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Keywords

damagesarbitrationnegligencebad faith
damagesarbitrationlawyerbad faith

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Dutrisac v. Caterpillar Tractor Co., 749 F.2d 1270, 113 L.R.R.M. (BNA) 3532, 98 Lab.Cas. P 10,318

Facts

Bill Gamble was terminated by Caterpillar Tractor Company for alleged excessive absenteeism. He filed a grievance claiming that his discharge was racially motivated, and the union, IAM, began processing the grievance. However, IAM failed to file the request for arbitration within the required thirty-day period, resulting in the grievance being deemed untimely and non-arbitrable. The district court found that while the union breached its duty of fair representation, Caterpillar had good cause to terminate Gamble.

The facts are undisputed. After Caterpillar fired him on February 10, 1978, Gamble filed a grievance alleging that the discharge was racially motivated.

Issue

Did the union breach its duty of fair representation by failing to file a grievance on time, and what are the implications of that breach?

Did the union breach its duty of fair representation by failing to file a grievance on time, and what are the implications of that breach?

Rule

To establish a breach of the union's duty of fair representation, an employee must demonstrate that the union's conduct was arbitrary, discriminatory, or in bad faith. A union acts arbitrarily if it ignores a meritorious grievance or processes it in a perfunctory manner. A total failure to act that is unexplained and unexcused can establish a breach of this duty.

To establish a breach of the union's duty of fair representation, an employee must show that the union's conduct towards him was 'arbitrary, discriminatory, or in bad faith.' Vaca v. Sipes, 386 U.S. 171, 190, 87 S.Ct. 903, 916, 17 L.Ed.2d 842 (1967).

Analysis

In this case, IAM's failure to file the grievance on time, although negligent, constituted a breach of its duty of fair representation. The grievance concerned a discharge, which is a significant individual interest. The union's failure to perform the ministerial act of timely filing extinguished Gamble's right to pursue his claim, thus prejudicing him. The court noted that the union's conduct was arbitrary and could not be justified by the mere fact that the underlying claim was ultimately found to be non-meritorious.

The union's own conduct belies that characterization. After the third step grievance proceeding, the union informally sought to have Gamble rehired and after an 'in depth' discussion by union officials, determined to submit the grievance to arbitration.

Conclusion

The court affirmed the district court's ruling that IAM breached its duty of fair representation and ordered IAM to pay Gamble's legal costs as damages.

We conclude that the award of damages was proper.

Who won?

Bill Gamble prevailed in his claim against the union, IAM, because the court found that IAM's failure to file the grievance on time constituted a breach of its duty of fair representation. The court emphasized that the union's negligence in processing the grievance led to the extinguishment of Gamble's right to pursue his claim against Caterpillar, which was a significant individual interest. As a result, the court ordered IAM to pay Gamble's legal costs, recognizing that the expenses incurred were a direct result of IAM's failure to represent him adequately.

The district court reasoned that IAM's failure to represent Gamble fairly in the arbitration proceeding had forced Gamble to hire a lawyer in order to obtain the representation that IAM should have provided.

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