Apperson v. Fleet Carrier Corp.

879 F.2d 1344, 1989 WL 75929
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 13, 1989
DocketNo. 87-2184
StatusPublished
Cited by103 cases

This text of 879 F.2d 1344 (Apperson v. Fleet Carrier Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Apperson v. Fleet Carrier Corp., 879 F.2d 1344, 1989 WL 75929 (6th Cir. 1989).

Opinions

CELEBREZZE, Senior Circuit Judge.

Plaintiffs Billy Ray Apperson, his brother Don Apperson, and the class that they seek to represent, appeal the dismissals of their labor and antitrust claims against Defendants Fleet Carrier Corporation (Fleet), Fleet Carrier Dealers Service (FCDS), and Local 614 of the International Brotherhood of Teamsters, Chauffeurs, Warehouseman & Helpers of America (Union or Local 614). On appeal Plaintiffs challenge the district court’s holding that they lacked standing to pursue an antitrust claim against the corporate Defendants under the Sherman Act, see 15 U.S.C. § 1 (1982), and argue that the court erred in finding a “final and binding” arbitration decision dispositive of their “hybrid” section 301 claim under the Labor Management Relations Act, see 29 U.S.C. § 185(a) (1982). We agree with the district court, however, that Plaintiffs are without standing to sue under the antitrust laws, and that they have failed to adequately demonstrate why the arbitration decision should be set aside. Accordingly, we affirm.

I. FACTS

A. The Parties and the Contract

Fleet Carrier Corp. is a trucking company engaged in the transportation of new motor vehicles, mostly for General Motors (GM), to dealerships around the country. Its principal terminal is in Pontiac, Michigan. Fleet is compensated for its services under a published tariff that varies depending on the weight of the vehicles and the distance they are transported.

Fleet Carrier Dealers Service is responsible for initially inspecting the new vehicles at GM’s facility, accepting them for transportation, moving the vehicles to Fleet's terminal (approximately one-half mile away), and preparing them for shipment by Fleet. FCDS is compensated directly by GM under a contract calling for a per-vehicle “releasing and terminal handling” charge. Although FCDS and Fleet are distinct corporate entities, they share the same ownership, the same facilities in Pontiac, and some of the same directors, officers, and managers.

The Union employees of both Fleet and FCDS are represented for collective bargaining purposes by Local 614 of the Inter[1347]*1347national Brotherhood of Teamsters. The Union, Fleet, and FCDS are all signatories to a collective bargaining agreement known as the National Master Automobile Transporters Agreement including the Central and Southern Conference Areas Supplemental Agreements (Contract or NMATA).

Plaintiffs,1 who are members of Local 614, are employed by Fleet as “brokers,” also known as “owner-operators.” Their function is to haul the new vehicles on Fleet-owned trailers to GM dealerships across the United States and Canada, The brokers lease their own tractors (power units) to Fleet and provide driving services. They are compensated under Article 62 of the NMATA, which provides that the brokers must receive not less than “65% of gross revenue.”

Gross revenue for the purpose of this Agreement is defined as total tariff proceeds received by the carrier exclusive of all arbitrary and ancillary charges which are justified.

Art. 62 § 4(a). Under this provision, therefore, the brokers are due not only 65% of the tariff proceeds, but also 65% of any “unjustified ancillary charge” that is “received by the carrier.”

Article 7 of the NMATA further provides a comprehensive grievance and arbitration procedure for

any and all disputes, including interpretation of contract provisions arising under, out of, in connection with, or in relation to this collective bargaining agreement. ...

Art. 7 § ,11. If the local union and the carrier are unable to resolve informally such a dispute, then it is referred to a series' of local, regional, and national joint arbitration committees comprised of equal numbers of employer and union appointees. The committees decide grievances by majority vote; any tie vote, or “deadlock,” causes the grievance to be taken to the next level. In the event of a deadlock at the national level, the grievance would then be referred to a board of arbitration composed of one union appointee, one employer appointee, and a third disinterested arbitrator selected jointly by the other two. A majority decision at any of these various levels “shall be final and binding on all parties.” Art. 7 §§ 6 & 7(a).

B. The Grievance, Settlement, and Lawsuit

This case arises from asserted manipulations of the releasing and terminal handling charge from 1978 to the present. During and before 1978, the releasing and terminal handling services were performed by Fleet employees, for which Fleet received a releasing charge of $12 per vehicle. In January of 1979, however, Fleet transferred its releasing responsibilities to its sister corporation, FCDS.2 After the switch to FCDS, the releasing charge paid by GM increased dramatically: by February of 1982, when this lawsuit was initiated, the charge had risen to $135 per vehicle.

Fleet’s brokers, in particular Plaintiff Billy Ray Apperson,3 complained to their Union about the increased releasing charge. In the brokers’ view, the releasing charge was an “ancillary charge” under Article 62 of the NMATA, and the brokers were therefore entitled to 65% of the “unjustifiable” portions of the charge. Given the quick increase in the releasing charge, they further believed that the charge could not be justified in its entirety. The brokers regarded the corporate changeover, i.e., that the releasing charges were now received by FCDS instead of Fleet, as nothing more than a bookkeeping sleight of hand. They requested their Union to seek Fleet’s justification so that the brokers could receive their contractually mandated compensation.

[1348]*1348The Union was initially unresponsive. Although Apperson claims that Local 614's attorney told him that Fleet’s action was a “fraud,” neither the Union’s Business Agent, Leonard (Butch) Williams, nor the brokers’ steward, Art Fink, would take the brokers’ complaint to Fleet for resolution. This impasse continued until September of 1980, when Apperson became acting steward while Fink was on medical leave. On September 10, Apperson filed a “Grievance Report” in which he set forth a “policy grievance” requesting that Fleet “justify” the “ancillary charge” pursuant to Article 62 of the NMATA.

The grievance was ultimately processed by the Union. It was not resolved informally, so a hearing was convened before the local arbitration panel, the Tri-City Joint Arbitration Committee. The Tri-City Committee deadlocked, thus requiring that the grievance be heard at the regional level before the Central-Southern Area Joint Arbitration Committee. The grievance was docketed for the Central-Southern Committee meeting on August 19, 1981, in Colorado Springs, Colorado.

At Colorado Springs, a luncheon meeting was held to discuss the grievance prior to the hearing. Present at the meeting were Apperson, Union representatives Fink and Williams, members of Fleet management, Albert Matheson who was the employer-side co-chair of the Central-Southern Committee, and several members of the Committee’s union-side, including co-chair Charles Thompson.

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Bluebook (online)
879 F.2d 1344, 1989 WL 75929, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apperson-v-fleet-carrier-corp-ca6-1989.