# Opposition Brief — International Union of Operating Engineers Local No. 12 v. Wilson

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1992
- **Citation:** 505 U.S. 1212

## Text

& D

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atthe JUL 3.0 1990.
OFTiseor—THE CLERK
In The a

Supreme Court of the United States
October Term, 1991

4

INTERNATIONAL UNION OF OPERATING
ENGINEERS LOCAL NO. 12, AFL-CIO,

Petitioner,

CARROLL WILSON, et al.,

Respondents.

+

Petition For A Writ Of Certiorari
To The United States Court Of
Appeals For The Ninth Circuit

‘

OPPOSITION TO PETITION FOR A
WRIT CF CERTIORARI

.

RICHARD M. FREEMAN

SHEPPARD, MULLIN, RICHTER

& Hampton

(Counsel of Record)

501 West Broadway, 19th Floor
San Diego, California 92101
(619) 338-6500

Counsel for Respondents

COCKLE LAW BRIEF PRINTING CO., (800) 225-6964
OR CALL COLLECT (402) 342-2831

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QUESTION PRESENTED

Whether a state law claim for fraud is preempted by
Section 301 of the Labor Management Relations Act, 29
U.S.C. § 185, merely because the tortfeasor is employed
by a labor union, where the labor union does not repre-
sent the employer victim’s employees, and where the
fraud in question takes place completely outside the con-
text of collective bargaining and has nothing to do with
the ordering or development of labor relations or work-
ing conditions?

ii

LIST OF PARTIES
TO THE PROCEEDING

The following list comprises all parties to the under-
lying District Court action, and all related corporate enti-
ties pursuant to Rule 29.1.

Operating Engineers Pension Trust
Operating Engineers Health and Welfare Fund

Operating Engineers Vacation-Holiday Savings
Trust

Operating Engineers Training Trust
Carroll E. Wilson

Patricia J. Wilson

Wilson Equipment, a Partnership
C. E. Wilson Corporation

International Union of Operating Engineers,
Local No. 12

Eugene Kinsey

ili

TABLE OF CONTENTS

Page
EE I ee ee 1
ea sie so b6 464 vs voc net's cise 1
STATUTORY PROVISIONS INVOLVED............. 2
avepmemeres Gr fete CASE... 2. ccc cece ec cceeee: 2

ARGUMENT: THERE IS NO REASON TO GRANT
rg odd in gin cheeses veseecees

1.

THE SUPPOSED “SPLIT” IN THE CIRCUITS
HAS NOTHING TO DO WITH THE RELE-
Weeree Goose GY THIS CASE.................

GARMON PREEMPTION: THE RELATION-
SHIP BETWEEN BAD FAITH BARGAINING
UNDER THE NATIONAL LABOR RELATIONS
ACT AND SECTION 301 OF THE LABOR
MANAGEMENT RELATIONS ACT IS NOT
PROPERLY A SUBJECT OF THIS CASE......

THE DECISION BELOW IS CORRECT: UNDER
THIS COURT’S DEVELOPMENT OF SECTION
301, A STATE LAW FRAUD CLAIM ARISING
COMPLETELY OUTSIDE ANY COLLECTIVE
BARGAINING RELATIONSHIP AND NOT
BASED IN ANY WAY ON THE CONTENT OF
THE ALLEGED C@LLECTIVE AGREEMENT IS
NOT PREEMPTED MERELY BECAUSE THE
TORTFEASOR IS EMPLOYED BY A LABOR

lV

TABLE OF AUTHORITIES

Page
Cases
Allis-Chalmers v. Lueck, 471 U.S. 202 (1985) .......... 12
Caterpiller, Inc. v. Williams, 482 U.S. __, 107 S.Ct.

SENN Aiuto ae bd dae ea esd Waa eeees eh ewoean 12
.De Arroyo v. Sindicato de Trabajadores Packing, 425

Pome PE UU GG. COPED sw nsidne ce centaesceceveunnenés 5
DelCostello v. International Brotherhood of Teamsters,

Se Se CO SE oor ocdacphnas¥e cebaebsusedenns 11
Dowd Box v. Courtney, 368 U.S. 502 (1962)........... 15
Electrical Workers v. Hechler, 481 U.S. 851 (1987)..... 14
John Deklewa & Sons, 282 NLRB 184 (1987),

enforced, 843 F.2d 770 (3d Cir.), cert. denied, 488

SAA GRD a6 asec whe 6-4 cbs waveueer dea wN ee as 8
Lingle v. Norge Division of Magic Chef, Inc., 486 U.S.

dy ERA eRe eR 4,11, 15
Machinists v. Wisconsin Emp. Rel. Comm’n., 427 U.S.

STs sence da eed en oe ce ake Wale sine ¢o ws 4 9
Richardson v. Communications Workers of America,

ow Bg | re a 5
Rozay’s Transfer v. Local Freight Drivers, 850 F.2d

1321 (9th Cir. 1988), cert. denied, 409 U.S. 1030

RE Mer Stoner ens Rea SOR t cathe Oia eae 7
San Diego Building and Trades Council v. Garmon,

Se SO ee SE eek Gib ow ee hUMOU SLANE debeaxees 5

Teamsters v. Lucas Flour Co., 369 U.S. 95 (1962)...... 12

TABLE OF AUTHORITIES —- Continued

UAW v. Federal Forge, Inc., 583 F. Supp. 1350 (WLD.

ae) Sree

United Steelworkers of America v. Rawson,
» 36 L.W. 6556 (1990)........

STATUTES
bk ae 2 ee errr errr ee Terr rere
Labor Management Relations Act § 301....

National Labor Relations Act

OTHER AUTHORITIES

BNA Daily Labor Report (March 5, 1987)...

U.S.

passim

. 10

No. 91-4
€

In The

Supreme Court of the United States

October Term, 1991
.
INTERNATIONAL UNION OF OPERATING
ENGINEERS LOCAL NO. 12, AFL-CIO,

Petitioner,

CARROLL WILSON, et al.,
Respondents.

o¢—--——-- —
Petition For A Writ Of Certiorari
To The United States Court Of
Appeals For The Ninth Circuit
*

OPPOSITION TO PETITION FOR A
WRIT OF CERTIORARI
> -

OPINIONS BELOW

The opinion of the Court of Appeais is reported at
915 F.2d 535 and is reprinted in the separately bound
Petitioner’s Appendix (hereafter PA) at pp. la-16a. The
District Court entered findings of fact and conclusions of
law, which are reproduced in Petitioner’s Appendix.

a * ee

JURISDICTION

Respondents agree with Petitioner’s statement of the
jurisdictional provisions. Respondents disagree that this

l

Court should exercise its discretion to grant certiorari in
this unique, fact-specific case.

— 4

STATUTORY PROVISIONS INVOLVED

Respondents agree that the statutes cited by Peti-
tioner are raised in its Petition.

o

STATEMENT OF THE CASE

The respondents are Carroll Wilson and his wife
Patricia Wilson, who at the time of the events in question
were the sole partners in a small grading business,
Wilson Equipment (later incorporated as C. E. Wilson
Corp.). (“Wilsons” shall refer to both Mr. and Mrs. Wilson
as well as their partnership).

After a career in the Navy, Mr. Wilson retired and
went into the grading business. The Wilsons slowly built
up a small business, with Mr. Wilson running equipment
and supervising the jobsite work and Mrs. Wilson han-
dling the office and paperwork. In 1982 they employed :
two or three operators, none of whom were Union mem-
bers. They had no agreement with any union.

This case arose on May 14, 1982 when the Petitioner’s
(the “Union” shall refer to Petitioner Local 12) Business
Agent lied to Wilson in order to induce him to sign a
piece of paper called an “Owner-Operator Agreement.”
The Wilsons were grading the site for a gymnasium, and
they needed extra dirt. Mr. Wilson found excess dirt at a
nearby job site being run by a general contractor called

errr

Lyle Parks (the “General”). He cut a deal with the job
superintendent for the General to haul away the dirt for
free. This arrangement benefitted them both.

The General was not a signatory to any agreement
with the Union, and did not require its subcontractors to
Operate under any union agreement. The Union’s Busi-
ness Agent knew this.

Nonetheless, the Business Agent approached Wilson
and told Wilson that he could not work on the site.
Wilson explained that he had the General's permission to
remove the dirt. The Business Agent told Wilson that the
General had said that Wilson must be “union” to work on
the job, and that Wilson must sign an “Owner-Operator”
form to run his own equipment on the job. There was no
discussion about other jobs; there was no discussion
about employees or terms and conditions of work. At this
point, the Business Agent's first lie, the one at issue, was
complete. He had lied to Wilson about the General's
alleged statement that Wilson had to sign the Owner-
Operator form.' The Business Agent admitted on cross-
examination that he knew the Genera! was not a union
signatory, and did not require its subcontractors to be
union.

Several expensive rented dump trucks were waiting
to be loaded. Wilson was in a hurry. Wilson signed the
Owner-Operator form on the hood of the automobile

' The Business Agent then lied to Wilson about the effect
of signing the form. This is the lie about whether the form
would affect Wilson’s status, the lie which the District Court
concluded required interpretation of the form and therefore
was governed by § 301. The second lie is not at issue.

all wry? ty” i 7, . - = FF . - - , .

beside them, relying on the Business Agent’s representa-
tion that it was required. The entire dialogue took only a
few minutes. Unbeknownst to the Wilsons, the Owner-
Operator form purported to bind them to a Master Labor
Agreement requiring payments to various Union trust
funds.

In 1984, the trust funds filed suit against the Wilsons
under § 301 for “breach” of the Owner-Operator form for
failure to make contribution payments. The Wilsons
cross-complained against the Union, alleging fraud.

The jury returned a verdict for the Wilsons against
both the trust funds and against the Union. The jury
found that there was no contract. The jury found that the
Business Agent defrauded Wilson by lying about the
need to sign the form to work on that job, and awarded
the Wilsons $200,000.00 in damages for lost time and
emotional distress. The jury also found that the Business
Agent defrauded Wilson by lying about whether the
agreement would change his status.

The Union appealed, claiming that the state law
claim based on the lie about the Owner-Operator form
being required for that job was preempted by § 301. The
Ninth Circuit ruled, in a straightforward application of
this Court's precedent, that the state law claim was not
preempted because it did not require interpretation of the
owner-operator form. (PA 9a-10a, quoting Lingle v. Norge
Division of Magic Chef, Inc., 486 U.S. 399 (1988).)

+

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ARGUMENT: THERE IS NO REASON
TO GRANT CERTIORARI

The Union urges certiorari based upon a supposed
split in the circuits, Garmon preemption, and the argu-
ment that the Circuit Court was wrong. None of these
rationales is convincing.

The supposed “split” is not only mythic, it has noth-
ing to do with this case, and has never been briefed or
addressed by the parties or the courts below.

Preemption by the National Labor Relations Act
under San Diego Building and Trades Council v. Garmon, 359
U.S. 236 (1959), is not a possibility in this case because the
Union was not the certified collective bargaining repre-
sentative of the two or three operators the Wilsons
employed.

The Ninth Circuit’s decision on § 301 is in full accord
with this Court’s development of the law. Regardless, the
outcome of the case would be the same because the
Wilsons prevailed on their § 301 fraud claim as well as
their state law claim, and any realistic view of § 301
would include damages for lost time and emotional dis-
tress.?

Finally, this is not a case of national importance or
widespread application. It turns on its unique facts: an
out-and-out lie perpetrated by one stranger on another,

2 See, Richardson v. Communications Workers of America, 443
F.2d 974 (8th Cir. 1971); De Arroyo v. Sindicato de Trabajadovres
Packing, 425 F.2d 281 (1st Cir. 1970); UAW v. Federal Forge, Inc.,
583 F. Supp. 1350 (W.D. Mich. 1984).

- -..

completely outside the context of any collective bargain-
ing relationship. Unlike the cases relied upon by the
Union, this is a situation where one party had not a clue
that any kind of agreement purporting to regulate work-
ing conditions of employees was being proposed.

1. THE SUPPOSED “SPLIT” IN THE CIRCUITS HAS
NOTHING TO DO WITH THE RELEVANT ISSUE
IN THIS CASE.

The “split” in the circuits which the Union identifies
does not deal with the relevant issue in this case -
whether § 301 preempts a pendent state law claim for
garden variety fraud merely because the liar happens to
be a union business agent.

Not a single one of the cases cited by the Union in
support of the “split” deals at all with § 301 preemption
of state law claims. Rather, the cases discuss whether
§ 301 confers subject matter jurisdiction to examine the
validity or existence of a collective bargaining agreement.
No party contested that issue in our case. All parties, the
Wilsons, the Union, and the trust funds, assumed that
§ 301 provides subject matter jurisdiction to decide the
validity or existence of a collective bargaining agree-
ment.? The issue was never briefed at the District or
Circuit Court level.

Thus, since all parties are in agreement on the issue
on which the Circuits are supposedly “split,” this case is

3 The Wilsons had a § 301 fraud claim based on the Busi-
ness Agent’s second lie, as well as the pendent state law fraud
claim under discussion.

not an appropriate vehicle for review of that issue. The
“split” of which the Union complains, if it really exists,
should be resolved in a case where the lower courts
squarely faced the issue with the benefit of briefing and
argument by the parties.

There is even a question as to whether the “split”
really exists, for the reason explained by the Solicitor
General in his amicus brief opposing certiorari in Rozay’s
Transfer v. Local Freight Drivers, 850 F.2d 1321 (9th Cir.
1988), cert. denied, 409 L'S. 1030 (1989) (Rozay’s II), that
the courts of appeals are moving toward a consensus that
§ 301 confers jurisdiction to adjudicate claims that collec-
tive bargaining agreements are invalid.4

There is no split in the circuits on the relevant issue:
whether § 301 preempts a pendent state law claim for
fraud arising completely outside the context of collective
bargaining.

4 The Union's suggestion that the Solicitor General would
plead for the application of § 301 to this case is unjustified.
There are significant and decisive factual differences between
our case and Rozay’s II, the most important of which is that
Rozay’s II arose in the context of an established collective
bargaining agreement and relationship. The Solicitor General
did not have the facts of this case before him. The relevant
point is that the Solicitor General correctly viewed the Circuit
Courts as moving toward an accord on the issue of subject
matter jurisdiction, which is not an issue raised by the instant
case.

2. GARMON PREEMPTION: THE RELATIONSHIP
BETWEEN BAD FAITH BARGAINING UNDER
THE NATIONAL LABOR RELATIONS ACT AND
SECTION 301 OF THE LABOR MANAGEMENT
RELATIONS ACT IS NOT PROPERLY A SUBJECT
OF THIS CASE.

Section 8 of the National Labor Relations Act is typ-
ically the exclusive remedy for bad faith bargaining. The
predicate to the application of Section 8 is the existence of
a legally-required duty to bargain in good faith. 29 U.S.C.
§ 158. As the Ninth Circuit noted below, that issue does
not arise here because there was no legal obligation to
bargain (PA 10a-12a). A union cannot compel an
employer to bargain with respect to employees the union
does not represent. Here, the Union did not represent the
Wilsons’ employees.

Further, even if the Owner-Operator form is charac-
terized as a pre-hire contract,> a creature unique to the
construction industry, the NLRB and courts are clear that
there is no duty to bargain over pre-hire contracts. In
other words, federal law has no interest in compelling
bargaining for such a contract, nor in regulating the terms
of such bargaining. The only obligation relating to a pre-
hire contract is to follow its terms for its duration. There
is not even an obligation to negotiate for a successor
agreement. John Deklewa & Sons, 282 NLRB 184 (1987),
enforced, 843 F.2d 770 (3d Cir.), cert. denied, 488 U.S. 889

5 Even that characterization would be a shock to Wilson -
all he knew was what the Business Agent told him - that the
General required him to sign a form in order to run his
machine on that job.

(1988). Where is the basis for preemption if the parties do
not even have to talk about such a contract?

Most importantly, perhaps, the Union’s high-flown
characterizations of the Owner-Operator form as a “pre-
hire contract” and the brief conversation between Wilson
and the Union Business Agent as “bargaining” are both
incorrect on the specific facts of this case. (See Ninth
Circuit opinion, PA 11a-12a.)

The cases cited by the Union, Parker, Serrano, and
Kolentus, have no application to our situation. All concern
established, long-standing collective bargaining relation-
ships between a union and employer. The obligation to
bargain in good faith under Section 8(a) of the NLRA -vas
clear. Each of those cases dealt with state law fraud
claims claiming, essentially, that an employer had com-
mitted fraud in obtaining concessions in a collective bar-
gaining agreement by representing that it would keep a
plant open. None of those cases deal with the construc-
tion industry or pre-hire contracts. All deal with the
obligation to bargain in good faith that exists between an
employer and a union as the duly certified collective
representative of a group of employees who have voted
for such representation.®

6 Machinists v. Wisconsin Emp. Rel. Comm’n., 427 U.S. 132
(1976), a Garmon preemption case cited by the Union in a
footnote, is even farther removed from the facts of this case.
There, the State of Wisconsin ordered a union to cease and
desist from a partial strike. Machinists merely recognizes that a
union has a right to strike for better wages and working
conditions, as part of its right to use “economic weapons”
when bargaining on behalf of its members for a successor
collective bargaining agreement.

10

The Union’s unsupported claim that the large
number of multi-state agreements requires some vague
decisional uniformity is disproved by none other than
Robert Georgine, President of the AFL-CIO Building and
Construction Trades Department, in his testimony to
Congress regarding a recent unsuccessful effort to amend
the LMRA to prohibit double-breasting (simultaneous
ownership and operation of union and non-union con-
struction companies). Georgine testified that in the con-
struction industry:

[Nlational agreements represented only a minuscule
percentage of collective bargaining agreements ...a
total of approximately 9,500 local agreements
and only 185 national or multistate agreements,
the latter representing under two percent of the
total number of agreements. And even that per-
centage is artificially inflated, as dozens (or
even hundreds) of individual employers may
sign or assent to a single collective bargaining
agreement between a local union and a multi-
employer association.

BNA Daily Labor Report (March 5, 1987). Thus, even
accepting the questionable thesis that application of a
universally-accepted doctrine such as fraud creates a pos-
sibility of varying standards from state to state, the prob-
lem is not of national importance.”

? The Union also suggests that the identical conduct was
subjected to varying standards under fedcral versus state law
in this case. Not true. The Business Agent told two different
lies. The District Court applied its understanding of federal law
to one, state law to the other. Since there are no specific
statutory guidelines defining fraud in the LMRA, a court must

(Continued on following page)

11

3. THE DECISION BELOW IS CORRECT: UNDER
THIS COURT’S DEVELOPMENT OF SECTION 301,
A STATE LAW FRAUD CLAIM ARISING COM-
PLETELY OUTSIDE ANY COLLECTIVE BARGAIN-
ING RELATIONSHIP AND NOT BASED IN ANY
WAY ON THE CONTENT OF THE ALLEGED COL-
LECTIVE AGREEMENT IS NOT PREEMPTED
MERELY BECAUSE THE TORTFEASOR IS
EMPLOYED BY A LABOR UNION.

The decision below is nothing more than a straight-
forward application of the test for § 301 preemption
repeatedly endorsed by this Court: when “the state law
claim can be resolved without interpreting the agreement
itself,” there is no preemption. Lingle v. Norge Division of
Magic Chef, Inc., 486 U.S. 399, 421 (1988) (“Lingle”).

In Lingle, the Court reversed the Seventh Circuit's
conclusion that a state law claim alleging retaliatory dis-
charge for filing a worker’s compensation claim was pre-
empted because it was “inextricably intertwined” with a
collective bargaining provision prohibiting discharge
without just cause. The Supreme Court specifically
rejected the Seventh Circuit’s analysis that the state law
claim was pre-empted because it “implicates the same
analysis of facts as would an inquiry under the just cause
provisions.’ The Court ruled:

(Continued from previous page)
look to relevant state law. See, DelCostello v. International Broth-
erhood of Teamsters, 462 U.S. 151 (1983). California law permits
recovery for negligent misrepresentation and therefore that
theory should have applied to the § 301 claim as well as the
state law claim - a point which Respondents argued below but
obviously had no reason to appeal.

12

[E]ven if dispute resolution pursuant to a
collective-bargaining agreement, on the one
hand, and state law, on the other, would require
addressing precisely the same set of facts, as
long as the state law claim can be resolved without
interpreting the agreement itself, the claim is “inde-
pendent” of the agreement for § 301 pre-emption
purposes. [Emphasis added.] Id.

This conclusion is nothing new, as the Court's cita-
tion of Caterpiller, Inc. v. Williams, 482 U.S. 386, 107 S.Ct.
2425 (1987); Allis-Chalmers v. Lueck, 471 U.S. 202 (1985);
and Teamsters v. Lucas Flour Co., 369 U.S. 95 (1962) shows.

The Union’s sweeping assertion that matters relating
to “contract formation” are within the ambit of § 301 and
therefore automatically pre-empted is no different than
the Seventh Circuit’s mistaken conclusion that § 301 pre-
empts merely because the same general set of facts is
implicated by a state law claim as would be implicated by
a § 301 claim. The Union argues that simply because the
Business Agent is employed by a union and his lies
occurred within a few minutes of each other, § 301 must
control. Lingle holds that such an analysis begs the ques-
tion. The inquiry is whether the claim requires interpreta-
tion of a collective bargaining agreement. The conclusion
that the Business Agent lied when he told Wilson the
General required him to sign an Owner-Operator form
requires no such analysis.

The Union’s characterization of the issue as one of
“contract formation” is not only irrelevant, it is mistaken.
The Union ignores the central conclusion in this case,
reached by the jury upon three weeks of evidence: Wilson
had no idea that the document the Business Agent tricked

13

him into signing had anything to do with collective bar-
gaining. There was no haggling over terms, no give and
take. There was a brief exchange premised upon what the
jury found to be an outright lie: the false statement that
the General required Wilson to sign an Owner-Operator
form in order to take the dirt on that job.

Application of § 301 to such facts would miss the
point of preemption. The salient passage from Lucas Flour
is the one that explains the reason for preemption: the
need for “individual contract terms” to have a uniform
meaning so that parties who are negotiating and adminis-
tering collective agreements have a clear and consistent
understanding of the private labor law they are creating.

The ordering and adjusting of competing inter-
ests through a process of free and voluntary
collective bargaining is the keystone of the fed-
eral system to promote industrial peace. State
law which frustrates the efforts of Congress to
stimulate the smooth functioning of that process
thus strikes at the very core of federal labor
policy.

Teamsters v. Lucas Flour Co., 369 U.S. 95, at 103-104.

It is evident from the Court’s consistent use of words
such as “free,” “voluntary,” and “consensual,” that the
Court is speaking to situations where two parties know-
ingly sit down at the bargaining table. The intercourse
between Wilson and the Business Agent was not the
mutual, knowing negotiation of a collective agreement
envisioned by Congress and discussed in Lucas Flour.

United Steelworkers of America v. Rawson, __ U.S. _,
58 L.W. 4556 (1990) is not to the contrary. Like all of the

14

cases the Union cites, it arose squarely in the context of
an established collective bargaining relationship. The
Court’s statement of the issue at stake is instructive:

We granted certiorari in this case because [it]
.. . raised important questions about the opera-
tion of federal and state law in defining the duties
of a labor union acting as a collective bargaining
agent. (Emphasis added.)

58 L.W. at 4557. The lawsuit, filed by the estates of several
empioyees killed in a mine explosion, was based on the
claim that the union had, through a collective bargaining
agreement with the employer, established a joint manage-
ment labor safety committee, and that the union, through
its representatives on the committee, had negligently
inspected the mine.®

The Rawson result rests upon the fact that a union
performing its obligations to the employees it repre-
sented under the terms of a collective bargaining agree-
ment it negotiated undertook to inspect a mine and then
did a poor job of it. The Court took pains to note that
“[t]his is not a situation where the Union’s delegates are

8 The result in Rawson is merely a straightforward applica-
tion of Electrical Workers v. Hechler, 481 U.S. 851 (1987), which
holds that an employee's state law tort suit against her union
for breach of the union’s duty of care was governed by federal
law where the duty allegedly arose from the collective bargain-
ing agreement between union and employer. The Rawson deci-
sion is premised on the conclusion that the plaintiffs were
asserting exactly the same type of claim as in Hechler: “The
only possible interpretation of these pleadings, we believe, is
that the duty on which respondents relied as the basis of their
tort suit was one allegedly assumed by the Union in the
collective bargaining agreement.” Rawson, 58 U.S.L.W. at 4558.

15

accused of acting in a way that might violate the duty of
reasonable care owed to every person in society.” 58
U.S.L.W. at 4558.

Compare that to our case. Our case is premised on
exactly the kind of general duty, owed by all persons to
other persons, that Rawson was not. As an example, if the
superintendent of the Generai had falsely told Wilson
that he was required to sign an Owner-Operator form to
work on the site, the Wilsons would have sued him under
exactly the same theory. The Wilsons’ suit for fraud in the
inducement does not draw its shape from the fact that a
union business agent lied about the necessity for what the
Union characterizes as a pre-hire contract. The suit draws
its essence from the fact that a person (not necessarily a
union agent) lied to Wilson about the need to sign a piece
of paper (it could have been any piece of paper - a
waiver, a permit, and so on, the list is endless.)?

The Ninth Circuit correctly applied § 301 law to this
case. Recognizing that “there is nothing novel about rec-
ognizing that substantive rights in the labor relations
context can exist without interpreting collective bar-
gaining agreements” (Lingle, 486 U.S. at 411), the Court
found that interpretation of the alleged agreement was

9 The Union also cites Dowd Box v. Courtney, 368 U.S. 502
(1962), but it does not speak to our situation either: “The sole
questicn presented by this case is whether [§ 301] operates to
divest a state court of jurisdiction over a suit for violation of a
contract between an employer and a labor organization.” 368
U.S. at 503. (The answer, by the way, is no.) There was no state
law claim in the case; it did not present the Court an oppor-
tunity to rule on the test for § 301 preemption of state law
rules.

16

not required to resolve the Wilsons’ fraud claim. That
finding is completely consistent with this Court’s deci-
sions, and the unique facts of this case.

¢

CONCLUSION

As explained, there is no reason to grant certiorari in
this case. The petition for a writ of certiorari should be
denied.

Dated: July 30, 1991
Respectfully submitted,

RicHARD M. FREEMAN

(Counsel of Record)

501 West Broadway, 19th Floor
San Diego, CA 92101

(619) 338-6500

Counsel for Respondent

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385009_2303%3A3. Public record. Not legal advice.
