# Petition for Writ of Certiorari — National Steel Corp. v. White

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1991
- **Citation:** 502 U.S. 974

## Text

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| SEP 26 1992
@FFICE OF THE CLERK

91-527 4

No. 91-

In the
Supreme Court of the United States
October Term, 1991

NATIONAL STEEL CORPORATION,
Petitioner,

VS.

Arthur Dale White, James Anderson, James H. Baker, Thomas
A. Balon, Richard S. Barber, Larry G. Bell, David S. Bickler,
Robert L. Billick, Edward Bittner, Todd A. Blair, Richard
Blancato, Robert A. Bray, Jr., Harry V. Brown, Jr., James
H. Browning, James William Bulloy ., Charles A. Clark, Edward
Dhayer, Ralph Anthony DiBacco, William R. Duncan, Jr.,
Domenic F. Frio, Dorsey R. Garrett, William F. Garrison,
James A. Gracie, III, Thomas M. Grishkevich, David
R. Harbin, James W. Hazlett, Rena Hess, Phillip E. Johnson,
Jerry G. Jones, Robert L. Jones, Joseph P. Karas, Bartley
Robert Kirkbride, Lloyd A. Klages, David J. Kondik, Frank
W. Kruger, Jr., Charles L. Lacey, Timothy C. Lawson, Ernest
H. McCormick, Joseph W. Mayernick, Boley Dale Mermon,
Patricia Mlodzik, Charles D. Murray, Dale E. Poole, Charles
Prince, Larry C. Riggle, William B. Riggs, Robert J. Ryan, Jr.,
John S. Sciance, Kenneth M. Seiple, John R. Selmon, Jr.,
Dennis D. Shirer, Ronald L. Spring, Rober: L. Sutton, Frederick
C. Tate, Stephen F. Tucker, Hoy L. Van Horn, Frederick
R. Welshans, Charles F. West, Donald L. White, John
W. Cominsky, Walter F. Mrozek, Dominic A. Tedeschi, Jr.,

Respondents.

ON PETITION FOR WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

PETITION FOR WRIT OF CERTIORARI

Cart H. HELLERSTEDT, JR. Three Gateway Center
(Counsel of Record) 15th Floor East

Cart N. FRANKOVITCH Pittsburgh, PA 15222

JOHN A. McCreary, JR. (412) 392-2300

VOLK, FRANKOVITCH, ANETAKIS, Counsel for Petitioner

RECHT, ROBERTSON & HELLERSTEDT

i
QUESTIONS PRESENTED FOR REVIEW

1. Are state law claims which assert breach of individ-
ual contracts to return employees to their former collective
bargaining unit positions, and to restore to them the full
measure of their bargaining unit seniority, sufficiently
independent of the collective bargaining agreements
addressing the ability to return to the unit, and which
create and define unit seniority, to escape federal preemp-
tion under Section 301(a) of the Labor-Management Rela-
tions Act, 29 U.S.C. §185(a)?

2. Does the federal common law of labor relations,
require that these state law claims be recharacterized as
federal claims justiciable only under federal law?

ll
PARTIES TO THE PROCEEDINGS BELOW

The parties to the proceedings in both the district
court and the court of appeals are identified in the caption
of the case.

National Steel Corporation, Petitioner herein, is a pri-
vately held corporation. Thirty percent (30%) of the capital
stock of National Steel is owned by NII Capital Corpora-
tion, a wholly-owned subsidiary of National Intergroup,
Inc. (“NII’’). NII is a publicly held corporation. The
remaining seventy percent (70%) of the capital stock of
National Steel Corporation is owned by N.K.K. U.S.A.
Corporation (“NKK USA”). NKK USA is a wholly-owned
subsidiary of NKK Corporation, a Japanese corporation.

National Steel Corporation (NSC) has an ownership
interest in the following non-wholly owned subsidiaries,
defined as a company subject to control by NSC: Mathies
Coal Company. NSC owns 86.6% of the stock of Mathies
Coal Company. The remainder of the stock of Mathies
Coal Company is owned by Stelco Coal Company.

NII has an ownership interest in the following addi-
tional non-wholly owned subsidiaries: Foxmeyer Corpora-
tion and Starcom International Inc. NII owns approxi-
mately 67% of the stock of Foxmeyer Corporation, the
remainder of which is publicly traded. Starcom Interna-
tional, Inc. is an inactive corporation and the remaining
20% of the stock is privately held.

Neither NKK USA nor NKK Corporation have non-
wholly owned American subsidiaries.

ill

TABLE OF CONTENTS

QUESTIONS PRESENTED FOR REVIEW .......

PARTIES TO THE PROCEEDINGS BELOW .....
TABLE OF AUTHORITIES

STATEMENT OF THE CASE

ee
a
1. The P&M Bargaining Unit...........
2. The SNE Bargaining Unit...........

3. Respondents’ Claims and Their Dispo-

a

REASONS FOR GRANTING THE WRIT

A. Respondents’ State Law Claims Are Not
Independent of the Collective Bargaining

ns eS kia wa ae vine vss

B. Principles of Federal Labor Law Preclude
Maintenance Under State Law of Respon-

ee eceee

C. The Lower Courts Are Divided On The

Preemption Issues Raised In This Petition . .
ee cea cece ccc scaces

re

..14

re

.24

—_

iv

TABLE OF AUTHORITIES

CASES
Page
Aeronautical Ind. Dist. Lodge 727 v. Campbell,

SE I io gi a al Senate 16
Allis-Chalmers Corp. v. Lueck,

Pe Se SS ho oie oe 8G re keeles passim
Avco Corp. v. Aero Lodge 735, 390 U.S. 557 (1968) ...20
Belknap, Inc. v. Hale, 463 U.S. 491 (1983) ....... 13, 23
Berda v. CBS, Inc., 881 F.2d 20 (3d Cir. 1989), cert.

denied, 110 S.Ct. 879 (1990). ..............00.. 26
Bowen v. United States Postal Service,

Pa eS) an a a 21

Caterpillar, Inc. v. Williams, 482 U.S. 386 (1987) . passim
Chemical Workers v. Pittsburgh Plate Glass Co.,

gk es : , ) Ren A ee 21, 22
Cooper v. General Motors Corp., 651 F.2d 249

St SEs oss cc's oa ve a awe a 4 ble e les 16

_ Electrical Workers v. Hechler, 481 U.S. 851 (1987)....14

Fibreboard Corp. v. NLRB, 379 U.S. 203 (1964)...... 22

Groves v. Ring Screw Works, 111 S.Ct. 498 (1990) ... .20
Holland v. National Steel Corp., 791 F.2d 1132

NG Fos ee icc aa ce en deeekuewens 27
Ingersoll-Rand Co. v. McClendon, 111 S.Ct. 478
DC Oaths Sar re Ah are Sei 17, 20

J.I. Case Co. v. NLRB, 321 U.S. 332 (1944) .. .13, 23, 26

Kern v. United Steelworkers, 669 F.Supp. 701
Se OPE Sorat cer wea Leu cer ees 16, 27

Page

Lingle v. Norge Div. of Magic Chef, Inc., 486 U.S.

I a oS i pa ee Wa age 14, 15, 16
Malia v. RCA Corp., 794 F.2d 909 (3d Cir. 1986),

cert. denied, 482 U.S. 927 (1987)............... 25
Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58

aR Ree at IRV SEER ce oe 17
Pilot Life Ins. Co. v. Dedaux, 481 U.S. 41 (1987) ..... 17
Redmond v. Dresser Industries, Inc., 734 F.2d 633

ww eaeeeces 27
San Diego Building Trades Council v. Garmon,

I 0 hn cohen wed Weccbececsccess 23
Shaw v. Delta Airlines, Inc., 463 U.S. 85 (1983) ...... 16

Sutton v. Weirton Steel Division, Nat'l Steel Corp.,
724 F.2d 406 (4th Cir. 1983), cert. denied, 467
ee i ca se cuvecceecwkeseuk 2,8

Teamsters v. Lucas Floor Co., 369 U.S. 95 (1962). .... 23
Textile Workers v. Lincoln Mills, 353 U.S. 448

eee wee tinder tke ees 19
Ulrich v. Goodyear Tire & Rubber Co., 884 F.2d 936
I gk re chat a ae: 16, 23, 24

United Auto Workers v. Yard-Man, Inc., 716 F.2d
1476 (6th Cir. 1983), cert. denied, 465 U.S. 1007

(Ba i ine ln Be so ats Pan RG 22
United Steelworkers of America v. Rawson, 110 S.Ct.
oc va baw uir sun eee 4 sa 14, 16, 21

William E. Arnold Co. v. Carpenters District
Comerel, 27 US. 12 ISTO . on occ ce cceess 20, 23

vi

Page
STATUTES
28 USAC. GEE es ek ie cae 08 l
28 USA. SEAR ts etree races ces cees 3, 12
28 USAC. SG ee ee eae week ec wness 3
28 U.S.C, GRP os cc ee eas ewes es l
29 U.S.C. GRR eke ee ee a ck wie a 21
29 USAC. SESB. 26 cace ee ee cee es passim
29 U.S.C. GE RRR ai oc eeee ce ee 17

l

OPINIONS BELOW

The opinion of the district court is reported at 742
F.Supp. 312 (N.D.W.V. 1989) and is reprinted in Appen-
dix “A” at pp. la-69a. The opinion of the United States
Court of Appeals for the Fourth Circuit is reported at 938
F.2d 474 (4th Cir. 1991) and is reprinted in Appendix “*C”
at pp. 83a-120a.

JURISDICTION

This Petition requests the Court to exercise its discre-
tionary power of review on writ of certiorari, 28 U.S.C.
§1254(1). The judgment of the Fourth Circuit Court of
Appeals for which review is sought was entered on July 3,
1991. This Petition is filed within the time limits pre-
scribed by 28 U.S.C. §2101(c).

PERTINENT STATUTES

This Petition raises issues concerning the preemptive
scope of Section 301 of the Labor-Management Relations
Act of 1947, 29 U.S.C. §185. Section 301 provides in rele-
vant part as follows:

(a) Suits for violation of contracts between an
employer and a labor organization representing
employees in an industry affecting commerce as
defined in this chapter, or between any such labor
organizations, may be brought in any district court of
the United States having jurisdiction of the parties,
without respect to the amount in controversy or with-
out regard to the citizenship of the parties.

2
STATEMENT OF THE CASE

A. Procedural History

Petitioner, National Steel Corporation (‘National’)
for many years operated an integrated basic steelmaking
plant located in Weirton, West Virginia.' The Respondents
were initially employed in bargaining unit positions and
later promoted to salaried first level plant management
positions, i.e., foremen. At the time of their promotions,
Respondents allege, inter alia, that National promised
them that they could return to their former bargaining unit
jobs if they later so desired and that upon a return, they
would have their full seniority rights restored, i.e., be
treated for seniority purposes as if they had never left the
bargaining unit. This litigation arises out of the layoffs of
Respondents at various times during 1982. When National
laid off the Respondents from their management positions,
it did not return them to the bargaining unit because the
collective bargaining agreements (““CBAs’”) in effect at that
time had been amended to preclude returns to the bargain-
ing unit with restoration of seniority.

Respondents commenced an action in the Circuit
Court of Hancock County, West Virginia alleging, inter
alia, that they were third party beneficiaries to CBAs
between National and the Independent Steelworkers
Union (“ISU”), which agreements permitted them to
return with restored seniority to the bargaining units repre-
sented by the ISU in the event of a reduction in force in
the salaried ranks. Respondents alleged that National
breached its third party contracts with them by negotiating

'On January 11, 1984 Petitioner sold substantially all of the assets
of its Weirton plant to the Weirton Steel Corporation. App. A at 67a.
See generally, Sutton v. Weirton Steel Division, Nat'l Steel Corp.. 724
F.2d 406 (4th Cir. 1983), cert. denied, 467 U.S. 1205 (1984.)

3

with the ISU for the changes to the CBAs which eliminated
the ability of former bargaining unit members to return to
the bargaining units with restoration of bargaining unit
seniority. Complaint, 94 84-86.

National removed the action to the United States Dis-
trict Court for the Northern District of West Virginia on
the basis that Respondents’ claims of breach of these third
party contracts were completely preempted by §301 of the
Labor-Management Relations Act, 29 U.S.C. §185(a).
National also asserted that federal jurisdiction existed pur-
suant to 28 U.S.C. §1441(c), inasmuch as the citizenship of
55 of the 63 original plaintiffs was different than National’s
citizenship and the amount in controversy claimed by each
plaintiff exceeded $10,000, exclusive of interest and costs.
Ancillary jurisdiction was asserted over the eight non-
diverse original plaintiffs. Respondents’ motion for
remand was denied:

The initial complaint has been amended twice. In the
Amended Complaints, Respondents abandoned the theory
that they were third party beneficiaries to the CBA. In
place of this theory, Respondents contended that their
alleged oral contracts were independent of the CBA. The
parties engaged in extensive discovery which culminated
in the filing of National’s motion for summary judgment
on, inter alia, the claim of breach of contract resulting
from National’s refusal to return Respondents to the col-
lective bargaining units represented by the ISU. The dis-
trict court granted National’s motion with respect to the
claims of the 42 plaintiffs party to Count | of the action,
but denied it with respect to the 15 Count 3 plaintiffs. By
Order dated February 12, 1990 the district court certified
its partial denial of National’s motion for immediate
appeal pursuant to 28 U.S.C. §1292(b), and also entered

4

final judgment in accordance with Rule 54(b) of the Fed-
eral Rules of Civil Procedure. App. B at 79a, 8la. The
Fourth Circuit Court of Appeals granted National’s Peti-
tion for Leave To Appeal, and consolidated National’s
appeal with that taken by Respondents from the district
court’s final judgment. The Fourth Circuit issued its opin-
ion, which affirmed in part, reversed in part and remanded
the case to the district court, on July 3, 1991. App. C at
119a-120a. By Order filed July 30, 1991 the Circuit Court,
on National’s motion, recalled its mandate pending timely
application to this Court for writ of certiorari.

B. Statement of Facts

1. The P&M Bargaining Unit

The ISU represented the hourly production and main-
tenance (“P&M”) bargaining unit employees at National’s
former Weirton Division for many years. App. A at 9a n.6.
The successive CBAs between National and the ISU recog-
nized four (4) types of competitive seniority within the
P&M bargaining unit. Those four types of seriiority were:
(1) Company Seniority, which was measured from the
employee’s first day of work (initial hire) within the P&M
bargaining unit. Company Seniority, among other applica-
tions, was used to determine which employees ultimately
were laid off “to the street” when a downturn in operations
caused layoffs; (2) Department Seniority, which was mea-
sured from the empioyee’s first day of permanent assign-
ment to one of eleven seniority departments. Department
Seniority, among other applications, was used to deter-
mine which employees within a department faced reduc-
tion from the department when a downturn in department
operations occurred; (3) Sequence Seniority, which was
measured from the employee’s first day of permanent

5

assignment to an entry level job in a seniority sequence, or
line-of-progression, within a department. Among other
applications, Sequence Seniority determined the order of
reductions from a sequence upon a downturn of operations
in the sequence; and (4) Job Seniority, which was mea-
sured from the employee’s first day of permanent assign-
ment to a job in the job sequence or line-of-progression.
Job Seniority, among other applications, determined the
order in which employees would be reduced from their
particular job in a job sequence when reductions occurred
with respect to that job or job sequence.’

For many years before 1980, the P&M _ bargaining
agreements contained language in their seniority provi-
sions that addressed the seniority status of an employee
who transferred out of the P&M bargaining unit and was
later returned to that bargaining unit. In brief, the con-
tracts provided that upon acceptance of a job outside the
P&M bargaining unit, the employee forfeited his accumu-
lated P&M bargaining unit seniority. If, however, the
employee was later returned to the P&M bargaining unit,
his previously accumulated Company Seniority would be
restored and, in addition, the employee would be credited
with additional Company Seniority for his time spent

2As a result of a Consent Decree entered May 12, 1983 among
National, the ISU and the Equal Employment Opportunity Commis-
sion, which resolved consolidated class action claims of race discrimina-
tion, an employee’s Sequence Seniority date and Department Seniority
date were deemed to be the same as his/her Company Seniority date for,
inter alia, purposes of promotion and reduction. However, Job Senior-
ity date was not altered by the Consent Decree. Section III of the Decree
provided that the changes to the measures of seniority effected therein
would be effective retroactively to November 1, 1982. See Consent
Decree, Allen v. Weirton Steel Division of National Steel Corp., Civil
Action Nos. 69-30-W, 72-5-W, 80-75-W (May 12, 1983 N.D.W.Va.).

= 6

outside the P&M bargaining unit.’ These provisions thus
conferred an enhanced seniority status on employees who
returned to bargaining unit positions from positions
excluded from the unit. The pre-1980 CBAs did not set
forth the mechanism by which a former bargaining unit
employee could return to a P&M unit position; rather the
contracts only addressed the seniority status of such an
employee upon his return. See App. A at 2la-22a and nn.
12-15.

During the 1980 P&M collective bargaining negotia-
tions, however, the ISU demanded and National agreed to
changes. to the seniority language in the P&M collective
bargaining agreement. The new language expressly pre-
vented former bargaining unit members from returning to
the P&M bargaining unit if any bargaining unit employee
was on company layoff at the time of return and if the
return was the result of a reduction in force from the
employee’s non-bargaining unit position. In addition, the
1980 CBA permitted restoration only of the Company

‘Prior to 1980, the contract provision addressed only the restora-
tion of Company Seniority upon a return to the bargaining unit. App. A
at 2la n. 12. In practice, if an employee was returned to the bargaining
unit, he had his Department Seniority restored if he returned to his
prior seniority department, had his Sequence Seniority restored if he
returned to his prior sequence and had his Job Seniority restored if he
returned to his prior job. Whether ihe returning employee was placed in
his old department, sequence or job (and therefore had those catergories
of seniority restored) depended on whether the ISU acquiesced to the
placement. The ISU’s acquiescence to the placement depended on its
assessment of whether the restoration of seniority which went along
with placement unduly disturbed existing competitive seniority status
among employees holding Department, Sequence and Job Seniority in
the area where the returning employee sought placement. The district
court found the record before it showed that returns to the P&M unit
prior to 1980 occurred without there being evidence that company and
ISU were not able to agree as to placement. See App. A at 39a-4la.

7

Seniority which had accumulated before the employee left
the P&M bargaining unit; no seniority credit was given for
time spent outside the P&M unit. The 1980 P&M CBA
became effective on August |, 1980, although the seniority
language became effective on October 1, 1980. See id. at
22a n. 15; App. C at 88a-89a.

2. The SNE Bargaining Unit

In the autumn of 1978 the ISU prevailed in an elec-
tion and was certified by the National Labor Relations
Board as the bargaining representative of the Salaried
Non-Exempt (“SNE”) employees of the Weirton Division.
App. A at 9a n.6. National had, prior to this time, unilater-
ally promulgated its Standard Practice Manual which set
forth its employment policies applicable to SNE positions.
Among the provisions of the Standard Practice Manual
was a section addressing the competitive seniority status of
SNE employees, which in its relevant language mirrored
the seniority provisions of the pre-1980 P&M CBAs. The
first two CBAs between National and the ISU SNE bar-
gaining unit (effective August 30, 1979 and August 1, 1980
respectively) provided that the seniority provisions of the
Standard Practice Manual would continue to apply to the
SNE bargaining unit until the parties could reach agree-
ment on new seniority language. The contracts obliged
National and the SNE unit representatives to continue
bargaining over final seniority language during the terms of
the agreements. App. A at 25a; App. C at 90a.

Under the Standard Practice Manual and the labor
contracts which incorporated it, employees who accepted
positions outside the SNE bargaining unit, and thereby
forfeited their accumulated SNE bargaining unit seniority,
could have that seniority restored, with additional credit

8

granted for time spent outside the SNE unit, upon return
to the SNE unit. As was the case with the pre-1980 P&M
contract, however, the SNE agreement did not address the
mechanism by which an employee could effect a return to
the SNE unit. App. A at 27a-28a.

in March of 1982, National announced its intent to
sell the Weirton Division to its employees. See Sutton, 724
F.2d at 709. In addition, the effects of the recession had
gripped Weirton, prompting the ISU to demand changes to
the SNE seniority language to preclude the return of for-
mer SNE employees to the SNE bargaining unit. In
response to this demand, National agreed on August 24,
1982 to halt returns of former SNE employees into the
SNE-bargaining unit, which returns had had the effect of
displacing current SNE unit employees with less seniority
than that restored to the returning employees. The hiatus
on returns continued until September, 1983 when National
and the ISU agreed to incorporate seniority language into
the SNE collective bargaining agreement which was identi-
cal to that contained in the 1980 P&M contract. See App.
A at 26a-28a; App. C at 90a.

3. Respondents’ Claims and Their Disposition Below

This Petition seeks review of the Fourth Circuit’s dis-
position of breach of contract claims brought by Respon-
dents in Counts | and 3 of their Second Amended Com-
plaint. Forty-two of the Respondents are parties plaintiff to
Count 1.4 All forty-two were initially employed as hourly

‘They are: Arthur Dale White, James Anderson, James H. Baker,
Richard S. Barber, Robert L. Billick, Edward Bittner, Harry V. Brown,
James H. Browning, James W. Bullock, Edward Dhayer, Ralph
Anthony DiBacco, William R. Duncan, Jr., Domenic F. Frio, Dorsey R.
Garrett, William F. Garrison, James A. Gracie, III], Thomas M.

(Continued on next page)

9

workers in the P&M bargaining unit represented by the
ISU, and they all accepted salaried management positions
outside the P&M bargaining unit before 1980. As indi-
cated, among the allegations in Count | is that National
promised them that each could return to his former P&M
bargaining unit position (i.e., the job he left) with full res-
toration of his seniority status (i.e., restoration of Com-
pany, Department, Sequence and Job Seniority as if he had
never left his prior job), in the event of a layoff from his
salaried management position or if he wanted to return to
the unit for any reason. They claim that “[o]n or about
August |, 1980, and thereafter’, National breached their
individual employment contracts by “[rjescinding each
Plaintiff's right of option to return to an hourly position in
the event of reduction in [National’s] salaried work
force...” See App. A at 4a-Sa (quoting 4 73 of the Second
Amended Complaint). At the time each Count | plaintiff
was laid off in 1982 from his salaried management posi-
tion, National did not return him to a P&M bargaining
unit position because the P&M collective bargaining agree-
ment then in effect expressly prohibited such returns.
These Count | breach of contract claims are premised on
the West Virginia law of contracts.

(Continued)

Grishkevich, David R. Harbin, James W. Hazlett, Rena E. Hess, Phillip
E. Johnson, Jerry G. Jones, Robert L. Jones, Joseph P. Karas, Bartley R.
Kirkbride, David G. Kondik, Frank W. Kruger, Jr., Charles L. Lacey,
Ernest H. McCormick, Boley Dale Mermon, Charles D. Murray, Dale
E. Poole, Charles Prince, Larry C. Riggle, John R. Selmon, Jr., Ronald
L. Spring, Frederick C. Tate, Stephen F. Tucker, Frederick R. Welshans,
Charles F. West, Donald L. White and Dominic A. Tedeschi, Jr.

10

Twelve Respondents remain as parties plaintiff to
Count 3 of the Second Amended Complaint.’ They were
all employed in SNE positions and subsequently accepted
salaried management jobs.® Like their Count | brethren,
the Count 3 plaintiffs claim that, at the time they accepted
salaried management positions, each was promised by
National that he could return to his SNE position with full
restoration and enhancement of his accumulated Com-
pany seniority in the event of layoff from his salaried man-
agement position, or at any time. Each claims that on or
about August 25, 1982 and thereafter, National breached
its individual contracts with them by rescinding this right
of return to an SNE position. See App. A at 6a; App. C at
90a. National did not return these individuals to their
prior SNE bargaining unit positions because of its August
24, 1982 agreement with the ISU to cease such returns. As

‘They are: Thomas A. Balon, Larry G. Bell, David S. Bickler, Rich-
ard Blancato, Robert A. Bray, Jr., Charles A. Clark, Timothy C. Law-
son, Robert J. Ryan, Jr., John S. Sciance, Kenneth M. Seiple, Dennis D.
Shirer and Hoy L. Van Horn. Summary judgment was entered on the
claims of three other Count 3 plaintiffs (Joseph W. Mayernick, Patricia
Mlodzik and William Riggs) on state law grounds. App. B at 73a. The
Fourth Circuit affirmed this disposition of their claims and accordingly
they are not before this Court.

°Of this group, eight (Larry G. Bell, David S. Bickler, Richard
Blancato, Timothy C. Lawson, William B. Riggs, John S. Sciance, Den-
nis D. Shirer and Hoy L. Van Horn) accepted salaried management
positions before the ISU was certified as representative of the SNE
bargaining unit. One (Thomas A. Balon) accepted his salaried manage-
ment position after the ISU’s certification but before the initial collec-
tive bargaining agreement was executed. The three remaining Count 3
plaintiffs accepted their salaried management positions after the ISU
and National had agreed to incorporate the Standard Practice Manual’s
seniority provisions into the collective bargaining agreement for the
SNE bargaining unit, but before the August 25, 1982 agreement with the
ISU to freeze returns of former SNE employees to the SNE unit. See
generally, Answer to Second Amended Complaint.

11

is the case in Count |, the claims made in Count 3 for
breach of contract are prosecuted as state law claims.

National contended that §301 pre-empted these Count
1 and Count 3 breach of contract claims brought under
state law. National argued both that these claims arose out
of the seniority provisions of P&M and SNE CBAs and
that the claims were substantially dependent on analysis of
the terms of these CBAs. National also urged that the
claims should be characterized as federal claims under
§301 because they interfered fundamentally with the col-
lective bargaining relationship between National and ISU.
On National’s motion for summary judgment on the pre-
emption issues, the district court determined that the
Count | claims were preempted both because analysis of
the claims required interpretation of the P&M CBA and
because the claims were in direct conflict with the terms of
the 1980 P&M agreement. See App. A at 24a-25a. The
district court entered final judgment on this ruling pursu-
ant to Rule 54(b) of the Federal Rules of Civil Procedure.
App. B at 79a. In contrast, the district court ruled that the
Count 3 claims were not preempted. The court first held
that the August 24, 1982 agreement between National and
the ISU SNE unit freezing returns did not amend the SNE
CBA. Absent effective amendment, the court concluded
that the SNE agreement in effect at the time of the layoffs
did not address the right of Respondents to return to SNE
positions, but rather only addressed the competitive
seniority status of employees after such a return. The dis-
trict court held that the claims for return to the SNE unit
did not conflict with the current SNE agreement and were
therefore not preempted. App. A at 27a-30a. The court did
not address National’s argument that preemption of the
Count 3 claims was compelled because resolution of the

12

claims was substantially dependent on analysis of the
terms of the SNE CBAs. The district court certified its
ruling on Count 3 for interlocutory appeal pursuant to 28
U.S.C. §1292(b). App. B at 81a.

On appeal, the Fourth Circuit reversed the cistrict
court’s disposition of the Count | claims, and ainrnied on
other grounds that court’s resolution of the Count 3
claims. In National’s view, the Fourth Circuit’s analysis of
the preemption issues raised by these two counts is based
on an imperfect application of the preemption principies
announced by this Court.

The Circuit Court, after first reviewing this Court’s
seminal rulings on §301 preemption, concluded that the
claims at issue here are “independent of any collective
bargaining agreement”, App. C at 98a, and so not pre-
empted. The court accepted Respondents’ contention that
the sources of the rights asserted are “independent oral
contracts of employment that do not rely on the terms of
any collective bargaining agreement’, id., and rejected
National’s argument that these rights “are either actually
founded in or ‘inextricably intertwined’ with collective
bargaining agreements and thus preempted by §301.” Jd. at
99a. Acceptance of the Respondents’ characterization of
their claims as “independent” of any collective bargaining
agreement precluded, in the court’s view, the conclusion
that the claims were preempted by §301. /d.

On a second level of analysis, the Fourth Circuit con-
sidered National’s argument that, in matters implicating
the relationship between employers and employees in a
collective bargaining context, federal labor law should
define the obligations of the parties and hence, the liabili-
ties which result from breach of those obligations.
National’s argument was premised on the fact, undisputed

13

by Respondents, that the subject of the contracts they seek
to enforce at state law are specific positions within the
relevant ISU bargaining units and the collectively bar-
gained seniority entitlements on which their ability to hold
those positions is ultimately founded. The court, while
acknowledging that “National’s arguments are founded on
strong principles of federal labor law”, id. at 103a, never-
theless rejected them. Relying principally on this Court’s
decisions in J.J. Case Co. v. NLRB, 321 U.S. 332 (1944) (as
construed in Caterpillar, Inc. v. Williams, 482 U.S. 386
(1987)) and Belknap, Inc. v. Hale, 463 U.S. 491 (1983), the
circuit court held that “[e]mployees who have made valid
individual contracts that conflict with subsequent federal
labor agreements, and thus cannot be specifically enforced,
are still free to bring damage claims against their employer
for breach of contract.”” App. C at 104a. The court con-
cluded that because Respondents sought only damages for
the alleged contract breaches. and not reinstatement to
bargaining unit positions, no principles of federal labor law
would be compromised. /d. at 105a. The court thus found
it unnecessary to decide whether the August 24, 1982
agreement between National and the ISU freezing returns
to the SNE unit was an effective amendment of the SNE
collective bargaining agreement. Jd. at 107a n. 2. The case
was remanded to the district court for application to
Respondents’ claims of the proper West Virginia eviden-
tiary standard governing contract claims. Jd. at 120a.

REASONS FOR GRANTING THE WRIT

This Court has not considered the extent of §301’s
preemptive effect on the state law claims of non-bargaining
unit employees alleging breach of individual contracts to
return them with seniority to their former bargaining unit
positions. The Fourth Circuit’s decision on this difficult

14

issue misapplied the preemption principles announced by
this Court and is inconsistent with the decisions of a num-
ber of lower courts on similar facts. The writ should be
granted to clarify this important area of federal labor law
and to resolve the conflicting lower court approaches to the
problem.

A. Respondents’ State Law Claims
Are Not Independent of the
Collective Bargaining Agreements

The fundamental task of a court analyzing the defense
of preemption by §301 is to determine if the claim is inde-
pendent of the collective bargaining agreement. E£.z.,
United Steelworkers of America v. Rawson, 110 S.Ct. 1904,
1910 (1990); Lingle v. Norge Div. of Magic Chef, Inc., 486
U.S. 399, 407 (1988); Caterpillar, Inc. v. Williams, 482
U.S. 386, 396 (1987); Electrical Workers v. Hechler, 481
U.S. 851, 859 (1987); Allis-Chalmers Corp. v. Lueck, 471
U.S. 202, 213 (1985). Two analytical approaches to the
preemption inquiry can be gleaned from these cases. The
first examines the source or origin of the right which is the
basis of the claim, and results in preemption by §301 where
the claim has its source in, or arises out of, the collective
bargaining agreement or relationship. Caterpillar, 482 U.S.
at 394; Allis-Chalmers, 471 U.S. at 213. The second
approach focuses on whether resolution of the state law
claim is dependent on analysis or interpretation of the
collective bargaining agreement, or is inextricably inter-
twined with it. Hechler, 481 U.S. at 862; Allis-Chalmers,
471 U.S. at 213. A claim is independent of a collective
agreement, and hence not preempted by §301, only if it
does not derive from and does not require interpretation of
or reference to the agreement.

15

Although the Fourth Circuit correctly identified the
threshold issue presented in this litigation, its conclusion
that Respondents’ claims are independent of the CBAs is
too facile. The court concluded that “the duties National
allegedly assumed are defined by the terms of the individ-
ual employment contracts and not by a collective agree-
ment.” App. C. at 15. That is, the alleged oral promises
were made by management representatives during an
interview for promotion out of the bargaining units and
the oral promises made no mention of the CBAs. This
conclusion, however, ignores the reality that Respondents’
state claims seek the benefit of the bargaining agreements
as they existed prior to the amendments that prevented
their return to the bargaining units. The circumstances
involved in this case are vastly different from those found
irrelevant to the preemption analysis by the Lingle Court.
In Lingle, the fact that “the state-law analysis might well
involve attention to the same factual considerations as the
contractual determination” did not render “the state-law
analysis dependent on the contractual analysis.” Lingle,
486 U.S. at 408. This was so because Lingle’s state claim
existed regardless of her status as a union employee. Here,
the Fourth Circuit has sanctioned the use of state contract
law to enforce damage claims of entitlement to positions
within a collective bargaining unit.

The circuit court’s conclusion glosses over the grava-
men of Respondents’ action: they demand application to
each of them of the seniority provisions of the collective
agreement. Respondents themselves recognized, during the
Summary juGgment proceedings in the district court, that

[iJmplicit in the promise that a foreman could return
to his former position was that he would return with

16

his full seniority restored. It is axiomatic that a fore-
man could only return to his former position if his full
seniority was restored. The right to hold a specific
position in the hourly or non-exempt [SNE] ranks is
dependent upon an employee’s job, sequence, depart-
ment and Company seniority. Thus, if a plaintiff
returned with no seniority, he would not be able to
hold his former position.

Plaintiffs’ Brief In Opposition To Defendant’s Motion For
Summary Judgment, at 113. The Fourth Circuit appar-
ently deemed it legally irrelevant that Respondents’ state
damage claims depended upon restoration of bargaining
unit seniority. But bargaining unit seniority is a type of
entitlement that is “without existence independent of the
collective-bargaining agreement.” Rawson, 110 S.Ct. at
1909. See Aeronautical Ind. Dist. Lodge 727 v. Campbell,
337 U.S. 521, 525-526 (1949); Ulrich v. Goodyear Tire &
Rubber Co., 884 F.2d 936, 938 (6th Cir. 1989); Cooper vy.
General Motors Corp., 651 F.2d 249, 249 (Sth Cir. 1981);
Kern v. United Steelworkers, 669 F.Supp. 701, 704
(M.D.Pa. 1987). The seniority rights Respondents seek to
enforce through damages at state law in this action derive
from CBAs, and so are not independent of those
agreements.

This is not a case such as that presented in Lingle,
where a state law right and remedy, available regardless of
whether the party asserting the right is covered by a collec-
tive bargaining agreement, was found not to be preempted.
Instead, the claims here are by their very nature ultimately
premised on a collective bargaining agreement containing
provisions that Respondents perceive as providing them
greater job security. They thus relate to the CBAs, in the
sense that they have ‘‘a connection with or reference to”
the agreements, Shaw vy. Delta Airlines, Inc., 463 U.S. 85,

17

97 (1983), and are not independent of those agreements.
National argued below that, because the Respondents’
claims “related to” the collective bargaining agreements in
the sense contemplated by the use of that phrase in §514(a)
of ERISA, 29 U.S.C. §1144(a), those claims could not be
independent of the CBAs. Although this Court has fre-
quently noted that the preemptive scope of ERISA and of
§301 are co-extensive, e.g., Ingersoll-Rand Co. v. McClen-
don, 111 S.Ct. 478, 485-486 (1990); Metropolitan Life Ins.
Co. v. Taylor, 481 U.S. 58, 64-65 (1987); Pilot Life Ins. Co.
v. Dedaux, 481 U.S. 41, 54-55 (1987), the Fourth Circuit
rejected sub silentio National’s argument. In McClendon,
the fact that the state law claim did not exist in the absence
of the employer’s pension plan resulted in the conclusion
that the state cause of action related to the pension plan,
and so was preempted. 111 S.Ct. at 483-484. The same
result should obtain here; Respondents have no claims in
the absence of the collectively bargained seniority from
which they seek to benefit.

Finally, although this Court has noted that employees
are not necessarily disabled from enforcing individual con-
tracts when their terms and conditions of employment
may also be affected by collective agreements, e.g., Cater-
pillar, 482 U.S. at 394, it has never specifically addressed
how claims based on purported individual contracts are to
be analyzed when those claims implicate CBAs to the
extent that these claims do. Caterpillar suggests, however,
that where the individual contract claims “rely upon the
collective agreement indirectly, ...{or] address the rela-
tionship between the individual contracts and the collec-
tive agreement’, id. at 395, preemption by §301 is
required. A/lis-Chalmers contains a similar suggestion:

18

Nor do we hold that every state law suit asserting a
right that relates in some way to a provision in a
collective bargaining agreement, or more generally to
the parties to such an agreement, necessarily is pre-
empted by §301. The fuil scope of the pre-emptive
effect of federal labor-contract law remains to be
fleshed out on a case-by-case basis.

471 U.S. at 220. As demonstrated above, Respondents’
claims here do at least indirectly rely on the terms of the
CBAs and therefore require analysis of the relationship
between the individual contracts and the CBAs. That reli-
ance, even taken alone, should be sufficient to demonstrate
that these claims are not independent of the CBAs. More-
over, any analysis of the effect of the individual contract
claims on the collective agreements must be undertaken in
conformity with the principles of federal labor iaw if that
law is to retain its vitality.

Certiorari should be granted to clarify whether the
claims made by Respondent are truly “independent” of the
parallel provisions of the collective agreements.

B. Principles of Federal Labor Law
Preclude Maintenance Under State Law
of Respondents’ Claims

As earlier indicated, the Fourth Circuit rejected
National’s argument that Respondents’ state law claims
interfered with the relationship between National and the
ISU and should be preempted on that basis. The court
misconstrued National’s argument, stating that it “would
have us declare plaintiffs’ individual contracts null and
void as a result of subsequent bargaining agreements that
limited their right to return to the unit”. App. C at 103a. In
actuality, National’s argument required no such draconian

19

result. Rather, National urged only that these claims could
not be enforced pursuant to state law contract principles,
but instead must be characterized as federal claims under
§301 and be resolved by reference to federal labor policy
and the federal common law developed thereunder.

The jurisdictional reach of §30! is undoubtedly broad
enough to encompass the claims made here. In Textile
Workers v. Lincoln Mills, 353 U.S. 448 (1957) this Court
observed that §301 encompasses “‘[o]ther problems
[which] lie in the penumbra of express statutory mandates.
Some will lack express statutory sanction but will be
solved by looking at the policy of the legislation and fash-
ioning a remedy that will effectuate that policy. The range
of judicial inventiveness will be determined by the nature
of the problem.” 353 U.S. at 457. Respondents’ claims
here occupy the “penumbra” of §301 referred to by the
Lincoln Mills Court. They should be characterized as fed-
eral claims and resolved by reference to federal labor

policy.

The Fourth Circuit declined to recharacterize Respon-
dents’ claims under federal law, concluding that because
they sought only damages and not reinstatement, no prin-
ciples of federal labor law were compromised. App. C at
105a. Respondents have steadfastly held to their position
that they asserted state law, not federal law, claims. The
circuit court also observed that the claims did not threaten
the “federal policy of promoting arbitration of labor
disputes” because the claims were not grounded in the
CBAs. Id. at 105a-106a. The Fourth Circuit's focus was too
narrow.

It is settled that whether a claim is properly character-
ized as arising under federal or state law has nothing to do
with the type of remedy sought. “The nature of the relief

20

available after jurisdiction attaches is, of course, different
from the question whether there is jurisdiction to adjudi-
cate the controversy ...[{T]he breadth or narrowness of
relief which may be granted under federal law in §301 cases
is a distinct question from whether the court has jurisdic-
tion over the parties and the subject matter.” Avco Corp. v.
Aero Lodge 735, 390 U.S. 557, 561 (1968). See also Cater-
pillar, 482 U.S. at 391 n. 4; William E. Arnold Co. v.
Carpenters District Council, 417 U.S. 12,18-19 (1974). Cf
Ingersoll-Rand Co. v. McClendon, 111 S.Ct. at 481, 486
(fact that plaintiff sought damages instead of pension bene-
fits immaterial to preemption analysis).’ Thus, to the
extent the Fourth Circuit’s conclusion that Respondents’
claims are not preempted turns on the fact that only dam-
ages are sought as remedy, it is undoubtedly incorrect.

Second, while it cannot be gainsaid that one principle
underlying this Court’s preemption jurisprudence is pres-
ervation of the role of arbitration in the resolution of con-
tractually based labor disputes, A/lis-Chalmers, 471 U.S. at

’National also argued that the demand for damages itself required
interpretation of the seniority provisions of the collective agreements.
The measure of damages for breach of the contracts alleged by Respon-
dents would be the wages attendant to the bargaining unit position each
would have held had he been returned. As noted, the ability to hold
positions within the bargaining unit is a function of the Company,
Department, Sequence and Job seniority conferred by the collective
bargaining agreement. The seniority provisions of the agreements would
thus have to be interpreted and applied in order for Respondents to
prove damages. National argued that the necessity for such interpreta-
tion rendered Respondents’ claims more than “tangentially” related to
the collective bargaining agreements, and required their preemption
because they are “inextricably intertwined with consideration of the
terms of the labor contract.” Allis-Chalmers Corp., 471 U.S. at 211, 213.
See also Lingle, 486 U.S. at 407 n. 7 (noting that remedy which requires
contract interpretation would be preempted). The circuit court reyected
sub silentio this argument.

21

219, it is not the only principle applicable. Cf Groves vy.
Ring Screw Works, 111 S.Ct. 498 (1990) (breach of con-
tract suit may be maintained under §301 even in absence
of contractual agreement to arbitrate). Section 301 also
provides and authorizes the development of the substan-
tive law governing “the relationships created by [a collec-
tive bargaining] agreement,” Allis-Chalmers, 471 U.S. at
211 (quoting Bowen v. United States Postal Service, 459
U.S. 212, 224-225 (1983)), even where contract language
need not be interpreted. See United Steelworkers of
America v. Rawson, 110 §.Ct. 1904 (1990) (§301 controls
relationship between union and its members, displacing
State tort law). Here, the CBAs created an ongoing relation-
ship among Respondents (former bargaining unit mem-
bers), National and the ISU. That relationship was the
subject of collective bargaining between National and the
ISU. Respondents seek to exercise their alleged contractual
rights in a manner inconsistent with the CBAs. Their abil-
ity to do so must be determined under federal labor law in
order to accommodate that law’s policy concerns. See
Allis-Chalmers, 471 U.S. at 213 (“If the state... law pur-
ports to define the meaning of the contract relationship,
that law is preempted’).

Respondents’ circumstances in this case are analogous
to those of the retirees addressed by this Court in Chemical
Workers v. Pittsburgh Plate Glass Co., 404 U.S. 157 (1971)
(“PPG”). There, it was held that although collective bar-
gaining over benefits payable to retirees was not
mandatory, because retirees were not employees within the
meaning of §2(3) of the National Labor Relations Act, 29
U.S.C. §152(3), it nevertheless was permissible for the
employer and the union to bargain over such benefits. This
Court noted that the retirees would “have a federal remedy

22

under §301” for any breach of the collective agreement
setting forth the benefits to which they were entitled, 404
U.S. at 181 n. 20, despite the fact that they were not mem-
bers of the bargaining unit covered by the collective bar-
gaining agreement. Nothing in the PPG decision indicates
that the retirees could avail themselves of state law actions
and remedies to establish their contractual entitlements.
Cf. United Auto Workers v. Yard-Man, Inc., 716 F.2d 1476,
1479 (6th Cir. 1983), cert. denied, 465 U.S. 1007 (1984)
(“Clearly the parties to a collective bargaining agreement
may provide for rights which will survive termination of
their contractual relationship . .. Any such surviving bene-
fit must necessarily find its genesis in the collective bar-
gaining agreement’).

Here, much like the situation in PPG,’ the rights
Respondents’ seek to assert are undeniably addressed in
collectively bargaining agreements. Their initial complaint
in this matter went so far as to allege that they were third
party beneficiaries to these labor contracts. Whether their
claims retain vitality after the subsequent amendments to
the CBAs precluded their ability to return to the bargaining
units should, as a matter of federal labor policy, be deter-
mined by application of the federal common law of labor
relations. See Allis-Chalmers, 471 U.S. at 211 (“questions
relating to what the parties to a labor agreement agreed,
and what legal consequences were intended to flow from
breaches of that agreement, must be resolved by reference

8One distinction between the instant case and the PPG decision lies
in the fact that the seniority provisions of the agreements at issue here
were, in all likelihood, mandatory subjects of bargaining. This is so
because when returns to the unit were effected thereunder, the effect of
such returns was “the replacement of employees in the existing bargain-
ing unit with [others] to do the same work under similar conditions of
employment.” Fibreboard Corp. v. NLRB, 379 U.S. 203, 215 (1964).

23

to uniform federal law ...”); Caterpillar, 481 U.S. at 395
(suggesting that claims which “address the relationship
between the individual contracts and the collective agree-
ment” should be decided under federal law). See also
Ulrich v. Goodyear Tire & Rubber Co., 884 F.2d 936, 938
(6th Cir. 1989).

The Fourth Circuit’s reliance on Belknap, Inc. v. Hale,
463 U.S. 491 (1983) and J.J. Case Co. v. NLRB, 321 U.S.
332 (1944) in support of its contrary conclusion was mis-
placed. Belknap is both factually and legally distinguish-
able. That case, relying in part on San Diego Building
Trades Council v. Garmon 359 U.S. 236 (1959), held that
the National Labor Relations Act did not preempt state
contract claims brought by permanent strike replacements
who lost their jobs to reinstated strikers. Be/knap simply
did not consider the defense of §301 preemption. More-
over, as this Court’s subsequent decisions in A/lis-
Chalmers and its progeny make plain, the preemptive
scope of §301 is far more broad than that of the National
Labor Relations Act. Indeed, the pre-emptive doctrine
cases such as Garmon and Belknap, which are based upon
the exclusive jurisdiction of the National Labor Relations
Board, are “ ‘not relevant’ to actions within the purview of
§301.” William E. Arnold Co. v. Carpenters, 417 U.S. at 16
(quoting Teamsters v. Lucas Floor Co., 369 U.S. 95, 101 n.
9 (1962). See also Allis-Chalmers, 471 U.S. at 213 n. 9.

Nor does J.J. Case support the Fourth Circuit’s deci-
sion, for it leaves unanswered the central question
presented here. In J.J. Case, this Court stated that individ-
ual contracts “cannot subtract from collective ones, and
whether under some circumstances they may add to them
in matters covered by the collective bargain, we leave to be

24

determined by appropriate forums under the laws of con-
tracts applicable, and to the Labor Board if they constitute
unfair labor practices.” 321 U.S. at 339. National, of
course, contends that the “laws of contracts” applicable to
Respondents’ claims are federal laws, and the J./. Case
decision does not indicate otherwise.

Federal labor law should govern resolution of Respon-
dents’ claims, since those claims impact directly on the
collective agreements made between National and the ISU.
The writ of certiorari should be granted to reassert the
primacy of federal labor law over issues affecting the rela-
tionship of the parties to CBAs.

C. The Lower Courts Are Divided
On the Preemption Issues Raised In
This Petition

The lower courts have wrestled with the question of
the proper resolution of the claims of former bargaining
unit employees who assert rights attendant to their former
bargaining unit status. The decisions are not homogenous.

The decision of the Fourth Circuit in the instant case
is directly in conflict with that of the Sixth Circuit in Ulrich
v. Goodyear Tire & Rubber Co., 884 F.2d 936 (6th Cir.
1989). In Ulrich, the Sixth Circuit found claims identical to
those presented here preempted:

We conclude that the District Court erred in holding
the plaintiffs’ so-called “state law” claims were not
preempted by federal law. Plaintiffs’ request for return
to the bargaining unit and for seniority nghts upon
return depends on rights created by the CBA. The
allegedly ““common practice” of allowing free transfer
to and from the bargaining unit on which plaintiffs
rely relates to the manner in which the CBA was

25

enforced and the practices and customs of the work-
place. Broadly speaking, the question depends upon
an interpretation of the CBA. The decision of the Dis-
trict Court on plaintiffs’ cparate “state law” claims
turned on a determination that the language of the
CBA itself did not create an automatic right to return
to the bargaining unit. The existence of the plaintiffs’
so-called “state law claim” is inextricably intertwined
with the CBA.

884 F.2d at 938. The Ulrich court remanded the case to the
district court for a “ruling on the merits of their contract
and promissory estoppel claims as a matter of federal com-
mon law.” Id.

The Third Circuit, in a divided opinion, came to a
hybrid solution in Malia v. RCA Corp., 794 F.2d 909 (3d
Cir. 1986), cert. denied, 482 U.S. 927 (1987). The court
held that the plaintiff could enforce his alleged promise to
return to the bargaining in a state law contract claim
because the relevant bargaining agreement did not specify
the mechanism under which a former bargaining unit
member could effect a return. 794 F.2d at 912. Once
returned, however, the plaintiffs’ seniority status within
the unit would be determined “on the terms and condi-
tions of employment set forth in the collective bargaining
agreement.” /d. at 913. In dissent, Judge Becker would
have viewed the entire claim as one arising under the col-
lective bargaining agreement, stating that:

[A]ny close question about the scope of the coverage
of the collective bargaining agreement should be
resolved in favor of a broad reading because strong
feaeral policy interests support such coverage. If an
issue 1s covered by a collective bargaining agreement,
it not only falls within federal jurisdiction, but, assum-
ing the agreement contains on arbitration provision, it

26

is resolved in the first instance by an arbitrator. Thus,
a conciusion that an issue is governed by the collective
bargaining agreement furthers “interpretive uniform-
ity and predictability”, Allis-Chalmers, 105 S.Ct. at
|

Id. at 914 (Becker, J., dissenting). The dissent further noted
that “‘although the oral contract did, for the most part,
pertain to the position of inventory supervisor, the single
term that Mr. Malia is seeking to enforce—reinstatement
to his former position—is one that not only impinges upon
the bargaining unit, but is provided for in the collective
bargaining agreement.” /d. at 915. The dissent would thus
have found the claim preempted.

In Berda v. CBS, Inc., 881 F.2d 20 (3d Cir. 1989), cert.
denied, 110 S.Ct. 879 (1990) the court considered the
“circuit-splitting question” of whether state law claims
based upon alleged misrepresentations of job security,
“made before the employee became a member of the bar-
gaining unit, which conferred additional rights to those
afforded by the collective bargaining agreement, are pre-
empted by section 301.” 881 F.2d at 20. Berda’s claims
were premised on alleged representations that his employ-
ment with CBS “would be guaranteed for the reasonably
foreseeable future.”’ Jd. at 21. Berda accepted the position
with CBS, became a member of the bargaining unit repre-
senting CBS’s employees, and was laid off in accordance
with the terms of the bargaining agreement five months
later. Jd. The Third Circuit, relying on Caterpillar and J./.
Case, held that Berda stated valid state law claims because
those claims were not dependent on an interpretation of
the bargaining agreement. /d. at 26. The Berda court noted,
however, that unlike the situation presented here, it was
“not currently presented with the question whether the

27

existence of a subsequent collective bargaining agreement
may constitute a defense to Berda’s contract claim under
state or federal law.” Jd. (footnote omitted).

Redmond vy. Dresser Industries, Inc., 734 F.2d 633
(11th Cir. 1984) found preempted the plaintiff's state law
claims of, inter alia, contract breach to return to his former
bargaining unit position. Holland v. National Steel Corp.,
791 F.2d 1132 (4th Cir. 1986), a case arising out of the
Weirton plant during the same period of lay off which gave
rise to this litigation, found the plaintiff's claim for return
to the bargaining unit preempted. In both cases, the courts
determined that the source of the rights claimed was the
collective bargaining agreement provision addressing the
issue of returns, despite both plaintiffs’ protestations that
they were asserting individual contracts. See Redmond,
734 F.2d at 635; Holland, 791 F.2d at 1134.

In Kern v. United Steelworkers of America, 669
F.Supp. 701 (M.D.Pa. 1987) the court found preempted
plaintiff's state contract claim for return to the unit despite
accepting the argument that the claim was not inconsistent
with the governing collective bargaining agreement:

If employees were free to negotiate and enforce sepa-
rate oral agreements identical to the collective bar-
gaining agreements under which they labored, and
then if they were permitted to enforce these oral agree-
ments under state law, much of the federal concern for
swift resolution of disputes through grievance and
arbitration procedures, or through immediate court
intervention, and for consistent interpretation of con-
tract terms would be undermined. Plaintiffs would be
free to rely on longer statutes of limitations, and they
would be free to ignore grievance/arbitration proce-
dures. The uniform federal common law growing out

28

of the Labor Management Relations Act that courts
have been so careful to protect would be circumvented
and ineffectual.

669 F.Supp. at 704.

As evident from the foregoing decisions, the lower
courts have developed varied approaches to treatment of
claims such as those presented in the instant case. This
Court has not addressed the preemptive scope of §301 on
the claims of non-bargaining unit employees seeking to
enforce at state law contracts to return to the bargaining
unit. Certiorari should be granted to resolve this conflict in
the lower courts.

29

CONCLUSION

For the foregoing reasons, Petitioner National Steel
Corporation requests that its Petition for Writ of Certiorari

be granted.

Respectfully submitted,

VOLK, FRANKOVITCH, ANETAKIS,
RECHT, ROBERTSON & HELLERSTEDT

py. Cob MMe hhh L

Cart H. HELLERSTEDT, Jr.
(Counsel of Record)

CARL N. FRANKOVITCH
JOHN A. McCREARY, JR.

Three Gateway Center
15th Floor East
Pittsburgh, PA 15222
Telephone: (412) 392-2300

Counsel for Petitioner

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385009_2788%3A1. Public record. Not legal advice.
