Paoletti v. Northwestern Bell Telephone Co.

370 N.W.2d 672, 1985 Minn. App. LEXIS 4332
CourtCourt of Appeals of Minnesota
DecidedJuly 2, 1985
DocketC4-84-1953
StatusPublished
Cited by5 cases

This text of 370 N.W.2d 672 (Paoletti v. Northwestern Bell Telephone Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paoletti v. Northwestern Bell Telephone Co., 370 N.W.2d 672, 1985 Minn. App. LEXIS 4332 (Mich. Ct. App. 1985).

Opinion

OPINION

SEDGWICK, Presiding Judge

This appeal is from a judgment in a wrongful employment discharge action, and the denial of a motion for a new trial or judgment notwithstanding the verdict. Appellants claim that before respondent-employee may pursue a claim against his employer for violation of a collective bargaining agreement he must first prove his union breached its duty of fair representation by electing not to submit his wrongful discharge grievance to arbitration. We reverse.

FACTS

Respondent Quentin Paoletti was employed by appellant Northwestern Bell Telephone Company as a cable technician for more than ten years. He was also a member of the Communications Workers of America and included under the union’s collective bargaining agreement with appellant. In the fall of 1980 appellant told him that he would be temporarily assigned from his normal workplace in Virginia to a job site in St. Cloud for approximately seven months. Although not specifically mentioned in respondent’s union contract, the procedure used for temporary relocation evolved through past custom and practice and was familiar to all employees. Volunteers for the temporary positions are first solicited. If there are not enough volunteers to fill the company’s needs, employees are designated for reassignment in inverse order of seniority. On the basis of seniority, respondent was selected and told to report to the St. Cloud job site on September 15, 1980.

On September 10, 1980, respondent wrote a letter to his immediate supervisor refusing the temporary assignment because of family commitments. In the letter he cited to provisions of the union contract he felt supported his decision. Respondent’s supervisor disagreed with his interpretation of the contract and told him that he was still obligated to report to St. Cloud on the assigned date.

On September 15, 1980 respondent reported to work at Virginia rather than St. Cloud. His supervisor informed him there was no work for him in Virginia.

The following week respondent filed a grievance with his union. In accord with the union contract the grievance was heard at the local level in Virginia, the area level in Duluth and the general level in Minneapolis. After receiving unfavorable results at each of the three levels, respondent, through his local union representative, requested arbitration of the matter. The union contract provides that “the grievance shall be considered closed” if it is not submitted for arbitration after disposition at the general level. 1 The union carefully *674 considered whether to pursue arbitration of respondent’s grievance. It decided not to appeal his claim any further.

In 1981 respondent brought this action against appellant. In 1984, following trial, the jury found that respondent had been terminated by appellant without just cause. Damages of $63,338 were awarded.

ISSUE

Did the trial court err by not dismissing respondent’s claim for failure to show his union breached its duty of fair representation by not submitting his claim to arbitration?

ANALYSIS

Shortly before trial appellant moved to amend and/or dismiss its pleadings to include the affirmative defense of failure by respondent to exhaust his contractual remedies. Although styled a motion to amend, the primary issue raised was whether the trial court lacked subject matter jurisdiction. Appellant argued that before respondent can pursue his claim against his employer, he must first prove the union breached its duty of fair representation by declining to submit his grievance to arbitration.

The trial court denied appellant’s motion on the grounds that it had waived its rights to demand arbitration under the collective bargaining agreement by actively participating in the case for nearly twenty months and that allowing an amendment to the pleadings at such a late date would be prejudicial to respondent. In support of its decision the court cited three cases, Anderson v. Twin City Rapid Transit Co., 250 Minn. 167, 84 N.W.2d 593 (1957); Bautch v. Red Owl Stores, Inc., 278 N.W.2d 328 (Minn.1979); and Reid Burton Construction, Inc. v. Carpenters District Council, 614 F.2d 698 (10th Cir.1980), cert. denied 449 U.S. 824, 101 S.Ct. 85, 66 L.Ed.2d 27 (1980), all holding that arbitral rights can be waived.

The cited cases are inapplicable for several reasons. First, in those cases the employer was seeking to have the wrongful discharge claims heard before an arbitrator instead of the court. In each case the court refused to allow the untimely forum switch because both parties had substantially invoked the litigation process. Here appellant does not seek to substitute an arbitrator as the decision-maker on the merits. Rather, it claims employee’s right to maintain his action in court is predicated solely on a showing of improper conduct by his union. Second, there was no use of the grievance procedures in any of the cited cases. Plaintiff-employees sought to bypass the grievance procedures contained in their collective bargaining agreements by immediately filing an action in court. Here, respondent did not attempt immediate action against his employer. He made full use of the grievance procedures set forth in his union contract before commencing suit.

Respondent must first establish as an essential element of his claim against the employer that his union acted improperly in deciding not to appeal his grievance to arbitration. Because respondent’s claim is a suit for violation of the collective bargaining agreement it is governed by § 301 of the Labor Management Relations Act and federal labor law is applicable. Textile Workers v. Lincoln Mills, 353 U.S. 448, 77 S.Ct. 912, 1 L.Ed.2d 972 (1957). Although state courts have concurrent jurisdiction to her such claims, Charles Dowd Box Co. v. Courtney, 368 U.S. 502, 82 S.Ct. 519, 7 L.Ed.2d 483 (1962), they must apply federal law. Here respondent failed to plead the federal question in his complaint but rather based his claim on a simple breach of contract. Although pleaded as a state law claim, it is nevertheless preempted by federal labor law. See Avco Corp. v. Aero Lodge No. 735, Int’l. Assn. of Machinists, *675 390 U.S. 557, 88 S.Ct. 1235, 20 L.Ed.2d 126 (1968).

A union’s good faith decision not to pursue an employee’s grievance to arbitration is final and binding on the employee. Vaca v. Sipes, 386 U.S. 171, 87 S.Ct. 903, 17 L.Ed.2d 842 (1967). In Vaca, the union which had the “sole power under the contract to invoke the higher stages of the grievance procedure,” had chosen not to take the employee’s claim to arbitration. See

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Bluebook (online)
370 N.W.2d 672, 1985 Minn. App. LEXIS 4332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paoletti-v-northwestern-bell-telephone-co-minnctapp-1985.