Yellow Corporation v. International Brotherhood of Teamsters

District Court, D. Kansas·Decided July 15, 2024·No. 6:23-cv-01131·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

YELLOW CORPORATION et al.,

Plaintiffs,

v. Case No. 23-1131-JAR-ADM

INTERNATIONAL BROTHERHOOD OF TEAMSTERS et al.,

Defendants.

MEMORANDUM AND ORDER Plaintiffs Yellow Corporation, YRC Inc. d/b/a YRC Freight, USF Holland LLC, New Penn Motor Express LLC, and USF Reddaway Inc. filed this action on June 27, 2023, alleging breach of a collective bargaining agreement between Plaintiffs and Defendants International Brotherhood of Teamsters (“IBT”), Teamsters National Freight Industry Negotiating Committee (“TNFINC”), Teamsters Local No. 696, Teamsters Local No. 795, and Teamsters Local No. 41 (collectively with Teamsters Local 696 and Teamsters Local 795, the “Local Unions”). On March 25, 2024, the Court granted Defendants’ Motions to Dismiss1 under Fed. R. Civ. P. 12(b)(6) on the basis that Plaintiffs failed to exhaust the grievance procedure under the collective bargaining agreement.2 Before the Court are Plaintiffs’ Motion to Alter or Amend Judgment, and for Relief from Judgment and Order (Doc. 111), and Motion to Amend Scheduling Order and for Leave to File Proposed Second Amended Complaint (Doc. 113).

1 Docs. 29, 31 2 Doc. 109. These motions are fully briefed and the Court is prepared to rule.3 As described more fully below, the Court denies Plaintiffs’ motions to reconsider and for leave to amend. I. Standard Plaintiffs move for relief under Fed. R. Civ. P. 59(e), which gives the Court an opportunity “to rectify its own mistakes in the period immediately following” a ruling.4 Such a

motion “may be granted when ‘the court has misapprehended the facts, a party’s position, or the controlling law.’”5 The moving party must be able to establish: (1) “an intervening change in the controlling law”; (2) the availability of new evidence that could not have been obtained previously through the exercise of due diligence; or (3) “the need to correct clear error or prevent manifest injustice.”6 Motions to alter or amend are “not appropriate to revisit issues already addressed or advance arguments that could have been raised in prior briefing.”7 And whether to grant a motion to reconsider is left to the Court’s discretion.8 Plaintiffs also cite Rule 60(b) as a basis for relief. Under that rule, the Court may relieve a party from final judgment for the following reasons:

(1) mistake, inadvertence, surprise, or excusable neglect;

(2) newly discovered evidence that, with reasonable diligence, could not have been discovered in time to move for a new trial under Rule 59(b);

(3) fraud (whether previously called intrinsic or extrinsic),

3 The Court finds that oral argument would not materially assist it in ruling expeditiously on these motions. 4 Banister v. Davis, 590 U.S. 504, 508 (2020) (quoting White v. N.H. Dep’t of Emp. Sec., 455 U.S. 445, 450 (1982)). 5 Nelson v. City of Albuquerque, 921 F.3d 925, 929 (10th Cir. 2019) (quoting Servants of the Paraclete v. Does, 204 F.3d 1005, 1012 (10th Cir. 2000)). 6 Servants of the Paraclete, 204 F.3d at 1012. 7 Nelson, 921 F.3d at 929 (quoting Servants of the Paraclete, 204 F.3d at 1012). 8 Coffeyville Res. Refin. & Mktg., LLC v. Liberty Surplus Ins. Corp., 748 F. Supp. 2d 1261, 1264 (D. Kan. 2010) (citing In re Motor Fuel Temp. Sales Pracs. Litig., 707 F. Supp. 2d 1145, 1166 (D. Kan. 2010)). misrepresentation, or misconduct by an opposing party;

(4) the judgment is void;

(5) the judgment has been satisfied, released, or discharged; it is based on an earlier judgment that has been reversed or vacated; or applying it prospectively is no longer equitable; or

(6) any other reason that justifies relief.9 Like a motion under Rule 59(e), a motion under Rule 60(b) does not permit a losing party to rehash arguments previously addressed or to present new legal theories or facts that could have been raised earlier.10 The Court has discretion when granting a motion for relief from an order or judgment under Rule 60(b).11 II. The Court’s March 25, 2024 Memorandum and Order The claims in this case arise out of the YRCW National Master Freight Agreement for the Period of April 1, 2019 through March 31, 2024 (“NMFA”). Plaintiff Yellow Corporation (“Yellow”) operated a large less-than-truckload shipping operation across North America through the following four subsidiaries also named as Plaintiffs in this case: (1) YRC, Inc., d/b/a/ Yellow Freight (“Yellow Freight”); (2) USF Holland, LLC (“Holland”); (3) New Penn Motor Express, LLC (“New Penn”); and (4) Reddaway (collectively, “Yellow Operating Companies”). Defendant IBT is a labor organization and one of the nation’s largest unions. Defendant TNFINC is a bargaining committee that represents the Teamster local unions in negotiations with Plaintiffs. Defendants the Local Unions are all affiliated with IBT.

9 Fed. R. Civ. P. 60(b). 10 Servants of the Paraclete, 204 F.3d at 1012; Van Skiver v. United States, 952 F.2d 1241, 1243 (10th Cir. 1991). 11 FDIC v. United Pac. Ins. Co., 152 F.3d 1266, 1272 (10th Cir. 1998). The Yellow Operating Companies employ most of their unionized employees under the terms of the NMFA. TNFINC negotiates the NMFA on behalf of the Local Unions and their IBT members, and Yellow negotiates on behalf of the Yellow Operating Companies. The parties to the NMFA are the Yellow Operating Companies,12 the Local Unions, and the TNFINC. Neither Yellow nor IBT are parties to the NMFA.

Plaintiffs alleged two claims for breach of the NMFA under Section 301 of the Labor Management Relations Act (“LMRA”),13 based on Defendants’ refusing to resolve seniority issues arising from Phase 2 of the One Yellow initiative, refusing to engage in the change of operations procedure (“CHOPS”), and requiring Plaintiffs to agree to wage increases as a condition for approving changes of operations. Count 1 alleges breach of contract against all Defendants except IBT. Count 2 alleges breach of contract against IBT on the theory that it instigated, ratified, and encouraged the other Defendants to breach the NMFA. Plaintiffs alleged in the operative Amended Complaint that the grievance procedure in the NMFA does not apply to them because “they seek money damages that are unavailable through

those procedures and because the Union’s conduct constitutes repudiation, waiver, and estoppel of its right to compel compliance with those procedures.”14 Defendants moved to dismiss for failure to exhaust the grievance procedure required by Article 8 of the NMFA. Plaintiffs responded that they were not required to grieve, and that even if they were, they were excused from the grievance process because it would have been futile.

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Yellow Corporation v. International Brotherhood of Teamsters, (D. Kan. 2024).

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