UNITED PARCEL SERVICE, INC. v. MITCHELL ET AL.
No. 80-169
Supreme Court of the United States
Argued February 24, 1981—Decided April 20, 1981
451 U.S. 56
Bernard G. Segal argued the cause for petitioner. With him on the briefs was James D. Crawford. Albert S. Parsonnet filed a brief for Local 177, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, respondent under this Court‘s Rule 19.6, in support of petitioner.
David Jaroslawicz argued the cause for respondent Mitchell. With him on the brief was Ira Leitel.*
*Briefs of amici curiae urging reversal were filed by J. Albert Woll, Laurence Gold, Michael H. Gottesman, and Robert M. Weinberg for the American Federation of Labor and Congress of Industrial Organizations;
JUSTICE REHNQUIST delivered the opinion of the Court.
We are called upon in this case to determine which state statute of limitations period should be borrowed and applied to an employee‘s action against his employer under
I
Petitioner United Parcel Service, Inc. (UPS), employed respondent Mitchell (respondent) as a car washer at its facility on Staten Island, N. Y. On January 13, 1977, respondent was discharged for dishonest acts, including falsifying his timecards and claiming payment for hours which he did not work. Respondent denied the charges against him and requested his union, Department Store and Wholesale Drivers, Warehousemen and Helpers, Local Union No. 177 (the Union), to file a grievance on his behalf contesting the discharge. UPS and the Union were parties to a collective-bargaining agreement which provided a grievance and arbitration procedure for the resolution of disputes covered by the agreement. App. 57-67. Pursuant to the agreement respondent‘s grievance was submitted to a panel of the Atlantic Area Parcel Grievance Committee, composed of three union and three company representatives (the Joint Panel). Cf. Hines v. Anchor Motor Freight, Inc., supra, at 557, n. 2. The Joint Panel conducted a hearing, at which respondent was represented by the Union, and on February 16, 1977, it announced its decision that the discharge be upheld. App. 103-104. Under the collective-bargaining agreement this decision was “binding on all parties.” Id., at 66; see id., at 103.
Seventeen months later, on July 20, 1978, respondent filed a complaint in the United States District Court for the East
The District Court granted summary judgment in favor of UPS and the Union, ruling that respondent‘s action was properly characterized as one to vacate the arbitration award entered against him. The court reasoned: “The relief sought was expressly denied in an arbitration award issued as a result of a full-scale arbitration proceeding. The effect of any grant of the relief sought . . . would be to vacate the determination of the arbitrators.” App. 129. Respondent appealed and the Court of Appeals for the Second Circuit reversed. 624 F. 2d 394 (1980). That court held that the District Court should have applied New York‘s 6-year limitations period for actions alleging breach of contract,
II
Congress has not enacted a statute of limitations governing actions brought pursuant to
Although respondent did not style his suit as one to vacate the award of the Joint Panel, if he is successful the suit will have that direct effect. Respondent raises in his § 301 action the same claim that was raised before the Joint Panel—that he was discharged in violation of the collective-bargaining agreement. He seeks the same relief he sought before the Joint Panel—reinstatement with full backpay. In sum, “it is clear that [he] was dissatisfied with and simply seeks to upset the arbitrator‘s decision that the company did not wrongfully discharge him.” Liotta v. National Forge Co., 629 F. 2d 903, 905-906 (CA3 1980), cert. pending, No. 80-890.3
The Court of Appeals purported to rely on this Court‘s decision in Hines v. Anchor Motor Freight, Inc., but that decision strongly supports borrowing the limitations period for actions to vacate arbitration awards. As Hines makes clear, an employee may go behind a final and binding award under a collective-bargaining agreement and seek relief against his employer and union only when he demonstrates that his union‘s breach of its duty “seriously undermine[d] the integrity of the arbitral process.” 424 U. S., at 567. Hines rejected the suggestion that “erroneous arbitration decisions must stand” in the face of the union‘s breach of its duty, id., at 571, suggesting that the suits it sanctioned are aptly characterized as ones to vacate such arbitration decisions. Indeed the present
It is true that respondent‘s underlying claim against his employer is based on the collective-bargaining agreement, a contract. It is not enough, however, for an employee such as respondent to prove that he was discharged in violation of the collective-bargaining agreement. “To prevail against either the company or the Union, petitioners must not only show that their discharge was contrary to the contract but must also carry the burden of demonstrating breach of duty by the Union. . . . The grievance processes cannot be expected to be error-free.” Hines, 424 U. S., at 570-571. Thus respondent‘s characterization of his action against the employer as one for “breach of contract” ignores the significance of the fact that it was brought in the District Court pursuant to
It is important to bear in mind the observations made in the Steelworkers Trilogy that “the grievance machinery under a collective bargaining agreement is at the very heart of the system of industrial self-government. . . . The processing . . . machinery is actually a vehicle by which meaning and content are given to the collective bargaining agreement.” Steelworkers v. Warrior & Gulf Navigation Co., 363 U. S. 574, 581 (1960). Although the present case involves a fairly mundane
Obviously, if New York had adopted a specific 6-year statute of limitations for employee challenges to awards of a joint panel or similar body, we would be bound to apply that statute under the reasoning of Hoosier Cardinal. But in cases such as this, where generally state limitations periods were enacted prior to the enactment of § 301 by Congress in 1947, we are necessarily committed by prior decisional law to choosing among statutes of limitations none of which fit hand in glove with an action under
Accordingly, the judgment of the Court of Appeals is
Reversed.
JUSTICE BLACKMUN, concurring.
I join the Court‘s opinion because I am persuaded that the Court has made the correct choice between the two state-law alternatives presented by the parties. As the Court observes, the applicability of
JUSTICE STEWART, concurring in the judgment.
The Court believes itself obligated by Auto Workers v. Hoosier Cardinal Corp., 383 U. S. 696, to determine the applicable statute of limitations in this case “as a matter of federal law, by reference to the appropriate state statute of limitations.”1 I do not believe, however, that we are so constrained by Hoosier. Instead of deciding which of two almost equally relevant state limitations periods applies to the respondent employee‘s claims, I would impose the limitations period of
A
Hoosier involved a straightforward breach-of-contract damages suit brought by a union against an employer under § 301 of the Labor Management Relations Act (LMRA). As Congress had not provided a limitations period for § 301 suits, the Court concluded that a state statute of limitations should apply. But the Court was careful to note that it was not deciding the appropriate time limits for all suits brought under § 301:
“The present suit is essentially an action for damages caused by an alleged breach of an employer‘s obligation embodied in a collective bargaining agreement. Such an action closely resembles an action for breach of contract cognizable at common law. Whether other § 301 suits different from the present one might call for the application of other rules on timeliness, we are not required
to decide, and we indicate no view whatsoever on that question.” 383 U. S., at 705, n. 7.
The Court also observed, in response to the claim that reliance on varying state limitations statutes was contrary to the national interest in uniformity in industrial relations, that the kind of contract dispute it had before it did not implicate “those consensual processes that federal labor law is chiefly designed to promote—the formation of the . . . agreement and the private settlement of disputes under it.” Id., at 702 (emphasis added).
The case before us is quite unlike the one in Hoosier. It is a hybrid “§ 301 and breach of duty sui[t],” Vaca v. Sipes, 386 U. S. 171, 197, n. 18, brought by an employee against both his employer and his union in order to set aside a “final and binding” determination of a grievance, arrived at through the collectively bargained method of resolving the grievance. It is, therefore, a direct challenge to “the private settlement of disputes under [the collective-bargaining agreement].”
Moreover, unlike Hoosier, where the employee‘s complaint was rooted solely in § 301 of the LMRA, the respondent employee here has two claims, each with its own discrete jurisdictional base. The contract claim against the employer is based on § 301, but the duty of fair representation is derived from the NLRA.2 Yet the two claims are inextricably inter-
Thus, the suit in this case, unlike the one in Hoosier, cannot be likened to “an action for breach of contract cognizable at common law.” 383 U. S., at 705, n. 7. Instead, it is an amalgam of § 301, which has no limitations period, and the NLRA. And, of course, the latter contains a limitations provision. Although § 10 (b) of the NLRA was designed to limit the initiation of unfair labor practice claims3 in order
B
Congress enacted
Of course, one aspect of the respondent employee‘s claim in this case is predicated on § 301 of the LMRA; if the plaintiff can establish his claim for breach of the duty of fair representation, he may then pursue his § 301 breach-of-contract claim. But here, unlike Hoosier, the latter action, like the breach-of-duty claim, is a challenge to a result reached in the contractual grievance resolution system. Accordingly, the policy of promoting stability in collective bargaining underlying the time bar of § 10 (b) is applicable to this aspect of the respondent employee‘s case as well.
In any event, the two elements of respondent employee‘s hybrid action cannot be disentangled: the duty of fair representation is “part and parcel of [the] § 301 [claim].” Vaca v. Sipes, 386 U. S., at 186. When the 6-month period of § 10 (b) has passed, the employee should no longer be able to challenge the alleged breach of duty by his union,6 and as this is a precondition for maintaining the contract action, he should not be able to challenge the employer‘s action either.
Finally, even if it were appropriate to view the respondent employee‘s suit in this case as founded solely on § 301, the
“[T]he Court has not mechanically applied a state statute of limitations simply because a limitations period is absent from the federal statute. State legislatures do not devise their limitations periods with national interests in mind, and it is the duty of the federal courts to assure that the importation of state law will not frustrate or interfere with the implementation of national policies. . . . State limitations periods will not be borrowed if their application would be inconsistent with the underlying policies of the federal statute.” Occidental Life Ins. Co. v. EEOC, 432 U. S. 355, 367.
In § 10 (b) of the NLRA, Congress established a limitations period attuned to what it viewed as the proper balance between the national interests in stable bargaining relationships and finality of private settlements, and an employee‘s interest in setting aside what he views as an unjust settlement under the collective-bargaining system. That is precisely the balance at issue in this case. The employee‘s interest in setting aside the “final and binding” determination of a grievance through the method established by the collective-bargaining agreement unquestionably implicates “those consensual processes that federal labor law is chiefly designed to promote—the formation of the . . . agreement and the private settlement of disputes under it.” Hoosier, 383 U. S., at 702. Accordingly, “[t]he need for uniformity” among procedures followed for similar claims, ibid.,7 as well as the clear congressional indi-
C
Because the respondent employee commenced his suit beyond the 6-month bar of § 10 (b) of the NLRA, I agree that the judgment of the Court of Appeals must be reversed.
JUSTICE STEVENS, concurring in part and dissenting in part.
In this action, the plaintiff-employee seeks a judicial remedy against his former employer for wrongful discharge, and against his union for breach of the duty of fair representation. The District Court granted summary judgment in favor of both defendants because of the employee‘s failure to file suit within what that court viewed as the appropriate period of limitations. The Court of Appeals reversed the District Court‘s judgment as to both claims and remanded for further proceedings. The employer alone sought further review in this Court. Therefore, at this stage of the litigation, the only question properly presented for our consideration is whether the Court of Appeals chose the most appropriate New York statute of limitations to govern the employee‘s claim against his former employer for wrongful discharge.1 Although I agree for the most part with the
I concur in the Court‘s conclusion that it is appropriate, for purposes of federal labor law, to characterize the employee‘s suit against his employer as an action to set aside an arbitration award. In the arbitration proceeding that took place prior to this litigation, the employer prevailed on the precise claim respondent raises against it in this judicial proceeding—that the discharge violated the collective-bargaining agreement. If the employee now were to prevail against the employer on this claim, the necessary effect of the resulting court order would be to undo the arbitration award. See ante, at 61. Accordingly, in upholding the employer‘s position, the Court properly emphasizes the importance of the finality and certainty of arbitration in the collective-bargaining context, and properly treats the adverse arbitration decision as a substantial obstacle to the employee‘s pursuit of judicial relief against his employer.
The employee‘s claim against his union for breach of the duty of fair representation, however, is of a far different character. Although this claim is closely related to the claim
In this case, I agree with the Court that the statute of limitations applicable to respondent‘s claim against his former employer is the 90-day statute governing actions to vacate or
In sum, I concur in the Court‘s judgment insofar as it pertains to the employee‘s action against his employer.
Notes
“[T]he only question raised in the petition for certiorari is the statute of
limitations applicable to Mitchell‘s claim against his employer, UPS. See Liotta v. National Forge Co., 629 F. 2d 903 (3d Cir. 1980).. . . . .
“The fact that Mitchell may have a claim against the Union does not affect the determination of which statute of limitations governs his claim against his employer. See Liotta v. National Forge Co., supra, 629 F. 2d at 905.” Reply Brief for Petitioner 3, 4.
See also id., at 5-6.
“Necessarily ‘[a] wide range of reasonableness must be allowed a statu-
tory bargaining representative in serving the unit it represents . . . .’ Ford Motor Co. v. Huffman, 345 U. S. 330, 338 (1953). The union‘s broad authority in negotiating and administering effective agreements is ‘undoubted,’ Humphrey v. Moore, 375 U. S. 335, 342 (1964), but it is not without limits. Because ‘[t]he collective bargaining system as encouraged by Congress and administered by the NLRB of necessity subordinates the interests of an individual employee to the collective interests of all employees in a bargaining unit,’ Vaca v. Sipes, 386 U. S. 171, 182 (1967), the controlling statutes have long been interpreted as imposing upon the bargaining agent a responsibility equal in scope to its authority, ‘the responsibility and duty of fair representation.’ Humphrey v. Moore, supra, at 342. The union as the statutory representative of the employees is ‘subject always to complete good faith and honesty of purpose in the exercise of its discretion.’ Ford Motor Co. v. Huffman, supra, at 338.”That this duty of fair representation under the NLRA may be judicially enforced was made clear in Vaca v. Sipes, 386 U. S. 171.
The claims are closely related because, to prevail against the employer, the employee must establish that the union breached its duty of fair representation and that the employer breached the collective-bargaining agreement; similarly, to prevail against the union, the employee must prove that the union breached its duty of fair representation and, if he wishes to recover loss-of-employment damages for which the union is responsible, that the employer breached the agreement. See n. 4, infra. Cf. Czosek v. O‘Mara, 397 U. S. 25, 28-29. However, despite this close relationship, the two claims are not inseparable. Indeed, although the employee in this case chose to sue both the employer and the union, he was not required to do so; he was free to institute suit against either one as the sole defendant. See Vaca v. Sipes, 386 U. S. 171, 186-187.“[T]he fact that Liotta alleges that the arbitration award is invalid due to the Union‘s breach of its duty of fair representation does not change the limitations period because the suit here is against the Company and not the Union. Thus, it is clear that Liotta was dissatisfied with and simply seeks to upset the arbitrator‘s decision that the Company did not wrongfully discharge him.” 629 F. 2d, at 905-906.
“Whenever it is charged that any person has engaged in or is engaging in any such unfair labor practice, the [National Labor Relations] Board, or any agent or agency designated by the Board for such purposes, shall have power to issue and cause to be served upon such person a complaint stating the charges in that respect, and containing a notice of hearing before the Board or a member thereof, or before a designated agent or agency, at a place therein fixed, not less than five days after the serving of said complaint: Provided, That no complaint shall issue based upon any unfair labor practice occurring more than six months prior to the filing of the charge with the Board and the service of a copy thereof upon the person against whom such charge is made, unless the person aggrieved thereby was prevented from filing such charge by reason of service in the
armed forces, in which event the six-month period shall be computed from the day of his discharge. Any such complaint may be amended by the member, agent, or agency conducting the hearing or the Board in its discretion at any time prior to the issuance of an order based thereon. The person so complained of shall have the right to file an answer to the original or amended complaint and to appear in person or otherwise and give testimony at the place and time fixed in the complaint. In the discretion of the member, agent, or agency conducting the hearing or the Board, any other person may be allowed to intervene in the said proceeding and to present testimony. Any such proceeding shall, so far as practicable, be conducted in accordance with the rules of evidence applicable in the district courts of the United States under the rules of civil procedure for the district courts of the United States, adopted by the Supreme Court of the United States pursuant toThe plain language of this statute indicates that it is directed solely to the administrative procedure established by Congress in the National Labor Relations Act for the resolution of unfair labor practice charges arising under, and processed in accordance with, that Act. Nothing in the statutory language suggests that Congress intended that this 6-month limitations period be applied in any other context.
