Occidental Chemical Corporation v. International Chemical Workers Union Local 820 International Chemical Workers Union

853 F.2d 1310, 128 L.R.R.M. (BNA) 3161, 1988 U.S. App. LEXIS 10119, 1988 WL 78674
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 1, 1988
Docket87-1728
StatusPublished
Cited by33 cases

This text of 853 F.2d 1310 (Occidental Chemical Corporation v. International Chemical Workers Union Local 820 International Chemical Workers Union) 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
Occidental Chemical Corporation v. International Chemical Workers Union Local 820 International Chemical Workers Union, 853 F.2d 1310, 128 L.R.R.M. (BNA) 3161, 1988 U.S. App. LEXIS 10119, 1988 WL 78674 (6th Cir. 1988).

Opinions

LIVELY, Circuit Judge.

This appeal requires us to determine the most appropriate statute of limitations to apply in a case from Michigan, brought pursuant to § 301 of the Labor Management Relations Act of 1947 (LMRA) to vacate an arbitration award. The employer filed this action approximately five months after the arbitrator released his opinion and award. The district court applied the three-month limitations period found in § 12 of the United States Arbitration Act (USAA) and dismissed the suit as untimely.

I.

The district court did not reach the merits of the case and we will not discuss the facts in detail. Suffice it to say that an arbitrator found in favor of a former employee of Occidental in a dispute over the calculation of pension benefits. Occidental [1312]*1312then brought this action directly under § 301 of the LMRA, 29 U.S.C. § 185, to vacate the award. Occidental filed a motion for summary judgment vacating the award and the defendant union filed a similar motion on its counterclaim for enforcement of the award. After considering several possible limitations periods the district court concluded that § 12 of the USAA, 9 U.S.C. § 12, “best accommodates the federal interests at stake in suits to vacate arbitration.” Occidental Chemical Corp. v. Local 820, International Chemical Workers Union, 614 F.Supp. 323, 328 (1985).

The judgment dismissing Occidental’s suit to vacate was subsequently amended to grant the union’s motion to enforce the arbitration award. The court found in its amended opinion, 691 F.Supp. 1049, that the union’s motion was timely since the USAA contains a one-year limitations period for an action to confirm an arbitration award, and that Occidental’s failure to bring a timely action to vacate the award precluded it from objecting to its enforcement. Occidental appealed from the judgment, as amended.

II.

Congress did not prescribe a limitations period for actions under § 301. The Supreme Court held in United Auto Workers v. Hoosier Cardinal Corp., 383 U.S. 696, 86 S.Ct. 1107, 16 L.Ed.2d 192 (1966), that selection of the appropriate statute of limitations in a § 301 action is controlled by federal law “fashion[ed] from the policy of our national labor laws.” Id. at 701, 86 S.Ct. at 1111, quoting Textile Workers v. Lincoln Mills, 353 U.S. 448, 456, 77 S.Ct. 912, 918, 1 L.Ed.2d 972 (1957). The Court then discussed the rule dating at least from 1830 that “state statutes of limitations govern the timeliness of federal causes of action unless Congress has specifically provided otherwise.” 383 U.S. at 703-04, 86 S.Ct. at 1111-12. Applying this rule, the Court held that “the timeliness of a § 301 suit, such as the present one, is to be determined, as a matter of federal law, by reference to the appropriate state statute of limitations.” Id. at 704-05, 86 S.Ct. at 1112-13. Hoosier Cardinal was a “straightforward” § 301 suit by a union to recover money claimed to be due to employees under the terms of a collective bargaining agreement and oral contracts, and the Court applied Indiana’s six-year limitations period governing contracts not in writing.

In United Parcel Service, Inc. v. Mitchell, 451 U.S. 56, 101 S.Ct. 1559, 67 L.Ed.2d 732 (1981), the Supreme Court was required to determine the appropriate statute of limitations in an employee’s § 301 action against his employer. The Court concluded that the employee’s action was, in effect, one to vacate the award of an arbitration panel, not a straight contract action. Id. at 62, 101 S.Ct. at 1563. On this basis, the Court held that the district court had properly dismissed the action as untimely on the basis of New York’s ninety-day statute of limitations for actions to vacate arbitration awards.

In a concurring opinion Justice Stewart stated that he did not read Hoosier Cardinal to constrain the Court to choose between state limitations periods, and stated that he would have applied the six-month limitations period of § 10(b) of the National Labor Relations Act (NLRA), 29 U.S.C. § 160(b). 451 U.S. at 65-71, 101 S.Ct. at 1565-68. He reasoned that Hoosier Cardinal was a straightforward breach of contract damages suit whereas Mitchell was actually a hybrid action joining a § 301 claim against the employer with a claim against the plaintiff’s union for breach of its duty of fair representation. While the § 301 claim was based on a contract, the duty of fair representation claim derived from the NLRA. Since the suit was an “amalgam of § 301, which has no limitations period, and the NLRA,” which contains a six-month statute of limitations, Justice Stewart concluded that policy considerations underlying the adoption of NLRA’s limitations period dictated that it be applied in a hybrid case. Id. at 67-68, 101 S.Ct. at 1566-67. Justice Stewart summarized his view as follows:

In § 10(b) of the NLRA, Congress established a limitations period attuned to what it viewed as the proper balance [1313]*1313between the national interests in stable bargaining relationships and finality of private settlements, and an employee’s interest in setting aside what he views as an unjust settlement under the collective-bargaining system. That is precisely the balance at issue in this case. The employee’s interest in setting aside the “final and binding” determination of a grievance through the method established by the collective-bargaining agreement unquestionably implicates “those consensual processes that federal labor law is chiefly designed to promote — the formation of the ... agreement and the private settlement of disputes under it.” Hoosier, 383 U.S., at 702 [86 S.Ct., at 1111]. Accordingly, “[t]he need for uniformity” among procedures followed for similar claims, ibid., as well as the clear congressional indication of the proper balance between the interests at stake counsels the adoption of § 10(b) of the NLRA as the appropriate limitations period for lawsuits such as this.

Id. at 70-71, 101 S.Ct. at 1567-1568 (footnote omitted).

The Supreme Court essentially adopted Justice Stewart’s view for hybrid cases in DelCostello v. Teamsters, 462 U.S. 151,103 S.Ct. 2281, 76 L.Ed.2d 476 (1983). The Court distinguished Mitchell by noting that the union in that case had not appealed the arbitration panel’s finding of a violation of the duty of fair representation; thus the only issue that reached the Supreme Court concerned the employee’s § 301 breach of contract claim against his employer. Id. at 154 n. 1, 103 S.Ct. at 2285 n. 1. Hoosier Cardinal required that the most analogous state statute of limitations be applied to that claim. However, the Court noted that there is no state cause of action that is closely analogous to a hybrid § 301/fair representation claim. Id. at 165, 103 S.Ct.

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853 F.2d 1310, 128 L.R.R.M. (BNA) 3161, 1988 U.S. App. LEXIS 10119, 1988 WL 78674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/occidental-chemical-corporation-v-international-chemical-workers-union-ca6-1988.