Michigan Mut. Ins. Co. v. United Steelworkers of America, 84-1095

• Decision Date: 26 August 1985
• Docket Number: No. 84-1095,84-1095
• Parties: 120 L.R.R.M. (BNA) 2925, 103 Lab.Cas. P 11,600 MICHIGAN MUTUAL INSURANCE COMPANY, Plaintiff-Appellant, v. UNITED STEELWORKERS OF AMERICA and Local 2659 of the United Steelworkers of America, Defendants-Appellees.
• Court: U.S. Court of Appeals — Sixth Circuit

Page 104

774 F.2d 104

120 L.R.R.M. (BNA) 2925, 103 Lab.Cas. P 11,600

MICHIGAN MUTUAL INSURANCE COMPANY, Plaintiff-Appellant, v. UNITED STEELWORKERS OF AMERICA and Local 2659 of the United Steelworkers of America, Defendants-Appellees.

No. 84-1095.

United States Court of Appeals Sixth Circuit.

Argued July 18, 1985.

Decided Aug. 26, 1985.

William A. Joselyn, Joselyn, Rowe, Jamieson, Grinnan, Callahan and Hayes, Sydney Rooks, argued, for plaintiff-appellant.

Kim Siegried, Allan Park, Mich., Peter O. Shinevar, argued, George H. Cohen, David M. Silberman, for defendants-appellees.

Before MARTIN and JONES, Circuit Judges, and SILER, District Judge. ^*

PER CURIAM.

The appellant, Michigan Mutual Insurance Company (Michigan Mutual), appeals from the district court's dismissal of its action for contribution from the United Steelworkers of America and its Local 2659 (jointly designated the Union). Michigan Mutual, the workers' compensation insurer of certain Union members, claimed that it had stated a common law tort action under Michigan law against the Union. Michigan Mutual alleged that the Union breached its duty, arising under a collective bargaining agreement, to provide safety services to its members. Relying on Condon v. United Steelworkers of America, 683 F.2d 590 (1st Cir.1982) the district court ruled that federal labor law had preempted a state negligence claim arising out of the Union's collective bargaining agreement with management. Therefore, on the Union's motion, the district court dismissed Michigan Mutual's complaint for failure to state a cause of action. We affirm. In Allis-Chalmers Corp. v. Lueck, --- U.S. ----, 105 S.Ct. 1904, 85 L.Ed.2d 206 (1985), the Supreme Court confirmed that federal labor law has preempted claims such as that brought by Michigan Mutual in the present case.

David Singleton and Ralph Lucas were members of the Union and employees of McLouth Steel Corporation (McLouth). During the day of August 31, 1971, Singleton and Lucas allegedly occupied an improvised shanty on the premises of the McLouth plant where they worked. While attempting to leave the shanty during what is described as a "full runner," Singleton and Lucas were severely burned and injured. Singleton died from the resulting injuries.

Singleton's estate and Lucas filed suits in Wayne County Circuit Court against Michigan Mutual as workers' compensation insurer for McLouth. They sought damage from Michigan Mutual for Singleton's wrongful death and Lucas' injuries. Shortly after a jury returned verdicts in favor of Singleton's estate and Lucas, Michigan Mutual agreed to a settlement under which it would pay a total of $1,500,000 in damages. The Union was not a party to either the suits or the settlement agreement.

On May 19, 1982, Michigan Mutual initiated this action against the Union in state court for contribution toward the settlement amount. Michigan Mutual alleged that the Union was responsible for the injuries to Singleton and Lucas because it had failed, as exclusive bargaining representative for McLouth employees, to require McLouth to remove the shanty, allegedly a known hazardous condition, from the plant. The Union removed the case to federal court, where Michigan Mutual's amended complaint advanced two independent counts.

Count One of Michigan Mutual's amended complaint invoked Michigan tort law. The complaint raised the following allegations: that the Union had agreed by virtue of its collective bargaining agreement with McLouth to perform safety services for its members; that Michigan law imposed a duty to exercise reasonable care in performing these services; that the Union breached this duty by its simple negligence; and that the Union's negligence proximately caused the injuries to Singleton and Lucas. The district court concluded that federal labor law has preempted state law actions based upon a duty which a union owes its members under a collective bargaining agreement, and, therefore, dismissed this count. Michigan Mutual subsequently voluntarily dismissed Count Two with prejudice. That count alleged that the Union had breached its duty under Sec. 301 of the Labor Management Relations Act (LMRA) to fairly represent its members. Count Two is not at issue on this appeal.

Michigan Mutual claims that it has stated a cause of action under Michigan law for the Union's negligent performance of duties it voluntarily assumed under the collective bargaining agreement with McLouth. As the basis for the existence of a duty of reasonable care in the execution of voluntarily assumed duties, the company cites 2 Restatement of Torts, 2d, Sec. 324A, and numerous cases in which the Michigan courts have followed the Restatement. This duty of reasonableness allegedly exists independent from and alongside a Union's duty of fair representation, which is breached only by arbitrary, discriminatory, or bad faith conduct. See Vaca v. Sipes, 386 U.S. 171, 87 S.Ct. 903, 17 L.Ed.2d 842 (1967); Ruzicka v. General Motors Corp., 649 F.2d 1207 (6th Cir.1981). In support of the proposition that the Union owes a duty of reasonable care Michigan Mutual relies upon three authorities: Bryant v. United Mineworkers, 467 F.2d 1 (6th Cir.1972), cert. denied, 410 U.S. 930, 93 S.Ct. 1370, 35 L.Ed.2d 592 (1973); Helton v. Hake, 386 F.Supp. 1027 (W.D.Mo.1974); Dunbar v. United Steelworkers of America, 100 Idaho 523, 602 P.2d 21 (1979), cert. denied, 446 U.S. 983, 100 S.Ct. 2963, 64 L.Ed.2d 839 (1980).

The force of Michigan Mutual's contentions was dubious in light of the holding in Condon v. United Steelworkers of America, 683 F.2d 590 (1st Cir.1982), upon which the district court relied. Those contentions have been...