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After respondent employee had been discharged by petitioner employer for alleged dishonest acts, respondent requested his union to file a grievance contesting the discharge. The collective-bargaining agreement provided a grievance and arbitration procedure for the resolution of covered disputes. Respondent was represented by the union at an arbitration hearing which resulted in a decision upholding the discharge. Seventeen months later, respondent filed suit in Federal District Court against the union and petitioner under 301 (a) of the Labor Management Relations Act, alleging that the union had breached its duty of fair representation and that petitioner discharged him not for the stated reasons, which it knew to be false, but to replace full-time employees with part-time employees. The court granted summary judgment for the defendants on the ground that the action was barred by New York's 90-day statute of limitations for actions to vacate arbitration awards. The Court of Appeals reversed, holding that the District Court should have applied New York's 6-year limitations period for breach-of-contract actions.
Held:
Given the choices present here, and the undesirability of the results of the grievance and arbitral process being suspended in limbo for long periods, the District Court properly chose the 90-day period for the bringing of an action to vacate an arbitration award. Cf. Hines v. Anchor Motor Freight, Inc.,
REHNQUIST, J., delivered the opinion of the Court, in which BURGER, C. J., and BRENNAN, WHITE, MARSHALL, BLACKMUN, and POWELL, JJ., joined. BLACKMUN, J., filed a concurring opinion, post, p. 64. STEWART, J., filed an opinion concurring in the judgment, post, p. 65. STEVENS, J., filed an opinion concurring in part and dissenting in part, post, p. 71.
Bernard G. Segal argued the cause for petitioner. With him on the briefs was James D. Crawford. Albert S. Parsonnet filed a brief for Local 177, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, respondent under this Court's Rule 19.6, in support of petitioner.
David Jaroslawicz argued the cause for respondent Mitchell. With him on the brief was Ira Leitel. *
[ Footnote * ] Briefs of amici curiae urging reversal were filed by J. Albert Woll, Laurence Gold, Michael H. Gottesman, and Robert M. Weinberg for the American Federation of Labor and Congress of Industrial Organizations; [451 U.S. 56, 58] and by David Previant for the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America. [451 U.S. 56, 58]
JUSTICE REHNQUIST delivered the opinion of the Court.
We are called upon in this case to determine which state statute of limitations period should be borrowed and applied to an employee's action against his employer under 301 (a) of the Labor Management Relations Act, 1947, 61 Stat. 156, 29 U.S.C. 185 (a), and Hines v. Anchor Motor Freight, Inc.,
Petitioner United Parcel Service, Inc. (UPS), employed respondent Mitchell (respondent) as a car washer at its facility on Staten Island, N. Y. On January 13, 1977, respondent was discharged for dishonest acts, including falsifying his timecards and claiming payment for hours which he did not work. Respondent denied the charges against him and requested his union, Department Store and Wholesale Drivers, Warehousemen and Helpers, Local Union No. 177 (the Union), to file a grievance on his behalf contesting the discharge. UPS and the Union were parties to a collective-bargaining agreement which provided a grievance and arbitration procedure for the resolution of disputes covered by the agreement. App. 57-67. Pursuant to the agreement respondent's grievance was submitted to a panel of the Atlantic Area Parcel Grievance Committee, composed of three union and three company representatives (the Joint Panel). Cf. Hines v. Anchor Motor Freight, Inc., supra, at 557, n. 2. The Joint Panel conducted a hearing, at which respondent was represented by the Union, and on February 16, 1977, it announced its decision that the discharge be upheld. App. 103-104. Under the collective-bargaining agreement this decision was "binding on all parties." Id., at 66; see id., at 103.
Seventeen months later, on July 20, 1978, respondent filed a complaint in the United States District Court for the Eastern [451 U.S. 56, 59] District of New York against the Union and UPS under 301 (a) of the Labor Management Relations Act, 29 U.S.C. 185 (a). See Hines v. Anchor Motor Freight, Inc., supra. He alleged that the Union had breached its duty of fair representation and that UPS discharged him not for the stated reasons, which it knew to be false, but to achieve savings by replacing full-time employees with part-time employees. App. 7-13. Both UPS and the Union moved for summary judgment on the ground that the action was barred by New York's 90-day statute of limitations for actions to vacate arbitration awards. Section 7511 (a) of the N. Y. Civ. Prac. Law (McKinney 1963) provides that "[a]n application to vacate or modify an [arbitration] award may be made by a party within ninety days after its delivery to him."
The District Court granted summary judgment in favor of UPS and the Union, ruling that respondent's action was properly characterized as one to vacate the arbitration award entered against him. The court reasoned: "The relief sought was expressly denied in an arbitration award issued as a result of a full-scale arbitration proceeding. The effect of any grant of the relief sought . . . would be to vacate the determination of the arbitrators." App. 129. Respondent appealed and the Court of Appeals for the Second Circuit reversed. 624 F.2d 394 (1980). That court held that the District Court should have applied New York's 6-year limitations period for actions alleging breach of contract, N. Y. Civ. Prac. Law 213 (2) (McKinney 1972). It reasoned that respondent's action was analogous to a breach-of-contract action because the issues were whether the collective-bargaining agreement had been breached and whether the Union contributed to that breach by failure to discharge its duty of fair representation. The court further reasoned that a 6-year limitations period "provides for relatively rapid disposition of labor disputes without undermining an employee's ability to vindicate his rights through 301 actions." 624 F.2d, at 397-398. [451 U.S. 56, 60]
We granted UPS' petition for certiorari.
Congress has not enacted a statute of limitations governing actions brought pursuant to 301 of the LMRA. As this Court pointed out in Auto Workers v. Hoosier Cardinal Corp.,
Although respondent did not style his suit as one to vacate the award of the Joint Panel, if he is successful the suit will have that direct effect. Respondent raises in his 301 action the same claim that was raised before the Joint Panel - that he was discharged in violation of the collective-bargaining agreement. He seeks the same relief he sought before the Joint Panel - reinstatement with full backpay. In sum, "it is clear that [he] was dissatisfied with and simply seeks to upset the arbitrator's decision that the company did not wrongfully discharge him." Liotta v. National Forge Co., 629 F.2d 903, 905-906 (CA3 1980), cert. pending, No. 80-890. 3
The Court of Appeals purported to rely on this Court's decision in Hines v. Anchor Motor Freight, Inc., but that decision strongly supports borrowing the limitations period for actions to vacate arbitration awards. As Hines makes clear, an employee may go behind a final and binding award under a collective-bargaining agreement and seek relief against his employer and union only when he demonstrates that his union's breach of its duty "seriously undermine[d] the integrity of the arbitral process."
It is true that respondent's underlying claim against his employer is based on the collective-bargaining agreement, a contract. It is not enough, however, for an employee such as respondent to prove that he was discharged in violation of the collective-bargaining agreement. "To prevail against either the company or the Union, petitioners must not only show that their discharge was contrary to the contract but must also carry the burden of demonstrating breach of duty by the Union. . . . The grievance processes cannot be expected to be error-free." Hines,
We think that the unfair representation claim made by an employee against his union, even though his employer may ultimately be called upon to respond in damages for it if he is successful, is more a creature of "labor law" as it has developed since the enactment of 301 than it is of general contract law. We said in Hoosier Cardinal that one of the leading federal policies in this area is the "relatively rapid disposition of labor disputes."
It is important to bear in mind the observations made in the Steelworkers Trilogy that "the grievance machinery under a collective bargaining agreement is at the very heart of the system of industrial self-government. . . . The processing . . . machinery is actually a vehicle by which meaning and content are given to the collective bargaining agreement." Steelworkers v. Warrior & Gulf Navigation Co.,
Obviously, if New York had adopted a specific 6-year statute of limitations for employee challenges to awards of a joint panel or similar body, we would be bound to apply that statute under the reasoning of Hoosier Cardinal. But in cases such as this, where generally state limitations periods were enacted prior to the enactment of 301 by Congress in 1947, we are necessarily committed by prior decisional law to choosing among statutes of limitations none of which fit hand in glove with an action under 301 (a) of the LMRA. Given the choices present here, and the undesirability of the results of the grievance and arbitral process being suspended in limbo for long periods, we think the District Court was correct when it chose the 90-day period imposed by New York for the bringing of an action to vacate an arbitration award.
Accordingly, the judgment of the Court of Appeals is
[
Footnote 2
] Amicus the American Federation of Labor and Congress of Industrial Organizations has filed a brief arguing that, in cases such as the present, courts should apply the 6-month limitations period found in 10 (b) of the National Labor Relations Act, 29 U.S.C. 160 (b). The AFL-CIO distinguishes the above-quoted language from Hoosier Cardinal on the ground that Hoosier Cardinal involved a 301 action by a union against an employer, while actions brought by employees against both their union and employer pursuant to our decisions in Vaca v. Sipes,
[
Footnote 3
] The Court of Appeals declined to borrow the limitations period for actions to vacate an arbitration award in part because of its view that discharged employees could not institute such actions under New York law, see In re Soto, 7 N. Y. 2d 397, 165 N. E. 2d 855 (1960). 624 F.2d 394, 398 (1980). The fact that an employee could not bring a direct suit to vacate an arbitration award, however, does not mean that his 301 claim, which if successful would have the same effect, is not "closely analogous" to such an action. See Johnson v. Railway Express Agency, Inc.,
[ Footnote 4 ] Respondent suggests Hines actions might also be characterized as actions upon a statute, personal injury actions, or malpractice actions, all governed by a 3-year limitations period in New York, N. Y. Civ. Prac. Law 214 (2), 214 (5), 214 (6) (McKinney 1972). All of these characterizations suffer from the same flaw as the effort to characterize [451 U.S. 56, 63] the action as one for breach of contract: they overlook the fact that an arbitration award stands between the employee and any relief which may be awarded against the company.
[ Footnote 5 ] New York is typical in providing a relatively short limitations period for actions to vacate arbitration awards. Of 42 States with specific limitations periods for such actions, 28 have a period of 90 days, 9 have shorter periods, 2 longer, and 3 States have periods based on the term of court. See. App. to Pet. for Cert. A18-A19. The Federal Arbitration Act, 9 U.S.C. 12, provides a limitations period of three months.
The particular choice made in Hoosier Cardinal to borrow the limitations period for oral contracts is not binding in this case, not only because the issue in Hoosier Cardinal was between a 6-year period for oral contracts and a 20-year period for written contracts, but also because the claim in Hoosier Cardinal was not one to overturn an arbitration award.
JUSTICE BLACKMUN, concurring.
I join the Court's opinion because I am persuaded that the Court has made the correct choice between the two state-law alternatives presented by the parties. As the Court observes, the applicability of 10 (b) of the National Labor Relations Act, 29 U.S.C. 160 (b), was never pressed by [451 U.S. 56, 65] either party, and was not considered by the Court of Appeals. Although I find much that is persuasive in JUSTICE STEWART'S analysis, resolution of the 10 (b) question properly should await the development of a full adversarial record.
JUSTICE STEWART, concurring in the judgment.
The Court believes itself obligated by Auto Workers v. Hoosier Cardinal Corp.,
Hoosier involved a straightforward breach-of-contract damages suit brought by a union against an employer under 301 of the Labor Management Relations Act (LMRA). As Congress had not provided a limitations period for 301 suits, the Court concluded that a state statute of limitations should apply. But the Court was careful to note that it was not deciding the appropriate time limits for all suits brought under 301:
The case before us is quite unlike the one in Hoosier. It is a hybrid " 301 and breach of duty sui[t]," Vaca v. Sipes,
Moreover, unlike Hoosier, where the employee's complaint was rooted solely in 301 of the LMRA, the respondent employee here has two claims, each with its own discrete jurisdictional base. The contract claim against the employer is based on 301, but the duty of fair representation is derived from the NLRA.
2
Yet the two claims are inextricably interdependent.
[451
U.S. 56, 67]
"To prevail against either the company or the Union, . . . [employee-plaintiffs] must not only show that their discharge was contrary to the contract but must also carry the burden of demonstrating breach of duty by the Union." Hines v. Anchor Motor Freight, Inc.,
Thus, the suit in this case, unlike the one in Hoosier, cannot be likened to "an action for breach of contract cognizable at common law."
Congress enacted 10 (b) of the NLRA to protect continuing collective-bargaining systems from delayed attack. The 6-month bar of 10 (b)
4
is designed to strengthen and defend the "stability of bargaining relationships." Machinists v. NLRB,
Of course, one aspect of the respondent employee's claim in this case is predicated on 301 of the LMRA; if the plaintiff can establish his claim for breach of the duty of fair representation, he may then pursue his 301 breach-of-contract claim. But here, unlike Hoosier, the latter action, like the breach-of-duty claim, is a challenge to a result reached in the contractual grievance resolution system. Accordingly, the policy of promoting stability in collective bargaining underlying the time bar of 10 (b) is applicable to this aspect of the respondent employee's case as well.
In any event, the two elements of respondent employee's hybrid action cannot be disentangled: the duty of fair representation is "part and parcel of [the] 301 [claim]." Vaca v. Sipes,
Finally, even if it were appropriate to view the respondent employee's suit in this case as founded solely on 301, the
[451
U.S. 56, 70]
Court is not obliged to apply a state statute of limitations. As already noted, Hoosier contemplated that "other 301 suits different from the present one might call for application of other rules of timeliness."
Because the respondent employee commenced his suit beyond the 6-month bar of 10 (b) of the NLRA, I agree that the judgment of the Court of Appeals must be reversed.
[ Footnote 1 ] But see ante, at 60, n. 2.
[
Footnote 2
] The Court has recognized on numerous occasions that "[t]he duty of fair representation is . . . implicit in the National Labor Relations Act." See, e. g., Electrical Workers v. Foust,
[
Footnote 3
] This Court has not decided whether all breaches of the duty of fair representation necessarily constitute unfair labor practices under 8 (b) (1) (A) and (b) (2) of the NLRA. In Miranda Fuel Co., 140 N. L. R. B. 181, the Board ruled that all violations of the duty of fair representation are unfair labor practices either under 8 (b) (2) or under 8 (b) (1) (A). In Vaca v. Sipes, supra, the Court found it unnecessary to decide whether Miranda Fuel was correctly decided, but simply "assume[d] for present
[451
U.S. 56, 68]
purposes" that the Board had been correct.
[
Footnote 4
] Concededly, the terms of 10 (b) are directed to the administrative procedures provided by Congress to resolve unfair labor practices. But the fact that Congress did not provide a limitations period for a judicially enforceable action later found implied in the NLRA is not comparable to a congressional failure to establish a time limitation for an action it expressly creates by statute. Cf. Occidental Life Ins. Co. v. EEOC,
[
Footnote 5
] The charge by the employees in Machinists was against the formation of a collective-bargaining agreement. Here the complaint is with the agreement's administration. But 8 (d) of the NLRA defines the collective bargaining required by the Act to include grievance procedures as a part of the continuing collective-bargaining process. See NLRB v. Acme Industrial Co.,
[
Footnote 6
] The Court held in Machinists v. NLRB,
[ Footnote 7 ] The need for speedy and final resolution of labor disputes, preferably without recourse to the courts - identified by the Court today in support of its preference for the shorter of the possible state limitations periods, ante, at 63, 64 - also supports adoption of the relatively short period of 10 (b).
JUSTICE STEVENS, concurring in part and dissenting in part.
In this action, the plaintiff-employee seeks a judicial remedy against his former employer for wrongful discharge, and against his union for breach of the duty of fair representation. The District Court granted summary judgment in favor of both defendants because of the employee's failure to file suit within what that court viewed as the appropriate period of limitations. The Court of Appeals reversed the District Court's judgment as to both claims and remanded for further proceedings. The employer alone sought further review in this Court. Therefore, at this stage of the litigation, the only question properly presented for our consideration is whether the Court of Appeals chose the most appropriate New York statute of limitations to govern the employee's claim against his former employer for wrongful discharge. 1 Although I agree for the most part with the [451 U.S. 56, 72] Court's resolution of that question, I fear that its failure expressly to limit its reasoning to the narrow question presented in this case may suggest that today's decision also resolves the question whether the same statute of limitations governs the employee's claim against the union for breach of the duty of fair representation. That interpretation, although understandable in light of the broad language of the Court's opinion, would be inconsistent with the procedural posture of this case and, in addition, would be conceptually unsound.
I concur in the Court's conclusion that it is appropriate, for purposes of federal labor law, to characterize the employee's suit against his employer as an action to set aside an arbitration award. In the arbitration proceeding that took place prior to this litigation, the employer prevailed on the precise claim respondent raises against it in this judicial proceeding - that the discharge violated the collective-bargaining agreement. If the employee now were to prevail against the employer on this claim, the necessary effect of the resulting court order would be to undo the arbitration award. See ante, at 61. Accordingly, in upholding the employer's position, the Court properly emphasizes the importance of the finality and certainty of arbitration in the collective-bargaining context, and properly treats the adverse arbitration decision as a substantial obstacle to the employee's pursuit of judicial relief against his employer.
The employee's claim against his union for breach of the duty of fair representation, however, is of a far different character. Although this claim is closely related to the claim [451 U.S. 56, 73] against the employer, the two claims are nonetheless conceptually distinct. 2 The claim against the union may not, in my judgment, be characterized as an action to vacate an arbitration award. The arbitration proceeding did not, and indeed, could not, 3 resolve the employee's claim against the union. Although the union was a party to the arbitration, it acted only as the employee's representative; the Joint Panel did not address or resolve any dispute between the employee and the union. Therefore, with respect to the employee's action against the union, the finality and certainty of arbitration are not threatened by the prospect that the employee might prevail on his judicial claim. Because no arbitrator has decided the primary issue presented by this claim, no arbitration award need be undone, even if the employee ultimately prevails. 4 [451 U.S. 56, 74]
The employee's claim against his union is properly characterized, not as an action to vacate an arbitration award, but rather as a malpractice claim. There is no conceptual reason why that claim may not survive even if the employer is able to rely on the arbitration award as a conclusive determination of its obligations under the collective-bargaining agreement.
5
Thus, by analogy, a lawyer who negligently allows the statute of limitations to run on his client's valid claim may be liable to his client even though the original defendant no longer has any exposure. Cf. Smart v. Ellis Trucking Co., 580 F.2d 215, 218-219 (CA6 1978), cert. denied,
In this case, I agree with the Court that the statute of limitations applicable to respondent's claim against his former employer is the 90-day statute governing actions to vacate or [451 U.S. 56, 75] modify arbitration awards in New York. 6 It surely does not follow, however, that that statute is applicable to the claim against the union for breach of its duty of fair representation. 7 Because the union did not seek review of the judgment of the Court of Appeals, it is not appropriate to decide what period of limitations should be applied to the employee's claim against it. It is, however, noteworthy that JUSTICE STEWART'S proposal that we strain to conclude that Congress intended that 10 (b) of the National Labor Relations Act, 29 U.S.C. 160 (b), 8 be applied to causes of action that this [451 U.S. 56, 76] Court had not yet divined when 10 (b) was enacted, 9 cf. Watt v. Alaska, post, p. 276 (STEWART, J., dissenting), rests on a rationale that might apply to a 301 claim against the union, but which is wholly inapplicable to the claim against the employer, because the employer is not accused of any unfair labor practice.
In sum, I concur in the Court's judgment insofar as it pertains to the employee's action against his employer.
[ Footnote 1 ] The union did not petition for review of the Court of Appeals' decision, and the employer has not taken a position with respect to which statute of limitations governs the employee's claim against the union. Indeed, the employer has vigorously denied that this question is presented in this case:
[
Footnote 2
] The claims are closely related because, to prevail against the employer, the employee must establish that the union breached its duty of fair representation and that the employer breached the collective-bargaining agreement; similarly, to prevail against the union, the employee must prove that the union breached its duty of fair representation and, if he wishes to recover loss-of-employment damages for which the union is responsible, that the employer breached the agreement. See n. 4, infra. Cf. Czosek v. O'Mara,
[ Footnote 3 ] By its very nature, the employee's claim that the union breached its duty of fair representation cannot be resolved in an arbitration proceeding because it arises out of the conduct of that proceeding itself.
[
Footnote 4
] While an arbitration decision favorable to the employer - for example, that the discharge did not breach the collective-bargaining agreement - would be of substantial significance in an employee's suit against his union, it would not necessarily be dispositive. The determination whether the employer breached the agreement may be highly relevant to the amount of damages caused by the union's alleged breach of duty, but it is not necessarily controlling with respect to the threshold question whether there was any breach of duty by the union at all. For example, if, solely for reasons of racial bias, a union processes a discharged employee's grievance
[451
U.S. 56, 74]
in bad faith, the union breaches its duty of fair representation. Cf. Steele v. Louisville & Nashville R. Co.,
[ Footnote 5 ] In Liotta v. National Forge Co., 629 F.2d 903 (CA3 1980), cert. pending, No. 80-890, the Court of Appeals concluded that the Pennsylvania statute of limitations governing actions to vacate arbitration awards should apply to an employee's 301 action against his employer for wrongful discharge. However, in Liotta the employee had filed suit only against his employer, and not against his union. The Court of Appeals suggested that this fact was of some significance in determining which statute of limitations to apply:
[ Footnote 6 ] N. Y. Civ. Prac. Law 7511 (a) (McKinney 1963), quoted ante, at 59. I do not address any question concerning the possible tolling of that period, because no such issue is presented in this case.
[
Footnote 7
] Under the rationale of Auto Workers v. Hoosier Cardinal Corp.,
[ Footnote 8 ] Section 10 (b) of the National Labor Relations Act provides:
[
Footnote 9
] The National Labor Relations Act was enacted in 1935. 49 Stat. 449. Although 10 (b) was a part of the Act at that time, in its original form it did not contain a period of limitations. 49 Stat. 453-454. The 6-month limitations period upon which JUSTICE STEWART relies was added to 10 (b) in 1947. 61 Stat. 146. Six years later, the Court decided the first in a series of cases recognizing that the National Labor Relations Act imposes a duty of fair representation upon unions. See Ford Motor Co. v. Huffman,
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Citation: 451 U.S. 56
No. 80-169
Argued: February 24, 1981
Decided: April 20, 1981
Court: United States Supreme Court
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