Federal Circuits, 6th Cir. (July 07, 2003)
Docket number: 02-5124
Permanent Link:
http://vlex.com/vid/36403475
Id. vLex: VLEX-36403475
Click here to download this article in graphic format (Acrobat Reader)

US Code - Title 29: Labor - 29 USC 185 - Sec. 185. Suits by and against labor organizations
U.S. Supreme Court - DelCostello v. Teamsters, 462 U.S. 151 (1983 00:00:00)
U.S. Supreme Court - Hines v. Anchor Motor Freight, Inc., 424 U.S. 554 (1976 00:00:00)
U.S. Supreme Court - Vaca v. Sipes, 386 U.S. 171 (1967 00:00:00)
U.S. Supreme Court - Neely v. Martin K. Eby Constr. Co., 386 U.S. 317 (1967 00:00:00)
U.S. Supreme Court - United States v. Mine Workers, 330 U.S. 258 (1947 00:00:00)
U.S. Supreme Court - Gompers v. Bucks Stove & Range Co., 221 U.S. 418 (1911 00:00:00)
U.S. Court of Appeals for the 6th Cir. - Donald L. Black, Plaintiff-Appellant (92-5611), Plaintiff-Appellee (92-5694), v. Ryder/P.I.E. Nationwide, Inc.; Teamsters Local No. 519; Joint Council No. 87 of the International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America; Southern Conference of Teamsters, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Defendants-Appellees (92-5611), Teamsters Local No. 519, Defendant-Appellant (92-5694)., 15 F.3d 573 (6th Cir. 1994 00:00:00) Plaintiff-Appellant (92-5611), Plaintiff-Appellee (92-5694), v. Ryder/P.I.E. Nationwide, Inc.; Teamsters Local No. 519; Joint Council No. 87 of the International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America; Southern Conference of Teamsters, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Defendants-Appellees (92-5611), Teamsters Local No. 519, Defendant-Appellant (92-5694).
U.S. Court of Appeals for the 6th Cir. - Jones v. DaimlerChrysler Corp (6th Cir. 2007 00:00:00)
Ohio Supreme Court - Westlake v. Patrick (Ohio 2007 00:00:00)
U.S. Court of Appeals for the 6th Cir. - Williamson v. Lear Corp (6th Cir. 2006 00:00:00)
U.S. Court of Appeals for the 6th Cir. - Gilreath v. Clemens & Company (6th Cir. 2007 00:00:00)
U.S. Court of Appeals for the 6th Cir. - Gilreath v. Clemens & Company (6th Cir. 2007 00:00:00)
U.S. Court of Appeals for the 6th Cir. - Gilreath v. Clemens & Company (6th Cir. 2007 00:00:00)
U.S. Court of Appeals for the 6th Cir. - Acree v. Tyson Bearing Co Inc (6th Cir. 2005 00:00:00)
Kent L. Brown (argued and briefed), Jefferson City, MO, for Appellee.
Before: BOGGS and SILER, Circuit Judges; STEEH, District Judge.*OPINIONSILER, Circuit Judge.In No. 01-6056, defendant Cassens Transport Company ("Cassens") appeals the judgment after a jury verdict in favor of plaintiff David L. Garrison in this hybrid § 301 (29 U.S.C. 185) breach of contract/fair representation suit. In No. 02-5124, Cassens appeals the order by the district court holding it in civil contempt for failure to: immediately reinstate Garrison to employment; make certain pension payments; and assign a "company seniority" date that corresponds with the date that Garrison could have commenced working for Cassens upon his return from his worker's compensation injury. Numerous issues have been raised on appeal. After carefully reviewing the record, and viewing the evidence in the light most favorable to Garrison, we find that the evidence at trial was insufficient to establish a breach of the duty of fair representation by the union. Accordingly, the district court erred in not entering judgment in favor of Cassens pursuant to Rule 50 of the Federal Rules of Civil Procedure. Also, because there was no basis for the imposition of liability, we necessarily find that the civil contempt order can no longer stand. Therefore, we REVERSE the jury verdict and REMAND to the district court for the entry of judgment as a matter of law for Cassens. Also, the civil contempt order of January 7, 2002, is REVERSED and VACATED in its entirety.I. BACKGROUNDGarrison began his employment as a driver with Allied Systems, Ltd. ("Allied") and/or its predecessor, Auto Convey, Inc., in 1980. Allied is a trucking company engaged in the auto transport business. In 1986, Garrison transferred to Allied's Smyrna, Tennessee, terminal, where he was employed as a driver until November 21, 1990, when he sustained an on-the-job injury. Cassens is also a trucking company engaged in the delivery of automobiles to vehicle dealerships in the United States. Since 1983, Cassens has maintained an operation in Smyrna, Tennessee.Drivers for Allied and Cassens are members of Teamsters Local 327, which is affiliated with the Internal Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America AFL-CIO. Local 327 is the exclusive bargaining representative of Allied and Cassens drivers for collective bargaining purposes. Allied, Cassens, and Local 327 are signatories to a multi-employer, multi-union collective bargaining agreement referred to as the National Master Automobile Transporters Agreement ("NMATA") and the Central-Southern Areas Supplemental Agreement. NMATA governs the terms and conditions of driver employment with these companies. While employed by Allied as a driver at the Smyrna terminal, Garrison was a member of Local 327 and was covered by NMATA.At all times relevant to this case, Nissan Motors had an assembly plant located near Allied's and Cassens's Smyrna operations. In September 1994, as a result of a competitive bid process, Nissan awarded Cassens and another trucking company, Commercial Carriers, Inc., its Smyrna transport work, which previously had been performed by Allied. Shortly thereafter, Allied notified all Allied employees working out of the Smyrna terminal, including Garrison, of Nissan's decision to transfer its work to Cassens and Commercial Carriers. A memorandum was sent enclosing a form on which drivers could designate whether they wished to follow the work to Cassens or Commercial Carriers or stay with Allied and seek work at another terminal.As a result of Nissan's decision to transfer its work, Allied, Cassens, Commercial Carriers, and Local 327 submitted a request to the National Joint Arbitration Committee (the "NJAC") for a determination of the seniority rights of Allied employees affected by the work transfer. The NJAC issued its decision, ruling that pursuant to NMATA, Allied drivers had the right to transfer either to Cassens or Commercial Carriers to follow the Nissan work. Regarding seniority rights, the NJAC stated that Allied's seniority list was "to be dovetailed1 by terminal seniority2 with the Cassens and Commercial [Carriers] Smyrna Seniority Lists."As required by the NJAC's decision, Allied was responsible for preparing separate lists of Allied drivers seeking to transfer to Cassens and Commercial Carriers. After the NJAC decision, Garrison, who was still off work, received two letters from Allied. The first advised Garrison of his work options and stated that if he did not choose to follow the work to Cassens or Commercial Carriers he would be laid off from Allied, effective several days later. The second letter was a premature layoff notice.The next day after receiving these letters, Garrison telephoned Allied's terminal manager and advised him that he wanted to follow the work to Cassens. In two follow-up letters dated November 9, 1994, Garrison confirmed his receipt of Allied's letters and restated his intentions to follow the work to Cassens. Garrison copied the letters to the business agent for Local 327.3 Garrison's letters were both signed "Received" by James Firkus, Cassens's Smyrna terminal manager. Several days later, Garrison received notice from Allied that based upon his decision to transfer to Cassens, his name was being removed from Allied's seniority list. He was never informed that he would be required to report to work within thirty days of his notification election.On June 7, 1996, approximately nineteen months after Garrison submitted his transfer election forms, he obtained a medical release from his doctor permitting him to return to work. That same day, he contacted Cassens inquiring into when he could begin work. The assistant terminal manager at Cassens's Smyrna terminal informed Garrison that his name did not appear on Cassens's Smyrna seniority roster and that he would need to speak with Firkus, who was on vacation. Several days later, Garrison spoke with Firkus, who stated that Garrison was not on Cassens's applicable seniority list and that it would be necessary to contact Cassens's Labor Relations Director, Joe Clark, to discuss the situation.Garrison then went to the Local 327 office in Nashville, Tennessee, and met with Jimmy Neal, Local 327's business agent,4 and David Hodgin, the president of Local 327, to discuss his predicament. After discussing the situation, Neal expressed his view that Garrison's case was a "slam dunk." He provided Garrison with a form so that he could prepare a grievance to be submitted to Cassens. Neal also arranged an informal meeting to be held the following day to discuss Garrison's request to return to work.The next day, an informal meeting was held at Cassens's Smyrna terminal between Garrison, Neal, Firkus, and Mark Flett, a union steward for Cassens's employees. Firkus would not agree to put Garrison to work. According to Garrison, Firkus indicated that the problem was that Garrison had never been placed on the seniority list back in 1994. The next day, Garrison discovered that Firkus had signed for the employment notification letters he sent in November 1994. That afternoon, he confronted Firkus about his signatures. Initially, Firkus indicated that he believed the signatures were forgeries. Subsequently, he admitted it was his signature on each of the letters.Less than a week later, Garrison submitted a grievance to Local 327, outlining his position that he had properly notified Cassens of his preference to follow the Nissan work. A local hearing was then held concerning Garrison's grievance at Cassens's Smyrna terminal. At the hearing, Neal, who was Garrison's union representative, asserted that Garrison should be permitted to work for Cassens and should be placed on Cassens's seniority list with a 1994 seniority date. Cassens took the position that it was unaware that Garrison had elected to transfer to Cassens, that his name had not appeared on any of the seniority lists or the transfer lists that had been provided by Allied, and that Cassens did not have a contractual obligation to employ him.5The parties' inability to reach an acceptable resolution to Garrison's grievance resulted in the matter's being submitted for arbitration. Neal docketed the grievance with the Southern Area Automobile Transporters Grievance Committee to be addressed at its August 1996 meeting in New Orleans, Louisiana. At Neal's recommendation, Garrison did not attend this proceeding, although Neal was present on his behalf.6 During the proceeding, Cassens, through its representative, Joe Clark, reasserted its position that it did not have a contractual obligation to Garrison. In addition, for the first time, Cassens invoked a "30-day rule" and argued that Garrison's seniority transfer opportunity had expired because he had not reported to work at Cassens within thirty days of the transfer opportunity. At the conclusion of the proceeding, Garrison's case was referred to the National Joint Standing Seniority Committee (the "NJSSC") in Dana Point, California. It appears that at no point after the Southern Area proceeding did Neal inform Garrison that Cassens had raised the defense of the thirty-day rule. It is this somewhat obscure rule that serves as the driving force behind this litigation.Garrison's grievance was ultimately scheduled to be heard on November 5, 1996. In preparing for this proceeding, Garrison and Neal kept in constant contact. They had several meetings and spoke on the phone almost every day. During this preparation stage, Garrison focused exclusively on trying to prove that he properly notified Cassens of his intentions to follow the Nissan work. Ultimately, Garrison forwarded to Neal a ten-page, ninety-seven paragraph typed presentation with twenty-eight exhibits for the upcoming arbitration. Neal reviewed the presentation and thought that it was one of the best he had ever seen.Approximately forty-eight hours before the proceeding, Neal, Garrison, and Clark met to exchange documents and information. Garrison gave Clark a copy of his presentation and Clark gave Neal and Garrison seven prior joint arbitration committee decisions that he intended to use in support of Cassens's thirty-day defense. This appears to be the first time that Garrison was made aware of the existence of a thirty-day rule. Garrison and Neal reviewed these decisions and decided that they were not applicable or were distinguishable from the circumstances involved in the instant matter. Neal failed, however, to realize or explain the potential significance the thirty-day rule could have on Garrison's grievance. Consequently, no rebuttal ? either by Neal or Garrison ? was prepared on the issue of the thirty-day rule.In presenting Garrison's grievance to the NJSSC, Neal introduced Garrison to the committee and read Garrison's grievance into the record. Garrison read a prepared statement and introduced exhibits in support of his case. Neither Neal nor Garrison made any mention or otherwise tried to obviate any argument regarding the thirty-day rule. On Cassens's behalf, Clark argued that (1) Cassens had not been notified of Garrison's intent to transfer from Allied to Cassens; (2) Garrison had never appeared on a Cassens seniority list; (3) Cassens did not have any contractual obligation to Garrison; and (4) Garrison did not comply with the thirty-day rule when he appeared for work in 1996. Clark handed committee members copies of arbitral precedent that he believed supported Cassens's position that "a man has thirty days from the date of the transfer [in] which he must make himself available." Although he did not refer to any of these cases by name, he asserted that Cassens did not believe that it had any obligations to Garrison "under the procedures and decisions previously rendered by the Committee." Other than these brief statements and the submission of the prior committee decisions, Clark did not initially make any other arguments regarding the applicability of the thirty-day rule to Garrison's case.Although Local 327 was free to rebut any aspect of Cassens's case, it appears that Neal completely failed to address the applicability of the thirty-day rule.7 Garrison himself, however, put forth some rebuttal to Cassens's thirty-day rule argument, stating that "I did not believe the thirty (30)-day report rule ... is applicable, because you will find [that] in NMATA... seniority shall not be broken except by discharge, voluntary quit, [or more than a seven (7)-year layoff]." After Garrison's rebuttal, one of the members of the committee asked Neal whether he had anything further to add and Neal responded, "No, sir. I don't. I think you got the case." In his final response, Clark more forcefully fleshed out Cassens's position on the applicability of the thirty-day rule:Mr. Garrison ... could not report in thirty (30) days or any relevant time period. You're looking at almost two (2) years before he could report to us ? that has not been the decisions that have been rendered by this Committee and other committees. Specifically, if you go to the decisions that I handed out to you ... [one decision] involves the very same local, Local 327. The discussion specifically talks about being able to report in thirty (30) days of the transfer. It's just one of the seven (7) that I gave you. Again, it specifically relates to the grievant in that particular case being on an on-the-job injury and could not report. The very same thing that we have here, gentleman. Mr. Garrison cites to you the language in the contract about seniority. We're not trying to break his seniority. All we're saying is Mr. Garrison does not belong on our seniority list, again, for all the reasons we cited to you.Following this hearing, the NJSSC issued its decision denying Garrison's request for employment with Cassens. The committee held for Garrison on the notice issue. Specifically, it found that Garrison made a timely request to Cassens for employment and that this request was acknowledged by Cassens's terminal manager. The NJSSC found, however, that "[p]rior decisions of this Committee require that employees who follow their work ... make themselves available for work within thirty days after expressing their desire to do so." Because Garrison was not available to work for Cassens during the applicable thirty-day period, the NJSSC found that his transfer rights were extinguished. Thus, the thirty-day rule ultimately proved dispositive of Garrison's grievance. Although the committee relied on the seven arbitral precedents submitted by Cassens in reaching its conclusion, none of the decisions specifically involved the dovetailing of seniority rights; instead, all of the cases involved attempted in-company transfers to either new terminals, new jobs, or other terminals with new work opportunities.The one apparent NJSSC decision that presented a strikingly similar issue as that involved in Garrison's case was not brought to the committee's attention. In May 1992, Cassens previously asked the NJSSC for guidance "as to how long [Cassens] is obligated to afford work at the Avon Lake facility to an E & L Lorain driver presently on a leave of absence due to an on-the-job injury." Cassens Transp. Co. v. Local Union No. 571 and E & L Transp. Co. Local Union 964, No. 5-92-(2-92)-465-A. The NJSSC determined that "[w]ith regard to the E & L employee on workers' compensation who has elected to transfer to Cassens, he is to be deemed as transferred and will hold seniority at Avon Lake and will be permitted to assume an active position upon his release from compensation status." Id. In light of this holding, it may have been difficult for the committee to distinguish Garrison's situation from its earlier precedent.Thereafter, Garrison initiated a federal action under § 301 of the Labor Management Relations Act, 29 U.S.C. 185, against Cassens, Local 327, and others. All defendants except Cassens and Local 327 were dismissed from the lawsuit. Following a settlement agreement, Local 327 was voluntarily dismissed from the suit. Thereafter, the hybrid action continued solely against Cassens. The case then proceeded to trial. At the conclusion of Garrison's case in chief and again at the close of trial, Cassens moved for judgment as a matter of law pursuant to Rule 50 of the Federal Rules of Civil Procedure. The court denied the motion and submitted the case to the jury. The jury found in favor of Garrison and awarded $408,885 in compensatory damages, allocating seventy-five percent of liability to Cassens and twenty-five percent to Local 327. It also awarded $500,000 in punitive damages against Cassens. Thereafter, Cassens renewed its Rule 50 motion, which was again denied by the court. Cassens then moved for a new trial under Rule 59 of the Federal Rules of Civil Procedure, which was also denied.In case No. 01-6056, Cassens argues that the district court erred in: (1) denying its pretrial motion for summary judgment; (2) denying its motion for judgment as a matter of law pursuant to Federal Rule 50; (3) refusing to instruct the jury on its defense that a particular section of NMATA must be considered in determining whether Cassens breached the collective bargaining agreement; (4) affirming the compensatory award when the record established that Garrison failed to mitigate damages; (5) affirming the jury's allocation of liability; and (6) upholding an award of $500,000 in punitive damages.The district court erred in denying Cassens's motion for judgment as a matter of law under Federal Rule of Civil Procedure 50. Consequently, we need not decide the many other assignments of error raised by Cassens on appeal, which have all been rendered moot. Also, because a remedial contempt order cannot survive the reversal of the underlying order giving raise to the contempt judgment, we reverse and vacate the district court's order in case No. 02-5124.II. ANALYSISA. Denial of Summary JudgmentCassens argues at length that the district court erred in denying its motion for summary judgment and reconsideration pursuant to Rule 56 of the Federal Rules of Civil Procedure. However, "where summary judgment is denied and the movant subsequently loses after a full trial on the merits, the denial of summary judgment may not be appealed." Jarrett v. Epperly, 896 F.2d 1013, 1016 (6th Cir. 1990); see also K & T Enters., Inc. v. Zurich Ins. Co., 97 F.3d 171, 174 (6th Cir.1996) (holding that "in cases where an appellant made a Rule 56 motion for summary judgment that was denied, makes those same arguments in a Rule 50(a) motion at the close of evidence that was also denied, lost in front of a jury, then renewed its arguments in a rejected Rule 50(b) motion after the entry of judgment, we will review only the denial of the Rule 50(b) motion"). Accordingly, because there has been a trial on the merits, we will not review the district court's denial of summary judgment.B. Motion for Judgment as a Matter of LawCassens moved for judgment as a matter of law pursuant to Rule 50 at the conclusion of Garrison's case in chief, at the end of trial and again after the jury's verdict. On appeal, it argues that the evidence at trial was insufficient to support the jury's finding that (1) Local 327 breached its duty of fair representation, (2) any alleged breach by the union more than likely adversely impacted the grievance process, and (3) Cassens breached the collective bargaining agreement. "An appeals court reviews a denial of a Rule 50(b) motion de novo, applying the same test as the district court must apply." Gray v. Toshiba Am. Consumer Prods., 263 F.3d 595, 598 (6th Cir.2001). "We do not weigh the evidence, evaluate the credibility of the witnesses, or substitute our judgment for that of the jury." Wehr v. Ryan's Family Steak Houses, Inc., 49 F.3d 1150, 1152 (6th Cir.1995). "Instead, we must view the evidence in the light most favorable to the party against whom the motion is made, and give that party the benefit of all reasonable inferences." Phelps v. Yale Sec. Inc., 986 F.2d 1020, 1023 (6th Cir.), cert. denied,