Bates v. Pacific Maritime Ass'n

744 F.2d 705, 35 Fair Empl. Prac. Cas. (BNA) 1806
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 4, 1984
DocketNo. 83-5540
StatusPublished
Cited by23 cases

This text of 744 F.2d 705 (Bates v. Pacific Maritime Ass'n) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bates v. Pacific Maritime Ass'n, 744 F.2d 705, 35 Fair Empl. Prac. Cas. (BNA) 1806 (9th Cir. 1984).

Opinion

KENNEDY, Circuit Judge:

Eagle Marine Services, Ltd. (Eagle Marine) appeals from a district court judgment that it must comply with the remedial provisions of a Title VII consent decree. Eagle Marine was not an original party to the consent decree, but replaced one of the original parties at one job site. The district court held Eagle Marine bound by the provisions of the decree under the successor-ship doctrine. We have jurisdiction under 28 U.S.C. §§ 1291, 1331 and 42 U.S.C. § 2000e-5(f)(3). We affirm.

In 1975 named plaintiffs Bates, Clemons, Hopkins, Howard, Kelley, and Williams (plaintiffs) brought a class action under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e to 2000e-17, and 42 U.S.C. § 1981 (1982), against the Pacific Maritime Association (PMA), the International Longshoremen’s and Warehousemen’s Union (ILWU), and Local 13 of the ILWU, alleging racial discrimination in the hiring of longshoremen in the Los Angeles-Long Beach harbor. In 1977 the district court entered a consent decree in settlement of the action. The decree required that four of every ten new longshoremen hired by the defendant employers should be black, until the proportion of black longshoremen employed by the defendants in the harbor equaled the proportion of qualified black applicants in the labor pool. The signatories of the decree did not admit wrongdoing, and the decree is silent as to its effect on successor parties.

The PMA is an association of companies engaged in maritime shipping, receiving, and warehousing of goods along the Pacific Coast. In one of its many functions, the PMA acts as the representative of employers in collective bargaining with the ILWU, including bargaining on employment practices.

The consent decree was by its terms applicable to all PMA-member employers of longshoremen in the Los Angeles-Long Beach harbor. Among those employers was Metropolitan Stevedoring Company (Metropolitan). One of Metropolitan’s several operations in the harbor was the provision of stevedoring services to two berths owned by American President Lines (APL). APL was a member of the PMA when the consent decree was entered, but at the time employed no longshoremen directly. In 1978, after the consent decree was entered, APL formed a wholly-owned subsidiary, Eagle Marine. On January 1, 1979, Eagle Marine replaced Metropolitan as the provider of stevedoring services to the APL berths. APL and Eagle Marine are both current members of the PMA. Through the PMA both Eagle Marine and APL had actual knowledge of the consent decree and its applicability to Metropolitan’s operations at the APL berths.

The district court found that the consent decree, when originally entered, applied only to those members of the PMA who employed longshoremen at the time of the decree. Neither APL nor Eagle Marine employed longshoremen when the decree was entered and thus were not originally covered by the consent decree. Plaintiffs do not challenge this holding.

Eagle Marine provides the same services to APL berths that Metropolitan did, using the same facilities and equipment. Eagle Marine uses APL-owned equipment formerly used by Metropolitan and rolling stock and equipment purchased from Metropolitan. The majority of Eagle Marine’s new longshore work force were former Metropolitan APL berth longshoremen. Almost all of Metropolitan’s former APL berth longshoremen applied for jobs with Eagle Marine; all who applied were hired. A number of other qualified applicants for the Eagle Marine longshoremen positions were not hired in order to hire the former Metropolitan employees. Metropolitan continues to employ longshoremen and provide stevedoring services at other locations in the harbor and retains membership in the PMA. On the basis of this substantial identity of operations and work force, the district court held Eagle Marine to be a successor to Metropolitan, bound by Metropolitan’s obligations under the consent decree.

[708]*708Implicit in the district court’s holding was that the consent decree was not applicable to Eagle Marine until after it had hired the former Metropolitan employees. Plaintiffs have not challenged Eagle Marine’s right to hire its initial work force almost exclusively from the pool of former Metropolitan APL berth employees. Plaintiffs also acknowledge that Eagle Marine was not covered by the consent decree until after it had hired the former Metropolitan employees.

In certain circumstances a new employer will be held liable for the legal obligations of its predecessor employer though explicit assumption of the obligations is absent. Successor liability is applied only when necessary to further some fundamental policy in regulation of the industry or work place affected. Successorship first developed in the context of obligations under the National Labor Relations Act. 29 U.S.C. § 151, et seq. (1982). In John Wiley & Sons, Inc. v. Livingston, 376 U.S. 543, 84 S.Ct. 909, 11 L.Ed.2d 898 (1964), an employer was held obligated to abide by a provision for the arbitration of grievances contained in the contract between a union and the prior employer, acquired by the new employer by way of merger. A new employer’s obligations under the National Labor Relations Act have been expanded to include a duty to bargain in good faith with the union which represented its workers with the previous employer, NLRB v. Burns International Security Services, Inc., 406 U.S. 272, 277-81, 92 S.Ct. 1571, 1577-1579, 32 L.Ed.2d 61 (1972), and to provide back pay and reinstatement to individual victims of a predecessor's unfair labor practice, Golden State Bottling Co. v. NLRB, 414 U.S. 168, 94 S.Ct. 414, 38 L.Ed.2d 388 (1973).

Not all obligations owed by a former employer to its former employees will be transferred to a new employer. For example, an employer is not bound by the substantive terms of a contract between a union and its predecessor. Burns International Security Services, 406 U.S. at 281-91, 92 S.Ct. at 1579-1584. In that situation the concerns of continuity and predictability in labor relations are outweighed by the strong policy in favor of requiring all binding agreements to be established through the process of collective bargaining. See id. at 287, 92 S.Ct. at 1582. Similarly, a business entity which replaces another is not obligated to hire all or any of its predecessor’s employees. Howard Johnson Co. v. Detroit Local Joint Executive Board, 417 U.S. 249, 94 S.Ct. 2236, 41 L.Ed.2d 46 (1974). But see Kallmann v. NLRB, 640 F.2d 1094

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kratz v. Richard J. Boudreau & Assocs., LLC
375 F. Supp. 3d 144 (D. New Hampshire, 2019)
Patricia Kratz v. Boudreau & Associates, et al.
2017 DNH 153 (D. New Hampshire, 2017)
Xue Ming Wang v. Abumi Sushi Inc.
262 F. Supp. 3d 81 (S.D. New York, 2017)
Carpenters Health & Security Trust v. Paramount Scaffold, Inc.
159 F. Supp. 3d 1229 (W.D. Washington, 2016)
Nutt v. Kees
53 F. Supp. 3d 1118 (E.D. Arkansas, 2014)
Medina v. Unlimited Systems, LLC
760 F. Supp. 2d 263 (D. Connecticut, 2010)
Sullivan v. Dollar Tree Stores, Inc.
623 F.3d 770 (Ninth Circuit, 2010)
Rodríguez Oquendo v. Petrie Retail Inc.
167 P.R. Dec. 509 (Supreme Court of Puerto Rico, 2006)
Holland, Michael v. Williams Mtn Coal Co
256 F.3d 819 (D.C. Circuit, 2001)
Ramirez v. DeCoster
194 F.R.D. 348 (D. Maine, 2000)
Rojas v. TK Communications, Inc.
87 F.3d 745 (Fifth Circuit, 1996)
Steinbach v. Hubbard
51 F.3d 843 (Ninth Circuit, 1995)
Huguley v. General Motors Corp.
857 F. Supp. 555 (E.D. Michigan, 1994)
Baker v. Delta Air Lines, Inc.
6 F.3d 632 (Ninth Circuit, 1993)
Patterson v. NEWSPAPER AND MAIL DELIVERERS'UNION
791 F. Supp. 1015 (S.D. New York, 1992)
Sandoval v. Saticoy Lemon Ass'n
747 F. Supp. 1373 (C.D. California, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
744 F.2d 705, 35 Fair Empl. Prac. Cas. (BNA) 1806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bates-v-pacific-maritime-assn-ca9-1984.