Bates v. Foremost-McKesson, Inc.

392 So. 2d 389, 110 L.R.R.M. (BNA) 2178, 1980 La. LEXIS 9513
Supreme Court of Louisiana·Decided December 15, 1980·No. 67724·Published·Cited by 8 cases

Opinion

392 So.2d 389 (1980)

Francis M. BATES
v.
FOREMOST-McKESSON, INC.

No. 67724.

Supreme Court of Louisiana.

December 15, 1980.

John Schauer, Charles C. Jackson, Seyfarth, Shaw, Fairweather & Geraldson, Chicago, Ill., David Donnell Moss, Hebert, Moss & Broussard, Baton Rouge, for defendant-applicant.

Ralph Brewer, Michael W. McKay, Baton Rouge, for plaintiffs-respondents.

*390 Randall J. Wells, Avant, Wall, Thomas, Riche & Falcon, for amicus curiae.

MARCUS, Justice.

Francis M. Bates filed this action against his former employer, Foremost-McKesson, Inc., for damages resulting from the wrongful termination of his employment with said corporation.

Plaintiff alleged in his petition that he was employed as a truck driver and warehouseman by defendant when discharged as a result of an accident involving his alleged negligence in the operation of his truck. During his employment, plaintiff was a member of the General Truck Drivers, Chauffeurs, Warehousemen and Helpers, Local 270, hereinafter referred to as union, which had a collective-bargaining agreement with defendant corporation in effect at the time of his discharge. Plaintiff further alleged that he was discharged in violation of this agreement, specifically Article VII thereof, in that he was not negligent in the operation of his truck. The agreement recognized the union as the exclusive bargaining agent for plaintiff and other employees in his job classification and set forth a grievance procedure to be utilized by disciplined and discharged employees. Plaintiff filed a grievance contesting his discharge, thereby formally requesting the union to represent him in the proceedings. When no satisfactory adjustment of the grievance was concluded, the union pursued the matter to arbitration. The arbitrator found that plaintiff was discharged for "just cause." Thereafter, the instant suit was filed.

Defendant corporation filed exceptions of no right of action, no cause of action and res judicata, urging that in view of the arbitration award, plaintiff had no right or cause of action and the dispute between the parties was res judicata. The trial judge sustained the exception of res judicata. Plaintiff appealed. The court of appeal reversed, holding that since plaintiff was not a party to the prior arbitration proceeding conducted under the collective-bargaining agreement, the arbitrator's decision was not a res judicata bar to the present suit.[1] Upon defendant's application, we granted certiorari.[2] Finding that the exception of no cause of action should be sustained, we reverse the judgment of the court of appeal and remand to the district court for further proceedings consistent with the views hereinafter expressed.

At the outset, we recognize that this action, alleging a breach of a collective-bargaining agreement, arises under section 301(a) of the Labor Management Relations Act, 29 U.S.C. § 185(a) (1976), which provides:

Suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this chapter, or between any such labor organizations, may be brought in any district court of the United States having jurisdiction of the parties, without respect to the amount in controversy or without regard to the citizenship of the parties.

While this statute confers upon federal district courts jurisdiction to hear cases involving a breach of a labor contract, the United States Supreme Court has held that they are not endowed with exclusive jurisdiction over § 301(a) suits; actions to enforce collective-bargaining agreements may be brought in either state or federal court. Charles Dowd Box Co., Inc. v. Courtney, 368 U.S. 502, 82 S.Ct. 519, 7 L.Ed.2d 483 (1962). However, in the interest of uniform labor policies, the Supreme Court has made it clear that the federal substantive law and not state law should govern the rights of the parties in a § 301(a) dispute. Teamsters Local v. Lucas Flour Co., 369 U.S. 95, 82 S.Ct. 571, 7 L.Ed.2d 593 (1962); Textile Workers v. Lincoln Mills, 353 U.S. 448, 77 S.Ct. 923, 1 L.Ed.2d 972 (1957). Therefore, whether or not plaintiff is entitled to seek judicial relief in the instant case will be determined under principles of federal labor law.

*391 National labor policy, as embodied in the Labor-Management Relations Act, contemplates that the desirable method for settlement of grievance disputes arising over the application or interpretation of an existing collective-bargaining agreement should be one agreed upon by the parties and set out in the agreement itself.[3] 29 U.S.C. § 173(d) (1976). Accordingly, when a dispute arises within the scope of a collective-bargaining agreement, the parties are relegated to the remedies provided in their contract. The courts have given this policy effect by concluding that an individual employee wishing to assert a contract grievance may not bring a court action against his employer for breach of contract without first resorting to the procedures agreed upon by the employer and union as the mode of redress. Republic Steel v. Maddox, 379 U.S. 650, 85 S.Ct. 614, 13 L.Ed.2d 580 (1965); Piggly Wiggly, Inc. v. Piggly Wiggly Warehouse Independent Truck Drivers Local No. 1, 611 F.2d 580 (5th Cir. 1980); Lomax v. Armstrong Cork Company, 443 F.2d 1277 (5th Cir. 1970); Haynes v. U. S. Pipe and Foundry Co., 362 F.2d 414 (5th Cir. 1966). Furthermore, where the grievance procedure provides that the decision is final and binding, an individual will be precluded from subsequently seeking an adjudication in the courts unless the grievance process has been seriously flawed by the *392 union's breach of its duty to represent employees honestly and in good faith and without invidious discriminatory or arbitrary conduct. Hines v. Anchor Motor Freight, Inc., 424 U.S. 554, 96 S.Ct. 1048, 47 L.Ed.2d 231 (1976); Connally v. Transcon Lines, 583 F.2d 199 (5th Cir. 1978); Lomax v. Armstrong Cork Company, supra. Preclusion of judicial review is necessary for reasons stated by the United States Supreme Court in Republic Steel v. Maddox, supra:

A contrary rule which would permit an individual employee to completely sidestep available grievance procedures in favor of a lawsuit has little to commend it. In addition to cutting across the interests already mentioned, it would deprive employer and union of the ability to establish a uniform and exclusive method for orderly settle

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Bates v. Foremost-McKesson, Inc., 392 So. 2d 389, 110 L.R.R.M. (BNA) 2178, 1980 La. LEXIS 9513 (La. 1980).

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