Safran v. United Steelworkers of America

132 F.R.D. 397, 134 L.R.R.M. (BNA) 3258, 1989 U.S. Dist. LEXIS 17185, 1989 WL 225013
CourtDistrict Court, W.D. Pennsylvania
DecidedOctober 31, 1989
DocketCiv. A. No. 87-2191
StatusPublished
Cited by10 cases

This text of 132 F.R.D. 397 (Safran v. United Steelworkers of America) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Safran v. United Steelworkers of America, 132 F.R.D. 397, 134 L.R.R.M. (BNA) 3258, 1989 U.S. Dist. LEXIS 17185, 1989 WL 225013 (W.D. Pa. 1989).

Opinion

MEMORANDUM OPINION

COHILL, Chief Judge.

Presently before us is plaintiffs’ Motion for Class Action Certification. On June 15, 1989, we heard oral argument on the plaintiffs’ motion. For the reasons that follow, we will grant plaintiffs’ motion as to Counts I and II of the Amended Complaint, [399]*399and we will deny it with respect to Count III.

I. BACKGROUND

Plaintiffs are former employees of the defendant, United States Steel Corporation, and its successor, USX Corporation (hereinafter referred to collectively as “the Company”). On October 15, 1987, they filed a complaint under section 301(a) of the Labor Management Relations Act of 1947, 29 U.S.C. § 185(a), section 9(a) of the National Labor Relations Act of 1947, 29 U.S.C. § 159(a), and section 510 of the Employee Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001, et seq.

In Counts I and II of the Amended Complaint, plaintiffs allege that the Company breached the collective bargaining agreement applicable to the employees at the Valley Machine Shop (“VMS”) in Homestead, Pennsylvania, where the plaintiffs worked, and that the defendant United Steelworkers of America (“the Union”) breached its duty of fair representation by withdrawing the plaintiffs’ contract grievance. This type of action, in which employees concurrently sue their employer for breach of contract and their union for breach of its duty of fair representation is commonly referred to as a “hybrid” cause of action. In Count III of the Amended Complaint, plaintiffs seek damages from both defendants for allegedly interfering with their rights to attain certain early retirement benefits.

Plaintiffs aver that in early 1980, the Company began contracting out work from VMS at Homestead without notification to the Union and in violation of the collective bargaining agreement, dated August 1, 1980. According to the plaintiffs, the Company continued contracting out work through the term of the- August 1, 1983 collective bargaining agreement. On May 22, 1984, Local 1397 of the Union filed a class grievance on behalf of all employees affected by the contracting out practices, and sought backpay, benefits and the recall of laid off workers. In addition, they requested years of service awards, hoping to reinstate their eligibility for early retirement “Rule-of-65” payments.

Under the collective bargaining agreement, the Company provided a comprehensive employee benefit plan, part of which was the Rule of 65 pension. This pension was paid to employees who had at least 20 years of continuous service on the last day worked, and whose combined age and service was greater than 65, but less than 80. Plaintiffs’ Amended Complaint, at 10. The Company’s obligation to pay this pension arose when employees, after attaining the requisite eligibility, experienced at least a 5 year break in service as a result of plant shutdown, involuntary layoff or absence due to physical disability. Plaintiffs maintain that they were laid off due to the Company’s contracting out practices. Id. At the time of layoff, they were within weeks or months of qualifying for Rule of 65 retirement. Id. As a result, they lost years of service and their eventual entitlement to Rule of 65 retirement benefits.

USX denied the grievance, and the matter proceeded to arbitration in March, 1986. In June 1987, after the arbitrator conducted a hearing, but before he rendered a decision, the Union withdrew the grievance. According to the allegations contained in the Amended Complaint, the Union withdrew the grievance without legal consideration and without consulting or notifying the affected employees. The Union’s withdrawal of the grievance, urge the plaintiffs, was a breach of the Union’s duty of fair representation and foreclosed the plaintiffs’ claims for backpay, seniority, recall and pension benefits.

In addition, the plaintiffs maintain that the Company sought withdrawal of the contracting out grievance to prevent them from obtaining Rule of 65 pensions, and that the Union entered into a contract settlement with the Company which prevented the plaintiffs from qualifying for such benefits. According to the plaintiffs, these facts constitute an unlawful interference with their rights to attain early retirement benefits in violation of ERISA.

In this Motion, plaintiffs seek to represent a class defined as, “all persons [400]*400employed in a production and maintenance job at USS’ Valley Machine Shop on May 22, 1984 or at any time thereafter, including active employees and employees on layoff status, subject to recall.” All parties have submitted voluminous briefs on this issue, the bulk of which deal with the allegations concerning the merits of this case. A motion for class action certification, however, is not the proper occasion for a mini-hearing on the merits. We therefore will address only those issues relevant to the inquiries mandated by Rule 23 of the Federal Rules of Civil Procedure. See Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 177, 94 S.Ct. 2140, 2152, 40 L.Ed.2d 732 (1974) (“We find nothing in either the language or history of Rule 23 that gives a court any authority to conduct a preliminary inquiry into the merits of a suit in order to determine whether it may be maintained as a class action.”).

II. DISCUSSION

Under Federal Rule of Civil Procedure 23(a), a plaintiff may sue on behalf of a class only if:

(1) the class is so numerous that joinder of all members is impracticable; (2) there are questions of law or fact common to the class; (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.

In addition to satisfying each of the prerequisites set forth in Rule 23(a), the proposed class must meet one of the three standards under Rule 23(b). Plaintiffs seek certification pursuant to Rule 23(b)(3) which provides for class action status when, “the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and a class action is superior to other available methods for the fair and efficient adjudication of the controversy.” The party invoking Rule 23 has the burden of showing that all of the prerequisites to utilizing the class action procedure have been fulfilled. Eisen, supra, 417 U.S., at 165, 94 S.Ct. at 2146; Weiss v. York Hosp., 745 F.2d 786, 807 (3d Cir.1984), cert. denied, 470 U.S. 1060, 105 S.Ct. 1777, 84 L.Ed.2d 836 (1985). However, Rule 23 has generally been accorded a liberal interpretation. Buchholtz v. Swift & Company, 62 F.R.D. 581, 595 (D.Minn.1973).

A.

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132 F.R.D. 397, 134 L.R.R.M. (BNA) 3258, 1989 U.S. Dist. LEXIS 17185, 1989 WL 225013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/safran-v-united-steelworkers-of-america-pawd-1989.