Opinion ID: 463548
Heading Depth: 2
Heading Rank: 3

Heading: the applicable state limitations period

Text: 38 Under the law in effect prior to our decision in this case, the timeliness of a suit for breach of a collective bargaining agreement was to be determined, as a matter of federal law, by reference to the appropriate state statute of limitations. See United Parcel Service, Inc. v. Mitchell, 451 U.S. at 60, 101 S.Ct. at 1562-63; Auto Workers v. Hoosier Cardinal Corp., 383 U.S. at 704-05, 86 S.Ct. at 1112-13; Edwards v. Teamsters Local Union No. 36, 719 F.2d at 1038. 39 The parties disagree as to whether the most closely analogous state statute is the one-year period contained in Hawaii Rev.Stat. Sec. 657-11 (governing recoveries authorized by federal statute) or the six-year period contained in Hawaii Rev.Stat. Sec. 657-1(1) or (4) (governing actions for the recovery of a debt founded upon a contract and residual types of actions). We agree with Aloha that the one-year period contained in Hawaii Rev.Stat. Sec. 657-11 is most analogous, although not for the reasons which Aloha asserts. Aloha erroneously labels as dispositive this court's unpublished affirmance of a district court's pre-DelCostello ruling that section 657-11 applies to hybrid breach of collective bargaining agreement/fair representation claims under the RLA. Our affirmance in Hafer v. Air Line Pilots Association, International, 525 F.Supp. 874 (D.Hawaii 1981), aff'd mem., 698 F.2d 1230 (9th Cir.1983), was an unpublished disposition which has no precedential value and may not be cited to or by this court. 9th Cir.R. 21(c). 40 Aloha's reliance upon the Supreme Court's recent decisions in Wilson v. Garcia, --- U.S. ----, 105 S.Ct. 1938, 85 L.Ed.2d 254 (1985) and Springfield Township School District v. Knoll, --- U.S. ----, 105 S.Ct. 2065, 85 L.Ed.2d 275 (1985) is similarly misplaced. These cases are wholly inapposite because they arose in the context of section 1983 actions and do not purport to address the question of the limitations period applicable to a dispute for breach of a collective bargaining agreement. 41 Nevertheless, Aloha correctly argues that the gravamen of the IAM's complaint centers around Aloha's refusal to reinstate the benefits and working conditions which it contends represent the status quo under the RLA. This obligation is founded upon the status quo provisions of the RLA (sections 155 and 156) rather than upon the collective bargaining agreement itself. See United Transportation Union v. Florida East Coast Railway Co., 586 F.2d 520, 527 (5th Cir.1978) (per curiam) (action alleging violation of RLA through refusal to restore status quo was action upon a liability created by statute, and state statute of limitations period for such actions applied). Therefore, the most closely analogous state limitations period is the one-year period contained in Hawaii Rev.Stat. Sec. 657-11 governing recoveries authorized by federal statute. 42 The IAM argues that even assuming that section 657-11 applies, its second complaint was timely filed because a cause of action for breach of contract does not accrue under Hawaii law until the plaintiff disaffirms the contract. The IAM concludes that because Aloha did not disaffirm the interim agreement until October 31, 1983, when a new collective bargaining agreement was reached, its complaint (filed March 9, 1984) was filed within one year of the accrual of its claim. Alternatively, the IAM argues that (1) Aloha continued to violate its rights each time it issued paychecks which were lower than the status quo rate; or (2) the running of the statute was tolled until June 24, 1983, the date on which Aloha refused to arbitrate the dispute. 43 The IAM's first contention misses the mark. As discussed supra, its action cannot be likened to a breach of contract claim. Rather, the IAM's claim is a federal claim for violation of the RLA. The question of when a federal cause of action 'accrues' and the related question of whether it is 'tolled' by subsequent events, are federal questions. Butler v. Local Union 823, 514 F.2d 442, 448-49 (8th Cir.), cert. denied, 423 U.S. 924, 96 S.Ct. 265, 46 L.Ed.2d 249 (1975), disapproved on other grounds, IBEW v. Foust, 442 U.S. 42, 99 S.Ct. 2121, 60 L.Ed.2d 698 (1979). 44 Nor is there any merit to the IAM's contention that Aloha's refusal to reinstate the status quo constituted a continuing violation. The fact that a party violating the RLA persists in its position or that the effects of its actions continue after the claim initially arose does not create a continuing violation so that the statute of limitations is re-started with each action. See United Transportation Union v. Florida East Coast Railway Co., 586 F.2d at 527 (employer's refusal to restore status quo and decision to implement new rates of pay did not create continuing violation of RLA so that limitations period was re-started with issuance of each paycheck); see also Harper v. San Diego Transit Corp., 764 F.2d 663, 669 (9th Cir.1985) (fact that union continually failed to pursue employee's grievance does not constitute a continuing breach of its duty of fair representation so that statute of limitations is re-started). 45 The IAM's tolling argument, however, does have merit. In the analogous context of breach of contract/breach of duty of fair representation claims, the Eighth Circuit has held that the statute of limitations is tolled (or the cause of action does not accrue) until the employee has exhausted the grievance process and his grievance has been rejected. Butler v. Local Union 823, 514 F.2d at 449-50. The court reasoned that the underlying policies of federal labor law will not be furthered by enmeshing Sec. 301 breach of contract actions in technicalities that operate to the disadvantage of plaintiffs who have acted entirely in good faith in following the contract's command that they first submit their grievance to the arbitration process. Id. at 450; see also Smart v. Ellis Trucking Co., 580 F.2d 215, 219 n. 5 (6th Cir.1978) (litigants should not be penalized for complying with federal labor policy requiring that section 301 plaintiff seek arbitral relief as a prerequisite to federal claim), cert. denied, 440 U.S. 958, 99 S.Ct. 1497, 59 L.Ed.2d 770 (1979). 46 In the instant case, the IAM pursued its grievance in good faith under the arbitration process set forth in the collective bargaining agreement. When Aloha refused to arbitrate, the IAM sought an order compelling arbitration. When that order was denied, the IAM filed this action for adjudication of the merits of the dispute. It would be inequitable to penalize the IAM for its attempt to utilize the arbitration machinery of the collective bargaining agreement. Therefore, the IAM's cause of action under the RLA did not accrue until Aloha refused to arbitrate on June 24, 1983. Because this date is within one year from the date on which the IAM filed its complaint, the IAM's action was timely filed.