Ackley v. Western Conference of Teamsters, s. 90-55438
| Decision Date | 21 February 1992 |
| Docket Number | Nos. 90-55438,90-55702,s. 90-55438 |
| Citation | 958 F.2d 1463 |
| Parties | 139 L.R.R.M. (BNA) 2529, 60 USLW 2553, 121 Lab.Cas. P 10,006 Frank ACKLEY and Steven Cole, Plaintiffs-Appellants, v. WESTERN CONFERENCE OF TEAMSTERS, et al., Defendants-Appellees. |
| Court | U.S. Court of Appeals — Ninth Circuit |
Julie Fosbinder, Tucson, Ariz., Paul Alan Levy, Public Citizen Litigation Group, Washington, D.C., for plaintiffs-appellants.
Michael J. Shelley, Robert Vogel, Wohlner, Kaplon, Phillips, Vogel, Shelley & Young, Encino, Cal., for defendants-appellees.
Appeal from the United States District Court for the Central District of California.
Before TANG, REINHARDT and WIGGINS, Circuit Judges.
The primary question presented by this case is whether the equal rights and freedom of speech guarantees of section 101(a) of the Labor-Management Reporting and Disclosure Act (LMRDA), 29 U.S.C. § 411(a) (1988), require union leaders to make a full disclosure of all of the terms and provisions of a collective bargaining agreement prior to submitting the agreement to the union membership for ratification. We hold that they do not. There is no provision in the LMRDA that requires that a labor contract be submitted to the membership for ratification. Rather, the question of contract approval constitutes an internal union affair. It is left to the union and its membership to determine whether ratification is required, and if so, what procedures apply. Ordinarily, it is the union's constitution or bylaws that govern these matters (although in rare instances a successful action for breach of the duty of fair representation might be brought). However, a failure to follow the union's internal rules, including its procedures governing contract ratifications, constitutes a violation of the union's obligations to its members, and is actionable as a breach of contract under section 301(a) of the Labor-Management Relations Act (LMRA), 29 U.S.C. § 185(a) (1988). No such breach is alleged here and no remedy is sought, under § 301(a) or otherwise, for any violation of the union's constitution or bylaws. Accordingly, we affirm the district court's grant of defendant's motion to dismiss pursuant to Fed.R.Civ.P. 41(b).
Appellants Frank Ackley and Steven Cole are Teamsters employed by Matlack Inc., a nationwide hauling company. Together with approximately 300 other Teamsters employed in Matlack's western region, they were covered by the 1988-1991 Master Tank Agreement negotiated between Matlack and appellee Western Conference of Teamsters (WCT), a subordinate organization of the International Brotherhood of Teamsters, Chauffeurs, Warehousemen, and Helpers of America, AFL-CIO. The Matlack Teamsters covered by the agreement belong to six local unions affiliated with WCT. 1 Ackley and Cole are members and shop stewards of Local Unions 692 and 315, respectively.
Prior to 1988, members of the six locals were covered by a multi-employer collective bargaining agreement between WCT and the Western States Bulk Commodity Haulers Association, of which Matlack is a member. The multi-employer agreement expired in June, 1988. In 1987, Matlack notified WCT of its intent to withdraw from the multi-employer bargaining arrangement and bargain independently with the union. Matlack subsequently filed petitions with the National Labor Relations Board (NLRB) to request that the NLRB certify three separate collective bargaining units for the upcoming negotiations. The NLRB instead determined that the local unions composed of Matlack employees would constitute a single collective bargaining unit. Negotiations with WCT and the business representatives of the six local unions commenced in or about May, 1988. To counter Matlack's attempts to break up the bargaining unit, the union negotiators agreed not to release information about proposed terms and conditions to the membership until a complete agreement was ready for ratification.
The Teamsters' constitution requires membership ratification of collective bargaining agreements negotiated by the union leadership, but does not specify the particular method to be used. Prior to 1988, on all occasions except one, ratification of agreements negotiated by WCT occurred as the result of a mail referendum. Members received written disclosure of proposed changes in the union contract approximately ten days before ballots were due. In 1982, ratification occurred at a series of open meetings held in the local unions. At the local unions' 1988 pre-negotiation meetings, the membership approved an open meeting ratification procedure for the 1988-1991 agreement. 2
On August 12, 1988, local union leaders notified the membership that ratification meetings would be held in each local union on August 14. Ackley contacted the business representative for Local Union 692 to request information about the terms of the proposed agreement, but his request was refused. The business representative for Local Union 315 read Cole a summary of the terms of the proposed agreement over the telephone, and stated in response to a question from Cole that no other changes had been made. At the ratification meetings held on August 14, union leaders read the same summary to the membership. The summary of terms included changes to the monetary terms of the collective bargaining agreement, but omitted proposed changes to other provisions of the contract. The union leaders urged the membership to reject the proposed agreement, and ratification failed by a vote of 148 to 4. Cole spoke out against ratification; Ackley was silent.
On August 17, the membership was notified of a second set of ratification meetings to take place on August 21. Both Ackley and Cole again contacted their business representatives, and both were read a summary of the provisions of the proposed agreement. Again, this summary included only changes to the monetary terms of the previous contract. At the meeting, union leaders again read the summary of terms to the membership and again recommended that the members reject the agreement. The agreement was defeated by a vote of 168 to 28. Again, Cole argued against ratification and Ackley was silent.
On August 25, the Matlack Teamsters were notified that a third set of ratification meetings would occur on August 28. When Cole and Ackley telephoned their respective business agents for information about the third proposed agreement, the agents refused to release information prior to the meetings. The day before the meetings, Ackley's agent finally agreed to let Ackley examine the agreement. Ackley spent three hours at Local 692 going over the document, but he did not bring a copy of the 1985-1988 agreement with him for purposes of comparison.
This time, unlike the first two times, the union leadership recommended that the members accept the third proposed agreement. Again, the leaders read or distributed a summary of terms that consisted entirely of monetary changes. 3 Although Ackley testified that he had spoken to a number of drivers before the meeting to indicate that he wished to delay the vote, he did not ask to address the members at the meeting or call for a delay or further discussion. Cole again argued against ratification, and his local, Local 315, voted to reject the agreement. However, the bargaining unit as a whole voted 95 to 75 in favor of ratification. According to the testimony of plaintiffs' witnesses, the new 1988-1991 agreement included a number of changes to nonmonetary provisions of the previous contract that had not been disclosed to the membership.
Ackley and Cole filed suit against WCT, Local Union 692, and Matlack under section 101 of the Labor-Management Reporting and Disclosure Act (LMRDA), 29 U.S.C. § 411, and section 301 of the Labor-Management Relations Act (LMRA), 29 U.S.C. § 185. They claimed that the union's failure to disclose material changes in the collective bargaining agreement prior to the ratification vote violated the equal voting rights and freedom of speech provisions of section 101 and breached the duty of fair representation required by section 301. They did not, however, allege that there was any breach of the union constitution or bylaws, or set forth any cause of action under section 301 based on such a breach.
Ackley and Cole initially sought rescission of the 1988-1991 agreement and an injunction regarding the conduct of future ratification votes. They later agreed to the dismissal of Matlack as a defendant and abandoned their claim for rescission in favor of a request for declaratory judgment. A two-day trial was held. At the close of plaintiffs' case, the district court granted defendants' motion to dismiss pursuant to Federal Rule of Civil Procedure 41(b). The court's order of dismissal authorized WCT to seek attorneys' fees from plaintiffs. The court later awarded defendants $16,070.40 in attorneys' fees. Ackley and Cole appeal from the district court's order of dismissal and from the supplemental order awarding attorneys' fees. The two appeals were consolidated by order of this court.
Appellees contend that because Ackley and Cole have abandoned their claim for rescission of the 1988-1991 agreement and seek only prospective relief, this case should be dismissed as moot. A case is moot when subsequent events have eradicated the effects of the alleged wrong and there is no reasonable expectation that it will recur. County of Los Angeles v. Davis, 440 U.S. 625, 631, 99 S.Ct. 1379, 1383, 59 L.Ed.2d 642 (1979); Lodge 1380, Bhd. of Ry., Airline & Steamship Clerks (BRAC) v. Dennis, 625 F.2d 819, 822 (9th Cir.1980). Appellees note that the 1988- 1991 agreement had already been in effect for nearly two years at the time of this appeal, and maintain that any need for relief in connection with future ratification proceedings is wholly speculative.
A case is not moot if the alleged wrong is " 'capable of repetition, yet...
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