Al Orphan v. Furnco Construction Corporation

466 F.2d 795, 81 L.R.R.M. (BNA) 2058, 1972 U.S. App. LEXIS 7877
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 17, 1972
Docket71-1455
StatusPublished
Cited by44 cases

This text of 466 F.2d 795 (Al Orphan v. Furnco Construction Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Al Orphan v. Furnco Construction Corporation, 466 F.2d 795, 81 L.R.R.M. (BNA) 2058, 1972 U.S. App. LEXIS 7877 (7th Cir. 1972).

Opinion

CUMMINGS, Circuit Judge.

In this class action, plaintiffs sought damages resulting from defendant’s alleged breach of the collective bargaining *797 contract between it and the Union. 2 Jurisdiction was asserted under Section 301(a) of the Taft-Hartley Act (29 U. S.C. § 185(a)). Commencing in June 1969, defendant, a bricklaying and masonry contractor, employed plaintiffs to do construction work at a Chicago plant of the United States Steel Corporation. Plaintiffs principally claim that in violation of the collective bargaining contract between their Union and defendant, they were deprived of overtime pay, underpaid during straight time, discriminated against in hiring, and deprived of work on certain days.

In four counts of the amended complaint, 3 plaintiffs advance variant theories for their ability to maintain a court action despite the existence of a contractual grievance-arbitration remedy which has not been utilized. In Count I, plaintiffs assert that they “presented the grievances enumerated herein to the Union in every possible manner in an attempt to have the Union process them through arbitration * * *.” Count II contains the allegation that the “ ‘Disputes’ clause mandatorily requires the Union to process to settlement or arbitration any grievance,” but the Union “failed to process the grievances in violation of its contractual duty and said violation was in breach of its statutory duty of fair representation.” In Count III, plaintiffs allege that “[t]he ‘Disputes’ clause * * * was not meant to be nor does it purport to be the exclusive remedy, or one that must first be exhausted, before an employee may pursue other means of redress,” so that “resort to this Court irrespective of whether or not grievance procedures were otherwise pursued is permissible.” Count IV alleges that “the defendant and the Union arranged and conspired to illegally ignore the Joint Agreement” and that “this collusion constituted a breach of the Union’s statutory duty of fair representation.”

The district court granted the defendant’s motion to dismiss the amended complaint for failure to state a claim upon which relief can be granted, 4 and filed a memorandum opinion reported at 325 F.Supp. 1220. The court held that the disputes clause in the collective bargaining contract 5 provided the exclusive remedy for redress of employee grievances and that the plaintiffs' failure to file timely and proper grievances with the Union in accordance with the Union’s by-laws clearly barred their suit. Similarly fatal, the court ruled, was plaintiffs’ failure to allege exhaustion of intra-Union remedies. The court further decided that plaintiffs’ allegations of breach of the Union’s duty of fair representation were facially unsupportable because “a Union does not breach its duty of fair representation by failing to process untimely and improperly filed grievances” and were insufficient because conclusory. Finally, the court ruled that the Union was not mandatorily required to process grievances but had both the power and responsibility to *798 screen grievances. The proprieties of these rulings form the issues we must address to decide whether the amended complaint was correctly dismissed.

Where, as here, the collective bargaining agreement establishes grievance and arbitration procedures for the redress of employee grievances, it is settled that the employee must at least attempt to exhaust these procedures before resorting to a judicial remedy. Vaca v. Sipes, 386 U.S. 171, 184, 87 S.Ct. 903, 17 L.Ed.2d 842; Republic Steel Corp. v. Maddox, 379 U.S. 650, 652, 85 S.Ct. 614, 13 L.Ed.2d 580. There are exceptions to this rule. One such exception exists “[i]f a grievance and arbitration procedure is included in the contract, but the parties do not intend it to be an exclusive remedy * * *.” Vaca v. Sipes, supra, 386 U.S. at 184, n. 9, 87 S.Ct. at 913. Another exception inheres in the situation where “the union has sole power under the contract to invoke the higher stages of the grievance procedure, and if * * * the employee-plaintiff has been prevented from exhausting his contractual remedies by the union’s wrongful refusal to process the grievance.” Id. at 185, 87 5. Ct. at 914. Plaintiffs endeavor to bring their action within both these exceptions — the former through Count III of the amended complaint and the latter variously through Counts I, II and IV.

EXCLUSIVITY OF THE CONTRACTUAL GRIEVANCE AND ARBITRATION PROCEDURES

Plaintiffs contend that the disputes clause 6 is non-exclusive because it does not mention the rights and privileges of individual employees. But, as in International Union of Operating Engineers v. Flair Builders, Inc., 406 U.S. 487, 491, 92 S.Ct. 1710, 1712, 32 L.Ed.2d 248 (decided May 30, 1972), “[t]here is nothing to limit the sweep of this language or to except any dispute or class of disputes from arbitration.” Just as such a disputes clause is construed to encompass “all of the questions on which the parties disagree,” “[a]part from matters that the parties specifically exclude,” United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 581, 80 S.Ct. 1347, 1352, 4 L.Ed.2d 1409, it is construed to establish the grievance and arbitration procedures as the exclusive mode of redress unless “the parties to the collective bargaining agreement expressly agree[d] that arbitration was not the exclusive remedy.” Republic Steel Corp. v. Maddox, supra, 379 U.S. at 657-658, 85 S.Ct. at 619.

A contention similar to plaintiffs’ was rejected in Belk v. Allied Aviation Services Co. of New Jersey, 315 F.2d 513 (2d Cir.), certiorari denied, Rogers v. Allied Aviation Service Co., 375 U.S. 847, 84 S.Ct. 102, 11 L.Ed.2d 74 (1963), 7 where the court noted that “any collective agreement is intended to secure rights for individual employees,” and held that “where the collective agreement provides for arbitration by the Union of the subject matter of the employee’s suit, the employee must look to his union initially for the vindication of his rights.” Id. at 515, 516. Likewise, in Harris v. Chemical Leaman Tank Lines, Inc., 437 F.2d 167 (5th Cir. 1971), where the disputes clause was in pari materia with the instant one, the court held individual employees bound to utilize the contractually specified vehicle for grievance resolution.

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Bluebook (online)
466 F.2d 795, 81 L.R.R.M. (BNA) 2058, 1972 U.S. App. LEXIS 7877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/al-orphan-v-furnco-construction-corporation-ca7-1972.