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Keywords

damagesarbitrationnegligenceappealverdict
plaintiffdamagesattorneyappealhearingtrialverdictplaintiff's attorney

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Zuniga v. United Can Co., 812 F.2d 443, 124 L.R.R.M. (BNA) 2888, 55 USLW 2523, 106 Lab.Cas. P 12,247

Facts

Jesus Zuniga was employed by United Can Company and was a member of Local 768 of the union. He experienced a work-related injury and was subsequently denied sick leave benefits for the period from January 4, 1982, to September 27, 1982, due to conflicting medical reports. Zuniga filed a grievance with the union, which was not adequately pursued, leading him to file a complaint in district court alleging breaches by both the employer and the union.

The collective bargaining agreement provides that employees of United Can Company who are 'incapacitated and unable to perform available work' for certain stated reasons including occupational illness or disease are entitled to sick leave pay.

Issue

The main legal issues were whether Zuniga's failure to exhaust internal union remedies was properly excused, whether substantial evidence supported the verdicts against the union and the employer, and whether the district court erred in awarding damages to Zuniga.

The issues are: (A) whether plaintiff's failure to exhaust internal union remedies prior to the filing of his district court action was properly excused; (B) whether substantial evidence supports the verdicts against the union and the employer; (C) whether the district court erred in interpreting plaintiff's attorney fee agreement and in refusing to impose sanctions on plaintiff's counsel under Fed.R.Civ.P. 11; and (D) whether the district court erred in awarding $10,000 damages to plaintiff and against the union to compensate plaintiff for fees incurred in the prosecution of his claim against the employer.

Rule

The court applied the 'futility exception' to excuse the requirement for exhausting internal union remedies, considering factors such as hostility from union officials and the adequacy of internal procedures.

The Supreme Court has recognized that district judges are charged with the discretion to excuse the general requirement that union members must exhaust internal union procedures before seeking relief in the judicial forums.

Analysis

The court found that Zuniga's failure to exhaust internal union remedies was justified due to the union's negligence in processing his grievance and the potential for unreasonable delay in obtaining judicial relief. The jury's conclusion that the union breached its duty of fair representation was supported by substantial evidence, including the union's failure to timely inform Zuniga about medical arbitration options.

The trial judge did not abuse his discretion in concluding that further resort to the internal union appeal procedure would have unreasonably delayed or prevented a judicial hearing on the merits of his claim since the six-month limitation period would have likely expired prior to resolution of the appeal by the Executive Board of the Joint Council.

Conclusion

The Court of Appeals affirmed the jury's verdict, concluding that the union breached its duty of fair representation and that the damages awarded to Zuniga were appropriate.

Affirmed.

Who won?

Jesus Zuniga prevailed in the case, as the jury found that both the employer and the union had breached their respective duties, leading to the award of damages.

The jury held that the employer had breached the collective bargaining agreement and that the union had breached its duty of fair representation with respect to plaintiff's sick leave claim.

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