Opinion ID: 1014470
Heading Depth: 5
Heading Rank: 1

Heading: Breach of Contract/Wrongful Discharge

Text: The district court dismissed Freeman’s claims against Duke Power for breach of contract and wrongful discharge for failing to state a § 301 claim because both claims were brought outside of the applicable statute of limitations, borrowing the six-month limitation period contained in § 10(b) of the National Labor Relations Act (NLRA), 29 U.S.C. § 160(b) (2000). If a federal statute is silent as to the applica10 FREEMAN v. DUKE POWER CO. ble statute of limitations, we generally borrow the most analogous state limitations period. See DelCostello v. Int’l Bhd. of Teamsters, 462 U.S. 151, 158 (1983). To avoid frustrating federal policy, however, courts should borrow a limitations period from an analogous federal statute if that statute clearly provides a closer analogy than available state statutes. Id. at 172. The NLRA proscribes unfair labor practices and provides a sixmonth period within which to bring an unfair labor practices claim. 29 U.S.C. § 160(b). The six-month period takes into account 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. DelCostello, 462 U.S. at 171 (internal marks omitted). In this case, Freeman twice settled grievances filed on his behalf by the Union with Duke Power. The settlements provided that Duke Power could terminate Freeman for engaging in electrical contracting, and that Duke Power’s decision to do so shall be final. (J.A. at 12.) Freeman’s claims for breach of contract and wrongful discharge challenge Duke Power’s decision to terminate his employment despite his agreement in the settlement negotiations that Duke Power’s decision would be final. Allowing Freeman to use the three-year statute of limitation provided under North Carolina law for breach of contract claims would undermine the NLRA’s delicate balance between the competing interests of promoting the finality of private settlements and avoiding unjust settlements. See DelCostello, 462 U.S. at 171. The district court appropriately borrowed the NLRA’s six-month statute of limitation and properly dismissed the breach of contract and wrongful discharge claims as being brought outside of that period.