Frank S. Toth v. United Automobile, Aerospace and Agricultural Implement Workers of America, Uaw, and Uaw Local No. 723, and Ford Motor Company

743 F.2d 398, 118 L.R.R.M. (BNA) 2174, 1984 U.S. App. LEXIS 18711
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 11, 1984
Docket82-1799, 82-1831 and 83-1543
StatusPublished
Cited by16 cases

This text of 743 F.2d 398 (Frank S. Toth v. United Automobile, Aerospace and Agricultural Implement Workers of America, Uaw, and Uaw Local No. 723, and Ford Motor Company) 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
Frank S. Toth v. United Automobile, Aerospace and Agricultural Implement Workers of America, Uaw, and Uaw Local No. 723, and Ford Motor Company, 743 F.2d 398, 118 L.R.R.M. (BNA) 2174, 1984 U.S. App. LEXIS 18711 (6th Cir. 1984).

Opinion

WEICK, Senior Circuit Judge.

United Automobile, Aerospace and Agricultural Implement Workers of America, UAW (UAW International) and UAW Local No. 723 (Local 723) have appealed to this Court from a judgment of the Federal District Court for the Eastern District of Michigan, Southern Division, awarding attorneys’ fees against them to Frank S. Toth, Plaintiff-Appellee in this action, as the prevailing party in the settlement of two claims he asserted under § 302(a) of the Labor Management Relations Act (Taft-Hartley Act), 29 U.S.C. § 186(a), and § 501(a) of the Labor Management Reporting and Disclosure Act of 1959 (Landrum-Griffin Act), 29 U.S.C. § 501(a), respectively. Ford Motor Company (Ford) has appealed although no attorneys’ fees were assessed against it, and seeks to review the district court’s finding that Toth was the “prevailing party” on the Taft-Hartley Act claim.

This action was commenced when Toth, in 1979, filed three pro se actions in the district court, alleging various violations of the above-named acts, as well as the National Labor Relations Act, 29 U.S.C. § 151 et seq., by Ford, the unions and certain union officials. These actions were consolidated into a single civil action on August 6, 1979, and after Toth obtained the services of counsel, a second amended complaint was filed on April 10, 1980, containing the two aforementioned claims in Counts II and III. Subsequently, leave was sought (but never obtained) to file a third amended complaint, and then a fourth amended complaint was filed on September 2, 1980.

This last version of Toth’s complaint, which omitted the claims stated in the second and third counts of the second amended complaint, was dismissed as to four of its five counts (the fifth count was a state-law defamation claim against a Local 723 official which still remains pending) when the district court granted the defendants’ motions for summary judgment on August 26, 1981. Toth then moved for an allowance of attorneys’ fees from Ford and the unions, based on an alleged settlement of *400 Count II of the Second Amended Complaint, and from the unions alone, based on an alleged settlement of Count III of that complaint. This motion was granted by the district court in a memorandum opinion and order, dated August 2, 1982, which awarded $6958.00 in attorneys’ fees against the UAW International and Local 723 on a common benefit theory. The award was later reduced to $3637.00 after the unions moved for reconsideration.

The unions assert that the common benefit awards against them were prejudicially erroneous as they were not parties to either the § 302 or § 501 claims, and as no substantial benefit was conferred by Toth’s suit upon the unions or their members. We agree that the awards were in error.

For the reasons hereafter stated, we reverse the judgment of the district court awarding attorneys’ fees against the unions, and remand for further proceedings not inconsistent with this opinion on the sole remaining claim contained in the fifth count of Toth’s Fourth Amended Complaint.

I.

Facts

A.

At all times pertinent to this case, Toth was an employee at Ford’s Monroe stamping plant in Michigan, and a member of Local 723. Under the collective bargaining agreement then in force between Ford and the UAW, full-time union representatives were to be paid at the rate they were receiving at the time of election to union office, subject to any subsequent adjustments to that rate. Prior to his election as building chairman (a full-time union office) at the Monroe plant, Ron Halstead had worked the day shift, and thus was not eligible for the 10% premium paid by Ford to the workers on the midnight shift. However, on April 5, 1977, Toth and another employee (and union member) examined Local 723’s financial records, and discovered that Halstead and John Cramer (the alternate building chairman) were in fact receiving the midnight shift premium.

Pursuant to Article VI, Section 10(f) of the then-existing labor contract, the building chairman had the privilege of leaving the plant during working hours, and could “ring” either “in” or “out” on the time clock during the shift he happened to work. In this way, Halstead and Cramer were able to receive the midnight shift premium by “ringing out” at some point during that shift, even though there might not have been an “in ring” to show that they had worked the entire midnight shift.

In response to this discovery, Toth, on June 2, 1977, filed internal union disciplinary charges against Halstead and Cramer, accusing them of conduct unbecoming a union member in accepting the premium. He also complained of this practice to the UAW International auditing department. After the Local failed to act on these charges, Toth appealed to the International’s Executive Board, which denied the appeal on November 7, 1977. He then appealed to the UAW Public Review Board, composed of such learned scholars as then-Dean Theodore J. St. Antoine of the University of Michigan law school. The Public Review Board, however, determined that the International had correctly ruled that the propriety of the premium payments, where Halstead and Cramer had not tried to conceal them, was a matter of contract interpretation for the Local membership, not a proper subject of disciplinary charges. Nothing further happened in this regard until Toth filed suit in 1979.

In Count II of the Second Amended Complaint, Toth alleged that Ford, by paying unauthorized shift premiums to the two union officials, violated 29 U.S.C. § 186(a), 1 *401 and an injunction against further such payments was sought under section 186(e). 2 On May 1, 1980, Ford (the only defendant named in Count II) moved to dismiss that count, or for summary judgment thereon, attaching an affidavit executed by R.C. Marshall, a Ford supervisor at the Monroe plant, which stated in pertinent part:

2. On or about September 3, 1977, Frank Toth, plaintiff in the above case, complained that Ron Halstead, the Building Chairman, was obtaining a 10% midnight shift premium illegally.
3. In investigating the complaint, it was determined that Mr. Halstead’s out rings were within midnight shift hours when he was paid the shift premium.
4. Under prevailing company practice Building Chairmen were extended the privilege of being required to make only one ring.
5. In order to assure that the Building Chairman actually worked the shift in which his ring appeared, effective September 6, 1977, Mr. Halstead was informed that he would be paid a shift premium only when his starting time justified receipt of the premium.
6.

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743 F.2d 398, 118 L.R.R.M. (BNA) 2174, 1984 U.S. App. LEXIS 18711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frank-s-toth-v-united-automobile-aerospace-and-agricultural-implement-ca6-1984.