Document: 451 U.S. 401 101 S.Ct. 1836 68 L.Ed.2d 248 COMPLETE AUTO TRANSIT, INC., et al., Petitioners,v.Danny REIS al. No. 79-1777. Argued Feb. 24, 1981. Decided May 4, Syllabus Petitioner trucking companies are parties to a collective-bargaining agreement with the Teamsters Union that contains no-strike clause. Respondent employees of petitioners commenced wildcat strike because they believed union was not properly representing them in negotiations amend agreement. Thereafter, brought an action against respondents Federal District Court under § 301(a) Labor Management Relations Act, which confers jurisdiction on federal district courts decide suits alleging violations agreements. Petitioners sought, inter alia, damages their individual capacities for all losses arising out strike. The dismissed claim, and Appeals affirmed, holding Congress had intended through 301 create cause members breach Held : Section does sanction actions by employers violating provision agreement, whether or participated authorized legislative history clearly reveals Congress' intent shield from liability such damages, even though this results leaving employer unable recover his losses. While 301(b), provides any money judgment violation shall be enforceable only member, explicitly addresses union-authorized violations, "penumbra" as informed its history, establishes meant exclude strikers liability, were demonstrates deliberately chose allow remedy unions, individuals, and, when illegal Pp. 405-417. 6th Cir., 614 F.2d 1110, affirmed. R. Ian Hunter, Bloomfield Hills, Mich., petitioners. Hiram S. Grossman, Flint, respondents. Justice BRENNAN delivered opinion Court. 1 In Atkinson v. Sinclair Refining Co., 370 238, 82 1318, 8 462 (1962), held 1947, 61 Stat. 156, 29 U.S.C. 185(a), authorize officers is liable clause We expressly reserved question might maintain suit "individual defendants acting behalf but personal nonunion capacity" where "unauthorized, action" violated U.S., at 249, n. 7, S.Ct., 1325, 7. granted certiorari important labor law. 449 898, 265, 66 127 (1980). 2 * three engaged transportation truck motor vehicles. All covers operations respective facilities Mich. Respondents Local 332. clause1 subjects disputes binding grievance arbitration procedure. 3 On June 8, 1976, strike, "the . amendments collective bargaining agreement." 1111 (C.A. 6 1980). Soon thereafter, United States Eastern Michigan, seeking injunctive relief "damages [employees], capacity, unlawful work stoppage attorneys fees." App. 21. alleged neither nor approved therefore, sought no union. See F.2d, 1115; 18, 20-21. After hearing, found issue caused arbitrable" it "an internal dispute between factions Local," Pet. Cert. 15a-16a, accordingly denied preliminary relief, citing Boys Markets, Inc. Retail Clerks, 398 235, 90 1583, 26 199 (1970).2 Following additional hearings settlement "internal dispute," concluded continued [petitioners] over amnesty [and that] arbitrable." 16a. court, issued injunction, enjoining continuation obeyed order returned 21, 1976. 4 Nine months later, moved dissolve injunction dismiss complaint damages. Relying Court's intervening decision Buffalo Forge Co. Steelworkers, 428 397, 96 3141, 49 1022 (1976),3 dissolved ground precipitated arbitrable issue. 18a. court also petitioners' claim may sue monetary liable." Id., 5 Sixth Circuit reversed dissolution nonarbitrable provided issue, other than simple legality itself, purpose "compel[ling] concede issue." 1114. do seek review part Appeals' ruling.4 affirmed dismissal members. principally 301, "create 1116. agree. II 7 Since Textile Workers Lincoln Mills, 353 448, 77 912, 972 (1957), has been settled 301(a)5 more confer lawsuits "authorizes fashion body law enforcement these agreements." 451, 915. Mills defined mode analysis fashioning follows: "The Act furnishes some substantive It points what certain situations. Other problems will lie penumbra express statutory mandates. Some lack solved looking policy legislation effectuate policy. range judicial inventiveness determined nature problem." 457, 918. 9 Of course, "Lincoln did envision freewheeling inquiry into find most desirable rule, irrespective congressional pronouncements." Howard Johnson Hotel & Restaurant Employees, 417 255, 94 2236, 2240, 41 46 (1974). Rather, clear substantial deference should paid revealed intention. supra, 248-249, 1324-1325. 10 Atkinson, relied passing 301(b) hold sued breached states pertinent "[a]ny organization entity assets, member assets." Thus, we noted "in discharging duty imposed us formulate govern suits, strongly guided give niggardly reading 301(b)." Ibid. Accordingly, consulted made "clear th[e] third [of ] deeply felt reaction Danbury Hatters case expression determination aftermath permitted recur." 248, 1324.6 Similarly, deciding presented case, "discharg[e] suits," 1324, 918, history. 2240. 11 terms prohibits entered being enforced supra. mistake suppose thereby suggested negative implication Oil Corp. Oil, Chemical Atomic Workers, 452 49, 52 1971). Although lengthy complex, illegality. Indeed, result leave 1324. 12 begins efforts year prior adoption Act. Case bill, H.R. 4908, 79th Cong., 2d Sess. (1946), passed both Houses Congress, vetoed President 1946, direct antecedent 301." Charles Dowd Box Courtney, 368 502, 509, 519, 523, 483 (1962). "contained provisions substantially same 301," ibid., highly relevant ascertaining respect see id., 511-512, 524-525. 13 "to establish mutual responsibility process resulted contract." 92 Cong.Rec. 838 (1946) (remarks Rep. Case). As introduced House, agreements "against each thereto."7 Senate adopted bill encompassed purposes House version which, addition, discharge employee who union.8 Senator Taft, principal proponent provision, explained: 14 15 "(d) Any participates existing if ratified party having exclusive rights employee, lose status sections 9, National Act: Provided, That loss cease he reemployed employer." 5705 (1946). 16 "If violates bargaining-agreement, responsible, can way deprived rights. But tries keep contract undertaking, proceed then fire those have protection Wagner Act." 5705-5706 17 Thus stopped short proposing engaging unauthorized strikes. 18 House's subsequent consideration Senate's reflected understanding limitation employers' remedies. Representative explained amendment floor House: 19 "Individual judgment, I point out, entity. If penalty employed forfeiture right employment cured reemploys them." 5930-5931 (emphasis added).9 20 version. doing so, like Senate, protect true veto sustained. Nevertheless, similarity language reads today makes vitally significant full behind 301(b). 21 Six after veto, began became 301.10 ultimately created agreement.11 Committee Report "actions proceedings involving contracts organizations either party." H.R.Rep.No.245, 80th 1st Sess., 45-46 (1947). 302(b) contained precluding individuals judgments unions.12 included providing "violations bargaining-agreements" would protected 3020, (1947), 7(a), allowing strikers.13 however, allowed employees. person concerted activity. "unlawful activities" include, jurisdictional strikes, sympathy picketing activities. 22 Significantly, rejected imposition activity, Conference version.14 counterpart 303. Taft offered 303 established engage types activity secondary boycotts 93 4900 critical exchange during debate proposed amendment, altered limit claims conform bar employees: 23 "Mr. MORSE: [T]he proposal Ohio open wide doors damage attempted persuade one prohibited objectives. 24 very definitely take back least 40 years again spectacle mass employees, similar infamous case. Senators recall 150 Supreme sustained neighborhood quarter million dollars. 25 "It pointed substitute inconsistent present contract. permits only, whereas allows 'any person.' Also, section limits recovery assets attachment employees' bank accounts property. 27 TAFT: request [Ives] New York others raised point, am amending proposal, striking word 'person,' second line, inserting lieu thereof 'labor organization,' so promoting type strike." 4839-4841.15 28 foreclosing lawsuits. At conference, squarely favor refusing conduct section. deleted removed stated reason unnecessary light recent decisions Board. Those "strikes activities act [the NLRB had] refused reinstate discharged activities." H.R.Conf.Rep.No.510, 39 Committee, opted rather House. time, preferred employer's violate agreement.16 30 while strike.17 debates demonstrate Carbon Fuel Mine 444 212, 216, 100 410, 413, 62 394 (1979). itself balanced competing advantages disadvantages inherent possible remedies combat "we by" choice.18 Atkin- son 1325. 31 Affirmed. 32 POWELL, concurring judgment. 33 enacting Taft-Hartley intend therefore join opinion. not, share view there remains management "significant array remedies," ante, 416, deter obtain compensation fact, "remedies" said available largely chimerical. 34 Collective-bargaining typically contain promise agreement's term. Unions agree clauses arbitrate administration. 449, 455, 914, 917, (1957). Each "quid pro quo " other, Steelworkers American Mfg. 363 564, 567, 80 1343, 1346, 1403 (1960), yields traditional managerial autonomy industrial peace. 35 Despite benefits no-strike/grievance-arbitration pact, strikes occur disturbing frequency. cases, encouraged instigated leaders.1 Often, "wildcats"—strikes arise spontaneously protest grievances company occasionally, leadership itself. Responsible unions disapprove officials, especially local level, acquiesce fervor intransigent 36 Whatever cause, frequently injure concerned: employer,2 public. Strikes lockouts squander human working use essential enjoyment Nation's productive potential. To sure, national recognizes that, circumstances, weapons lockout consistent Labor, management, public nevertheless "common goal uninterrupted production." Warrior Gulf Navigation 574, 582, 1347, 1353, 1409 (1960). tenet our "a system self-government" based consensual (albeit vigorously negotiated) contracts, 570, 1347 (BRENNAN, J., concurring), preferable "strikes, lockouts, self-help," 1591, (1970). 37 When enacted Nation experienced wave unrest.3 balance power collective-bargaining" destroyed employers, promised promises, often failed peace bargained. S.Rep. 14.4 38 increasingly 1947 provide effective holds, think, foreclose strikers. states, number legal terminate occur. Ante, 416-417, 18. support view, contends (i) (ii) strikers, (iii) disciplinary powers, (iv) reality, illusory. Injunctions generally Norris-LaGuardia Act.5 recognized limited exception anti-injunction Markets injunctions pending underlying arbitrable. However, offers "narrow" 253, 1594, cannot obtained kinds. E. g., (1976) (injunctions strikes). Moreover, available, workers disinclined obey it.6 Courts reluctant impose contempt penalties workers; ordered, difficult enforce. Nor realistic cases. Because unprotected Sands 306 332, 59 508, 83 L.Ed. 682 (1939), illegally terminated. argued effectively deters punishes wrongdoers equivalent capital punishment." M. Jay Whitman, Wildcat Strikes: Union's Narrowing Path Rectitude?, 50 Ind.L.J. 472, 481 (1975). There reasons why practice effective. First, large wholesale discharges practical force without crippling production. 17, 17.7 Second, kinds selective arguably illegal. Board takes position discipline officer severely participants, fulfill contractual undertaking help strikes.8 event, selected unlikely influence rank file return work. Such actually aggravate worker discontent prolong Cedar Coal 560 1153, 1157 1977), cert. denied, 434 1047, 98 893, 54 798 (1978); 86 Harv.L.Rev. 447, 454, (1972). minimum, insist colleagues reinstated condition returning Fishman Brown, Responsibility Strikes, Wayne L.Rev. 1017, Third, arbitrators infrequently refuse sustain Handsaker Handsaker, Remedies Penalties How Arbitrators Have Ruled, Cath.U.L.Rev. 279, 284 (1973). normally Most authority action, Summers, Legal Limitations Discipline, 64 1049, 1065 (1951), seldom used. recalcitrance sometimes directed incumbent much management. union's attempt counterproductive. (1979), parent obligated affirmative steps prevent Absent obligation, little incentive intervene, intervention useful. 42 Finally, rarely feasible.9 Last Term, Fuel, foreclosed possibility union10 absent proof strike.11 foolish invite endorsing manner. 1, III 43 plainly unrealistic, suggests disposal battery alternative absence lawless vacuum. clause, plant closed adverse consequences far-reaching. injures employer, consumers general. Frequently, harmful majority feel honor picket line minority wildcatters. 44 is, province set suggest authorizing desirable. believe, leaves undeterred interest unprotected. amended further broaden interests conceived charter framework promote orderly relations. war 45 Chief BURGER, whom REHNQUIST joins, dissenting. holds who, approval union, covenant resulting employers. stake fundamental principle accountable voluntarily executed 47 facts dispute. 332 International Brotherhood Teamsters, acts agent petitioners, part: 48 Employers tie-up equipment, slowdowns walkouts first using means settlement, Agreement, controversy arise." 14-15. covenant, embarked commonly called "wildcat" strike; admitted "did aid, assist equipment." 25. H.R.Rep. 245, (1947); 105, 15-16 course members, breaches breaches. This corollary enforceability 301(a). problem past responsible conduct. An directly technically Smith Evening News Assn., 371 195, 267, 246 union-sponsored breach, (1962) (applying 185(b)). members' condoned, (1979).1 presents final unresolved situation: plain committed union? 51 basis literally centuries common thought notions accountability one's voluntary govern. Instead, workers, approval, special, privileged class impunity reached arm's-length bargaining. finds statute, significantly undermines usefulness reliability process, advance goals it. reaching unusual conclusion, mistakenly relies last sentence states: 53 "Any 185(b). face, insulate contract; analogous afforded stockholders corporations corporate acts. (1947) ("members secure incorporation"). acknowledged added recurrence situation, Lawlor Loewe, 235 522, 170, 341 (1915); Loewe Lawlor, 208 274, 488 (1908), participants personally theory unincorporated association, could sued. 406-407, 6; 1324; 5014 Sen. Ball). says nothing about harmless they, individually 55 special exemption affords action; simultaneously encourages group union—which about—and prevents potentially awards workers. changed regarding conduct, hint changing common-law rule articulate basic idea organized society.2 individual, or, here, agent, enters breach. A whose governs—and indicates designed govern—only situations construed wipe core principles actions. 56 Curiously, Court, anomaly harmonious relations preventing long drawn-out fight courts. argument wholly specious, contradicted views expressed 301. fully agreements, breachable impunity, "do tend stabilize execution peace." "have cake eat too" receiving immunity own, less likely enter mutually satisfactory place. "Without method assuring freedom economic warfare term desire sign logic well: sponsored since ended similarly tends "reopen old wounds." difficulty seriously entertaining jeopardizing harmony injuries unlawfully themselves broke One must resist temptation youth murdered parents, pleads court's mercy orphan. 57 believe—and accepts, 18—that threat sufficient ensure followed members.3 These measures, answer; too little4 surely come late, suffered business due contract, never occurred. theory, mitigate hiring assumes qualified willing cross line. 58 Accountability lies law—indeed, societies. trend eliminate modify sovereign unrelated development; away King wrong." structure society eroded anarchy impotence, civil well criminal justice. Today penalizes rewards errant seems me now, movement matured sufficiently need kind artificial, excessively paternalistic admittedly acts—a contrary fundamental, centuries-old concepts accountability. stability enhanced, impaired, applying standards society.5 60 ought make two classes breakers immune. submit understand follow, fewer enhanced greater result. "[t]he Employer proceeding Exhibit Complaint Complete Auto Transit, Inc., 24-25. 253-254, Act's prohibition apply "collective-bargaining mandatory adjustment procedure," subject arbitration, usual requirements obtaining equitable satisfied. 407, 3147 original), enjoin remotely "dispute arbitrable," warranted, otherwise "would cut potential disputes." 3149. ruling correct. forth 185, "(a) Suits industry affecting commerce chapter, organizations, parties, amount regard citizenship parties. "(b) represents chapter affect bound agents. States. antitrust treble including agents, nationwide, union-directed boycott hats. named party, entered, instead, participating plan 'emanating headquarters' ., knowingly delegating involved. debates, Ball, sponsors, declared 'by entity, repetition many lost homes.' Savings Bank 242 357, 172, 360 (1917); (1908). provided: "All equally equity thereto, notwithstanding. event then, addition equity, maintained defendant organization, filed wherein resides found." 5262, "parties" "suit damages" individual." 765 Amendment affects duly agents within scope States: assets. Halleck echoed Case: Speaker, substituted provision] goes wishes organization. say manner, him unless wants to. What matter that[?]" 5932. containing establishing federal-court Subsections (a) (b) virtually identical counterparts previous session Congress. before Education "there suing such, rendering Hearings Amendments 125 discharge. Case's testimony instructive: Landis. you deny coal mine—we instance Indiana mine went Mineworkers it, tried get men go work, still several days. "Who case? Case. think pretty good defense them, ordered seem me, damages." 126. 302(a) stated: representative controversy, commerce, cause." committee revised writing forfeit Public Welfare earlier reported creating "Sec. name During debate, proponents emphasized legislation. For example, Ball "[W]e interstate beyond that." (1949) added). "Many matters covered conference different form, above discussion 8(b)(1) Under developed recently applied Board, violence, picketing, unfair practices, improper law, reinstatement. specific 10(c). Furthermore, 10(k) given temporary restraining practices temporarily merits." H.R.Conf.Rep. 510, Petitioners' reliance statement Hines Anchor Motor Freight, 424 554, 562, 1048, 1055, 231 added), "Section contemplates employees" misplaced. narrower contemplate Whether contemplated decided occasion now. infra. argue indispensable preserve integrity proposition questionable own terms, overlooks apart meaningfully increase deterrence just exacerbate strife: prosecuted strife delay early resolution difficulties union." 1591 (footnote omitted); Gateway 414 368, 381, 14, 629, 639, 583 achieve adherence casts doubt proposition. traced 185(b); 216-218, 413-414, (1979); 247-249, discharge, discipline, walks off job. 246, 1323; Rockaway Supply 345 71, 80, 73 524, 97 832 (1953); Lakeshore Freight F.Supp. 1150, 1154, (W.D.Pa.1980) (wildcat discharged, rehired new employees). 442 220, 415; 1971); 5706 (Sen. Capehart) (debate bill). giving rise arbitration. 3147; 380-387, 638-641; Markets-Buffalo here us. circumstances same: instant Judge dispute, disturbed Appeals. Strike encouragement explicit cryptic. employ subtle signals convey message nod wink code place 'strike.' UMW, 563, 566 (D.C.1948), aff'd, 85 U.S.App.D.C. 149, 177 29, 338 871, 70 140, 535 (1949). Production disruptions obvious short-term consequences. And commentator long-term severe. rends "closely integrated supply distribution systems" developed. Unions' 473 systems "presume predictability. reputation problems, let alone, wildcats, simply customers predictability," leading once-regular sources supply. accompanying observed 1945 approximately 38,000,000 man-days total trebled 1946 116,000,000 lost. ." (hereinafter S.Rep.). "can break relative chief advantage reasonably expect assurance operation Without 16. 70, 104, provides, "No permanent growing Compare Old Ben 1487, 457 162 1972), 500 950, 952 1974). Gould, Pending Arbitration: Recasting Forge, Stan.L.Rev. 533, 541, (1978). Discharging entire "caus[e] mountainous personnel problems. Consider sheer logistics hiring, training acclimating entirely suitable skills. Even recruited, time expense recruitment production, sound death knell business." 1021 Miller Brewing 254 N.L.R.B. 266 (1981); South Central Bell Telephone 315 Precision Casting 233 183 (1977). Board's deterred conducting discharges. addressed question, warmly received reasoning. NLRB, 612 728 3) (denying 237 881 (1978)), sub nom. Moran Gould Corp., 890, 247, 115 (1980); Electric 599 227 1979) 226 (1978)); Armour-Dial, 638 51, 54-56 1981). Sophisticated tactical elect forgo tenable poststrike "exacerbate strife," dissipation acrimony engendered want disclosure attendant litigation. "necessarily involves detailed intimate financial secrets. By making puts finances discovery rules Rules Civil Procedure accountants explore every corner books. conducts properly, know everything per-unit profit finer details [corporate] management." 2, 474 omitted). price settling waive Ransdell Assn. Machinists, LRRM 2738, 443 936 (ED Wis.1978); Injunctions, Judges: Market Case, 1970 S.Ct.Rev. 215, 231. consider quantum necessary local's proximity inference agency—and hence, liability—arguably authorization ratification. 301(e) 185(e). benefit, judgment-proof. recognized, intervene wildcats liability. 218-222, 414-16. "insurer" compliance vice versa. Had position, remain failing abided cites various comments Members approval. remarks address undertaken involvement. nearest comes finding remark predecessor subsequently President, 409. Taft's touch ironically, follows heels admonition avoid "suggest[ions] implication." 407. mentions responsible. Obviously, irrelevant 425. separate opinion, thoroughly analyzes inadequacy measures. impotence demonstrated failure control instances reject hope appeasing bringing control. BRENNAN, Allis-Chalmers Manufacturing 388 175, 183, 87 2001, 2008, 1123 (1967), aptly noted: "Where weak, faced depletion ranks real choice except condone member's disobedience." Cf. Park, 421 658, 95 1903, 489 (1975), executive supermarket chain criminally permitting food left insanitary conditions notice conditions.

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