# Opposition Brief — Adkins v. General Motors Corp.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1992
- **Citation:** 504 U.S. 908

## Text

APR +
No. 91-1151 R
In The

Supreme Court of the United States

October Term, 1991
a

JOHN J. ADKINS, ET AL.,

Petitioners,

GENERAL MOTORS CORPORATION, ET AL.,

Respondents.

&

On Petition For A Writ Of Certiorari
To The United States Court Of Appeals
For The Sixth Circuit
o
BRIEF FOR

GENERAL MOTORS CORPORATION
IN OPPOSITION

¢

A.tce M. OssurRN

STEPHEN M. SHAPIRO
General Motors

James D. HoL_ZHAUER
Corporation

Counsel of Record
New Center One Timotny S. BisHop
Buildin

Mayer, Brown & Platt
3031 West Grand 190 South LaSalle Street
Boulevard Chicago, Illinois 60603
P.O. Box 33122

(312) 782-0600
Detroit, Michigan 48232

JosePpH P. BUCHANAN
Crew, Buchanan & Lowe
2580 Kettering Tower
Dayton, Ohio 45423

COCKLE LAW BRIEF PRINTING CO, em) 225-6964
OR CALL COLLECT (402) 342-283

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QUESTION PRESENTED

Whether this Court should review the Sixth Circuit’s
fact-bound determination that petitioners’ state law
causes of action are inextricably intertwined with collec-
tive-bargaining agreements and preempted by Section
301 of the Labor Management Relations Act, where the
Sixth Circuit conscientiously and correctly applied the
preemption test established in this Court’s precedents
and where its decision is consistent with the rulings of
other courts of appeals.

ii

TABLE OF CONTENTS

Page
QUESTION PIII sks deen bse veccisevaneavans i
TRB COP BAU wh one 4 Sep coebunckasabasas iii
Ooi 6B fe MOTE CTET PTET Tee eer ee 1
JURISDICTION........ ENS 40 (Adee PILLAGE KD Oia 1
SI ATEMMMONE + 00s-0s's hed neds canbe eeenetnewusanees 1
REASONS FOR DENYING THE PETITION......... 10

I. THE COURTS OF APPEALS HAVE CONSIS-
TENTLY AND CORRECTLY APPLIED THE SEC-
TION 301 PREEMPTION ANALYSIS
MANDATED BY THIS COURT’S DECISIONS TO
STATE LAW FRAUD AND TORTIOUS INTER-
FEREINC CULAR: canaccckapepidenschestecses. 11

A. The Sixth Circuit Faithfully And Correctly
Applied The Section 301 Preemption Stan-
dards Enunciated In This Court’s Decisions
To Petitioners’ Fraud And Tortious Interfer-
emnee CIS in 5 Ss cae ee eka cea 16

B. The Sixth Circuit’s Decision That Petitioners’
Fraud And Tortious Interference Claims Are
Preempted Is Not In Conflict With Decisions
Of Other Courts Of Appeals............... 23

Il. THE SIXTH CIRCUIT’S HOLDING THAT PETI-
TIONERS’ EMOTIONAL DISTRESS CLAIMS
ARE PREEMPTED WAS CORRECT AND CON-
SISTENT WITH DECISIONS OF OTHER
CAPSEES 0 ocds cssceueeeaeeeeeeaiea sua nesuns 27

iii

TABLE OF AUTHORITIES

Page
Cases:
Adkins v. General Motors Corp., 573 F. Supp. 1188
(S.D. Ohio 1983), aff’d, 769 F.2d 330 (6th Cir.
een cae eR chsh Nes dneaWar aden wives ceeses 5
Adkins v. International Union of Elec., Radio &
Mach., 769 F.2d 330 (6th Cir. 1985).......... 2, 3, 4, 5

Allis-Chalmers Corp. v. Lueck, 471 U.S. 202 (1985). passim
Anderson v. Ford Motor Co., 803 F.2d 953 (8th Cir.

1986), cert. denied, 483 U.S. 1011 (1987)........... 25
Anderson v. United Auto Workers, 738 F. Supp. 441

Ey PM, BUR he kes ccc cetsesssresasecuccssavcvecs 26
Berda v. CBS, Inc., 881 F.2d 20 (3d Cir. 1989), cert.

denied, 493 U.S. 1062 (1990).............------ 15,25

Caterpillar Inc. v. Williams, 482 U.S. 386 (1987)... passim
Cohen v. Lamko, Inc., 462 N.E.2d 407 (Ohio 1984) .... 18

DelCostello v. Teamsters, 462 U.S. 151 (1983)........... 5
Electrical Workers v. Hechler, 481 U.S. 851 (1987) ..... 13
Farmer v. Carpenters, 430 U.S. 290 (1977)....... 9, 28, 29
Fox v. Parker Hannifin Corp., 914 F.2d 795 (6th Cir.

EE ery eee eee ee Te ee Eee 25
Franchise Tax Bd. v. Laborers Vacation Trust, 463 U.S.

SEP eet eee ent Ee Ee 12
San Diego Bldg. Trades Council v. Garmon, 359 U.S.

fe LER SLL OD Pere err ee 28
Hanks v. General Motors Corp., 906 F.2d 341 (8th

ee ee ee 26
Karetnikova v. Trustees of Emerson College, 725 F.

Supp. 73 (D. Mass. 1989) .........-..0-es sneer eees 26

ee

iv
TABLE OF AUTHORITIES - Continued
Page

Lingle v. Norge Div. of Magic Chef, Inc., 486 U.S. 399
a ee ee err Te Pree TT TTT ery ey 14, 19, 26

Local No. 57 v. Bechtel Power Corp., 834 F.2d 884
(10th Cir. 1987), cert. denied, 486 U.S. 1055

PY Sct XU sk cUErN a coy Sunde eee Ghat eseh euew Rei A 15
Master Slack Corp., 230 NLRB 1054 (1977),
enforced, 618 F.2d 6 (6th Cir. 1980)............... 24

McCormick v. AT&T Technologies, 934 F.2d 531 (4th
Cir. 1991), cert. denied, 112 S. Ct. 912 (1992)...14, 26

Milne Employees Ass'n v. Sun Carriers, Inc., 1991

U.S. App. LEXIS 27786 (9th Cir. 1991) ......... eae
Paige v. Henry J. Kaiser Co., 826 F.2d 857 (9th Cir.

1987), cert. denied, 486 U.S. 1054 (1988)........... 15
Paradis v. United Technologies, 672 F. Supp. 67 (D.

re ry a re ee 26, 27
Richardson v. Steelworkers, 864 F.2d 1162 (5th Cir.),

cert. denied, 493 U.S. 803 (1989).................. 15
Sluder v. UMW, 892 F.2d 549 (7th Cir. 1989), cert.

a a eT eee 14
Smolarek v. Chrysler Corp., 879 F.2d 1326 (6th Cir.),

cost. denied, 55 US. FOE (IDGR) . 6. ccc sccsccccccss 15
Steelworkers v. Rawson, 495 U.S. 362 (1990)........... 14
Teamsters Local v. Lucas Flour Co., 369 U.S. 95

PRS Sicdcas cexuisew dessus kre acinar 12, 23
Terwilliger v. Greyhound Lines, 882 F.2d 1033 (6th

Cir. 1989), cert. denied, 495 U.S. 946 (1990)....... 15

Textile Workers v. Lincoln Mills, 353 U.S. 448 (1957) .... 11

v

TABLE OF AUTHORITIES - Continued
Page

United States Gypsum Co., 94 NLRB 112 (1951),
modified in other respects, 206 F.2d 410 (5th Cir.
1953), cert. denied, 347 U.S. 912 (1954).......-.--- 24

Utility Workers v. Southern California Edison Co.,
852 F.2d 1083 (9th Cir. 1988), cert. denied, 489
U.S. 1078 (1989) ...... cece cece e cee e ener eeencecees 15

Wells v. General Motors Corp., 881 F.2d 166 (5th
Cir. 1989), cert. denied, 495 U.S. 923

(1990) nc nssecccvsccocnsctdetocrses 10, 11, 15, 23, 24
White v. National Steel Corp., 938 F.2d 474 (4th Cir.),

cert. denied, 112 S. Ct. 454 (1991)........----+---- 14
Yeager v. Local Union 20, 453 N.E.2d 666 (Ohio

i.) PPE PEPEPereer ert tre re er 27, 29
STATUTES:
2B U.S.C. § 1441...... 0. cece cece rece rccenccesccesoees 7
29 U.S.C. § 185........ cece cece eee e ner cencceeeeces 1, 11

2 USC. © MONI)... .5 6455-50005 4

BRIEF FOR
GENERAL MOTORS CORPORATION
IN OPPOSITION

Respondent General Motors Corporation (“GM”)
submits this brief in opposition to the petition for a writ
of certiorari.!

OPINIONS BELOW

The opinion of the court of appeals (Pet. App. 1) is
reported at 946 F.2d 1201. The district court’s opinion
sustaining in part GM’s motion for summary judgment
(App., infra, 1a) is unreported. The district court’s opin-
ion granting in part GM’s motion for reconsideration of
the court’s decision on petitioners’ motion to remand
(App., infra, 7a) is reported at 713 F. Supp. 1043.

JURISDICTION

The judgment of the court of appeals was entered on
October 15, 1991. The petition for a writ of certiorari was
filed on January 13, 1992. The jurisdiction of this Court is
invoked under 28 U.S.C. § 1254(1).

STATEMENT

The question in this case is whether the court of
appeals properly applied Allis-Chalmers Corp. v. Lueck, 471
~ U.S. 202 (1985), and Caterpillar Inc. v. Williams, 482 U.S.
386 (1987), in holding that petitioners’ state law claims
were preempted by Section 301 of the Labor Management
Relations Act, 29 U.S.C. § 185. Petitioners originally
asserted their claims in a Section 301 action, alleging that
GM and their union had unfairly colluded to deny them
certain special seniority rights. Tiat action was dismissed
as untimely. Petitioners then brought this action in state

' The list of GM’s non-wholly owned subsidiaries required
by Rule 29.1 appears at Appendix, infra, 66a.

2

court, claiming fraud, tortious interference with contract
rights, and intentional infliction of emotional distress.
The court of appeals, after taking pains to decipher the
“prolix and vague” allegations of petitioners’ complaint
(Pet. App. 7), unanimously held that these claims were
preempted by Section 301. As this Court has recognized
in denying certiorari petitions in several similar cases in
recent years, there is no reason for the Court to review
the court of appeals’ application of settled law to the
particular facts of cases such as this one.

A. The “Flow Arrangement” Under the Bridge
Agreement

Until 1974, GM manufactured household appliances
and automobile air conditioners at plants operated by its
Frigidaire Division in Dayton, Ohio. Respondent Interna-
tional Union of Electrical, Radio & Machine Workers,
AFL-CIO-CLC, and its Local 801 (hereinafter referred to
together as the “Union”) was the collective-bargaining
agent for Frigidaire’s hourly employees. Initially, all Frig-
idaire workers were paid at the automobile industry rate,
even if they were engaged in making household
appliances. But in 1971, GM and the Union agreed that
Frigidaire workers engaged in appliance manufacture
would be paid the lower appliance industry rates. In
return, these appliance workers were permitted to trans-
fer — “flow” — to higher-paying automotive jobs within
the Frigidaire Division as positions became available. In
the event of layoff from an automotive job to which they
had transferred, these workers were permitted to flow
back to an appliance position, bumping less senior
appliance workers if necessary. Pet. App. 4-5; Adkins v.
International Union of Elec., Radio, & Mach., 769 F.2d 330,
332 (6th Cir. 1985).

Frigidaire’s automobile air conditioner facilities were
split off in 1974 and became part of GM’s Delco Air
Conditioning Division, but the 1971 flow arrangement
continued. Frigidaire’s workers could transfer to higher-
paying automotive air conditioning jobs at Delco, and if

3

laid off by Delco could transfer back to appliance jobs at
Frigidaire with their seniority intact. 769 F.2d at 332.

The flow arrangement was not included in any for-
mal collective-bargaining agreements until 1976. The
December 10, 1976 Frigidaire Local Agreement as well as
the Delco Local Agreement of the same date included a
“Bridge Agreement” (App., infra, 35a) setting out the flow
arrangement. Frigidaire Local Agreement 46 (Dec. 10,
1976); Delco Local Agreement 45 (Dec. 10, 1976). Frig-
idaire and Delco employees hired before 1977 (who were
designated “red-circled” employees) continued to enjoy
the flow rights, but newer employees would not. App.,
infra, 35a, 37a.

B. The Sale of Frigidaire And The Termination Of
The Bridge Agreement

In 1979, GM sold its Frigidaire Division and laid off
the Frigidaire employees. Pet. App. 5. GM retained the
Dayton Frigidaire plants, however, converting them to
use for GM’s Chevrolet Division. At the time, the Delco
plant was experiencing full employment. Ibid. With the
sale of the Frigidaire Division, former Frigidaire
employees working at Delco could no longer transfer
back to Frigidaire in the case of a Delco layoff.

GM and the Union negotiated about the Frigidaire
layoffs in February 1979. They agreed that the Frigidaire
workers who would be laid off as a result of the sale
would be hired in the new Chevrolet plants with unbro-
ken seniority when these plants opened in 1981, and that
the Union would continue to represent them. See Special
Memorandum of Understanding between GM, IUE and
Local 801 44 IV-VI (Feb. 23, 1979), App., infra, 43a-44a.
This Agreement was ratified on February 23, 1979, and it
cancelled the special seniority rights that had been given
to former Frigidaire workers under the 1976 Bridge
Agreement. Id. at { 1, App., infra, 41a. See also Pet. App.
5. The February 23 agreement was subsequently incorpo-
rated into the Local Agreement between Chevrolet and

e=—_-~”™-—s—snsr. |

4

Local 801. Chevrolet Local Agreement 43-45 (Oct. i,
1979).

The February 23, 1979 agreement (and the October 1,
1979 Chevrolet Local Agreement) applied to the laid-off
Frigidaire workers, and not to Delco workers. 769 F.2d at
333. GM and the Union renegotiated the Delco collective-
bargaining agreement later that year. Because GM no
longer owned Frigidaire, the new Delco contract did not
continue the right of former Frigidaire workers to trans-
fer back to Frigidaire Division jobs if they were laid off by
Delco. See Delco Local Agreement 14-19 (Sept. 19, 1979).2

Late in 1979, an economic slowdown hit the auto-
mobile industry and Delco was forced to lay off thou-
sands of employees, including many of the previously
red-circled former Frigidaire workers. When Chevrolet
reopened the former Frigidaire plants in 1981 and began
to recall former Frigidaire employees, pursuant to the
collective-bargaining agreements then in place, it did not
offer the jobs to the laid-off Delco workers. 769 F.2d at
333.

C. The First Round Of Litigation: The Federal
Action

A group of laid-off Delco workers who no longer had
any rights to jobs at Frigidaire — including many of the
petitioners — brought suit in federal court alleging viola-
tions of both Section 301 and Section 101(a)(1) of the
Labor-Management Reporting and Disclosure Act
(LMRDA) (29 U.S.C. § 411(a)(1)). Pet. App. 2. This hybrid
action alleged that the Union had breached its duty of fair

? Petitioners imply that under the 1976 Bridge Agreement,
they would have had the right to transfer to jobs at the former
Frigidaire plants that reopened as Chevrolet plants in 1981.
Pet. 10, 55-57. That is not correct; the Bridge Agreement gave
such employees the right to transfer to jobs at the Frigidaire
Division (App., infra, 37a), which ceased to exist as a GM
division when it was sold in 1979.

5

representation and that GM and the Union “had colluded
in negotiating a collective-bargaining agreement in order
to abrogate the special seniority rights contained in” the
Bridge Agreement. Ibid. The complaint also included pen-
dent state law claims for breach of contract, tortious
interference with contract rights, intentional infliction of
emotional distress, and loss of consortium. Id. at 2-3.

The district court dismissed plaintiffs’ federal labor
law claims because they had been filed outside the six-
month statute of limitations. See DelCostello v. Teamsters,
462 U.S. 151 (1983). The court also dismissed (without
prejudice) plaintiffs’ pendent state law claims for want of
a substantial federal question. Adkins v. General Motors
Corp., 573 F. Supp. 1188 (S.D. Ohio 1983). The court of
appeals affirmed. 769 F.2d 330 (6th Cir. 1985).

D. This Litigation: Petitioners’ State Complaint

In 1983, while the appeal of the dismissal of the
federal compiaint was pending, petitioners initiated this
suit against GM and the Union in Ohio state court. Pet.
App. 3. In a complaint which the court of appeals
described as “prolix,” “vague,” and “very difficult to
understand,” petitioners alleged fraud, tortious interfer-
ence with contract rights, and tortious infliction of emo-
tional distress. Id. at 7. As the court of appeals noted, it is
“not easy work” to “sift through the complaint in order to
detect the factual allegations.” Ibid. Insofar as GM can
discern, the factual basis for all of petitioners’ claims
appears to be as follows:

Petitioners contend that the Union excluded red-cir-
cled Delco employees from notification and ratification of
the February 23, 1979 agreement (which directly related
not to Delco employees but to the laid-off employees of
the sold Frigidaire Division). Pet. 8-9; Pet. App. 5-6;
Compl. {{ 29-34, App., infra, 49a-54a. They also allege
that during the notification and ratification process for
the September 19, 1979 Delco Local Agreement, the Union
“concealed” the fact that the new Agreement “omitted”

eal

6

and thereby “abandon{[ed]” the Bridge Agreement. Pet. 9;
Pet. App. 5-6. These allegations form part of the basis for
petitioners’ emotional distress claims. Pet. 9 (citing
Compl. {{ 30-37, App., infra, 50a-55a). Petitioners also
claim that “the president of Local 801 had fraudulently
induced them to ratify the 1979 collective-bargaining
agreement that abrogated the ‘bridge agreement.’ ” Pet.
App. 16. See also Pet. 8-9, 52.

Petitioners further allege that between February 1980
and January 1981 “respondents continued to try to keep
secret the abrogation of the Bridge Agreement,” made
“representations and innuendos” to petitioners that “jobs
would be forthcoming,” “reminded” petitioners “of the
old custom of ‘flowing,’” and made “[p]romises of
employment * * * individually and in groups.” Pet. 10.
When the Chevrolet plants began work and only Frig-
idaire workers were recalled to them, petitioners who
objected were “called * * * cry-babies and ridiculed.” Id.
at 11. These allegations are the basis for petitioners’
fraud, tortious interference with contract, and emotional
distress claims. Pet. 11-12 (citing Compl. {1 73-79, 83,
App., infra, 61a-64a).

Finally, petitioners contend that these actions all
arose out of a conspiracy between GM and the Union to
maintain the Union as the Chevrolet Division bargaining
agent, to divide labor, and to replace petitioners with
lower paid workers. Pet. 7-8 (citing Compl. {{ 15, 16,
25-27 and 43-48, App., infra, 46a-49a, 58a-61a).

In their demand for relief, petitioners made ciear that
they were really asserting rights under the various collec-
tive-bargaining agreements. In addition to seeking com-
pensatory and punitive Gamages, declaratory relief, and
other equitable remedies, petitioners asked for “injunc-
tive relief * * * with respect to each of the collective
bargaining agreements heretofore described in the com-
plaint, declaring * * * the express and implied obligations,
as well as the intendment, spirit and purpose of each of
said collective bargaining agreements in each of the
respects hereinabove alleged in this complaint” (Demand

7

For Relief { 1, App., infra, 64a), and also asked “[t]hat
GM be adjudged to have breached each of the collective
bargaining agreements.” Id. at | 4, App., infra, 65a.

Respondents removed this case to federal court pur-
suant to 28 U.S.C. § 1441, on the ground that petitioners’
state law claims are preempted by federal labor law. Pet.
App. 3. The district court ultimately held that petitioners’
fraud and tortious interference with contract claims were
preempted in their entirety by federal law. App., infra,
17a-26a. The court also held that petitioners’ emotional
distress claims were preempted insofar as they claimed
that GM and the Union caused them distress by such
actions as proposing the elimination of the flow rights
under the Bridge Agreement, withholding information
from the workers, failing to consider the interests of those
workers, and not permitting them fully to participate in
the ratification process. But, in the district court’s view,
petitioners’ emotional distress claims were not preempted
insofar as they complained of the respondents’ conduct in
taking those actions. Id. at 26a-33a.

The court of appeals held that all of petitioners’
claims were preempted and remanded with instructions
to dismiss the entire complaint. Pet. App. 4. The court of
appeals began its analysis with a careful review of this
Court’s Sectiun 301 preemption decisions. Id. at 6-7,
11-14. The court recognized that “Section 301 preemption
governs claims either founded directly on rights created
by collective bargaining agreements or ‘substantially
dependent on analysis of a collective-bargaining agree-
ment.’ ” Id. at 13, quoting Caterpillar Inc. v. Williams, 482
U.S. 386, 394 (1987). If analysis of petitioners’ tort claims
is “inextricably intertwined with consideration of the
terms of” the collective-bargaining agreements (Allis-
Chalmers Corp. v. Lueck, 471 U.S. 202, 213 (1985)), those
claims are preempted by Section 301. Pet. App. 6-7, 17,
21-22. The court of appeals then considered each of peti-
tioners’ claims in turn and conducted the essentially fact-
bound analysis of whether those claims were “substan-
tially dependent on” or “inextricably intertwined with”

il

8

the terms of the collective-bargaining agreements
between GM and the Union.

Turning first to petitioners’ fraud claims, the court of
appeals noted that those allegations were “not very
clear.” Pet. App. 16. The court identified two separate
contentions that petitioners appeared to be making: that
Local 801’s president had fraudulently induced peti-
tioners to ratify the 1979 Delco Local Agreement by con-
cealing or misrepresenting its effect on their transfer
rights, and that following ratification the president had
made fraudulent misrepresentations regarding their
transfer rights. The court of appeals held that both of
those fraud claims were preempted. Pet. App. 14-19. The
court held that the first claim was preempted because it
would require analysis of the Bridge Agreement and the
subsequent agreements to determine what rights they
conferred and what rights they eliminated. Id. at 14-15. In
addition, because the rights at issue in that claim were
“ “created by collective-bargaining agreements,’” the
claim was completely preempted. Id. at 15 (quoting Cater-
pillar at 394).

As to petitioners’ second fraud claim, the court of
appeals could not tell whether petitioners were alleging
that after the ratification the Union president affirma-
tively misrepresented the terms of the 1979 agreement
and told them that it did not affect their rights under the
Bridge Agreement, or alternatively that he told them that
“their purported entitlement to jobs at the Chevrolet
plant would be respected, despite the 1979 collective-
bargaining agreement.” Pet. App. 16. The court held that
in either event the claims were preempted. The former
contention was preempted because it would require the
court to ascertain petitioners’ rights under the Bridge
Agreement and the 1979 Delco contract, and to determine
the accuracy of the Union president’s alleged representa-
tions about the content of those agreements. Id. at 17. This
fraud claim was “so intertwined with the terms of the
collective-bargaining agreements * * * that they may not
be separated.” Ibid., citing Lueck, 471 U.S. at 213.

9

Under the alternative interpretation of petitioners’
claim (that they were told that the flow arrangement
would remain in effect despite the 1979 agreement), the
court of appeals held that the claim was preempted
because the alleged job-entitlements were created and
defined by the Bridge Agreement. Pet. App. 17-18. Adju-
dication of this claim once again would require “exten-
sive” interpretation to determine “what plaintiffs’ ‘bridge
agreement’ rights were and whether they are being vio-
lated by the new arrangements.” Id. at 18.

The court of appeals concluded that in their fraud
claims petitioners were asking the court to find that
Bridge Agreement rights terminated in the 1979 Local
Agreements were “reborn under state law.” Pet. App. 18.
That would “create a situation in which rights extin-
guished under federal labor law were vital under state
law. The purpose of the doctrine of complete preemption
is to prevent one set of rights and obligations from issu-
ing from a collective-bargaining agreement under federal
law while contradictory rights and obligations flowed
from state law. * * * Plaintiffs cannot be permitted to
revive rights deemed extinguished under federal labor
law by relying on state common law.” Id. at 17-18.

The court of appeals next examined petitioners’ tor-
tious interference with contract claims, and held them to
be likewise fully preempted. Pet. App. at 19-20. The court
rejected petitioners’ argument that their claims were like
those raised by the plaintiffs in Caterpillar. In Caterpillar,
the court noted, “the alleged contract between the plain-
tiffs and the employe[r] was independent of any collec-
tive-agreement.” Id. at 19. But in this case, the rights
claimed by petitioners were the “seniority rights” under
the Bridge Agreement. Id. at 20. Petitioners’ claims would
therefore necessarily involve analysis of the terms of the
Bridge Agreement. Ibid.

Finally, the court of appeals considered petitioners’
emotional distress claims. Pet. App. 21-26. Analogizing to
this Court’s decision in Farmer v. Carpenters, 430 U.S. 290
(1977), the court acknowledged that it is “theoretically

tell

10

possible” that the conduct of union leaders in a case like
this one might be so outrageous that state tort actions
would be permitted. Pet. App. 25. But “no outrageous
conduct has been alleged in this case”; rather, petitioners
alleged only that “material information * * * was withheld
from them.” Such a claim “goes to the quality of their
union representation and the fairness of their employer’s
labor practices, issues central to the concerns of federal
labor law.” Ibid. In these circumstances, absent “specific
allegations” that the union or GM engaged in “outra-
geous conduct,” “the state interest in adjudicating plain-
tiffs’ emotional distress claims [is] too insubstantial to
defeat complete preemption.” Ibid.

REASONS FOR DENYING THE PETITION

Having failed to file their complaint alleging viola-
tions of the federal labor laws within the prescribed
statute of limitations period, petitioners now seek to
recast claims that arise out of and require interpretation
of collective-bargaining agreements as state law viola-
tions. The Demand for Relief in petitioners’ complaint
makes it crystal clear that what they are seeking is relief
from alleged violations of several collective-bargaining
agreements. This Court, however, has repeatedly pro-
tected the comprehensive federal regulatory scheme con-
structed by the Labor Management Relations Act from
undue interference by private actions under state law
that seek to enforce claims under collective-bargaining
agreements. In doing so, it has established workable pre-
emption standards which require the courts to undertake
just the_kind of fact-intensive, “case-by-case” analysis
carried out by the court of appeals. Lueck, 471 U.S. at 220.
The courts below conscientiously applied those standards
and reached the correct result.

Relying primarily on a case (Wells v. General Motors
Corp.) they did not even cite in their court of appeals
briefs, petitioners contend that there is a conflict among
the circuits touching the issues in this case. But even a

11

cursory review of Wells makes it clear that the Fifth
Circuit applied the same legal standard to very different
facts and therefore reached a different result. There is
absolutely no reason to believe that the Fifth Circuit
would disagree with the Sixth Circuit if presented with
the facts of this case.

Moreover, even were this Court inclined to elaborate
further on the standards for Section 301 preemption, this
case would provide an unsuitable vehicle. Petitioners’
state law complaint is “prolix,” “vague,” and “very diffi-
cult to understand” (Pet. App. 7), and it is the incoher-
ence of that complaint and petitioners’ formless and
shifting characterizations of their claims that have fueled
nearly a decade of litigation. It is a struggle to penetrate
the morass petitioners have created to ascertain a coher-
ent set of claims. Once that is done, it becomes clear that
this is an easy case, squarely preempted because it lies at
the very heart of federal labor law concerns.

I. THE COURTS OF APPEALS HAVE CONSIS-
TENTLY AND CORRECTLY APPLIED THE SEC-
TION 301 PREEMPTION ANALYSIS MANDATED
BY THIS COURT’S DECISIONS TO STATE LAW
FRAUD AND TORTIOUS INTERFERENCE
CLAIMS.

This Court’s jurisprudence on the interpretation and
application of Section 301 of the Labor Management Rela-
tions Act, 29 U.S.C. § 185, is well developed. Section
301(a) creates federal jurisdiction over “[s]Juits for viola-
tion of contracts between an employer and a labor organi-
zation representing employees in an industry affecting
commerce.” This statute is not merely jurisdictional, but
also “expresses a federal policy that federal courts should
enforce [collective-bargaining] agreements” and that “the
substantive law to apply in suits under § 301(a) is federal
law, which the courts must fashion from the policy of our
national labor laws.” Textile Workers v. Lincoln Mills, 353
U.S. 448, 455, 456 (1957).

iii

12

This Court has emphasized the necessity that “sub-
stantive principles of federal labor law * * * be paramount
in the area covered by the statute.” Teamsters Local v.
Lucas Flour Co., 369 U.S. 95, 103 (1962). Disputes about the
interpretation of ccllective-bargaining agreements cannot
be left to state law because “the subject matter of § 301(a)
‘is peculiarly one that calls for uniform law.’ ” Ibid. The
Court has explained that “[t]he possibility that individual
contract terms might have different meanings under state
and federal law would inevitably exert a disruptive influ-
ence upon both the negotiation and administration of
collective agreements.” Ibid. Indeed, the “pre-emptive
force of § 301 is so powerful as to displace entirely any
state cause of action” that explicitly or implicitly con-
tends that an employer or bargaining agent breached its
obligations under a labor contract. Franchise Tax Bd. v.
Laborers Vacation Trust, 463 U.S. 1, 23 (1983).

This Court has elaborated on these principles no
fewer than five times in recent years, beginning in Allis-
Chalmers Corp. v. Lueck, 471 U.S. 202 (1985). In Lueck an
employee subject to a labor contract filed a state law tort
suit contending that his employer in bad faith failed to
make disability insurance payments under a union-nego-
tiated disability plan. The Court held this action pre-
empted, observing that “[iJf the policies that animate
§ 301 are to be given their proper range, * * * the pre-
emptive effect of § 301 must extend beyond suits alleging
contract violations.” Id. at 210. The court instructed (id. at
211) that

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 to
uniform federal law, whether such questions
arise in the context of a suit for breach of con-
tract or in a suit alleging liability in tort.
Otherwise, “[t]he parties would be uncertain as to what
they were binding themselves to” when they entered into
a collective-bargaining agreement. Ibid. That would make

13

it “more difficult to reach agreement, and disputes as to
the nature of the agreement would proliferate.” Ibid.

The Court in Lueck enunciated a test for Section 301
preemption to deal with these concerns: a state law claim
is preempted whenever it “is inextricably intertwined
with consideration of the terms of the labor contract” (471
U.S. at 213), such that “any attempt to assess liabili-
ty ** * inevitably will involve contract interpretation.” Id.
at 218. In other words, whenever “resolution of a state-
law claim is substantially dependent upon analysis of the
terms of an agreement made between the parties in a
labor contract, that claim must either be treated as a § 301
claim or dismissed as pre-empted by federal labor-con-
tract law.” Id. at 220 (citation omitted).

This Court has reiterated the same concerns - and
applied the same preemption test — in each of its subse-
quent rulings in this area. In Electrical Workers v. Hechler,
481 U.S. 851, 853 (1987), the Court held Section 301 pre-
empted “a state-law tort claim that a union has breached
its duty of care to provide a union member with a safe
workplace.” A court deciding that claim “would have to
ascertain, first, whether the collective-bargaining agree-
ment * * * placed an implied duty of care on the Union to
ensure that [the employee] was provided a safe work-
place, and, second, the nature and scope of that duty.” Id.
at 862. Since “ ‘questions of contract interpretation
[underlay] any finding of tort liability’” the employee
was “precluded from evading the pre-emptive force of
§ 301 by casting her claim as a state-law tort action.” Ibid.

In Caterpillar Inc. v. Williams, 482 U.S. 386 (1987),
certain breach of contract claims escaped preemption
where they were based on allegations that an employer
had entered into individual employment contracts with
the plaintiff employees at a time when they were not
members of a bargaining unit or covered by any collec-
tive-bargaining agreement. The employees claimed that
Caterpillar had agreed that it “would provide employ-
ment opportunities for [them] at other facilities” if their
workplace were closed. Id. at 389. The claim that the

|

14

employer had entered into and breached these individual
employment contracts was “not substantially dependent
upon interpretation” of a labor contract, because the
claim neither “rel[ied] upon” a contract nor “address[ed]
the relationship between the individual contracts and the
collective agreement.” Id. at 395.

Similarly, in Lingle v. Norge Div. of Magic Chef, Inc.,
486 U.S. 399 (1988), the issue was whether Section 301
preempted an employee’s state law allegation that she
had been discharged in retaliation for filing a worker’s
compensation claim. Although the employee was covered
by a collective-bargaining agreement that required “just
cause” for discharge, the Court held that her state retalia-
tory discharge claim was not preempted. The state law
claim depended on a purely factual inquiry whether the
plaintiff was discharged and whether the employer’s
motive for the discharge was retaliatory. Such an inquiry
would “not turn on the meaning of any provision of a
collective-bargaining agreement.” Id. at 407. Lingle reiter-
ated, however, that “judges can determine questions of
state law involving labor-management relations only if
such questions do not require construing collective-bar-
gaining agreements.” Id. at 411. Most recently, in Steel-
workers v. Rawson, 495 U.S. 362, 369 (1990), this Court
reaffirmed that a state tort suit is preempted when it is
based on rights or duties “without existence independent
of the collective-bargaining agreement.”

Application of these Section 301 preemption stan-
dards requires close scrutiny of the plaintiff’s allegations
in each case. Over the last four years, this Court has
denied petitions for certiorari in at least eleven cases
involving the application of these standards to various
state law claims. That the courts of appeals in these

3 White v. National Steel Corp., 938 F.2d 474 (4th Cir.), cert.
denied, 112 S. Ct. 454 (1991); McCormick v. AT&T Technologies,
934 F.2d 531 (4th Cir. 1991), cert. denied, 112 S. Ct. 912 (1992);
Sluder v. UMW, 892 F.2d 549 (7th Cir. 1989), cert. denied, 111 S.

(Continued on following page)

15

cases reached different results does not mean there is a
conflict among the circuits that this Court has ignored. It
simply reflects the fact that courts applying the proper
preemption standards will reach different results when
faced with different facts. There is certainly no reason for
the Court to single out this case and to review the Sixth
Circuit’s conscientious analysis of petitioners’ nearly
unintelligible complaint.

It is particularly disingenuous for petitioners to pre-
tend that this case is something other than a complaint
bottomed on collective-bargaining agreements, when
their original suit - which raised factual allegations sub-
stantially identical to those in the present suit - was
expressly predicated on breach of collective-bargaining
agreements within the meaning of Section 301. Peti-
tioners’ original suit was dismissed for untimeliness; but
dilatoriness is surely not a justification for recycling a
Section 301 claim as a state law claim and demanding
application of divergent state law standards to construe
and enforce the underlying collective-bargaining agree-
ments.

(Continued from previous page)

Ct. 45 (1990); Wells v. General Motors Corp., 881 F.2d 166 (5th
Cir. 1989), cert. denied, 495 U.S. 923 (1990); Terwilliger v. Grey-
hound Lines, 882 F.2d 1033 (6th Cir. 1989), cert. denied, 495 U.S.
946 (1990); Berda v. CBS, Inc., 881 F.2d 20 (3d Cir. 1989), cert.
denied, 493 U.S. 1062 (1990); Smolarek v. Chrysler Corp., 879 F.2d
1326 (6th Cir.), cert. denied, 493 U.S. 992 (1989); Richardson v.
Steelworkers, 864 F.2d 1162 (5th Cir.), cert. denied, 493 U.S. 803
(1989); Utility Workers v. Southern California Edison Co., 852 F.2d
1083 (9th Cir. 1988), cert. denied, 489 U.S. 1078 (1989); Local No.
57 v. Bechtel Power Corp., 834 F.2d 884 (10th Cir. 1987), cert.
denied, 486 U.S. 1055 (1988); Paige v. Henry J. Kaiser Co., 826
F.2d 857 (9th Cir. 1987), cert. denied, 486 U.S. 1054 (1988).

16

A. The Sixth Circuit Faithfully And Correctly
Applied The Section 301 Preemption Standards
Enunciated In This Court’s Decisions To Peti-
tioners’ Fraud And Tortious Interference
Claims

The certiorari petition is premised on a series of
misstatements about the decisions below. The linchpin of
the petition is the repeated assertion that the court of
appeals held that petitioners’ state law fraud and tortious
interference claims were preempted because they “merely
‘relatle] to various collective bargaining agreements,’ ”
and thereby applied a standard that this Court expressly
rejected in Lueck, 471 U.S. at 220. Pet. 23. See also id. at 17,
48. This characterization of the test applied below is
fallacious.4 Both the court of appeals and the district
court were meticulous in their adherence to the Section
301 preemption standards enunciated by this Court.

The court of appeals, after examining Caterpillar and
this Court’s other recent Section 301 preemption cases in
great detail (Pet. App. 6-7, 11-14), held that petitioners’

4 Petitioners support each assertion that the court of
appeals asked whether their claims were “related to” some
labor contract with a citation to the court’s opinion at Pet. App.
9. That citation is to part of a long quotation from the district
court’s decision, intended to “exemplif[y] the approach the
[district] court took” to the problematic task of defining the
claims contained in petitioners’ “prolix and vague” complaint.
Id. at 8. The cited quotation plays no operative role in the court
of appeals’ decision. Moreover, the district court was not
applying a mere relationship standard at all, for the district
court continued by saying that “[i]t would be impossible to
determine whether the information provided to Plaintiffs by
Defendants was false (or insufficient) without analyzing the
terms of the various collective bargaining agreements.” Id. at 9,
quoting App., infra, 21a.

17

fraud claims were preempted because they were “sub-
stantially dependent on analysis” of the Bridge Agree-
ment and the 1979 Delco contract (id. at 15) and “so
intertwined with the terms of the collective-bargaining
agreements present in the case that they may not be
separated.” Id. at 17. The court held that petitioners’
tortious interference claims were preempted because they
“necessarily involve] an analysis of” the collective-bar-
gaining agreements between GM and the Union. Id. at 20.
These same, well settled preemption principles guided
the district court (see App., infra, 13a-17a), which prop-
erly asked as to each of petitioners’ claims the question
required by Lueck and Caterpillar: whether the claim was
“substantially dependent” upon and “inextricably inter-
twined” with the construction of the terms of the various
collective-bargaining agreements. See id. at 17a-32a.

A similar misrepresentation about the preemption
standard applied below is implicit in petitioners’
repeated but incomplete quotation of the court of
appeals’ statement that it “is immaterial” that the Union's
alleged misrepresentations “took place outside the con-
text of collective bargaining.” Pet. 26, 46, quoting Pet.
App. 17. The court of appeals recognized that state claims
wholly independent of any collective-bargaining agree-
ment are not preempted (see, ¢.g., Pet. App. 13), and
emphasized in the very next sentence of its opinion that
“(t]he critical inquiry is whether a court adjudicating
[petitioners’ fraud] claim must determine rights arising
under a collective bargaining agreement.” Id. at 17.

Another equally baseless assertion is that the courts
below held that petitioners’ state law claims were pre-
empted because respondents could have raised a defense
grounded in federal labor law. Pet. 18-19, 58-59. The court
of appeals gave this argument short shrift, pointing out
that “the district court relied solely on the allegations on
the face of the complaint” in holding petitioners’ suit to
be preempted. Pet. App. 14. The court of appeals’ opinion
likewise contains no suggestion that it looked to the
nature of respondents’ defenses. On the contrary, the

OV

18

court was well aware of the rule in Caterpillar that federal
defenses do not by themselves result in preemption of a
State law claim (see ibid.), and its preemption analysis
proceeded solely in terms of the elements of the claims
presented on the face of the complaint. See, e¢.g., id. at 17
(analyzing elements of fraud under Ohio law), 20 (con-
tract claim), 25 (emotional distress claim).

Once the petition is stripped of these sorts of misrep-
resentations, it appears that petitioners’ real complaint is
simply that the court below erred in applying the stan-
dards set forth in Lueck, Caterpillar and this Court’s other
Section 301 Preemption cases to the particular factual
allegations underlying their tort claims. That argument is
wholly without merit and would not warrant review by
this Court in any event.

1. Petitioners’ Fraud Claims. Petitioners apparently
assert two categories of fraud claims. The first is based
upon allegations that prior to the ratification of the 1979
Delco contract, the Local 801 president concealed and
misrepresented the fact that the Bridge Agreement was
not a part of the new Delco contract. Pet. 52. The second
is based upon representations allegedly made by the
Union president after the 1979 Delco contract had been
ratified that petitioners retained flow rights under that
contract and would be eligible for Chevrolet jobs based
on the seniority accumulated under the Bridge Agree-
ment. Pet. 50; Compl. 7] 39-40. To make out these fraud
claims under Ohio law, petitioners would have to show
that respondents concealed or misrepresented a material
fact, that they knew of or were indifferent to the conceal-
ment or misrepresentation and acted intending that the
petitioners rely on it to their detriment, and that peti- -
tioners suffered damage as a consequence. See Pet. App.
14, 17 & Pet. 49-50, citing Cohen v. Lamko, Inc., 462 N.E.2d
407 (Ohio 1984).

The claims that the Union concealed or misrepre-
sented the effect of the 1979 Delco contract during the
ratification process would embroil a court in a series of

19

“questions relating to what the parties to a labor agree-
ment agreed, [which] must be resolved by reference to
uniform federal iaw.” Lueck, 471 U.S. at 211. To determine
if the Union concealed or misrepresented the impact of
the 1979 Delco contract on existing flow rights, a court
would initially have to determine what petitioners’ exist-
ing rights were. To do that, the court would first have to
analyze the terms of the 1976 Delco agreement, including
the Bridge Agreement. Among other things, the court
would have to consider whether petitioners retained any
rights under the Bridge Agreement after GM sold the
Frigidaire Division; the Bridge Agreement only gave peti-
tioners the right to transfer to jobs within the Frigidaire
Division. App., infra, 37a. The court would then have to
consider whether the termination of the Bridge Agree-
ment by the Frigidaire contract of February 23, 1979 had
an impact on any flow rights the Delco workers might
have retained. After interpreting the 1976 Delco and 1979
Frigidaire contracts to see what rights Delco workers had
at the time of the alleged misrepresentations, the court
would then have to interpret the 1979 Delco contract in
order to see what changes it worked. Only then could the
truth or falsity of the representations alleged by peti-
tioners be judged.

Finally, the Ohio law requirement that petitioners
show damages would necessitate inquiry into what rights
petitioners had iost in consequence of the alleged fraud.
As the court of appeals noted (Pet. App. 14-15), that
would require a court to compare petitioners’ rights
before and after ratification of the 1979 Delco contract.$ In

* This is not the sort of peripheral use of a labor contract
“to determine the proper damages” for a state law violation
that was sanctioned in Lingle, 486 U.S. at 413 n.12. This Court
had in mind in Lingle that a “collective-bargaining agreement
may *** contain information such as rate of pay and other
economic benefits that might be helpful” in fixing the amount
of damages that should be awarded. Ibid. Here, a comparison

(Continued on following page)

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20

short, an inquiry into the terms of the 1976 Delco contract
and Bridge Agreement, the 1979 Frigidaire agreement
cancelling the Bridge Agreement, and the 1979 Delco
contract would be at the very heart of adjudication of this
fraud claim.

A court adjudicating petitioners’ second fraud claim
would also have to engage in close analysis of collective-
bargaining agreements. Although the petition describes
in only vague terms the misrepresentations allegedly
made by the Union after the ratification of the 1979 Delco
contract (see Pet. 10), it is clear that each misrepresenta-
tion or concealment alleged in the complaint directly
concerns the effect of the 1979 Delco contract on peti-
tioners’ seniority-based transfer rights. The Union
allegedly “tr[ied] to keep secret the abrogation of the
Bridge Agreement” by the 1979 contract. Ibid. Its presi-
dent allegedly represented that rights acquired under the
Bridge Agreement were “being fully recognized, pre-
served and perpetuated equitably and equally as to each
[red-circled Delco worker] based on his order of Frig-
idaire seniority,” and that petitioners “had nothing to
worry about as they *** would *** Participate fully in
the Chevrolet jobs” in accordance with “the seniority
acquired and accumulated at Frigidaire” — i.e., under the
Bridge Agreement. Compl. { 40, App., infra, 56a-57a.

In order to determine if these alleged representations
were false, or if the Union concealed some material fact, a
court would have to interpret the 1979 Delco contract to
see what rights it gave petitioners. In addition, a court
would have to interpret various labor contracts simply in
order to understand what was allegedly misrepresented
by the Union. The content of the rights petitioners say

(Continued from previous page)

of different labor contracts is necessary to determine whether
petitioners suffered any damage at all as a consequence of the
Union’s alleged fraud, an essential element of a fraud claim
under Ohio law.

21

they were told they retained under the 1979 contract are
not to be found in the very general representations the
Union is supposed to have made, but in the Bridge
Agreement and the other collective-bargaining agree-
ments that established and specified the flow rights to
which those general representations referred. See Compl.
11 39-40. Then, because petitioners claim they were told
they would have rights to transfer to Chevrolet jobs based
on their Frigidaire seniority (ibid.), the court would have
to interpret the 1979 Frigidaire and Chevrolet agreements
that gave Frigidaire workers rights to recall to Chevrolet.
As if that were not enough, the requirement under Ohio
law that a fraud plaintiff prove damages would also
require the court to determine petitioners’ rights under
the agreement in effect before the 1979 Delco contract, as
a baseline against which to measure the claims that the
alleged misrepresentations and concealments harmed
petitioners.

2. Petitioners’ Tortious Interference Claims. Much of
the same close analysis of collective-bargaining agree-
ments would be essential to a resolution of petitioners’
tortious interference with contract claims. These claims
are based on the notion that the Union’s alleged represen-
tations created a contract and that respondents tortiously
interfered with petitioners’ enjoyment of rights under
that contract. Pet. 10-12, 55; Compl. {J 39-40, 74-80. Peti-
tioners blithely assert that the Bridge Agreement is irreie-
vant to a determination whether a contract was created
under Ohio law by the Union’s alleged promises. Pet.
56-57. It is clear, however, as the court of appeals recog-
nized (Pet. App. 20), that the terms of the alleged contract
must derive from the Bridge Agreement and the other
labor agreements that created and specified the flow
rights that Frigidaire and Delco workers previously
enjoyed. The promises the Union allegedly made were
that petitioners would be entitled to jobs at the new
Chevrolet plant in accordance with flow rights originally
established by, and with the seniority accumulated under
the terms of, the Bridge Agreement. Compl. {J 39-40. A

22

court adjudicating petitioners’ tortious interference
claims would thus have to analyze the Bridge Agreement
to give content to the contract said to have been created
by the Union’s representations. Then, since the entitle-
ment of those with Frigidaire seniority to jobs at Chevro-
let was dependent on the 1979 Frigidaire and Chevrolet
agreements, the court would necessarily have to interpret
those agreements as well.

Petitioners’ reliance on Caterpillar is misplaced. See
Pet. 16, 54-55. The state breach of contract claims at issue
in Caterpillar were founded on an employer’s promises of
permanent job security, made entirely separate from any
collective agreements at a time when the plaintiffs were
not even members of any bargaining unit. The terms of
the alleged contracts were clear and wholly independent
of any collective-bargaining agreements, so the state law
claims did not “rely upon the collective agreement indi-
rectly, nor * * * address the relationship between the
individual contracts and the collective agreement.” 482
U.S. at 395.

Here, petitioners assert that the Union represented
that the “seniority acquired and accumulated at Frig-
idaire” under the Bridge Agreement continued to govern
and that “accordingly” petitioners would “participate
fully in the Chevrolet jobs.” Compl. { 40, App., infra,
56a-57a. Petitioners’ claims thus “rely upon” the Bridge
Agreement — and the 1979 Frigidaire and Chevrolet col-
lective-bargaining agreements as well — to provide the
terms of the contract they allege was created, and a court
deciding petitioners’ tortious interference claims would
have to “address the relationship between the [alleged]
individual contracts” and these three labor agreements.
482 U.S. at 395.

In sum, this is not a case in which it can plausibly be
argued that state claims are in any sense independent of
collective-bargaining agreements. Interpretation of a mul-
tiplicity of labor contracts would be essential to adjudica-
tion of petitioners’ fraud and tortious interference claims,
and would give rise to exactly that disruption of the

ecreeerenene enema ee aman eee rane

23

federal regulatory scheme that this court decried in Lucas
Flour.

B. The Sixth Circuit’s Decision That Petitioners’
Fraud And Tortious Interference Claims Are
Preempted Is Not In Conflict With Decisions Of
Other Courts Of Appeals

Petitioners argue that the decision below is in conflict
with Wells v. General Motors Corp., 881 F.2d 166 (5th Cir.
1989), cert. denied, 495 U.S. 923 (1990) - a case they did >
not even cite in their court of appeals briefs. But the Sixth
Circuit here and the Fifth Circuit in Wells both applied
the preemption standards set out in this Court’s prece-
dents. Compare pp. 7-9, supra, with 881 F.2d at 172-173.
They reached different results only because they faced
very different factual circumstances.

In Wells, a collective-bargaining agreement known as
the Voluntary Termination of Employment Plan (VTEP)
provided that employees of GM’s Packard Electric plant
who agreed to resign their jobs would receive severance
pay. 881 F.2d at 168. The VTEP was totally silent as to the
future employment eligibility of workers who elected to
resign under this plan. Id. at 174. Some employees who
took advantage of the VTEP later reapplied for work at
Packard but were allegedly told that they were ineligible
for rehire. Id. at 168. These employees filed suit claiming
state law fraud and misrepresentation, alleging that a GM
representative had told them prior to their election of
VTEP benefits that they could subsequently be rehired if
new jobs were created, “although they would have to
apply like everyone else.” Ibid. The Fifth Circuit held that
“lujnder these narrow circumstances” the employees’
state claims were not preempted (id. at 175), because the
purported promise of eligibility for rehire was wholly
independent of the VTEP. Id. at 173-175.

The difference between Wells and this case is striking.
In Wells, the court of appeals held the rehire rights
claimed by plaintiffs were not even remotely connected to

_

24

a collective-bargaining agreement. On the contrary, they
were merely rights to apply for a job in the future “like
everyone else” (881 F.2d at 168) — that is, on the same
basis as any new applicant approaching GM for a job
without benefit of any collectively-bargained seniority or
other advantages. Indeed, the Fifth Circuit held that
rehire rights are not even mandatory subjects of collec-
tive-bargaining. Id. at 169-170. In consequence, the Fifth
Circuit held that plaintiffs’ state law fraud claim was “a
highly fact-bound one concerning what was said, or
promised,” by GM’s representative (id. at 173), and that
no term of the VTEP was relevant to the court’s inquiry.
Id. at 173-174.

In the present case, in contrast, a court adjudicating
petitioners’ fraud and tortious interference claims could
not avoid interpreting various collective-bargaining
agreements, as we have shown above. In particular, the
flow rights at issue in this case were solely a creature of
collective bargaining - and were mandatory subjects of
bargaining. Sce Master Slack Corp., 230 NLRB 1054, 1055
(1977), enforced, 618 F.2d 6 (6th Cir. 1980); United States
Gypsum Co., 94 NLRB 112, 114-115 (1951), modified in
other respects, 206 F.2d 410 (5th Cir. 1953), cert. denied,
347 U.S. 912 (1954). Red-circled Frigidaire and Delco
workers enjoyed seniority, transfer and bumping rights
only because these were Provided for in the Bridge
Agreement, which created those rights and gave them
precise content. Frigidaire seniority became a basis for
recall rights to the Chevrolet Division solely by virtue of
the 1979 Frigidaire and Chevrolet agreements. Petitioners
must rely on the collectively-bargained rights created by
these agreements to provide the operative terms of the
seniority and flow rights they allege they were promised
by the Union president. See Compl. 1] 39-40. In contrast
to Wells, interpretation of collective-bargaining agree-
ments is inescapable in adjudicating petitioners’ claims.

Petitioners’ fleeting assertion of other conflicts is
equally insubstantial. Pet. 26-28. Upon closer inspection,
each allegedly conflicting decision can be seen to have

- — re

25

rested on the precise role that the collective-bargaining
agreement would play in reaching a decision on the state
law claims, given the specific facts in issue. In Anderson v.
Ford Motor Co., 803 F.2d 953 (8th Cir. 1986), cert. denied,
483 U.S. 1011 (1987), for example, Ford allegedly told
plaintiffs before they were hired that they would be per-
manent employees and would not be bumped by
employees who had preferential hiring rights pursuant to
a collective-bargaining agreement. Id. at 955. Applying
the Lueck test, the court of appeals held that state law
fraud and breach of contract claims filed by the plaintiffs
after they were displaced by preferential hirees were not
preempted: the state claims were totally independent of
any collective-bargaining agreement. Id. at 956-957. The
right not to be bumped did not at all depend on a
collective-bargaining agreement. Indeed, the representa-
tions ali2ged to have created that right were “made
before the time [plaintiffs] became employees of [Ford],
that is, before the time they were even covered by the
collective bargaining agreement.” Id. at 958. See also
Berda, 881 F.2d 20 (no § 301 preemption of state claims
based on pre-employment representation that plaintiff
woul’ not be laid off, where no labor contract would
have to be interpreted to decide the claim); Fox v. Parker
Hannifin Corp., 914 F.2d 795, 801 n.5 (6th Cir. 1990) (indi-
vidual contract rights predating or created after the expi-
ration of a labor contract may give rise to viable state law
claims).

In the present case, the seniority and flow rights
allegedly represented by the Union to have survived the
1979 Delco agreement were those “acquired and accumu-
lated at Frigidaire” under the Bridge Agreement, and
which had been translated into an entitlement to Chevro-
let jobs by virtue of the 1979 Frigidaire and Chevrolet
agreements. Compl. {1 39-40. In other words, the very
source of the rights represented to exist by Local 801’s

iil

26

President was a series of collective-bargaining agree-
ments.®

Contrary to petitioners’ assertion (Pet. 26-27) the
court of appeals’ decision does not conflict with Karet-
nikova v. Trustees of Emerson College, 725 F. Supp. 73 (D.
Mass. 1989), or Paradis v. United Technologies, 672 F. Supp.
67 (D. Conn. 1987). In Karetnikova, the district court per-
mitted a state law civil rights claim to proceed where a
college had allegedly failed to grant plaintiff tenure
because of her political views. As in Lingle, plaintiff's
claim raised purely factual questions about whether the
board’s tenure decision was motivated by plaintiff’s exer-
cise of First Amendment rights and did not involve rights
under any collective-bargaining agreement. 725 F. Supp.
at 79-80. Moreover, the court held that those rights were
“at least in part” beyond the scope of collective bargain-
ing, like the rights in question in Lingle - but unlike the
seniority and flow rights at issue in this case. Id. at 81-82.

Similarly, in Paradis the district court applied the
Lueck standard to a state law fraud claim premised on an

® Petitioners also cite Hanks v. General Motors Corp., 906
F.2d 341 (8th Cir. 1990), Anderson v. United Auto Workers, 738 F.
Supp. 441 (D. Kan. 1990), and a dissenting opinion in McCor-
mick, 934 F.2d 531, as evidencing a conflict among the lower
courts in the application of Section 301 preemption standards.
Pet. 26-28. These cases do not involve fraud or tortious inter-
ference, but are primarily concerned with state law emotional
distress claims. See pp. 27-29, infra. In Milne Employees Ass'n v.
Sun Carriers, Inc., 1991 U.S. App. LEXIS 27786 (9th Cir. 1991),
also referred to by petitioners in passing (Pet. 48-49), the codrt
of appeals held that state tortious interference claims were
preempted, but that certain fraud claims were not. The deci-
sion was based on a careful analysis of plaintiffs’ allegations
and the elements of the state causes of action in light of the
Lueck test. Unlike the flow rights at issue here, the fraud claims
held not to be preempted in Milne did “not originate in or refer
to rights and duties derived from the collective bargaining
agreement” (Milne at *17).

27

allegation that an employer fired the plaintiff for prior
drug use after representing that it would not do so. The
court held that this fraud claim required no interpretation
of a labor contract provision authorizing termination for
just cause, because to succeed on the state claim the
plaintiff “need only show that [his] termination was con-
trary to what defendant promised, not that it was unjust.”
672 F. Supp. at 71. In-the instant case, what the Union
allegedly promised petitioners is the continuation of
rights created by the Bridge Agreement, and the avail-
ability to red-circled Delco workers of jobs at the Chevro-
let plant on the same terms enjoyed by red-circled
Frigidaire workers under the 1979 Frigidaire and Chevro-
let labor contracts. Moreover, the Union’s alleged repre-
sentations directly concerned the effect of yet another
coliective-bargaining agreement, the 1979 Delco contract.
In this case, unlike Paradis, interpretation of collective-
bargaining agreements would thus be central to any deci-
sion on petitioners’ state law claims.

Il. THE SIXTH CIRCUIT’S HOLDING THAT PETI-
TIONERS’ EMOTIONAL DISTRESS CLAIMS ARE
PREEMPTED WAS CORRECT AND CONSISTENT
WITH DECISIONS OF OTHER COURTS.

The fourth count of petitioners’ complaint alleged
that GM and the Union tortiously caused them emotional
distress. Compl. {J 81-83, 89, App., infra, 63a-64a. Peti-
tioners agree (Pet. 60-62) that to succeed on this cause of
action under Ohio law they would have to prove that
respondents engaged in “extreme and outrageous” con-
duct which caused them emotional distress. Pet. App. 21,
quoting Yeager v. Local Union 20, 453 N.E.2d 666, 671
(Ohio 1983).

The factual allegations upon which this count is
grounded are particularly murky. The district court,
believing it had considered “each of the possible [emo-
tional distress] claims” stated in the complaint (App.,
infra, 27a), thought petitioners were alleging that GM and

|

28

the court of appeals, and again here, petitioners suggest
in addition that the Union acted Outrageously in conceal-
ing the fact that the 1979 Delco agreement “omitted” and
“abandon[ed]” the Bridge Agreement. Pet. 9. Finally, to
confuse matters further, petitioners relied below (Br.
33-34) and in their Petition (Pet. 60) on Farmer vy. Carpen-
ters, 430 U.S. 290 (1977) - a Garmon preemption case
concerning the preemptive effect on state emotional dis-

unfair labor practice complaints. Section 301 preemption
was not even an issue in Farmer. Id. at 295 & n.5.

11 25, 27-28, 31, 35; Pet. 9. As the district court noted, the
outrageousness of that alleged conduct “simply cannot be
judged in a vacuum,” but would require the court to
“analyz[e] how the terms of the collective bargaining
agreements were changed.” App., infra, 28a. As we have
Shown, that would mean interpreting the Bridge Agree-
ment and the 1979 Frigidaire, Delco and Chevrolet con-

The court of appeals — at petitioners’ invitation (see
Br. 33-34; Pet. App. 22) - took a different approach to
determining whether petitioners’ emotional distress
Claims are preempted, analogizing the Section 30] inquiry

TR At Set i ee ane

j
5

29

to that set out in Farmer. Farmer held that because the
states have a substantial interest in protecting their citi-
zens from tortious infliction of emotional distress (430
U.S. at 304), only claims that pose “a realistic threat of
interference with the federal regulatory scheme” are pre-
empted by reason of the NLRB’s primary jurisdiction
over union discrimination complaints. Id. at 305. By
analogy to Farmer, the court of appeals acknowledged
that a properly-pleaded claim of outrageous conduct in a
case similar to this one might escape preemption. Pet.
App. 25. But because petitioners made no “specific alle-
gations of outrageous conduct,” and instead merely
alleged that GM and the Union concealed information
about the 1979 collective-bargaining agreements - “issues
central to the concerns of federal labor law” — petitioners’
claims were preempted. Pet. App. 25.

Whatever the merits of the court of appeals’ analogy
to Farmer, it is clear that the decision below does not
warrant this Court’s review. The court of appeals deter-
mined that petitioners’ claims are preempted because
they failed specifically to allege any outrageous conduct.
That is essentially a factual determination, and one as to
which petitioners cite no conflicts among the circuits or
other grounds that would warrant a grant of certiorari.
The court of appeals’ insistence that a plaintiff asserting
an emotional distress claim allege some outrageous con-
duct is a reasonable way to ensure that state claims that
would interfere with the federal regulatory scheme are
not permitted to proceed. Moreover, the court’s analysis
led to precisely the result demanded by Lueck, and for the
same ultimate reason - that in substance petitioners’
claims are about the terms of collective-bargaining agree-
ments.”

7? As the court of appeals noted (Pet. App. 21), under the law
of Ohio a claim of tortious infliction of emotional distress requires
allegations of conduct that is “extreme and outrageous.” Yeager, 453
N.E.2d at 671. Here, the court of appeals, crediting all of the

(Continued on following page)

30

CONCLUSION

The petition for a writ of certiorari should be denied.

Respectfully submitted.

Auice M. OsspurN

General Motors
Corporation

New Center One
Building

3031 West Grand
Boulevard

P.O. Box 33122

Detroit, Michigan 48232

JosepH P. BUCHANAN
Crew, Buchanan & Lowe
2580 Kettering Tower
Dayton, Ohio 45423

AprRIL 1992

STEPHEN M. SHAPIRO

James D. HoLZHAUER
Counsel of Record

Timotny S. BisHopP
Mayer, Brown & Platt
190 South LaSalle Street
Chicago, Illinois 60603
(312) 782-0600

(Continued from previous page)

well-pleaded facts in the complaint, found no “specific allega-
tions of outrageous conduct.” Pet. App. 25. Before attempting
to reconcile federal labor law with state common law govern-
ing claims of outrageous conduct, this Court should await a
case in which the elements of the state law cause of action are
actually pleaded.

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IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF OHIO
WESTERN DIVISION

JOHN J. ADKINS, et al.,

Plaintiffs, a

Vs. C-3-83-1088

GENERAL MOTORS
CORPORATION, et al.,

Defendants.

DECISION AND ENTRY SUSTAINING
MOTION OF DEFENDANTS FOR SUMMARY
JUDGMENT ON THOSE CLAIMS PREVIOUSLY

DEEMED PREEMPTED BY § 301 OF THE
LABOR MANAGEMENT RELATIONS ACT
(DOC. #43 AND DOC. #48); JUDGMENT TO BE
ENTERED IN FAVOR OF DEFENDANTS AND
AGAINST PLAINTIFFS ON SAID CLAIMS SET
FORTH IN COUNTS TWO AND THREE OF
PLAINTIFFS’ COMPLAINT AND { 25, 27, 28,
35 AND THAT PORTION OF 4 31 RELATING
TO THE CIRCULATION OF INFORMATION
SET FORTH IN COUNT FOUR OF PLAINTIFFS’
COMPLAINT; THAT PORTION OF MOTION
FOR SUMMARY JUDGMENT OF DEFENDANT
GENERAL MOTORS SEEKING TO HAVE THIS
COURT RECONSIDER ITS PRIOR RULING
(DOC. #40), REMANDING TO STATE COURT
{1 30, 33, 36 AND A PORTION OF 4 31, OVER-
RULED; { 30, 33, 36 AND A PORTION OF { 31
ORDERED REMANDED TO STATE COURT;
TERMINATION ENTRY

i iii

2a

[FILED January 24, 1990]

On August 16, 1988, this Court filed a Decision and
Entry (Doc. #40) which, inter alia, granted the Defen-
dants’ previous Motions for Reconsideration and, in so
doing, concluded that Counts Two and Three of the Plain-
tiffs’ Complaint and that portion of Count Four which
dealt with the circulation of certain information, to wit:
that set forth in {{ 25, 27, 28, 35 and a portion of { 31, are
preempted by § 301 of the Labor Management Relations
Act (“LMRA”) and, accordingly, would not be remanded
to state court. Ruling further, this Court concluded that
the Defendants’ Motions for Reconsideration were over-
ruled as they related to the remainder of Count Four of
the Plaintiffs’ Complaint ({{1 30, 33, 36 and a portion of
{ 31). This Court ruled that those portions of Count Four,
not preempted by the LMRA, would be remanded to state
court. Finally, this Court concluded that those claims
determined by this Court to be preempted by § 301 of the
LMRA (i.e., those found in Count Two, Count Three, and
that portion of Count Four related to {{ 25, 27, 28, 35 and
a portion of { 31) might possibly be barred by the six-
month statute of limitations established by § 10(b) of the
National Labor Relations Act (“NLRA”), 29 U.S.C.
§ 160(b). The Court granted Defendants 20 days from the
entry of said decision to file a properly documented
motion for summary judgment to that effect.

The Defendants have filed such a Motion for Sum-
mary Judgment seeking a judgment in their favor and
against the Plaintiffs on those claims set forth in the
Plaintiffs’ Complaint which this Court determined on
August 16, 1988, to be preempted by § 301 of the LMRA
(Count Two, Count Three and that portion of Count Four

3a

relating to {{ 25, 27, 28, 35 and a portion of { 31). (Doc.
#43 and Doc. #48). In addition, the Defendant General
Motors Corporation has sought a ruling by this Court
reconsidering that portion of its Decision of August 16,
1988, which ordered remanded to state court certain
claims set forth in {{ 30, 33, 36 and a portion of { 31, as
not preempted by § 301 of the LMRA. The moving Defen-
dant would have this Court reconsider its prior Order of
remand, retain those claims within the federal court’s
jurisdiction, pursuant to the principles of pendent juris-
diction, and, consequently, grant the moving Defendants’
Motion for Summary Judgment on the grounds that the
state law claims, previously deemed by this Court to be
not preempted by § 301, are either barred by the applica-
ble six-month statute of limitations or fail to state claims
against the moving Defendant upon which relief can be
granted.

Based upon the reasoning and citations of authority
set forth in the memoranda filed by the moving Defen-
dants in support of their Motion for Summary Judgment
on those claims set forth in the Plaintiffs’ Complaint
previously deemed by this Court to be preempted by
§ 301 of the LMRA, i.e., Count Two, Count Three, and
that portion of Count Four set forth in {J 25, 27, 28, 35
and a portion of J 31, this Court deems said motions to
be well taken and same are, therefore, sustained in their
entirety.

In ruling as aforesaid, this Court makes the follow-
ing, non-exclusive, observations:

1. Each of the claims of the Plaintiffs set forth in the
aforesaid Count Two, Count Three and the above refer-
enced paragraphs set forth in Count Four are barred by

4a

the applicable six-month statute of limitations set forth in
§ 10(b) of the NLRA, as said statute has been interpreted
by the United States Supreme Court in Del Costello v.
International Brotherhood of Teamsters, 462 U.S. 151 (1983).

2. This Court has previously held, which holding
has been affirmed by the United States Court of Appeals
for the Sixth Circuit, that Plaintiffs’ federal claims
accrued in January, 1981, and were barred by the six-
month statute of limitations found in § 10(b) of the
NLRA. Accordingly, it is axiomatic that Plaintiffs’ state
claims that this Court has held to be preempted by § 301
of the LMRA, likewise, accrued in January, 1981, and are
also barred by the aforesaid six-month statute of limita-
tions. If federal claims are barred on statute of limitations
grounds, it is nothing less than the exercise of common
sense to conclude that claims properly removable, as
preempted by federal iaw, must likewise be disposed of
on the same statute of limitations grounds.

This Court will overrule that portion of the Motion of
the Defendant General Motors Corporation seeking an
Order of the Court reconsidering that portion of its
August 16, 1988 (Doc. #40) Decision and Entry which
ordered remanded to the state court that portion of the
Plaintiffs’ Complaint which was not preempted by § 301
of the LMRA, to wit: {{ 30, 33, 36 and a portion of { 31 as
they relate to Count Four of the Plaintiffs’ Complaint.
Those paragraphs relating to Count Four of the Plaintiffs’
Complaint will be remanded to the state court.

In ruling as aforesaid, this Court makes the follow-
ing, non-exclusive, observations:

5a

1.- Since the Court has ordered the entering of sum-
mary judgment in favor of the Defendants and against
the Plaintiffs, on all aspects of the Plaintiffs’ state court
filed claims which this Court has determined are pre-
empted by § 301 of the LMRA, there are no longer federal
claims pending upon which any purely state law claims
could pend. In Mine Workers v. Gibbs, 383 U.S. 715, 726
(1966), the United States Supreme Court stated that “If
the federal claims are dismissed before trial . . . the state
claims should be dismissed as well.” While this rule does
not establish a mandatory rule to be applied inflexibly in
all cases, see Rosado v. Wyman, 397 U.S. 397, 403-405
(1970), “[t]he statement simply recognizes that in the
usual case in which all federal law claims are eliminated
before trial, the balance of factors to be considered under
the pendent jurisdiction doctrine — judicial economy, con-
venience, fairness and comity — will point toward declin-
ing to exercise jurisdiction over the remaining state law
claims.” Carnegie-Mellon University v. Cohill, 108 S. Ct.
614, 619 n.7 (1988).

2. Even were this Court to have the unfettered dis-
cretion to maintain jurisdiction over the purely state law
claims, even without any federal law claims to which
those state law claims could pend, this Court would
decline to exercise said jurisdiction believing that matters
of purely state law, particularly in the areas involved in
the Plaintiffs’ Complaint which deal with matters of state
law which are undergoing a period of rapid evolution,
must be decided by state courts.

WHEREFORE, based upon the aforesaid, this Court
grants the Motions of the Defendants (Doc. #43, Doc.
#48), seeking summary judgment in their favor and

aa es

6a

against the Plaintiffs herein on the federal claims for
relief (those state law claims deemed preempted by fed-
eral law) and, ruling further, overrules that portion of the
Motion for Summary [Judgment] of the Defendant Gen-
eral Motors, seeking an Order of the Court reconsidering
its prior decision and thus maintaining jurisdiction over
the state law claims and rendering summary judgment
thereon.

It is the Order of this Court that the Office of the
Clerk of Courts prepare a Final Judgment Entry to the
effect that:

1. Summary judgment is entered in favor of the
Defendants and against the Plaintiffs herein, on all claims
set forth by the Plaintiffs in Count Two, Count Three and
{1 25, 27, 28, 35 and the portion of { 31 relating to the
circulation of information in Count Four of Plaintiffs’
Complaint.

2. Those claims set forth in {¥ 30, 33, 36 and that
portion of { 31 relating to the denial of Plaintiffs’ right to
participate in the ratification vote, all set forth in the
fourth count of the Plaintiffs’ Complaint, having been
deemed to be not preempted by § 301 of the LMRA, are
ordered remanded to the Montgomery County Court of
Common Pleas.

3. The captioned cause is hereby ordered termi-
nated upon the docket records of the United States Dis-
trict Court for the Southern District of Ohio, Western
Division, at Dayton.

WALTER HERBERT RICE
UNITED STATES DISTRICT JUDGE

7a

John J. ADKINS, et al., Plaintiffs,
v.

GENERAL MOTORS CORPORATION,
et al., Defendants.

No. C-3-83-1088.

United States District Court,
S.D. Ohio, W.D.

Aug. 16, 1988.

DECISION AND ENTRY SUSTAINING IN PART
AND OVERRULING IN PART THE MOTIONS
OF DEFENDANT UNIONS (DOC. #21) AND
DEFENDANT GENERAL MOTORS CORP.
(DOC. #22) FOR RECONSIDERATION, AND,
ACCORDINGLY, VACATING IN PART THE
COURT’S DECISION AND ENTRY SUSTAIN-
ING IN PART, AND OVERRULING IN PART,
PLAINTIFFS’ MOTION TO REMAND (DOC.
#9); DECISION AND ENTRY VACATING IN
PART THE COURT’S DECISION AND ENTRY
SUSTAINING THE MOTION OF DEFENDANT
UNIONS FOR SUMMARY JUDGMENT (DOC.
#19); DECISION AND ENTRY OVERRULING
PLAINTIFFS’ MOTION FOR COSTS (DOC. #11)
IN ITS ENTIRETY; FURTHER PROCEDURES
ORDERED OF THE DEFENDANTS.

RICE, District Judge.

This case is before the Court on the Motions of the
Defendants (Doc. #21; Doc. #22) for Reconsideration of
the Court’s Decision and Entry sustaining in part, and
overruling in part, the Motion to Remand (Doc. #9) and
on the Motion of the Plaintiffs for Costs (Doc. #11). For
the reasons briefly set forth below, the Defendants’

8a

Motions for Reconsideration are sustained in part and
overruled in part; the Court’s Decision and Entry sustain-
ing in part, and overruling in part, Plaintiffs’ Motion to
Remand (Doc. #9) is, accordingly, vacated in part; the
Court’s Decision and Entry sustaining the Motion of
Defendant Unions for Summary Judgment (Doc. #19) is
vacated in part; and the Motion of Plaintiffs for Costs
(Doc. #11) is overruled in its entirety.

I. A PROCEDURAL BACKGROUND

An understanding of the procedural posture of this
case requires a brief summary of litigation previously
brought before this Court. In January, 1982, many of the
Plaintiffs in the instant case filed suit in this Court
against the same Defendants, namely, Defendant General
Motors Corp. (GMC), Defendant International Union of
Electrical, Radio and Machine Workers, AFL-CIO (IUE),
and Defendant Local 801. Adkins v. General Motors Corp.,
No. C-3-82-011 (S.D. Ohio Jan. 18, 1982). The Amended
Complaints therein contained two counts.! Plaintiffs’
advanced federal claims in the first count, alleging that
the IUE and Local 801 violated their duty of fair represen-
tation, and that GMC breached a contract, with respect to
the negotiation, adoption, and implementation of certain
collective bargaining agreements. Count One thus pre-
sented a “hybrid” action under § 301 of the Labor Man-
agement Relations Act (LMRA), 29 U.S.C. § 185, and a

1 a

[A] court may take judicial notice of its own record of
another case between the same parties.” Harrington v. Vandalia-
Butler Bd. of Educ., 649 F.2d 434, 441 (6th Cir. 1981).

9a

claim under § 101(a)(1) of the Labor-Management Report-
ing and Disclosure Act (LMRDA), 29 U.S.C. § 411(a)(1).
Invoking the Court’s pendent jurisdiction, Plaintiffs also
set out four state claims in Count Two of the Complaints:
tortious interference with contract; breach of contract;
infliction of mental anguish; and loss of consortium.

GMC moved to dismiss the Complaint, pursuant to
Fed.R.Civ.P. 12(b)(6), alleging that it failed to state a claim
upon which relief could be granted. This Court sustained
in part, and overruled in part, the Motion to Dismiss.
Adkins v. General Motors Corp., 556 F.Supp. 452 (S.D. Ohio
1983) (Adkins I). With respect to the federal claims, this
Court held that same were sufficiently pleaded to survive
a motion to dismiss, except that the spousal Plaintiffs had
no standing to proceed. Id. at 456. With respect to the
state claims, the Court considered two lines of defense
raised by GMC: that the claims were preempted by fed-
eral labor statutes and, in any event, did not state a cause
of action under Ohio law. Id. The Court held as follows:
(1) the tortious interference with contract claim did not
state a cause of action under Ohio law; (2) the breach of
contract claim was preempted by LMRA § 301; (3) the
infliction of mental distress claim did not state a cause of
action u.der Ohio law, at least against GMC, and (4) the
loss of consortium claim could go forward. Id. at 457-58.

Eventually, all Defendants moved for summary judg-
ment, pursuant to Fed.R.Civ.P. 56, on the grounds that,
inter alia, the federal claims were barred by the applicable
statute of limitations. On April 15, 1983, this Court issued
an opinion agreeing with Defendants’ position, holding
that the federal claims were barred by applying the six-
month statute of limitations found in § 10(b) of the

10a

National Labor Relations Act (NLRA), 29 U.S.C. § 160(b).
Adkins v. General Motors Corp., 573 F.Supp. 1188, 1201
(S.D. Ohio 1983), aff'd, 769 F.2d 330 (6th Cir. 1985) (Adkins
IT). In the same decision, this Court dismissed the pen-
dent state claims without prejudice, subject to any further
litigation Plaintiffs might wish to pursue in the state
courts. Id. at 1201-02. Shortly thereafter, the Court entered
judgment in favor of the Defendants. On July 18, 1985,
following Plaintiffs’ appeal of said judgment, the Sixth
Circuit Court of Appeals affirmed this Court’s judgment.
Adkins v. International Union of Electrical, Radio & Machine
Workers, 769 F.2d 330, 337 (6th Cir. 1985) (Adkins III).

Apparently following this Court’s suggestion, some
817 Plaintiffs (most of whom were parties to the Adkins
litigation in federal court) filed suit in Montgomery
County Common Pleas Court on September 19, 1983 (No.
83-2596). The Complaint therein is of quite similar length
and style to the Complaints filed in the federal litigation.
While the factual contentions are quite similar, the state
court Complaint does not refer to any federal statute.
Instead, the Complaint sets out, in somewhat different
form, the four state law causes of action set forth in the
Complaints filed in federal court. Defendants (the same
as those in the federal lawsuit) removed the suit (the
instant action) to this Court in timely fashion, pursuant to
28 U.S.C. § 1441, contending that this Court would have
original jurisdiction of the case under NLRA and the
LMRA (Doc. #1). Plaintiffs then moved to remand the
matter back to state court, pursuant to 28 U.S.C. § 1447
and Fed.R.Civ.P. 81(c), on the basis that the removal was
improvidently granted.

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On January 20, 1984, this Court filed a Decision and
Entry sustaining in part and overruling in part the Plain-
tiffs’ Motion to Remand (Doc. #9). See Adkins v. General
Motors Corp., 578 F.Supp. 315 (S.D. Ohio 1984) (Adkins IV).
In Adkins IV, the Court concluded that “Plaintiffs have
made assertions in their lengthy complaint (e.g., breaches
of a collective bargaining agreement, and of the duty of
fair representation) which inexorably lead to the conclu-
sion that a ‘hybrid’ § 301 action is being pleaded.” Id. at
318. The Court further concluded that certain other asser-
tions within the Complaint could give rise to an action
under LMRDA § 101(a)(1). Id. at 319. Accordingly, this
Court overruled Plaintiffs’ Motion to Remand “to the
extent that the state court complaint can be read as
advancing claims under LMRA § 301 or LMRDA § 101.”
Id. Plaintiffs’ Motion to Remand was, however, sustained
with regard to the remainder of Plaintiffs’ claims on the
theory that said claims were not preempted by § 301.
Subsequently, on March 9, 1984, Defendant IUE and
Defendant Local 801 filed a motion with this Court seek-
ing an Order granting summary judgment in their favor
upon all of Plaintiffs’ federal claims. Subsequently, this
action was stayed pending the outcome of Plaintiffs’
appeal of the Adkins II decision (Doc. #15). Following the
Sixth Circuit’s affirmation of Adkins II, in a decision filed
June 26, 1987, this Court sustained Defendant Union’s
Motion for Summary Judgment in its entirety on the
grounds that Plaintiffs’ federal claims were barred by the
six-month statute of limitations contained in 29 U.S.C.
§ 160(b), and indicated that judgment would be granted
in favor of all Defendants (including Defendant GMC)
and against the Plaintiffs on the first and second causes of

|

12a

action set forth in the Plaintiffs’ Complaint (Doc. #19). In
a letter attached to said decision, the Court noted that
while Plaintiffs’ federal claims were dismissed, the Court
had granted Defendants leave to move for reconsidera-
tion of the Court’s Decision remanding Plaintiffs’ state
claims (Doc. #20).

On July 8, 1987, Defendants filed the Motions for
Reconsideration currently before the Court (Doc. #21;
Doc. #22). In said motions, Defendants basically assert
that in light of certain recent United States Supreme
Court decisions on the issue of federal preemption under
§ 301 of the LMRA, the Court should re-examine its
Decision and Entry sustaining in part and overruling in
part Plaintiffs’ Motion to Remand. Specifically, Defen-
dants assert that Count Two of Plaintiffs’ Complaint
(which alleges misrepresentation on the part of Defen-
dants), Count Three of Plaintiffs’ Complaint (which
alleges that Defendants tortiously interfered with Plain-
tiffs’ contractual and/or business relationships), and
Count Four of Plaintiffs’ Complaint (which alleges that
Defendants negligently and/or intentionally inflicted
severe emotional distress upon Plaintiffs) are preempted
by § 301 of the LMRA, and thus, are properly removable
to this Court, and therefore, not remandable to the Mont-
gomery County Court of Common Pleas.

At this point in time, there appears to be some confu-
sion as to the status of Count Two of Plaintiffs’ Com-
plaint. Certain language within the Court’s Decision and
Entry sustaining in part and overruling in part, the Plain-
tiffs’ Motion to Remand indicates that said motion was

13a

sustained with regard to Count Two of Plaintiffs’ Com-
plaint. However, as previously noted, this Court’s Deci-
sion and Entry sustaining the Motion of Defendant
Unions for Summary Judgment (Doc. #19) indicates that
judgment will be granted in favor of all Defendants and
against the Plaintiffs on Count Two of Plaintiffs’ Com-
plaint. In order to alleviate any confusion, the Court
hereby vacates its Decision and Entry sustaining the
Motion of Defendant Unions for Summary Judgment as it
relates to Count Two of Plaintiffs’ Complaint. In this
Decision, the Court will re-examine the propriety of
removing Count Two, Count Three, and Count Four of
Plaintiffs’ Complaint from the Montgomery County Com-
mon Pleas Court.

I]. THE PROPRIETY OF REMOVAL
A. Preemption and § 301 of the LMRA

Before discussing the specific claims which Defen-
dants assert are preempted by federal law, the Court
finds it necessary to provide a brief overview of the
applicable law. The Court notes that since its original
decision on Plaintiffs’ Motion to Remand, the Supreme
Court has handed down four decisions which signifi-
cantly clarify when claims brought under state law are
preempted by federal labor-contract law.

The first in the quartet of cases analyzing the pre-
emptive effect of § 301 of the LMRA was Allis-Chalmers
Corp. v. Lueck, 471 U.S. 202, 105 S.Ct. 1904, 85 L.Ed.2d 206
(1985). In Allis-Chalmers Corp., the Supreme Court held
that “§ 301 of the Labor Management Relations Act pre-

|

l4a

empts a state-law tort action for bad-faith delay in mak-
ing disability-benefit payments due under a collective-
bargaining agreement.” Id. at 208. In so doing, the
Supreme Court noted that “[i]f the policies that animate
§ 301 are to be given their proper range . . . the pre-
emptive effect of § 301 must extend beyond suits alleging
contract violations.” Id. at 210 (emphasis added). “[Q]ues-
tions 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 to uniform federal law, whether such ques-
tions arise in the context of a suit for breach of contract or
in a suit alleging liability in tort.” Id. at 211. In determin-
ing whether a state-law claim is in fact preempted by
federal labor law, the key question which must be
answered is “whether evaluation of the tort claim is
inextricably intertwined with consideration of the terms
of the labor contract.” Id. at 213. “When resolution of a
state-law claim is substantially dependent upon analysis
of the terms of an agreement made between the parties in
a labor contract, that claim must either be treated as a
§ 301 claim, see Avco Corp. v. Aero Lodge 735, 390 U.S. 557,
88 S.Ct. 1235, 20 L.Ed.2d 126 (1968), or dismissed as
preempted by federal labor contract law.” Id. at 220. Thus,
in the case at bar, if it is impossible to consider one of
Plaintiffs’ claims, without analyzing the terms of one or
more of the collective bargaining agreements, said claim
must be treated as preempted by § 301.

The Court next dealt with the issue of preemption
under § 301 in the case of International Bhd. of Elec.
Workers v. Hechler, 481 U.S. 851, 107 S.Ct. 2161, 95 L.Ed.2d
791 (1987). In Hechler, the plaintiff, who had been injured

errr

15a

in the course of her employment, asserted that the defen-
dant union had negligentiy breached its “duty to insure
that . . . [plaintiff] ‘was provided safety in her work place
and a safe work place’ and to insure that. . . [plaintiff]
‘would not be required or allowed to take undue risks in
the performance of her duties which were not commensu-
rate with her training and experience.’ ” Id. 107 S.Ct. at
2164. Plaintiff admitted that the “nature and scope” of
said duty was dependent upon the terms of the collective
bargaining agreement between her union and her
employer. Id. In concluding that the plaintiff's negligence
claim was in fact preempted by § 301, the Supreme Court
noted that the defendant union’s tort liability could not
be determined without considering “whether the collec-
tive-bargaining agreement in fact placed an implied duty
of care on the Union... . ” Id. 107 S.Ct. at 2168. The
Supreme Court found that the plaintiff’s negligence claim
was preempted because any consideration of said claim
would have required interpretation of the collective bar-
gaining agreement and there is a “need for federal unifor-
mity in the interpretation of contract terms. ... ” Id.

The Supreme Court once again dealt with the pre-
emptive force of § 301 in the case of Caterpillar, Inc. v.
Williams, 482 U.S. 386, 107 S.Ct. 2425, 96 L.Ed.2d 318
(1987). In Caterpillar, the Supreme Court concluded that
as the plaintiff-employees’ claims of breach of contract
were founded upon an independent agreement, no inter-
pretation of the collective bargaining agreement was
required, and thus, said claims were not preempted by
§ 301. Id. 107 S.Ct. at 2431. Although the Supreme Court
found there to be no preemption in Caterpillar, it once
again emphasized that “[s]ection 301 governs claims

16a

founded directly on rights created by collective-bargain-
ing agreements, and also claims ‘substantially dependent
on analysis of a collective-bargaining agreement.’” Id.
(quoting Electrical Workers v. Hechler, 481 U.S. 851, 107
S.Ct. 2161, 2166-67, n. 3, 95 L.Ed.2d 791 (1987)).

Finally, the Court once again examined the issue of
preemption under § 301 in the recent case of Lingle v.
Norge Division of Magic Chef, Inc., __ U.S. __, 108 S.Ct.
1877, 100 L.Ed.2d 410 (1988). In Lingle, the Supreme Court
found that the plaintiff’s state law claim for retaliatory
discharge was not preempted by § 301, despite the fact
that the plaintiff’s collective bargaining agreement also
provided plaintiff with a contractual remedy for wrong-
ful discharge. The Supreme Court concluded that the
plaintiff’s state-law claim was “ ‘independent’ of the col-
lective-bargaining agreement in the sense of ‘indepen-
dent’ that matters for section 301 pre-emption purposes:
resolution of the state-law claim . . . [did] not require
construing the collective-bargaining agreement.” Id. 108
S.Ct. at 1882. In other words, the Supreme Court con-
cluded that the state claim did not turn “on the inter-
pretation of a collective bargaining agreement for its
application.” Id. 108 S.Ct. at 1882 n. 7. Basically, the Court
concluded that even in the absence of a collective bar-
gaining agreement, the Plaintiff would have had the same
right to be free from wrongful discharge. Resolution of
the state-law claim simply did not require any interpreta-
tion of the collective bargaining agreement.

Based upon all of the foregoing, the Court concludes
that in the case at bar, it cannot simply rely upon the fact
that Plaintiff’s claims are couched in terms of state-law
violations. The Court takes special note of the fact that

OO

i
{

17a

the above-discussed cases indicate that there are two sepa-
rate and distinct bases for preemption. First, state claims
involving rights which arise from a labor agreement are
preempted by § 301. Caterpillar, 107 S.Ct. at 2431. Second,
state claims which are “substantially dependent upon
analysis of the terms of an agreement made between the
parties in a labor contract” are preempted by § 301
regardless of whether or not said claims involve rights
which arise from the agreement. Allis-Chalmers Corp., 471
U.S. at 220, 105 S.Ct. at 1916. The evaluation of both types
of claim “is inextricably intertwined with consideration
of the terms of the labor contract.” Id. at 213, 105 S.Ct. at
1912. Thus, in the case at bar, the Court must carefully
consider whether any or all of Plaintiff’s state law claims
arise from and/or require the interpretation of any of the
various collective bargaining agreements.

B. Count Two: Misrepresentation

In Count Two of their Complaint, Plaintiffs assert
that certain “acts, omissions, and conduct of the Defen-
dants, jointly and severally were “wrongfully motivated
misrepresentations of fact to thePlaintiffs, both construc-
tively and actually, and were the result of the intentional
and/or negligent conduct of the Defendants.” (Doc. #1,
Complaint, at { 49). For the reasons briefly set forth
below, the Court concludes that the evaluation of Count
Two “is inextricably intertwined with consideration of
the terms of the” collective bargaining agreements, and
thus, is preempted by § 301. Allis-Chalmers Corp., 471 U:S.
at 213, 105 S.Ct. at 1912.

18a

Under Ohio law, the following elements are required
in order to establish fraud:

“(a) a representation or, where there is a
duty to disclose, concealment of a fact,

“(b) which is material to the transaction at
hand,

“(c) made falsely, with knowledge of its
falsity, or with such utter disregard and reck-
lessness as to whether it is true or false that
knowledge may be inferred,

“(d) with intent of misleading another into
relying upon it,

“(e) justifiable reliance upon the represen-
tation or concealment, and

“(f) a resulting injury proximately caused
by the reliance.”

Cohen v. Lamko, Inc., 10 Ohio St.3d 167, 462 N.E.2d 407,
409-(1984) (quoting Friedland v. Lipman, 68 Ohio App.2d
255, 429 N.E.2d 456 (Ct.App.1980) (syllabus, { 1)). As
virtually every fraudulent representation allegedly made
by Defendants relates in one way or another to the terms
of the various collective bargaining agreements, this
Court must conclude that consideration of Plaintiffs’
claim of fraudulent misrepresentation is “substantially
dependent” upon the terms of said agreements.”

2 Paragraph 15 of Plaintiffs’ Complaint states: The claimed
breaches as well as the tortious interference with plaintiffs’
rights, contracts and employment, the intentional and negli-
gent infliction of emotional distress upon the plaintiffs, fraul
[sic] and deceit, involve and concern said defendants wrongful
conduct in:

(Continued on following page)

19a

As noted in Plaintiffs’ Memorandum in Opposition to
Motion for Reconsideration, “Plaintiffs essentially claim

(Continued from previous page)

(a) the implementation and enforcement of those
agreements contained in a booklet entitled “Local
Agreement between Frigidaire Division, General
Motors Corporation and Local 801, International
Union of Electrical, Radio & Machine Workers, AFL-
CIO-CLC, December 10, 1976” including without
limitation the “Bridge Agreement” dated December
10, 1976 contained at pages 46-52 of said booklet;

(b) the implementation and enforcement of the
National Agreement of December 10, 1976;

(c) the negotiation, manner of adoption, adoption,
implementation and enforcement of “Special Mem-
oOrandum of Agreement Between General Motors
Corporation and the International Union of Electri-
cal, Radio & Machine Workers, AFL-CIO-CLC and its
i Local 801” dated February 23, 1979;

(d) the negotiation, manner of adoption, adoption,
implementation and enforcement of that “Memoran-
dum of Agreement” between GM and IUE and 801,
dated February 23, 1979, which in part provides that
all employees who become laid off from Frigidaire
“will have the same layoff status as if they had been
laid off from Delco Air Conditioning Division
except,” etc.;

(e) the implementation and enforcement of the
: National Agreement of September 18, 1979:

(f) the negotiation, manner of adoption, adoption,
implementation and enforcement of those agree-
ments contained in a booklet entitled “Local Agree-
ment between Chevrolet-Moraine Engine Plart,

(Continued on following page)

20a

that the negligent or intentional misrepresentations of
each defendant induced Plaintiffs to enter the 1979 collec-
tive bargaining agreements.” (Doc. #32, at 12). “Plaintiffs’
claim that the Unions misrepresented GM’s position in
1979 contract negotiations and thereby induced them to
enter into the agreements.” (Doc. #32, at 13). Plaintiffs
specifically assert that “GM, IVE and 801 concerted pre-
sented, urged and proposed . . . [the] agreements and
modifications [of February 23, 1979] in a manner
designed to insure their adoption through the permitted
withholding of information necessary to meaningfully
inform the 2,000 that their ‘bridge agreement’ rights
would be impaired by an affirmative ratification.” (Doc.

(Continued from previous page)

Chevrolet Motor Division, General Motors Corpora-
tion and Local 801, International Union of Electrical,
Radio & Machine Workers, AFL-CIO-CLC, October
1, 1979,” including without limitation the “Mem-
orandum of Agreement” dated September 18, 1979
contained at pages 40-44 of said booklet; and

(g) the negotiation, manner of adoption, adoption,
implementation and. enforcement of those agree-
ments contained in a booklet entitled “Local Agree-
ment between Chevrolet-Moraine Assembly Plant,
Chevrolet Motor Division, General Motors Corpora-
tion and Local 801, International Union of Electrica
[sic], Radio & Machine Workers, AFL-CIO-CLC,
October 1, 1979,” including without limitation the
“Memorandum of Agreement” dated September 18,
1979 contained at pages 42-46 of said booklet.

(Doc. #1, Complaint, at { 15). This statement alone indicates
that there is at least some link between Plaintiffs’ claims of
fraudulent misrepresentation and the various collective bar-
gaining agreements.

} .
|
ome ee TT TN

21a

#1, Complaint, at { 28). Plaintiffs further allege that “[i]n
furtherance of . . . [the] concerted plan of GM, IUE and
801 to . . . substantially confine any consideration
of . . . [the] modifications, GM, IUE and 801 concertedly
confined the scope of any circulated information regard-
ing the proposals to the explanation and discussion of
only the benefits to be derived by the persons then
employed by Frigidaire while wholly ignoring and being
totally silent with respect to any consequent converse
detriment whatsoever to the 2,000 [i-e. the plaintiffs]... .”
(Doc. #1, Complaint, at | 31). While not every claim of
fraudulent misrepresentation would be preempted by
§ 301, based upon the foregoing allegations, the Court
concludes that the Plaintiffs’ claims of fraudulent misrep-
resentation are in fact preempted by § 301.

It cannot be disputed that Plaintiffs’ claims of fraudu-
lent misrepresentation all relate to the various collective
bargaining agreements. It would be impossible to deter-
mine whether the information provided to Plaintiffs by
Defendants was false (or insufficient) without analyzing
the terms of the various collective bargaining agreements.
Basically, the Plaintiffs are asserting that they were not

informed (or were misinformed) as to the potential effects
of ratification of the Special Memorandum of Under-
standing of February 23, 1979 and certain other agree-
ments reached on February 23, 1979. The evaluation of
whether or not Defendants’ representations (and/or con-
cealments) were false “is inextricably intertwined with
consideration of the terms of the labor contract[s].” Allis-
Chalmers Corp., 471 U.S. at 213, 105 S.Ct. at 1912. See
generally Brown v. Keystone Consol. Indus., Inc., 680 F.Supp.
1212, 1218 (N.D. Ill. 1988).

ital

22a

Based upon the foregoing, the Court concludes that
Plaintiffs’ claims of fraudulent misrepresentation are pre-
empted by § 301 of the LMRA. Accordingly, the Court
concludes that Defendants’ Motions for Reconsideration
must be sustained as they relate to Count Two, and thus,
that Plaintiffs’ claims of fraudulent misrepresentation
shall not be remanded to the Montgomery County Court
of Common Pleas.

C. Count Three: Tortious Interference With Contract or
Business Relationship

In Count Three of their Complaint, Plaintiffs assert
that Defendants tortiously interfered with certain con-
tractual and/or business relationships. For the reasons
briefly set forth below, the Court concludes that the claim
of tortious interference set forth in Count Three of Plain-
tiffs’ Complaint is preempted by § 301 of the LMRA.

The Sixth Circuit has concluded that under Ohio law
a claim for tortious interference arises when “one who,
without a privilege to do so, induces or otherwise pur-
posely causes a third party not to enter into, or continue,
a business relationship with another, or perform a con-
tract with another. ...” Heheman v. E.W. Scripps Co., 661
F.2d 1115, 1127 (1981) (quoting Juhasz v. Quik Shops, Inc.,
55 Ohio App.2d 51, 379 N.E.2d 235, 238 (1977)), reh’g
denied, 668 F.2d 878 (6th Cir.), cert. denied, 456 U.S. 991,
102 S.Ct. 2272, 73 L.Ed.2d 1286 (1982). In Count Three of
their Complaint, Plaintiffs assert that “[a]s a proximate
result of the conduct of the defendant IUE, the defendant
Local 801 breached its duties and agreements with the
plaintiffs.” (Doc. #1, Complaint, at { 75). Plaintiffs further

|

23a

assert that “[a]s a proximate result of the conduct of the
defendant unions, the defendant General Motors did
breach its expressed and implied agreements with the
plaintiffs.” (Doc. #1, Complaint, at { 77). Finally, Plain-
tiffs assert that “[a]s a proximate result of the conduct of
the defendant General Motors, the defendant unions did
breach their contracts, fiduciary duties and business rela-
tionships with said plaintiffs.” (Doc. #1, Complaint, at |
79). The Court will consider each of these allegations
seriatim.

Plaintiffs first assert that in order to improve its
political position, Defendant IUE intentionally caused
Defendant Local 801 to breach its fiduciary obligation to
Plaintiffs. Basically, Plaintiffs assert that interpretation of
the terms of the various collective bargaining agreements
is not necessary to the determination of whether Defen-
dant Local 801 breached duties owed to Plaintiffs under
the Union Constitution or Charter. The Court cannot
agree with said assertion. Even assuming arguendo, that
Defendant Local 801’s duty of fair representation does
arise under an agreement other than the various collec-
tive bargaining agreements, the alleged breach of said
duty is “inextricably intertwined with consideration of
the terms of the [various] labor contract[s].” Allis-
Chalmers Corp., 471 U.S. at 213, 105 S.Ct. at 1912. Defen-
dant Local 801 allegedly breached its fiduciary relation-
ship by promoting changes in Plaintiffs’ collective
bargaining agreements which were allegedly detrimental
to Plaintiffs and by allegedly concealing the fact that said
changes were in fact detrimental. An analysis of whether
or not Defendant Local 801 breached its duty of fair
representation requires an analysis of the terms of the

24a

collective bargaining agreements. Without such an anal-
ysis, it would be impossible to determine the impact of
Defendant Local 801’s actions upon the Plaintiffs. Accord-
ingly, the Court concludes that Plaintiffs’ claim that
Defendant IVE tortiously interfered with the business
and/or contractual relationship between Defendant Local
801 and Plaintiffs is preempted by § 301 of the LMRA.

Plaintiffs next assert that Defendant IUE and Defen-
dant Local 801 intentionally caused Defendant GM to
breach its duties to Plaintiffs, including those under
“implied agreements” between Defendant GM and Plain-
tiffs. The Court concludes that Plaintiffs’ assertion is
without merit as there is no relationship between Defen-
dant GM and Plaintiffs separate and apart from that
created by the collective bargaining agreement. Plaintiffs’
business relationship with Defendant GM is governed by
the collective bargaining agreements. Even assuming
arguendo, that Plaintiffs do possess some “implied” rights,
said rights could only have arisen from the employment
relationship, and said relationship arises from the various
collective bargaining agreements.* Further, it must be
remembered that Plaintiffs’ chief complaint is that GM
modified the terms of the collective bargaining agree-
ments. Even assuming, arguendo, that some implied

3 The Court notes that this is not a situation in which the
Plaintiffs assert that a duty created by statute has been
breached. In situations in which a duty is created by statute as
well as by contract, it is not necessary to refer to the contract in
order to determine whether said duty has been breached. See
Lingle v. Norge Division of Magic Chef, Inc., __ U.S. __, 108
S.Ct. 1877, 100 L.Ed.2d 410 (1988).

25a

agreement, separate and apart from the collective bar-
gaining agreements, existed between Plaintiffs and
Defendant GM, it would be impossible to determine
whether said agreement was breached by the modifica-
tion of the terms of the collective bargaining agreements
without analyzing and interpreting the terms of the col-
lective bargaining agreements. Based upon the foregoing,
the Court concludes that Plaintiffs’ claim that Defendant
Unions tortiously interfered with the contractual and/or
business relationship of Plaintiffs and Defendant GM “is
inextricably intertwined with consideration of the terms
of the [various] labor contract[s].” Allis-Chalmers Corp.,
471 U.S. at 213, 105 S.Ct. at 1912. Accordingly, the Court
concludes that said claims are in fact preempted by § 301
of the LMRA, and thus, said claims shall not be remanded
to state court.

Finally, the Plaintiffs assert that Defendant GM inten-
tionally caused Defendant IUE and Defendant Local 801
to breach their duties to Plaintiffs, including “fiduciary
duties and business relationships.” Once again, the Plain-
tiffs argue that the Defendant Unions’ duty to represent
Plaintiffs fairly arises out of agreements other than the
collective bargaining agreement. Even assuming arguendo
that said argument is correct and that Defendant Unions
do owe Plaintiffs duties which do not arise under the
various collective bargaining agreements, the Court con-
cludes that Plaintiffs’ claims of tortious interference are

“substantially dependent upon analysis of the terms” of
the various labor contracts. Id. at 220, 105 S.Ct. at 1916.
Plaintiffs basically assert that the Defendant Unions’
actions in promoting the modification of the collective
bargaining agreements breached Defendant Unions’ duty

26a

of fair representation. The propriety of Defendants’
actions simply cannot be determined in the absence of an
analysis of the terms of the collective bargaining agree-
ments before and after the modification of February 23,
1979. Based upon the foregoing, the Court concludes that
Plaintiffs’ claims that Defendant GM tortiously interfered
with the contractual and/or business relationship of
Plaintiffs and Defendant Unions are “inextricably inter-
twined with consideration of the terms of the [various]
labor contract[s].” Id. at 213, 105 S.Ct. at 1912. Accord-
ingly, the Court concludes that said claims are preempted
by § 301 of the LMRA.

Based upon all of the foregoing, the Court concludes
that Defendants’ Motions for Reconsideration must be
sustained as they relate to Plaintiffs’ claims under Count
Three of Plaintiffs’ Complaint, and thus, said claims shall
not be remanded to the Montgomery County Court of
Common Pleas.

D. Count Four: Negligent or Intentional Infliction of
Emotional Distress

In Count Four of their Complaint, Plaintiffs assert
that “the conduct of the defendants, jointly and severally,
was negligent and/or intentional and/or reckless and
proximately caused severe emotional distress to the
plaintiffs.” (Doc. #1, Complaint, at { 89). For the reasons
briefly set forth below, the Court concludes that Plain-
tiffs’ claims of intentional and/or negligent infliction of
emotional distress are partially preempted by § 301 of the
LMRA.

27a

Under Ohio law, “[o]ne who by extreme and outra-
geous conduct intentionally or recklessly causes severe
emotional distress to another is subject to liability for
such emotional distress, and if bodily harm to the other
results from it, for such bodily harm.” Yeager v. Local
Union 20, 6 Ohio St.3d 369, 453 N.E.2d 666, 671 (1983)
(quoting Restatement (Second) of Torts § 46(1)(1965)). The
Ohio courts further recognize that “[a] cause of action
may be stated for the negligent infliction of serious emo-
tional distress.” Paugh v. Hanks, 6 Ohio St.3d 72, 451
N.E.2d 759, 761 (1983) (syllabus). In the interest of clarity,
the Court will address each of the possible claims of
negligent and/or intentional infliction of emotional dis-
tress set forth in Plaintiffs’ Complaint individually.4

In { 25 of their Complaint, Plaintiffs assert that
Defendant GM, Defendant IUE and Defendant Local 801
“proposed modifications of the Local Seniority Agree-
ment of Dec. 10, 1976 and of the Bridge Agreement of
December 10, 1976, together with the urging that the
same be adopted.” If the Plaintiffs are claiming that in
proposing this modification, Defendants caused Plain-
tiffs’ emotional distress, the Court concludes that said
claim is preempted by § 301 of the LMRA. Such a claim is
“inextricably intertwined with consideration of the terms
of the [various] labor contract[s].” Allis-Chalmers Corp.,
471 U.S. at 213, 105 S.Ct. at 1912. It would be impossible

‘ The Court notes that it expresses no opinion as to
whether Plaintiffs’ assertions state a claim upon which relief
can be granted under Ohio law. Instead, the Court seeks to
determine whether or not Plaintiffs’ claims of negligent and/or
intentional infliction of emotional distress are preempted by
§ 301.

28a

to determine whether the Defendants’ conduct was outra-
geous and/or whether Defendants’ actions inflicted emo-
tional distress without considering the terms of the
existing collective bargaining agreements and the pro-
posed changes to said agreements.

In { 27 of their Complaint, Plaintiffs assert that “[i]n
working out and urging the agreements and modifica-
tions proposed on February 22, 1979, GM, IUE and 801
withheld from their course of decision-making any good
faith consideration and weighing of the rights, interests,
and job security considerations of and as to any
of ... [the Plaintiffs], and the . . . rational expectation
of ... [the Plaintiffs]. ...” If the Plaintiffs are claiming
that the Defendants’ failure to consider the rights of
Plaintiffs caused Plaintiffs emotional distress, the Court
concludes that said claim is preempted by Section 301 of
the LMRA for said claim is “inextricably intertwined with
consideration of the terms of the [various] labor con-
tract[s].” Id. at 213, 105 S.Ct. at 1912. Defendants’ conduct
simply cannot be judged in a vacuum. The emotional
impact of Defendants’ actions cannot be gauged without
analyzing how the terms of the collective bargaining
agreements were changed by the modification.

In { 28 of their Complaint, Plaintiffs assert that the
Defendants “concertedly presented, urged and pro-
posed .. . [the] agreements and modifications in a man-
ner designed to insure their adoption through the
permitted withholding of information necessary to mean-
ingfully inform the . . . [plaintiffs] that their ‘bridge
agreement’ rights would be impaired by an affirmative
ratification.” If the Plaintiffs are claiming that this alleged

29a

withholding of information by Defendants caused Plain-
tiffs emotional distress, the Court concludes that said
claim must be preempted by § 301 of the LMRA as the
evaluation of such a claim “is extricably intertwined with
consideration of the terms of the [various] labor con-
tract[s].” Id. It would be impossible to determine what
information should have been provided by Defendants
without considering the terms of the existing collective
bargaining agreements and the Proposed changes to said
agreements.

In { 30 of their Complaint, Plaintiffs assert that
“[p]ursuant to the concerted plan of... [Defendants] to
substantially confine any consideration of the .. . modi-
fications . . . [to those working at Frigidaire] circulation of
the February 21, 1979 issue of ‘801 News,’ . . . was
extensively made and accomplished among .. . [those
working at Frigidaire] but not among . . . [the plain-
tiffs]. . . . [and that] such other written notification as
occurred to give notice of the special membership meet-
ing and voting . . . was substantially confined
to. . . [those working at Frigidaire].” If the Plaintiffs are
claiming that Defendants’ alleged conduct in concealing
the fact that a vote was to be held caused the Plaintiffs
emotional distress, the Court concludes that said claim is
not preempted by § 301 of the LMRA. Regardless of
whether the proposed changes to the collective bargain-
ing agreements would have a major or minor effect upon
Plaintiffs, it could be argued that Defendants’ alleged
conduct in denying Plaintiffs the right to participate in
decision making caused Plaintiffs emotional distress.

In { 31 of their Complaint, Plaintiffs allege
that Defendants circulated information concerning the

30a

benefits of modification to Frigidaire employees but
failed to circulate information concerning the potential
detriments to Plaintiffs. If Plaintiffs are claiming that
Defendants caused Plaintiffs emotional distress by failing
to provide said information, the Court concludes that
Plaintiff’s claim is preempted by § 301 of the LMRA as it
is “inextricably intertwined with consideration of the
terms of the [various] labor contract([s].” Id. Once again, it
is important to note that it is impossible to determine
what information the Defendants should have provided
without interpreting the terms of the then-existing coop-
erative bargaining agreements and the proposed changes
to said agreements.

Paragraph 31 of Plaintiffs’ Complaint also contains
Plaintiffs’ assertion that in order to enhance the proba-
bility that Plaintiffs would not participate in the ratifica-
tion vote and to “diminish any comprehensive
consideration” of the proposed changes, Defendants
“inordinately curtailed the time lapse between the con-
clusion of their negotiations . . . and a ratification... .” If
the Plaintiffs are claiming that the Defendants alleged
conduct in denying Plaintiffs the right to participate in
the ratification decision caused Plaintiffs emotional dis-
tress, the Court concludes that said claim is not pre-
empted by § 301 of the LMRA. Once again, an analysis of
the terms of the collective bargaining agreements and the
proposed changes to said agreements is unnecessary to a
determination as to whether Defendants’ conduct could
have caused Plaintiffs emotional distress.

In { 33 of their Complaint, Plaintiffs assert that Plain-
tiffs were “effectively foreclosed and disenfranchised
from any opportunity to persuasively urge their interests

ia linia

3la

and concerns, from any meaningful participation in either
the consideration or vote upon . .. [the] proposed agree-
ments and modifications. ...” Once again, if the Plain-
tiffs are claiming that Defendants’ conduct in denying
them the right to attend the ratification meeting caused
Plaintiffs emotional distress, the Court concludes that
said claim is not preempted by § 301.

In { 35 of their Complaint, Plaintiffs assert that the
Defendants caused the submission for approval of the
Memorandum of Agreement of September 18, 1979. If the
Plaintiffs are claiming that the fact that Defendants pro-
posed a modification of the collective bargaining agree-
ment (and/or the fact that said Proposal was adopted)
caused Plaintiffs emotional distress, the Court concludes
that said claim is preempted by § 301 of the LMRA for the
evaluation of said claim “is inextricably intertwined with
consideration of the terms of the [various] labor con-
tract[s].” Id. It would be impossible to determine whether
this change could in fact cause Plaintiffs’ emotional dis-
tress without interpreting the terms of the collective bar-
gaining agreements as they existed prior to the change
and following the change.

In { 36 of their Complaint, Plaintiffs assert that the
ratification vote of September 18, 1979, took place “with-
out any notification, access or opportunity having been
afforded to any of [the Plaintiffs] . . . to meaningfully
participate either in the consideration of such submission
for approval or the vote conducted thereon.” If the Plain-
tiffs are claiming that Defendants caused Plaintiffs’ emo-
tional distress by denying Plaintiffs the right to fully
participate in decision making, the Court concludes that
Plaintiffs’ claim is not preempted by § 301 of the LMRA.

32a

This claim would not require the interpretation of the
various collective bargaining agreements.

In conclusion, there is a distinction between claims
asserting that the terms of a modification or the failure of
a company or Union to adequately disclose the terms of a
proposed modification caused a worker emotional dis-
tress, and the claim that the failure to allow a worker to
participate in decision making caused said worker emo-
tional distress. The former claims simply cannot be
analyzed without interpreting the terms of the existing
and proposed collective bargaining agreements; same are,
therefore, preempted by § 301 of the LMRA. The latter
type of claim is not dependent upon an interpretation of
the terms of the existing and proposed collective bargain-
ing agreement; same are, therefore, not so pre-empted.
Regardless of whether the impact of a particular vote is
large or small, the fact that one is deliberately excluded
from participating in said vote could be distressing and
constitute emotional distress.

Based upon the foregoing, the Court concludes that
11 25, 27, 28, 35, and that portion of { 31 relating to the
circulation of information contain claims which are “inex-
tricably intertwined with consideration of the terms of
the [various] labor contract[s]”, and thus are preempted
by § 301 of the LMRA. Said claims will not be remanded
to state court. The Court concludes that the remainder of
the claims for negligent and/or intentional infliction of
emotional distress contained within Plaintiffs’ Complaint
(i.e. those contained in {J 30, 33, 36 and that portion of J
31 relating to the denial of Plaintiffs’ right to participate
in the ratification vote) are not preempted by § 301 and,
accordingly, will be remanded to state court.

——@«o“aVsee~---,sti‘itst:””””

YT

33a

Accordingly, the Court concludes that Defendants’
Motions for Reconsideration must be Sustained in part
and overruled in part as they relate to Count Four. Those
claims contained in 11 25, 27, 28, 35, and that portion of ¥
31 relating to the circulation of information shall not be
remanded; the remainder of the claims contained in
Count Four (as set forth above) shall be remanded.

Ill. CONCLUSION

In sum, the Court has concluded that Defendants’
Motions for Reconsideration must be and hereby are sus-
tained as they relate to Count Two and Count Three of
Plaintiffs’ Complaint and as they relate to [{ 25, 27, 28,
35 and that portion of ¥ 31 relating to the circulation of
information of Count Four of Plaintiffs’ Complaint.
Counts Two and Three and that portion of Count Four
will not be remanded to state court. The Court has further
concluded that Defendants’ Motions for Reconsideration
must be and hereby are overruled as they relate to the
remainder of Count Four of Plaintiff’s Complaint ({{ 30,
33, 36 and a portion of #31). Those portions of Count IV
will be remanded to state court. In addition, the Court
has concluded that the Court’s Decision and Entry sus-
taining the Motion of Defendant Unions for Summary
Judgment (Doc. #19) must be vacated as it relates to
Count Two of Plaintiff’s Complaint.

Finally, after due consideration, the Court has con-
cluded that Plaintiffs’ Motion for Costs (Doc. #11) must
be and h

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386011_0047%3A2. Public record. Not legal advice.
