Colson v. Allied Systems, Ltd.

857 F. Supp. 1225, 146 L.R.R.M. (BNA) 2620, 1994 U.S. Dist. LEXIS 10683, 1994 WL 394103
District Court, M.D. Tennessee·Decided March 23, 1994·No. Nos. 3-89-0141, 3-89-0760·Published

Opinion

MEMORANDUM OPINION

ECHOLS, District Judge.

Presently pending before this Court are the following Motions: (1) the Plaintiffs’ Motion for Summary Judgment; (2) Defendant Auto Convoy Co.’s and Defendant Allied Systems, Ltd.’s Motion for Summary Judgment; (3) Defendant International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America’s Motion for Summary Judgment; (4) Defendant Teamsters, Chauffeurs, Helpers and Taxi Cab Drivers, Local No. 327’s Motion for Summary Judgment; and (5) Plaintiffs’ Motion for an Order Permitting the Filing of Depositions and Answers to Interrogatories. Each party has [1227] responded in opposition to every other party’s cross-motions for summary judgment. For the reasons more fully outlined herein, Defendant Auto Convoy Co.’s Motion for Summary Judgment is hereby DENIED, Defendant Allied Systems, Ltd.’s Motion for Summary Judgment is hereby GRANTED in part, and DENIED in part, Defendants Local No. 327 and International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America’s Motions for Summary Judgment are hereby DENIED, and Plaintiffs’ Motion for Summary Judgment and for permission to file Depositions and Answers to Interrogatories are hereby DENIED.

This consolidated action combines two legally similar, but factually different claims which were brought by individual Plaintiffs against numerous separate, although related Defendants. In order to alleviate the inherent confusion which attends such a consolidation, this Court will address each presently outstanding Motion in the context of the specific case to which it pertains.

I. Smith v. Auto Convoy, No. 3-89-0141

On February 15,1989, the Plaintiffs in this action, Donald Smith, Kenneth Dudley, and Daniel Jennings, filed a Complaint against Defendants Auto Convoy Co. (“Auto Convoy”) and Local 327 alleging violations against both Defendants of Section 101 of the Labor Management Reporting and Disclosure Act of 1959, 29 U.S.C. § 411(a) (“LMRDA”), and Section 301 of the Labor Management Relations Act, 29 U.S.C. § 185 (“LMRA”). This dispute arose out of the July 11, 1988 implementation of a rider to a collective bargaining agreement, known as the National Master Automobile Transporters Agreement (“NMATA”), which was entered into between Auto Convoy, Local 327, and various other local unions and employers. In this action, the Plaintiffs primarily allege that Auto Convoy and Local 327 violated the above-referenced statutes by agreeing to a new rider the effect of which was to lower the Plaintiffs’ wage rates and terminate the Plaintiffs’ rights to bid equipment annually on a company-wide basis, all without giving the Plaintiffs and other Auto Convoy employees the right to ratify these decisions by a vote. The Plaintiffs contend that their right to ratify the decision to accept the modified rider is protected by the International Union’s Constitution, and Local 327’s Bylaws.

By a previously entered Order, this Court granted Auto Convoy’s Motion for Summary Judgment dismissal of the Plaintiffs’ claim under the LMRDA. As such, three claims remain in this action, all of which are the subject of the parties’ Cross-Motions for Summary Judgment: (1) the Plaintiffs’ claim against Auto Convoy under the LMRA; (2) the Plaintiffs’ claim against Local 327 under the LMRA; and (3) the Plaintiffs’ claim against Local 327 under the LMRDA. This Court will now proceed to address each of these claims, as well as each parties’ respective arguments pertaining thereto.

A. The Smith Plaintiffs’ Claims against Auto Convoy and Local 327 under the LMRA

The Smith Plaintiffs have sued both Auto Convoy and Local 327 under § 301 of the LMRA 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.

29 U.S.C. § 185(a). The Smith Plaintiffs contend that Auto Convoy, as the employer, violated § 185 since its decision to approve and implement the rider without employee ratification constituted a breach of the parties collective bargaining agreement, the NMATA. In essence, the Plaintiffs argue that certain provisions of the NMATA protected their ratification rights, and that Auto Convoy, by implementing the rider without ratification, breached the parties’ agreement, thereby violating 29 U.S.C. § 185. In addition, the Smith Plaintiffs contend that provisions of the International Union’s Constitution, as well as the bylaws of Local 327, require union ratification of contract modifi[1228] cations like the 1988 rider. As such, the Smith Plaintiffs contend that Local 327, as their bargaining representative, breached the provisions of the International Union’s Constitution and its own Bylaws by approving Auto Convoy’s implementation of the 1988 rider without insisting upon membership ratification.

In its Motion for Summary Judgment, Auto Convoy denies that it violated § 185 or breached the parties’ collective bargaining agreement. In addition, Auto Convoy argues that it was legally entitled to rely upon Local 327’s apparent authority to agree to and implement the 1988 rider without membership ratification.

In its Motion for Summary Judgment, Local 327 contends that, in order to have breached its duty of fair representation under § 185 of the LMRA, its conduct must have been arbitrary, capricious or in bad faith. Local 327 argues that, since the record is devoid of any evidence that its conduct met this admittedly high standard, its Motion for Summary Judgment dismissal of the Plaintiffs’ LMRA claim should be granted.

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Colson v. Allied Systems, Ltd., 857 F. Supp. 1225, 146 L.R.R.M. (BNA) 2620, 1994 U.S. Dist. LEXIS 10683, 1994 WL 394103 (M.D. Tenn. 1994).

857 F. Supp. 1225 (Colson v. Allied Systems, Ltd.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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