Kansas City Southern Transport Co. v. Teamsters Local Union 41

126 F.3d 1059, 156 L.R.R.M. (BNA) 2496, 1997 U.S. App. LEXIS 27107, 1997 WL 603382
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 2, 1997
Docket96-3261
StatusPublished
Cited by36 cases

This text of 126 F.3d 1059 (Kansas City Southern Transport Co. v. Teamsters Local Union 41) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kansas City Southern Transport Co. v. Teamsters Local Union 41, 126 F.3d 1059, 156 L.R.R.M. (BNA) 2496, 1997 U.S. App. LEXIS 27107, 1997 WL 603382 (8th Cir. 1997).

Opinion

McMILLIAN, Circuit Judge.

Teamsters Local No. 41 (the Union) appeals from a preliminary injunction in favor of Kansas City Southern Transport Company, Inc. (Transport), and the Kansas City Southern Railway Company (Railway) (together, “the plaintiffs”) entered in the United States District Court 1 for the Western District of Missouri enjoining the Union’s picketing activity at various Railway facilities. Kansas City S. Transp. Co. v. Teamsters Local No. 41, No. 96-0823-CV-W-2 (W.D.Mo. Aug. 19, 1996) (hereinafter, “modified order”) (modifying id. (Aug. 9, 1996) (hereinafter, “order” or “original order”)). The district court initially issued a preliminary injunction against the Union and ordered arbitration of the underlying dispute, order at 9-10, but it subsequently modified its order, staying the arbitration provisions of the original order pending an evidentiary hearing on the plaintiffs’ request for a permanent injunction. Modified order at 1. For reversal, the Union argues that the district court erred in holding that it had subject matter jurisdiction and, alternatively, that the injunction violates the Norris-LaGuardia Act, 29 U.S.C. §§ 101-115. For the reasons discussed below, we affirm the order of the district court.

Jurisdiction was asserted in the district court based upon 29 U.S.C. § 185(a). Jurisdiction on appeal is proper based upon 28 U.S.C. § 1292(a). The notice of appeal was timely filed under Fed. R.App. P. 4(a).

*1062 I. Background

The relevant facts are not in dispute and are taken in large part from the district court’s original order. Order at 1-3. Transport is a Louisiana corporation engaged in the business of transporting freight to and from railroad cars. Railway is a Missouri corporation engaged in the operation of an interstate railroad with operations in eleven states. Transport and Railway were parties to a contract under which Transport operated the intermodal (piggyback) ramp and provided loading and unloading services for Railway at Kansas City, Missouri, and other locations. The Union represented Transport’s hourly paid employees who performed the ramping services at the Kansas City, Missouri, location. Transport and the Union signed a collective bargaining agreement (the CBA) covering Transport’s employees from April 1, 1994, through March 31, 1998. Article 40 of the CBA provides that all differences arising between Transport and the Union or any employee are to be settled within the context of a grievance-arbitration process. Railway is not a signatory to the CBA.

In May 1996, Railway notified Transport of its decision to terminate the use of Transport’s services at the Kansas City, Missouri, location. Instead, Railway contracted with a non-union entity, In-Terminal Services, Inc., to perform those services. Once Railway terminated its relationship with Transport, Transport did not have any work to perform at the Kansas City, Missouri, location. Accordingly, on May 31, 1996, Transport notified the Union that, due to Railway’s decision to terminate Transport’s services at the Kansas City, Missouri, location, Transport would discontinue operations in Kansas City. As a result, Transport terminated seventeen employees that were represented by the Union. 2

The Union subsequently filed an unfair labor practice charge with the National Labor Relations Board, alleging that Transport and Railway are a “single employer” 3 and that

[sjince on or about May 14, 1996, and continuing thereafter, the Employer has failed and refused to bargain with Teamsters Local 41, affiliated with International Brotherhood of Teamsters, AFL-CIO, a labor organization, by, inter alia, subcontracting all of the bargaining unit work to a non-union firm in order to evade the obligations under its collective bargaining agreement with Teamsters Local 41.
On or about May 29, 1996, the Employer terminated the employment of all 17 of the bargaining unit employees at its piggyback ramp operation in Kansas City, [Missouri,] because of their membership in, or support of, Teamsters Local 41.

On August 2, 1996, as a result of the termination, the Union and the terminated Transport employees began picketing at nine Railway facilities in the Kansas City, Missouri, area to protest what the Union characterized as unfair labor practices. 4 Also on August 2, 1996, the plaintiffs petitioned the district court for injunctive relief against the Union asserting that the Union’s picketing violated the no-strike pledge contained in the CBA and seeking declaratory judgment that Railway is not a party to, or bound by, the CBA. Later that day, the district court issued a temporary restraining order against the Union. See order at 2.

On August 9,1996, the district court granted the plaintiffs’ request for a preliminary injunction enjoining the Union and the Transport employees from their picketing activities and ordered that, as a condition of receiving the preliminary injunction, Railway enter into arbitration with the Union regarding the labor dispute. Id. at 9-10. The district court held that Railway failed to provide evidence in support of its position that it is not a single employer with Transport and, accordingly, ordered Railway to arbitrate the *1063 dispute with the Union pursuant to the CBA. Id. at 6, 9-10. However, on August 19,1996, pursuant to the plaintiffs’ motion to modify the order, the district court modified its August 9,1996, order and stayed the arbitration provisions of the original order pending an evidentiary hearing on the plaintiffs’ request for a permanent injunction, including the issue of single employer status. Modified order at 1. Transport offered to arbitrate the dispute, and Railway agrees to arbitrate the dispute if the district court finds that Transport and Railway are a single employer. However, rather than proceeding with the evidentiary hearing and subsequent arbitration with Transport and possibly Railway, the Union appealed the preliminary injunction.

II. Discussion

It is necessary at the outset to clarify the relationships between the parties and to set forth the Union’s seemingly inconsistent position on appeal. As noted earlier, the real dispute in this case is between the Union and Railway. However, the only way that the Union can compel Railway to arbitrate the underlying dispute — i.e. the termination of Transport’s employees — is through the CBA, to which Transport is the sole signatory employer. Thus, the Union, in order to enforce the CBA’s grievance arbitration clause against Railway, argues that Railway and Transport are a single employer and, therefore, both are bound by the CBA.

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Bluebook (online)
126 F.3d 1059, 156 L.R.R.M. (BNA) 2496, 1997 U.S. App. LEXIS 27107, 1997 WL 603382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-city-southern-transport-co-v-teamsters-local-union-41-ca8-1997.