Source: https://case-law.vlex.com/vid/386-u-s-171-606674222
Timestamp: 2019-04-18 22:17:06+00:00

Document:
Petitioners, union officials, were sued in a state court by a union member who alleged wrongful discharge by his employer in violation of the collective bargaining agreement and the union's arbitrary refusal to take his grievance to arbitration under the fifth and final step of the bargaining agreement's grievance procedures. The employee, whose duties required strenuous activity, was discharged on the ground of poor health. During the fourth grievance step, the union sent the employee to a physician for a complete examination. The report was unfavorable to the employee, and the union decided not to take the grievance to arbitration. After a jury verdict for the employee, the trial judge set aside the verdict on the ground that the NLRB had exclusive jurisdiction over the controversy. The Kansas City Court of Appeals affirmed, but the Missouri Supreme Court reversed and ordered the jury's verdict reinstated.
2. Although the NLRB has recently held that a union's breach of its statutory duty of fair representation is an unfair labor practice under § 8(b) of the National Labor Relations Act, it does not follow that the broad preemption doctrine defined in San Diego Building Trades Council v. Garmon, 359 U.S. 236, holding that the NLRB has exclusive jurisdiction over activity arguably subject to § 8 of the Act, is applicable thereto. Pp. 177-188.
(a) The preemption doctrine has not been rigidly applied where it could not be fairly inferred that Congress intended exclusive jurisdiction to lie with the NLRB. Pp. 179-180.
(b) The preemption rule has not been applied where the activity regulated was merely a peripheral concern of the Labor Management Relations Act. P. 180.
doctrine were applied to oust the courts of their traditional jurisdiction to curb arbitrary union conduct. Pp. 181-183.
(d) As a practical matter, in an employee's suit against his employer for breach of contract under § 301 of the Labor Management Relations Act, the employee may well find it necessary to prove a breach of duty by his union, a facet of the case which does not destroy the court's jurisdiction, even if the employee joins the union as a defendant. That being so, the result should be no different if the employee sues the employer and the union in separate actions. Pp. 183-187.
(e) Where a breach of duty by the union and a breach of contract by the employer are proven in a § 301 breach of duty action, the court must fashion an appropriate remedy against both defendants. Pp. 187-188.
4. As a matter of federal law, the evidence does not support a verdict that the union breached its duty, as the employee, who had no absolute right to have his grievance arbitrated, failed to prove arbitrary or bad faith conduct by the union in processing his grievance. Pp. 193-195.
On February 13, 1962, Benjamin Owens filed this class action against petitioners, as officers and representatives of the National Brotherhood of Packinghouse [87 S.Ct. 908] Workers1 and of its Kansas City Local No. 12 (the Union), in the Circuit Court of Jackson County, Missouri. Owens, a Union member, alleged that he had been discharged from his employment at Swift & Company's (Swift) Kansas City Meat Packing Plant in violation of the collective bargaining agreement then in force between Swift and the Union, and that the Union had "arbitrarily, capriciously and without just or reasonable reason or cause" refused to take his grievance with Swift to arbitration under the fifth step of the bargaining agreement's grievance procedures.
over this controversy, and the Kansas City Court of Appeals affirmed. The Supreme Court of Missouri reversed and directed reinstatement of the jury's verdict,2 relying on this Court's decisions in International Assn. of Machinists v. Gonzales, 356 U.S. 617, and in Automobile Workers v. Russell, 356 U.S. 634. 397 S.W.2d 658. During the appeal, Owens died, and respondent, the administrator of Owens' estate, was substituted. We granted certiorari to consider whether exclusive jurisdiction lies with the NLRB. and, if not, whether the finding of Union liability and the relief afforded Owens are consistent with governing principles of federal labor law. 384 U.S. 969. The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), Swift, and the United States have filed amicus briefs supporting petitioners. Although we conclude that state courts have jurisdiction in this type of case, we hold that federal law governs, that the governing federal standards were not applied here, and that the judgment of the Supreme Court of Missouri must accordingly be reversed.
on January 6, 1960. However, on January 8, when the doctor discovered Owens' return, he was permanently discharged on the ground of poor health.
Armed with his medical evidence of fitness, Owens then sought the Union's help in securing reinstatement, and a grievance was filed with Swift on his behalf. By mid-November, 1960, the grievance had been processed through the third and into the fourth step of the grievance procedure established by the [87 S.Ct. 909] collective bargaining agreement.3 Swift adhered to its position that Owens' poor health justified his discharge, rejecting numerous medical reports of reduced blood pressure proffered by Owens and by the Union. Swift claimed that these reports were not based upon sufficiently thorough medical tests.
if you find and believe from the evidence that the union and its representatives acted reasonably and in good faith in the handling and processing of the grievance of the plaintiff.
R. at 161-162. The jury then returned the general verdict for Owens which eventually was reinstated by the Missouri Supreme Court.

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