would seem to support Gopher News’ argument, interpreting this language too broadly would conflict with Kaiser Steel’s holding that a claim such as Gopher News raises can only be raised defensively in federal court. See Kaiser Steel Corp.,
The concurring opinion reasons that “[t]he district court reasonably understood Superior Waterproofing to mean that the court in that case had jurisdiction over the company’s third-party complaint.” Post at 16. We agree the district court’s error is entirely understandable, given the broad language employed in the Textron and Superior Waterproofing opinions. But a reasonable misunderstanding is not sufficient to grant the district court subject matter jurisdiction over cases that fall under the exclusive jurisdiction of the NLRB. See, e.g., Carlson v. Arrowhead Concrete Works, Inc.,
The concurring opinion also states the district “court’s jurisdiction over the cross-claims was at best supplemental under 28 U.S.C. § 1367,” and “it was not an abuse of discretion for the court to decline the exercise of supplemental jurisdiction over the cross-claims.” Post at 1062. If the district court had supplemental jurisdiction under § 1367(a), it would have been an abuse of discretion to dismiss the claim without acknowledging Gopher News was entitled to re-file its claims in accordance with the tolling provision in 28 U.S.C. § 1367(d). See Gerhardson v. Gopher News Co., CM No. 08-537,
2. Exceptions to Garmon Preemption
Gopher News also contends well-recognized exceptions to Garmon’s preemption doctrine provided the district court with jurisdiction over its claims. See, e.g., Farmer v. United Bhd. of Carpenters and Joiners of Am., Local 25,
Gopher News maintains preemption is unwarranted because there is no significant risk the district court would apply a rule of law that conflicts with the federal policies embodied in the NLRA. See id. at 297,
Gopher News fails to recognize the present circumstances are precisely those in which the Garmon preemption doctrine is most suitably applied. In Sears Roebuck & Co. v. San Diego Cnty. Dist. Council of Carpenters,
Congress evidently considered that centralized administration of specially designed procedures was necessary to obtain uniform application of its substantive rules and to avoid these diversities and conflicts likely to result from a variety of local procedures and attitudes toward labor controversies.... A multiplicity of tribunals and a diversity of procedures are quite as apt to produce incompatible or conflicting adjudications as are different rules of substantive law.
Id. at 192-93,
Gopher News also proposes Garmon preemption does not apply because Gopher News never had a meaningful opportunity to present its claims before the NLRB. See Sears Roebuck,
Gopher News fails to convince us this case satisfies any exception to Garmon preemption.
III. CONCLUSION
We affirm the decision of the district court.
Notes
. The Honorable John R. Tunheim, United States District Judge for the District of Minnesota.
. The Honorable William J. Hibbler, United States District Judge for the Northern District of Illinois.
. Like the district court, we do not decide whether the claim accrued before June 20, 2007.
. Section 301 preemption is a distinct doctrine that is unrelated to Garmon preemption. See Superior Waterproofing,
Concurrence Opinion
concurring in part and concurring in the judgment.
I concur in Parts I and II.A of the opinion of the court. As for Part II.B, I would affirm the district court’s dismissal of the cross-claims brought by Gopher News Company against the union, but on a narrower ground.
The district court understandably concluded at the outset of this case that the court had jurisdiction to adjudicate Gopher News’s cross-claims. The plaintiff drivers brought a “hybrid § 301/fair representation” claim against Gopher News and the union, and properly invoked the district court’s jurisdiction under § 301 of the Labor Management Relations Act, 29 U.S.C. § 185(a). Section 301 created an exception to the exclusive jurisdiction of the National Labor Relations Board to address unfair labor practices. See Farmer v. Carpenters Local 25,
This court in Trs. of the Twin City Bricklayers Fringe Benefit Funds v. Superior Waterproofing, Inc.,
What is clear, however, is that any jurisdiction the district court properly exercised over Gopher News’s cross-claims was “ancillary to, and not independent of, its power to adjudicate ‘suits for violation of contracts.’ ” Textron,
3837098, at *4 (D.Minn. Aug. 29, 2011) (ruling in the alternative that “the Court declines to exercise [discretionary supplemental jurisdiction] since the entirety of plaintiffs’ complaint has been dismissed”). Gopher News complains that dismissal of the cross-claims at a later stage of the litigation was unfair, because it is now too late for the company to bring its fraud claims before the National Labor Relations Board as alleged unfair labor practices. Yet the law permits a party to pursue its claims concurrently in federal court and before the Board. See Local Union No. 88i, United Rubber, Cork, Linoleum & Plastic Workers v. Bridgestone/Firestone, Inc.,
