Smith V. Kerrville Bus Co.
Smith V. Kerrville Bus Co.
Opinion of the Court
Applying the six-months statute of limitations contained in § 10(b) of the National Labor Relations Act (“NLRA”), the district court dismissed this suit by an employee against his employer for violation of a collective bargaining agreement, removed to federal court under § 301 of the Labor Management Relations Act (“LMRA”), and, there being no federal cause of action, refused to entertain the later asserted pendent state tort claims. Because this is simply a straightforward breach of contract suit, albeit by an employee, not a union, the district court should have applied the state statute of limitations that the Supreme Court held applicable in United Auto Workers v. Hoosier Cardinal Corp.
I.
Ben Smith commenced this action in Texas state court, contending that he was wrongfully discharged by Kerrville Bus Company, Inc. Kerrville removed the action to federal court because Smith’s claim of wrongful termination was predicated upon an alleged breach of the collective bargaining agreement governing the terms and conditions of Smith’s employment and, as such, was a proceeding under § 301 of the LMRA.
(1) Whether the Drivers Rule Book promulgated and issued by Kerrville to bus drivers constituted a part of the collective bargaining agreement.
(2) If so, whether the Drivers Rule Book, together with the collective bargaining agreement, placed a “just cause” limitation upon Kerrville’s common law right to dismiss employees at will.
(3) If so, whether Kerrville had “just cause” to terminate Smith’s employment.3
Smith later filed a motion to amend his complaint in which he sought to add several alternative pendent state tort claims, including common law fraud, intentional infliction of emotional distress, and common law negligence. The case was assigned for trial, arguments were presented by counsel, and a jury was selected. Counsel for Kerrville then brought to the court’s attention the recently rendered Supreme Court decision in DelCostello v. International Brotherhood of Teamsters,
II.
Kerrville, a common carrier engaged in the intrastate transportation of passengers, negotiated a collective bargaining agreement with the Drivers’ Committee, the labor organization that represents Kerrville’s drivers. The agreement provided for biannual meetings of the Committee for the purpose of disposing “of accident and bonus questions, and any other grievances.” The agreement contained no provision for arbitration of grievances and nothing purporting to make decisions reached at these meetings final. The parties agree that the collective bargaining agreement may be enforced by suit under § 301 of the LMRA.
From time to time, Kerrville and other common carriers of passengers utilize a private investigative firm to conduct unannounced audits of their employees. As part of these audits, investigators pose as passengers at various points between terminals and purchase their tickets with cash. When the driver completes his run, these “cash fares” are checked to determine whether the driver has reported the proper amount of cash.
As a result of an audit of Smith, a driver who had more than twenty-five years of service, it was determined that his “cash fares” were “short” a sum less than ten dollars, and he was discharged from employment on July 2, 1979, for “mishandling company property.” Within a few days of Smith’s discharge, members of the Drivers’ Committee met with the President of Kerr-ville to discuss his discharge and argued for his reinstatement. The discussions were completed by September, 1979, and Kerrville’s President refused to reinstate Smith. The Drivers’ Committee took no other action on behalf of Smith. Neither Smith nor the company suggests that Smith has any complaint or any basis for complaint against the Drivers’ Committee for breach of its duty fairly to represent Smith.
III.
On its face, § 301 of the LMRA allows actions between labor organizations and employers to be brought in federal district court for an alleged violation of a collective bargaining agreement.
On several occasions, the Supreme Court has considered the question of the appropriate statute of limitations to be applied to actions brought under § 301. Although the Court has looked to state statutes of limitations governing breach of contract actions to determine the appropriate limitations period when a union sues an employer for breach of the collective bargaining agreement,
DelCostello,
As the Supreme Court has noted in Lucas Flour Co., “[t]he ordering and adjusting of competing interests through a process of free and voluntary collective bargaining is the keystone of the federal scheme to promote industrial peace.”
Smith’s suit is founded only on a possible implied just-cause-for-discharge contract term, and as such is a straightforward § 301 suit.
Whether the grievance provision, when considered in light of the other facts in this case, is sufficient to imply a just-cause restriction on the employer’s right to terminate Smith is a question that we do not consider and that we leave to the trial court’s determination on remand. We hold
IV.
It is not clear whether the district court denied Smith leave to amend to assert his pendent state claims or whether it simply dismissed them. On remand, the district court should determine whether the amended complaint was timely filed,
For these reasons, the judgment is REVERSED and the case is REMANDED for further proceedings consistent with this opinion.
. 383 U.S. 696, 86 S.Ct. 1107, 16 L.Ed.2d 192 (1966).
. 29 U.S.C. § 185.
. Smith v. Kerrville Bus Co., 709 F.2d 914, 920 & n. 4 (5th Cir. 1983).
. 462 U.S. 151, 103 S.Ct. 2281, 76 L.Ed.2d 476 (1983).
. 29 U.S.C. § 160(b).
. See 29 U.S.C. § 185(a); see also Hines v. Anchor Motor Freight, Inc., 424 U.S. 554, 561-62, 96 S.Ct. 1048, 1054-55, 47 L.Ed.2d 231, 239-40 (1976).
. Smith v. Evening News Ass’n, 371 U.S. 195, 200, 83 S.Ct. 267, 270, 9 L.Ed.2d 246, 251 (1962).
. Republic Steel Corp. v. Maddox, 379 U.S. 650, 652, 85 S.Ct. 614, 616, 13 L.Ed.2d 580 (1965).
. DelCostello v. International Brotherhood of Teamsters, 462 U.S. 151, 164, 103 S.Ct. 2281, 2290, 76 L.Ed.2d 476, 488 (1983) (citing W.R. Grace & Co. v. Local 759, 461 U.S. 757, 764, 103 S.Ct. 2177, 2182, 76 L.Ed.2d 298, 305 (1983)).
. DelCostello, 462 U.S. at 164, 103 S.Ct. at 2290, 76 L.Ed.2d at 488.
. 386 U.S. 171, 87 S.Ct. 903, 17 L.Ed.2d 842 (1967).
. See DelCostello, 462 U.S. at 164, 103 S.Ct. at 2290, 76 L.Ed.2d at 488; see also Farr v. H.K. Porter, Co., 727 F.2d 502, 505 (5th Cir. 1984).
. See United Auto Workers v. Hoosier Cardinal Corp., 383 U.S. 696, 86 S.Ct. 1107, 16 L.Ed.2d 192 (1966).
. See Vaca v. Sipes, 386 U.S. 171, 87 S.Ct. 903, 17 L.Ed.2d 842 (1967).
. 451 U.S. 56, 101 S.Ct. 1559, 67 L.Ed.2d 732 (1981).
. Mitchell, 451 U.S. at 64, 101 S.Ct. at 1565, 67 L.Ed.2d at 741 (1981).
. DelCostello, 462 U.S. at 154 n. 2, 103 S.Ct. at 2285 n. 2, 76 L.Ed.2d at 482 n. 2.
. 462 U.S. 151, 103 S.Ct. 2281, 76 L.Ed.2d 476 (1983).
. DelCostello, 462 U.S. at 167, 103 S.Ct. at 2292, 76 L.Ed.2d at 490.
. Id. at 168, 103 S.Ct. at 2292, 76 L.Ed.2d at 490.
. Local 174 v. Lucas Flour Co., 369 U.S. 95, 104, 82 S.Ct. 571, 577, 7 L.Ed.2d 593, 599 (1962).
. Harris v. Chemical Leaman Tank Lines, Inc., 437 F.2d 167, 171 (5th Cir. 1971).
. See 6 T. Kheel, Labor Law § 26.03[2], at 26-33 to 26-34 (1984); see abo United Steelworkers of America v. Enterprise Wheel & Car Corp., 363 U.S. 593, 596, 80 S.Ct. 1358, 1360, 4 L.Ed.2d 1424, 1427 (1960).
. See 6 T. Kheel, supra note 24, at 26-33 to 26-34; see also United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582-83, 80 S.Ct. 1347, 1353, 4 L.Ed.2d 1409, 1417 (1960); United Steelworkers of America v. American Mfg. Co., 363 U.S. 564, 567-68, 80 S.Ct. 1343, 1346, 4 L.Ed.2d 1403, 1406-07 (1960).
. See Auto Workers v. Hoosier Cardinal Corp., 383 U.S. 696, 86 S.Ct. 1107, 16 L.Ed.2d 192 (1966).
. 462 U.S. at 163, 103 S.Ct. at 2289, 76 L.Ed.2d at 488.
. Id. at 163, 103 S.Ct. at 2289, 76 L.Ed.2d at 488.
. See id. at 165, 103 S.Ct. at 2291, 76 L.Ed.2d at 489.
. See Smith v. Kerrville Bus Co., 709 F.2d at 915 (“the collective bargaining agreement was silent with respect to formal grievance or arbitration mechanisms”).
. DelCostello, 462 U.S. at 162, 103 S.Ct. at 2289, 76 L.Ed.2d at 487.
. In Chitimacha Tribe v. Harry L. Laws Co., 690 F.2d 1157, 1163 (5th Cir. 1982), we said:
In exercising its discretion, the trial court should consider whether permitting the amendment would cause undue delay in the proceedings or undue prejudice to the non-moving party, whether the movant is acting in bad faith or with a dilatory motive, or whether the movant has previously failed to cure deficiencies in his prior amendments. The court may weigh in the movant’s favor any prejudice that might arise from denial of leave to' amend____ [T]he court should consider judicial economy and whether the amendments would lead to expeditious disposition of the merits of the litigation. Finally, the court should consider whether the amendment adds substance to the original allegations, and whether it is germane to the original cause of action.
See also Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 230, 9 L.Ed.2d 222, 226 (1962); Carson v. Polley, 689 F.2d 562, 584 (5th Cir. 1982); Fed.R.Civ.P. 15(a); see generally 6 C. Wright & A. Miller, Federal Practice and Procedure § 1487, at 427-35 (1971).
. United Mine Workers v. Gibbs, 383 U.S. 715, 725-27, 86 S.Ct. 1130, 1138-39, 16 L.Ed.2d 218 (1966); 13B C. Wright, A. Miller & E. Cooper, Federal Practice and Procedure § 3567.1, at 114-45 (1984).
. See, e.g., Belknap, Inc. v. Hale, 463 U.S. 591, -, 103 S.Ct. 3172, 3177, 77 L.Ed.2d 798, 807 (1983).
Reference
- Full Case Name
- Ben SMITH v. KERRVILLE BUS COMPANY, INC.
- Cited By
- 14 cases
- Status
- Published