Document: 459 U.S. 212 103 S.Ct. 588 74 L.Ed.2d 402 Charles V. BOWEN, Petitionerv.UNITED STATES POSTAL SERVICE et al. No. 81-525. Argued Oct. 6, 1982. Decided Jan. 11, 1983. Syllabus After petitioner employee was discharged by respondent United States Postal Service (USPS) as a result of an altercation with another employee, he filed grievance Union provided the applicable collective-bargaining agreement. When declined to take his arbitration, sued respondents in Federal District Court, claiming that had been wrongfully and seeking damages injunctive relief. Entering judgment on jury verdict against both respondents, Court held USPS without just cause handled arbitrary manner. Accordingly, court upheld jury's apportionment between Union. The Appeals affirmed except for award Union, holding because petitioner's compensation payable only USPS, reimbursement lost earnings continued be USPS's exclusive obligation, hence no portion deprivations chargeable Held: Where Court's findings, accepted Appeals, established were caused initially unlawful discharge increased Union's breach its duty fair representation, required. Vaca v. Sipes, 386 171, 87 903, 17 842. Pp. 218-230. (a) governing principle is where proves employer violated agreement union breached liability apportioned according fault each. To interpret this requiring solely liable resulting from wrongful treats relationship created agreement, if it simple contract hire governed traditional common-law principles. Such reading fails recognize much more than employment terminable at will. Rather, creating relationships interests under federal common law labor policy. 218-220. (b) Of paramount importance right who has injured employer's union's breach, made whole. Even though have damage suffered responsible increase representation having procedure malfunction, and, two wrongdoers, should bear damages. 220-224. (c) union, employee's agent, waives arbitration or seek review adverse decision, substantially same position act own behalf done so. In absence default contributes injury, incentives comply proceeding would diminished, impose total could affect willingness employers agree clauses. require pay does not burden inconsistent national policy, but rather provides additional incentive process members' claims warranted. 224-228. (d) Czosek O'Mara, 397 25, 90 770, 25 21, § recognition each party attributable fault. 228-230. 642 F.2d 79, reversed remanded. William B. Poff, Roanoke, Va., petitioner. Barbara E. Etkind, Philadelphia, Pa., support Asher W. Schwartz, New York City, Justice POWELL delivered opinion Court. 1 issue whether may primarily part representation. 2 * On February 1976, following Bowen suspended Service. member American Workers AFL-CIO, recognized collective bargaining agent employees. formally terminated March 30, Western Virginia, 3 Bowen's complaint charged dismissing him "just cause" His evidence trial indicated officer, step process, recommended pursuing office, apparent reason, refused matter arbitration. 4 Following parties' presentation evidence, gave series questions answered special verdict.1 If found instructed determine amount compensatory awarded apportion Union.2 explaining how might apportioned, left discretion. indicated, however, equitably base date hypothetical decision which reinstated fulfilled duty. suggested before thereafter. Although objected instruction allowing find any damages, did object manner event proper.3 5 Upon return favor defendants, entered judgment, "apparently meritorious . perfunctory ." 470 F.Supp. 1127, 1129 (WD Va.1979). so doing, acted "in reckless callous disregard [Bowen's] rights."4 Ibid. proceeded independently Union5 arbitrated grievance, reinstated. 6 ordered reimbursed $52,954 benefits wages. noting "there authority suggesting form back pay," observed "this case their illegal acts, are plaintiff. problem one apportionment. Id., 1130-1131. $30,000 approved apportionment, ordering remaining $22,954.6 7 appeal Fourth Circuit overturned 79 (CA4 1981). It findings fact, that, "[a]s all times Service, obligation exclusively. Hence, Cf. 195 [87 919, 842] (1967)." 82. alter other respect, "affirmed [it] throughout" 83. 8 Thus, finding rights."7 Indeed, completely $22,954 cover whole injury. award, whereas $52,954—the undisputed II 9 842 (1967), such Bowen, entitled recover employer. explained must fault: 10 "The principle, then, increases those refusal employer." 197-198, S.Ct., 920-921. 11 well established, application some uncertainty.8 argues correctly determined cannot discharge. "governing principle," requires views itself litigation expenses finds view absolve consequences contract. See id., 196, 919. contends unrelated make damages; merely lifts bar suit 12 difficulty argument This A. 13 Vaca, here, contended violation refusing claim He Missouri state fault, decided—and Supreme agreed—that entirely backpay. 195, 14 appeal, required resolve number issues. One failed exhaust prescribed bring agreement.9 Republic Steel Corp. Maddox, 379 650, 85 614, 580 (1965), "federal policy individual employees wishing assert grievances attempt use agreed upon mode redress."10 652, 616 (emphasis original). Because procedure, necessary consider interest participating administration limiting administrative remedies. noted, "the refuses press perfunctorily presses individual's claim," different result. 15 presented situation. "sole power invoke higher stages procedure," chosen U.S., 185, 914. Thus faced strong countervailing interest: vindicate claim. resolved these conflicting failure contractual procedures when show prevented exhausting then observed: 16 "It true situation nothing prevent exhaustion remedies But committed remedied through employee-plaintiff's benefit statutory employee. leave remediless circumstances would, our opinion, great injustice." 185-186, 914-915. thus identified provide measure apportioning determining degree shielded "natural consequences" conduct. 186, exhaustion. Were represent fairly, "could [have been] benefit." justifies dropping also responsibility breach. hold otherwise alone 18 Hines Anchor Motor Freight, Inc., 424 554, 96 1048, 47 231 (1976), analogous Vaca: proof remove finality arbitral decision. We contrary rule recovering 19 "even shown manufactured knows start false; even if, unbeknownst employer, corrupted arbitrator detriment disfavored members." 570, 1059. 20 indeed unjust equally conduct.11 remains supra, 197, 920. malfunction damages.12 21 reflects allocation responsibility. As stated, "damages 920-921 added). here us read out articulation relevant words emphasized above.13 ignore parties agreement—interests illustrates. B 22 approving apply principles ordinary law. For, "is contract; generalized code govern myriad cases draftsmen wholly anticipate." Steelworkers America Warrior & Gulf Navigation Co., 363 574, 578, 80 1347, 1351, 1409 (1960). defining applied evolving grounded Manufacturing 564, 567, 1343, 1346, 1403 (1960); Textile Lincoln Mills, 353 448, 456-457, 77 912, 917-918, 972 (1957). 23 Fundamental procedure. John Wiley Sons Livingston, 376 543, 549, 84 909, 914, 898 (1964); 1350. promotes goal industrial peace providing means management settle disputes negotiation strife. Sons, Adoption giving content rights obligations it. Navigation, 581, 1352. 24 participates plays pivotal role since assumes claims.14 part, rely pursue grievance. For acts representative virtually matters involving terms conditions employment. Just nonorganized accept waiver challenge final resolution matter, organized able comparable representative. There unfairness approach. By acquiring speak group employees, corresponding faithfully—a owes whom represents bargains rely. "uniform method [the] orderly settlement grievances," essential policy."15 Clayton International Automobile, Aerospace Agricultural Implement Workers, 451 679, 686-687, 101 2088, 2093-2094, 68 538 (1981). 26 announced responsibilities procedure—a contemplates will perform respective obligations. diminished. imposing clauses they customarily written. 27 Nor policy.16 187, 915. consistent interest. owed members commitment clause. Steel, 653, 616. III 28 (1970), weighing developed. Czosek, today.17 Erie Lackawanna Railroad placed furlough recalled. They brought railroad breaching alleged arbitrarily capriciously railroad. 26, 771. dismissed pursued Railway Labor Act.18 employees' ability remedy absolved Second dismissal stated union. full redress board, still them fairly. Conley Gibson, 355 41, 78 99, 29 affirmed. addressed concern joined party, partly responsible. stated: 30 "[J]udgment [the union] can flowed [its] Assuming independent discriminatory conduct subsequent based discharge, loss unrecoverable extent handle added expense collecting 29, 773. 31 statement broadly phrased, divorced context arose. Act alternate remedy, grievances. actions deprive immediate access pay. therefore flowing incurred. IV 32 case, establish sustained Service's Vaca.19 reverse remand entry allocating opinion. 33 ordered. 34 WHITE, MARSHALL, BLACKMUN, REHNQUIST (except IV), join, concurring dissenting part. 35 holds discharges protected clause backpay accrues prior issued taken All accrue after time sole where, way terminate rationale, heretofore rejected every squarely considered it,1 give due regard precedents, equitable principles, I respectfully dissent. reasons, believe 36 Smith Evening News Ass'n., 371 200-201, 83 267, 270-271, 246 (1962), we first 3012 If, Smith, contain provision, unqualified, unquestionably due. 37 hand, present difficult maintain 301 action whatsoever. exhausted files suit. adopted protect integrity further encouraging private arising over interpretation implementation agreements. Automobile 38 Noting sometimes prove "unsatisfactory unworkable grievant," question "under what obtain judicial breach-of-contract despite secure relief remedial procedures." rights" employee-plaintiff grievance." An because, enacting laws unions, Congress intend "to shield natural breaches agreements enforcement agreements." 39 clear respect consequence fair-representation defeating "defense remedies," ibid., explicitly "exempt[ed] 920, "hide behind act." 40 reiterated owe. involved whose fully arbitrated. rightful. Nevertheless, representing fairly during proceedings, malfeasance. 569, 1058. protested blameless, award. argument, pointing "surely played precipitating dispute" discharging plaintiff-employee place. "remove[d] bar" action.3 1057. 41 previous holdings, far concerned, procedural exhaustion-of-remedies aggrieved potential liability, including prevails proceedings showing him. 42 That readily close inspection facts Vaca. January 1960. Sometime 1961, 1962, suit, go rights. began June 1964, finally adjudicated until rendered 1967. 173-176, 907-909. Had opted almost certainly forthcoming long trial.4 commented "all all" 198, 921. intended accruing date, presumably half attributed 43 course, mean escapes consequences," simply nature recoverable why 44 What, proper hybrid 301/breach-of-duty suit? 773, concluded rule, misconduct "add[s] employer."5 reassured unions forced "for responsible." 28-29, 772-773 45 Vaca-Czosek de minimis unanimously acknowledged fact Electrical Foust, 442 42, 48, 50, 99 2121, 2125, 2126, 60 698 (1979). typical unfair minimal; formula, bulk paid perpetrator parallel action." 57, 2130 (BLACKMUN, J., result; BURGER, C.J., REHNQUIST, STEVENS, JJ.). Foust majority nevertheless reaffirmed moreover, insulated punitive assessed reaching conclusions, relied affording injuries compromising protecting limited funds. considerations deterrence deemed insufficient risk endangering "financial stability." 50-51, 2126-2127.6 46 Our precedents notwithstanding, today abandons rationale defense totally now serves insulate unlike stop accretion moment desires, reinstating denied progeny, new "bulk award" borne example, jury, accordance test, $17,000 fortunate dispute less three years cessation Most reviewed better decade run course.7 usually year see note many subject large greater related comparative culpability. limit constantly increasing liability.8 48 argue "cause" compensated "but for" sense, patently false, concedes. Ante, 223. contract, there occasion anyone reimburse plaintiff wages accumulated either Furthermore, breach—the continue accumulate reinstate. arbitrate reinstate wrongful. 49 reason defendant equivalent harm suffered, contributing factors conduct." Corbin, Corbin Contracts 999 (1964). need proportionate defendant's among causing "segregated proportionately." followed "wholly partly" plaintiff-employee's loss. persisting done, hardly sufficient exonerate 50 bears re-emphasizing Under circumstances, bizarre hold, does, relatively impotent exclusively effect, sustains protest "you my wrong certain time, you caught rectified time." Seymour Olin Corp., 666 202, 215 (CA5 1982). clearly generating loss, continuing Bowen. wages, entitled. 51 clause" 227-228. However, identifies legitimate source "commitment post-arbitration-date assumption somehow entitles attention within machinery. contains language entitling reliance. gives raise grievances, obligate do And, most assuredly, expressly impliedly grants attention. 52 duty—implied judiciary9—to obliges consideration. honest effort serve [bargaining unit] members" impartially. Ford Co. Huffman, 345 330, 337, 73 681, 685, 97 L.Ed. 1048 (1953); Wallace NLRB, 323 248, 255, 65 238, 241, 89 216 (1944); Steele Louisville Nashville Ry. 192, 202-203, 226, 231-232, 173 (1944). "bulwark individuals stripped forms law." 182, 912 represents—the contend otherwise. 53 neither nor conclusion cut off liability. Contrary past construing law, effect reads indemnification provision into properly bargain desired.10 basic tenet "when end product violates command Congress, modify substantive agreement." Mine Health Retirement Funds Robinson, --- ----, 102 1226, 1234, 71 419 (1982). Carbon Fuel 444 212, 218-219, 100 410, 414-415, 62 394 (1979); Porter Inc. 108, 821, 826, 146 (1970).11 54 contends, ante, 226-227, enable uniform written." Why "affect willingness" unexplained. More importantly, practical today's unmeritorious avoid exposure breach-of-duty actually impairs machinery resolution. 55 Lost Precedent, equity, primary arbitrate.12 56 least situations First, jointly severally affirmatively induced commit 197 n. 18, 920 18. Second, one, secondarily liable. is, unable collect entity liable, union.13 57 secondary trusts, context.14 behalf, trust beneficiary sue enforce trustee "improperly neglects third person." ALI, Restatement (2d) Trusts 282(2) (1959); G. Bogert Bogert, Law Trustees 869 (2d ed. 1982); Scott, 282.1 (3d 1967). obligor, monetarily See, e.g., Pollard Pollard, 166 Cal.App.2d 698, 333 P.2d 356, 357 (1959). causes beneficiary, originally enforceable, obligor become insolvent, barred statute limitations. 177. 58 similar Harrison Transportation 530 558 1976), cert. denied, 425 958, 1739, 203 (1976). plaintiff's time-barred. recovered misconduct. 562. Nedd 400 103, 106-107 (CA3 1968). 59 No exception case. incite Therefore, affirm disagree precluding defendant. stipulated approximately $47,000 trial.15 verdict,16 remainder. court, footnote belatedly amend assess erroneously erroneous ground file cross-appeal $30,000. 82 61 purport Sipes effective 48-49, 2125-2126 54, 2129 result). exactly opposite effect: deprived recovery procedurally questionable infirmity quantum favor. aspect real Yet frustrated entitlement complete reopening judgment. joint several defendants. "Union Service's] Service] took duty, unwarranted." standpoint, apart collectibility, legal improved. Whether technical basis appealing favor, concerns appellate courts appeals favorable decisions prosecuted litigants attempting judgments like Appeals. 217-218, 7. 63 Appeals' remainder instructions directed enter entire 64 dissenting. Parts I, II, WHITE's However doubt about proposition advanced Part dissent 66 $52,954. trial. assertion "should cross appeal," dictum. us, am writing separately express doubts soundness proposition. 67 pay", 218, Courts discussed White's very substantial reasonably think sort "safe harbor" suggest. Appellate judgments, $22,954. Prudent counsel conditional cross-appeal, "appellee attack decree enlarging thereunder lessening adversary, seeks correct error supplement dealt below." Express 265 425, 435, 560, 563, 1087 (1924). 69 me, light disposition decide, remanded issue. seems permit plaintiffs "attack" prohibited authorities Express, supra. sat advisory panel U.S.C. 2402 ("Any section 1346 shall tried jury"). Question Special Verdict "If [you and/or cause], preponderance reasonable certainty [Bowen] entitled." your answer 3, amount, any, Service." App. Pet. Cert. A21-A22. Counsel "Your Honor, form, [Union] allow judg[ ]ment [ ] Traditionally, And assessable [Service], all." Record 611-612. Motion Judgment Notwithstanding Verdict, reasserted "amount assess[a]ble Record, Vol. Item 37, ¶ 2. "maliciously recklessly Plaintiff [Bowen]." 597. $10,000, respectively. A22. determined, sovereign immunity. F.Supp., 1131. supported set aside. immune. point. grievance-arbitration contained four initiate discussing supervisor. discretion elect next steps. settled, refer I., Exhibit 1. appealed Civil Commission, expired days notice action. Moreover, choosing remedies, "waive[d] National Agreement beyond Step 2B Grievance-Arbitration Procedures." 90-91. presenting Commission. August, 1977. Union: "While [Service] motion [Union's] relied, delayed reinstatement assign two-thirds period unemployed up trial." filed, noted "no revision $22,954.12 connection $22,954.12." F.2d, 6. court's erroneous. won unambiguous victory dispute, unhappy appeal. asserts "rationale" today, "has it." post, Apart rationale—the principle"—articulated few consistency perceived Only cited considering fully. 202 Others, below, minimal 1981) (simply citing principle); Milstead Brotherhood Teamsters, 649 395, 396 (CA6 (finding St. Clair Local 515, 422 128 1969), apportioned). Some articulated apparently rationales. Wyatt Interstate Ocean Transport 623 888, 892-893 1980) (refusing stating "exacerbate[s employee's] diminution charged"); De Arroyo Sindicato Trabajadores Packinghouse, 281, 289-290 (CA1), 877, 91 121, 115 (1970) "that earlier date"). While reach dissent, affirmation reasoning. Other Smart Ellis Trucking 215, 219 1978) (on remand, limited" reliance proceeding); Chrysler 1273, 1279 (CA7 1977) ("union breach"); Ruzicka General Motors 523 306, 312 1975) ("Union Appellant's injury 'increases [chargeable employer] grievance' ") (brackets circuit opinion); 132 (holding "liable [than measured backpay] perhaps less" party's fault). Feller, A Theory Collective Bargaining Agreement, Cal.L.Rev. 663, 817-824 (1973) (employer's default); Comment, Apportionment Damages DFR/Contract Suits: Who Pays Breach, 1981 Wis.L.Rev. 155 (same). sum, reveals dissent's assertion, unanimous results previously Association, Management Relations Act. 185. exhaustion, 196 17, 17. Congress's approval preferred settling disputes, actively choice available participated other's default, upholding reversed. reasons proposition, second. "may hide act" posed point, explicit makes point glosses over. "[i]n allegedly discharge." occur, sufficiently occurred speculative observation precisely worded principle. choose include supervised or, do, exclusive. 184 9, 913 9; 657-658, 618-619, cf. 159(a) (employee "without intervention representative, adjustment effect. ."). agreements, supervise 742, 752-753 (1973). 191-192, 917-918. analysis, Rather 238-239. leaves dubious option: promptly exposed open-ended purpose defeated. resolving kind strongly encourages use. arguing "only ha[s] reinstating" lacks. 239. knowing carry constitutes rehiring, suggests, assume justified. option, realized arguable taking account. infra, 19. urged once goes trial, pursuant acknowledge exchange undertaking look recovery. occur frequently, demonstrates unsoundness. Requiring share deterring future outweighed debilitating impact "unpredictable potentially substantial" awards treasury exercise deciding pursue. 50-52, 2126-2127. normally finite. standard threat absent here. address decisions. scope available, "entitled appropriate Union." 572, 1060. bearing discussion —that damages—is Finally, America, 690, 15, 2096 (1981), internal significant allowed 153 First (i), (j). These sections unsuccessful level Adjustment Board. Board authorized 657, 14, 619, 14. decide proper. assessed. degrees "reckless rights." addition below 1981), 395 454 896, 394, 70 211 rendering square holdings 888 (assessing backpay); Soto Segura Sea-Land 581 291, 298 (CA1 1978), specifically "did charge appellee instead $5,750 attorney's fees proximately DeArroyo Sindicata backpay, 40% accrued 671-672 incorrectly states, 218-220 8, ever this. cites suggest possibility 1273 1977). Clair, issue; anything interim earnings, "and less," implied increment minimis." 132. Harrison, comment "a breach," 1279, litigation, dicta regarded authoritative. Section Act, technically arises 1208(b) Reorganization 1208(b), identical respects. Stewart two-paragraph Hines, "tainted" "untainted" determination were, all, 572-573, 1060-1061. Stewart's observations, founded good-faith Here, nonexistent 239-241. Statistics developed Mediation Conciliation ("FMCS") 1981, average filing 230.26 days. 1972 1980, varied high 268.3 1977 low 223.5 1975 1978. FMCS, Thirty-Fourth Annual Report generally Ross, Well-Aged Arbitration Case, Indus. Lab.Rel.L.Rev. 262 (1958); Seitz, Delay: Asp Bosom Arbitration, Arb.J. (Sept. Also, industries, expedited reduce time. Sandver, Blaine Woyar, Time Cost Savings Expedited Procedures, (Dec. arose ("RLA"), (and Supp. III) §§ 151 seq., permits himself. Id. RLA context, theory assistance, "increase pay." nowhere suggests distinction relevant, 13, 2127 (1979), "Vaca 's principle." credible deterrent Attorney's adds 215; Scott Teamsters 377, 548 1244 (CA6), 431 968, 2927, 1064 (1977). ITT Gilfillan, 565 (CA9 1980), rev'd sub nom., (1981) (discharge 1975; May 1981); 43-45, 2123-2124 1971; 1976; 1978; rules 1979); 556-559, 1052-1053 (discharges 1967; district summary 1973; 1976); 772 1962; 1970); 175-176, 908-909 1960; begins 1964). disturbingly vague concedes shift "bring[ing] attention." 227 15. imposes held, beginning (1944), agent's designated unit includes hostility discrimination toward good faith honesty, 177, 909. Aaron, Duty Fair Representation: Overview, Representation (J. McKelvey Edwards, Employers' Liability Unfair Fiduciary Reality?, Lab.L.J. 686, 691-692 reaffirms, 224, 1350, "[g]aps filled reference practices particular industry various shops covered agreement," "[m]any specific underlie unknown, hazy negotiators." 580-581, 1351-52. obliged "industry practice" inferred "gaps" inserts term forbidden lower doing holdings. mere belief "should" approach," valid justification holding. asserts, 227, recovery." seriously doubt, lightly "concede" particularly costs collection, inconsiderable amounts. position, exposing exert correspondingly pressure settle, acknowledgement leaving defend alone. takes exact tack. post-hypothetical-arbitration-date pay, amount. 223 12. always import NLRB Hearst Publications, 322 111, 120-129, 851, 855-859, 88 1170 analogy appears appropriate. Cox, Rights Harv.L.Rev. 601, 652 (1956); Jenkins Wm. Schluderberg-T.J. Kurdle 217 Md. 556, 144 A.2d 88, (1958). $45,389.87 fringe 315. misstated figure closing basis. 550. complained $1,610.13 discrepancy. timely renewed objection notwithstanding verdict, alternative quotes material. 3.

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