Legal Document

424 U.S. 554 96 Supreme Court Reporter 1048 47 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 231 Charles Atlantic HINES, etc., et al., Petitioners,v.ANCHOR MOTOR FREIGHT, INC., al. Number 74-1025. Argued Nov. 12, 1975. Decided March 3, 1976. Syllabus Petitioner employees were discharged by respondent employer for alleged dishonesty. Respondent union, claiming that petitioners innocent, opposed the discharges, and pursuant to collective-bargaining contract matter was submitted an arbitration committee, which upheld discharges. The provided a decision committee would be final binding on all parties, including affected. However, when subsequent information indicated charges of dishonesty might have been false, brought wrongful-discharge suit against union under § 301 Labor Management Relations Act, alleging falsity could discovered with minimum investigation, had made no effort ascertain truth thereby violated its duty fair representation arbitrarily in bad faith depriving their employment permitting discharge without sufficient proof. District granted summary judgment respondents ground committee's absent showing faith, arbitrariness, or perfunctoriness union's part. Concluding there facts from infer arbitrary conduct part should afforded opportunity prove charges, Appeals reversed extent, but affirmed employer's favor finality provision observed unless evidence showed misconduct conspiracy between it union. Held : It improper dismiss petitioners' employer, since if erroneous breach tainting decision, they are entitled appropriate remedy as well Pp. 561-572. (a) A relieves employee express implied requirement disputes settled through contractual procedures and, seriously undermines integrity arbitral process, also removes bar contract. 567-569. (b) error, played precipitating dispute, though may not knowingly negligently relied false discharging prevailed before after presenting case procedures, foreclosed otherwise available processes flawed duty. 569-570. (c) While grievance cannot expected error-free, enforcement where arbitrator has erred is conditioned upon having satisfied statutory fairly represent connection proceedings; otherwise, wrongfully left job secure adequate remedy. 570-571. 506 Federal Reporter, 2nd 1153, Niki Z. Schwartz, Cleveland, Ohio, petitioners. Bernard S. Goldfarb, respondents. Mr. Justice WHITE delivered opinion Court. 1 issue here whether asserting properly dismissed accompanying complaint withstood motion remains tried. 2 * Petitioners,1 who formerly employed truck drivers Anchor Motor Freight, Incorporated (Anchor), June 5, 1967. applicable forbade discharges just cause. company charged practice at reimburse money spent lodging while road overnight. Anchor's assertion sought reimbursement motel expenses excess actual sustained them. At meeting Local 377, International Brotherhood Teamsters (Union), attended petitioners, presented receipts previously shown motel's registration cards; notarized statement clerk accuracy affidavit owner affirming cards accurate inflated furnished Union claimed innocent then agreed joint area, permitted either party submit unresolved grievance.2 Pending this hearing, reinstated. Their suggestion investigated answered representatives' assurances "there nothing worry about" need hire own attorney. 3 hearing area held July 26, case. Both present heard. Petitioners denied dishonesty, neither nor any other contradicting documents company. retained attorney rehearing based he personal knowledge events, discrepancy attributable clerk's recording less than actually paid retaining himself difference amount receipted recorded. unanimously "because new justify reopening case." App. 212. 4 There later indications fact culprit; filed 1969, Anchor, Union, International. cause discharge, asserted 5 committee. defended diligently good represented unsuccessfully resorted machinery adverse declaring "(a) majority Panel Committees shall and/or affected."3 Discovery followed, deposition revealing falsified records pocketed sums cards. Motions Unions 'for failure show comprising arbitrariness Unions." 72 Commerce Clearing House Lab. Cas. P 13,987, Page 28,131 (ND Ohio 1973). Although indicating acts "may meet professional standards competency, advisable further investigate . .," concluded demonstrated most insufficient make out prima facie it. Id., 28,132. 6 After reviewing allegations record it, local inferred trier charges.4 To extent reversed. Saying wanted relitigate because recantation clerk, Appeals, quoting prior Balowski versus 372 829 (CA 1967),5 contracts must "(n)o " wholly Anchor. F.2d, 1157, 1158.6 7 respect now us our limited grant employees' petition writ certiorari. 421 928, 95 1654, 44 85 (1975).7 We reverse judgment. II 8 Section 1947, 61 Statutes-at-Large 156, 29 Code KF62 185, provides suits district courts violation labor organizations employers regard controversy.8 This reflects interest Congress promoting "a higher degree responsibility parties such agreements ." S.Rep.No.105, 80th Cong., 1st Sess., 17 (1947). strong policy favoring judicial sufficiently powerful sustain jurisdiction over even involved arguably unfair within National Board. Smith Evening News Assn., 371 195, 83 267, 9 246 (1962); Atkinson Sinclair Rfg. Co., 370 238, 82 1318, 462 Teamsters, Chauffeurs, Warehousemen & Helpers America Lucas Flour 369 95, 571, 593 Dowd Box Courtney, 368 502, 519, 483 (1962). contemplates individual unions employers; contrary earlier encompass those seeking vindicate "uniquely personal" rights wages, hours, overtime pay, wrongful discharge. supra, U.S., 198-200, S.Ct., 269-270. Petitioners' kind 301. Collective-bargaining contracts, however, generally contain settlement mutual discussion arbitration. These provisions among enforced Furthermore, specified 203(d), 154, 173(d), "(f)inal adjustment method declared desirable congressional "can effectuated only means chosen differences collective bargaining agreement given full play." Steelworkers American Mfg. 363 564, 566, 80 1343, 1346, 1403, 1404 (1960). Courts usurp functions "entrusted tribunal." 569, 1347, 1405. They undertake review merits awards defer tribunal finally settle disputes. Otherwise "plenary court meaningless arbitrator's final, reality almost never final." Enterprise Wheel Car Corp., 593, 599, 1358, 1362, 1424, 1429 10 Pursuant policy, we sidestep attempted utilize settling his dispute independent dismissed. Republic Steel Corporation Maddox, 379 650, 614, 13 580 (1965). Maddox nevertheless distinguished situation "the refuses press perfunctorily presses individual's claim See Humphrey Moore, 375 335, 84 363, 11 370; Board Miranda Fuel Cir., 326 172." 652, 616, L.Ed.2d, 583 (footnote omitted). reservation advised. federal laws, strengthen position average worker industrial economy, selection agents wide authority negotiate conclude behalf units, employee's agent administration Wages, working conditions, seniority, security therefore became business certified recognized agents, did processing grievances, 12 Necessarily range reasonableness allowed representative serving unit represents Ford Huffman, 345 330, 338, 73 681, 686, L.Ed. 1048, 1058 (1953). broad negotiating administering effective "undoubted," 342, 368, 370, 377 (1964), limits. Because "(t)he system encouraged administered NLRB necessity subordinates interests unit," Vaca Sipes, 386 171, 182, 87 903, 912, 842, 853 (1967), controlling statutes long interpreted imposing equal scope authority, representation." 377. "subject always complete honesty purpose exercise discretion." 97 L.Ed., 1058. Since Steele Louisville N. R. 323 192, 65 226, 89 173 (1944), railroad industry, Syres Oil Workers, 350 892, 76 152, 100 785 (1955), industries reached served "bulwark prevent individuals stripped traditional forms redress law." 853. Claims arise during life treatment hands employer. Contractual remedies, least stages controlled normally provided; yet refuse them or, does, assertedly do so discriminatorily faith. "The problem determine what circumstances obtain breach-of-contract despite relief remedial procedures." 914, 854. 14 seniority two transportation companies whose operating authorities combined. accorded lesser being laid off. grievances taken very similar us. adverse. state company, favored employees, damages injunction implementation dishonest bad-faith defendant resolution contract, bargained-for accommodation parties. issued injunction. Respondents argued Committee obtained valid excuse (their) contract." independently determining duties infirm reason. Our conclusion disfavored proved case: "Neither Joint exceeded power fraud exclusive agent. proceedings agreement, says is." 351, 372, 382. 15 In sued refused take course rejecting Board, ruled bring action face defense exhaust can breached handling grievance." 186, 855 true done exhaustion remedies ," committed remedied process 855. "believe Congress, conferring establish intended confer unlimited discretion deprive injured Nor "think shield natural consequences breaches agreements." Ibid. same time "we conclude(d) does merely short arbitration." 918, 859. "If compel regardless merit," is, both use arbitration, substantially undermined," curtailing "power costlier more time-consuming steps" deter making "provi(sion) detailed L.M.R.A. 203(d)." 191-192, 917, 858, expressly joined one action. 187, 915, 856. III 16 Even insist duty, urged followed favorable announced, protected relitigation binding. disagree. procedures; dealt refusal grievance. utilizes employee, focus longer reasons act whether, substantial reason believe contributed outcome proceedings. But Moore unreviewable. On contrary, proceeded basis reviewable vulnerable tainted conspired complaining determined guilty malfeasance acceptable performance agent, unnecessary determination irrelevant process.9 18 accept(ed) proposition ignore meritorious perfunctory fashion," 191, 856; ruling pressing last step stemmed evaluation manner handled stages. ignored (the employee's) processed manner," fruitless dismissed" "processed into fourth step, gather case, (him) vigorous work plant, efforts rehabilitated." 194, 919, 860. 19 some blameworthy disentitles rely rule. originated If surely dispute. Of course, below suggesting evidence. As far reveals accordance ostensibly procedures. Nevertheless question protection relitigating binds assert fundamentally malfunctioned statutorily imposed 20 Under rule announced implicated Union's caused err, successful proving them, apparently govern manufactured knows start false; if, unbeknownst corrupted detriment members. exhaust, foreclose honestly invidious discrimination conduct. 21 reversal will undermine entire process. Employers, said, willing give up untrammeled right agree private burden remain one, too heavy some.10 prevail carry demonstrating Union. indicated, involves mere errors 22 offer newly fired error-free. force surmount occasional instances mistake. quite another suggest decisions stand dishonest, discriminatory; event error injustice grossest sort multiply. cease qualify mechanism damaging abide put blessing arrangements agreements, anticipated, sure, operate levels integrity. view, Wrongfully jobs 23 Except arrived conclusions.11 Ninth Circuit Margetta Pam 501 179, 180 (1974): "To us, makes little subverts refusing proceed follows trail end, doing failing employee. receive 24 Petitioners, affirm Court's dismissal 25 So ordered. 26 Judgment 27 STEVENS took consideration 28 STEWART, concurring. N Dec. Immigration Nationality Decisions proof remove 918-919, 842; 348-351, 371-373, 370. say render potentially liable backpay accruing "tainted" "untainted" were, all, wrongful. 30 relies reinstate anything rightful, until determination. Liability intervening wage loss fall Such apportionment mandated Vaca's holding "damages solely increases employer." 197-198, 920, 862. hold back wages period rightfully rehire charge him precisely accord dictates agreement. 31 REHNQUIST, whom THE CHIEF JUSTICE joins, dissenting. 32 seek $1 million grounds jobs. respondents, finding issues decided failed "to summarily decided. affirmed, where, here, binding, upset, "absent fraud, misrepresentation, purpose, gross mistake inaction imply 1157 (1974). Court, assuming arguendo set forth opinion, reverses Motor, members voided find result anomalous longstanding awards. 33 842 that, prevented taking turn relief. bolstered consistent encouraging according terms 1345-1346, 1403 By subjecting due pressure 34 exact opposite result. Here cast aside established challenges decrees losing represented. 35 cites (CA9 1974), "it employee." Ante, 572. existence crucial Vaca. "fair representation" discussed neutral arbitrator, himself. 914. 36 Was concededly vacated sense counsel trial. Obviously stretches beyond original meaning adopts novel notion vacate award "counsel" ineffective. 37 noted, principle violates respecting Uniform Arbitration many States, sets vacating award. include procured corruption arbitrators' exceeding powers exhibiting evident partiality. statute governing §§ 1-14, similarly narrow 10. Nowhere vacation ineffective presentation party's representative. 38 particularly vexing disposal necessary felt fully attention investigation informed indication so. Rather, allowed, protest, 39 Now acted throughout these proceedings, subjected misconduct. view see Czosek O'Mara, 397 25, 90 770, (1970), additional seems undesirable unnecessary. 40 For stated Appeals. Two Burtice Hines Arthur D. Cartwright, deceased. Chyra Judge Cartwright substituted 423 816, 982, 28, 390, 46 34, 300 (1975). procedure Article Central Conference Area Supplement Master Automobile Transporters Agreement. 226-233. Grievances reached, considered remained unresolved, committees organized geographical hear panels number representatives Cases deadlocked panel national composed like there, resolved impartial arbitrator. Detroit contained 7. 231. addition, 7(c) article interpretation "shall conclusive Employer involved." 232. summarized were: "They consist admission, year he, plaintiffs, money; story implicating plaintiffs requests; account officials' 'they about' 'that investigate;' contention exculpatory hearing; existed political antagonism officials wildcat strike led appointment steward, resulting denunciation 'hillbillies' Angelo, president." 1156 1974). quoted segment 833, was: 'It apparent plaintiff attempting proceeding. disputes, employer.' (citation Sixth Circuit, Balowski, appear litigate Either One judge, concurring, dissented "issues pleadings concerning plaintiffs' judgment." 1158. order April 21, 1975, follows: "Certiorari Question reads '1. Whether LMRA barred upholding notwithstanding overwhelming innocence discharged?' Douglas petition." affirmance reversing ruling. 301(a), 185(a); "Suits organization representing industry affecting commerce defined chapter, organizations, controversy citizenship parties." arose Railway 577, amended, 45 151 Et seq., deprived protest. allegation participated breach. Appeals' reach objections, latter challenge respect. Black, grievance, 203, 923-924, (1967) (dissenting opinion). Steinman Spector Freight System, Inc., 441 599 1971); Butler 823, 514 442 8), cert. denied, 924, 265, 249 (1975); 179 1974); 13, Longshoremen's Warehousemen's Pacific Maritime 1061 1971), 404 1016, 92 677, 664 (1972). Bieski Eastern Forwarding 396 32, 1968); Rothlein Armour 391 574, 579-580 Harris Chemical Leaman Tank Lines, 437 167, 171 Andrus Convoy 480 604, 606 9), 414 989, 94 286, 228 (1973).

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