Bain v. General Motors Corp.

467 F.Supp.2d 721

William BAIN, Richard Skrzela, Maime Allen, Scott Anders, Wayne Anderson, Michael Andrews, Kenneth Anthony, Bertha Arrington, Donald Beck, Norma Blade, David Boight, Linda Brown, Laurie Canady, Donald Dumler, George Essy, Marilyn Flowers, Lynne Glover, Deborah Goulette, David Hamilton, Stella Harper, William Hazzard, Darlene Hodge, Lana Houston, Steve Keaton, Richard Kelly, Victoria Kilgore, Tim Knorr, Bailey Lewis, Vickie Lockrey, Christine McGuire, Terry Morrison, Patrick Murphy, Leon Pratcher, Mark Ratza, Randy Richardson, Sandra Schultz, Janette Spring, Larry Stafford, Erwin Stanley, Robin Stayton, Elton Story, Becky Switzer, Duane Switzer, Mark Sytek, Larry Szczepanik, Violet Vida, Dale Vincent, David Voight, Jacquelyn Waskoski, Roleda West, Jacque Whiting, Harland Wickam, Terrance Wilson, Plaintiffs, v. GENERAL MOTORS CORPORATION, United Automobile, Aerospace and Agricultural Implement Workers of America Local 651, Defendants.

No. 06-11086.

United States District Court, E.D. Michigan, Southern Division.

November 21, 2006.

Harold Dunne, Livonia, MI, for Plaintiffs.

Andrew M. Kramer, Meggan A. Rawlin, Jones Day, Cleveland, OH, Ellen F. Moss, Klimist, Mcknight, Southfield, MI, for Defendants.

OPINION AND ORDER GRANTING DEFENDANTS' MOTIONS TO DISMISS

LAWSON, District Judge.

The plaintiffs, all employees or former employees of defendant General Motors Corporation's "Flint East" plant and members of the United Auto Workers's Local 651 (the "Union"), filed a complaint alleging a violation of a collective bargaining agreement and breach of the Union's duty of fair representation, and they seek an adjustment of their seniority status. They all contend that actions taken by General Motors in the late 1980s and early 1990s violated the then-existing. CBA provisions dealing with accrual of seniority and priority for recall after layoff, resulting in their loss of seniority and the privileges that go along with it. The defendants each have filed a motion to dismiss contending that the claims are barred by the applicable statute of limitations. The Court heard argument on the motions on November 16, 2006. The Court now finds that the plaintiffs' claims were filed out of time, and therefore the Court will grant the motions and dismiss the action.

I.

On March 15, 2006, the plaintiffs filed their complaint in this case asserting claims for breach of contract and breach of the duty of fair representation under section 301 of the Labor Management Relations Act. 29 U.S.C. § 185. The plaintiffs also seek class certification. The plaintiffs allege that they were all hired by General Motors in 1985 and employed at General Motors's "Flint East" facility. They state that after acquiring at least one year of seniority, they were laid off in late 1986. Compl. at ¶ 11. In late 1991 and early 1992, the plaintiffs were recalled to work at, the Flint East plant. Id. at ¶ 13. For. purposes of recall to employment, General Motors considered the plaintiffs to have "lost their seniority time for time" because they Were laid off for a period of time greater than that for which they were employed. Id. at ¶ 12. The complaint states that as a result, the plaintiffs were given plant seniority dates that allocated credit only for the term of their previous employment instead of crediting the time during layoff toward seniority; that action "resulted in Plaintiffs' plant and corporate seniority dates ranging between late 1989 and early 1991." Id. at ¶ 14.

The plaintiffs further allege, and the defendants apparently agree, that the CBA affecting the plaintiffs' rights at the time of the 1986 layoff was the 1984-1987 CBA. Included in that CBA was a provision entitled "Appendix K: Memorandum of Understanding, Job Opportunity Bank—Security (Jobs) Program." Id. at ¶ 18. According to the plaintiffs, the Jobs Program applies to all employees with one or more years of seniority. Id. at ¶ 19. They contend that when layoffs occur due to "technological changes, when work is outsourced to another location, when there are negotiated productivity improvements, and when there is a transfer of work to another location," affected workers must be placed in the Jobs Bank instead of being laid off, and seniority should continue to accrue. Id. at ¶¶ 20-21.

It appears that one of the primary purposes of "plant seniority" is to ensue that employees with lesser seniority are laid off before employees with greater seniority. Id. at ¶ 15. Similarly, an important feature of "corporate seniority" relates to retirement benefits: the greater the corporate seniority, the higher the monthly benefits. Id. at ¶ 16. In addition, laid-off employees with greater seniority have preference for recall when jobs become available. The plaintiffs allege that General Motors breached the CBA when it failed to place the plaintiffs into the Jobs Bank. Had this occurred, they contend, they would have continued to acquire plant and corporate seniority. Id. at ¶ 36. The plaintiffs allege that the consequences of miscalculating their seniority dates include greater vulnerability to layoffs "today or in the foreseeable future"; General Motors was able to hire new employees at the Flint East facility during the plaintiffs' layoff period, which amounted to a violation of the preferential recall rights set forth in the CBA; and General Motors could hire individuals from other General Motors facilities as employees at the Flint East plant. Id. at ¶¶ 38-41.

The plaintiffs allege in their complaint that the CBA allows for the correction of seniority calculations at any time prior to retirement and "does not require that an employee seeking correction of his or her seniority dates file a grievance prior to seeking that correction." Id. at ¶¶ 22-23. Nonetheless, according to the allegations, the plaintiffs were aware of the dispute over their seniority several years ago, inasmuch as they allege that "[s]ince returning to work in the early 1990s Plaintiffs have been unable to resolve their claim for additional seniority credits." Id. at ¶ 31. They appear to have attempted to enlist their Union's assistance, but they contend that UAW Local 651:(1) "allowed GM to hire new hires at its Flint East facility during the time Plaintiffs were laid off; (2) "allowed GM to hire GM employees from other GM facilities prior to recalling Plaintiffs from layoff'; (3) "failed to ensure that Plaintiffs were placed into the Jobs program at the time of Plaintiffs' layoff'; (4) `Tailed to properly investigate Plaintiffs' claims for correction of their seniority status"; and (5) "failed to properly represent Plaintiffs on their claims." Id. at ¶¶ 46-50.

Eventually, the plaintiffs "did file a grievance seeking correction of their plant and corporate seniority dates," id. at ¶ 24, although the complaint does not allege exactly when that was filed. General Motors attached a copy of the grievance as a motion exhibit; it is dated July 30, 2003. The plaintiffs state that on September 8, 2005, their grievance was denied via letter signed by a representative of General Motors and the UAW, and the plaintiffs received notice of the denial eight days later. Id. at ¶¶ 25-26. Although the UAW has an internal appeal procedure, the final of step a which "includes an appeal to the Public Review Board (`PRB)," id. at ¶¶ 27-28, the plaintiffs contend that resorting to that last contract remedy would be futile.

As noted earlier, the plaintiffs filed this lawsuit for breach of contract and breach of the duty of fair representation on March 15, 2006. The plaintiffs point out that they "do not pursue any claim for lost wages or benefits . . . . Their claim is solely for additional seniority rights." Compl. at 3. On July 31, 2006, defendant General Motors Med its motion to dismiss for failure to state a claim upon which relief can be granted. The Union followed suit on August 30, 2006 with its own motion.

II.

The defendants have styled their motions as motions to dismiss under Rule 12(b) of the Federal Rules of Civil Procedure. "The purpose of Rule 12(b)(6) is to allow a defendant to test whether, as a matter of law, the plaintiff is entitled to legal relief even if everything alleged in the complaint is true." Mayer v. Mylod, 988 F.2d 635, 638 (6th Cir.1993). Therefore, when deciding a motion under that Rule, "[t]he court must construe the complaint in the light most favorable to the plaintiff, accept all factual allegations as true, and determine whether the plaintiff undoubtedly can prove no set of facts in support of his claims that would entitle him to relief." Cline v. Rogers, 87 F.3d 176, 179 (6th Cir.1996). "Like other Rule 12(b)(6) motions to dismiss, a motion to dismiss on statute of limitations grounds should be granted 'when the statement of the claim affirmatively shows that the plaintiff can prove no set of facts that would entitle him to relief.'" New England Health Care Employees Pension Fund v. Ernst & Young LLP, 336 F,3d 495, 501 (6th Cir.2003) (quoting Ott v. Midland-Ross Corp., 523 F.2d 1367, 1369 (6th Cir. 1975)); see also Berry v. Chrysler Corp., 150 F.2d 1002, 1003 (6th Cir.1945) (stating that "[t]he defense of the statute of limitations is covered by [Rule 12(b)] (6), and therefore is properly raised by motion").

The Union suggests in its motion that the Court may consider its request to dismiss under Rule 56, and it has attached an affidavit attesting to certain facts relating to the grievance process. All parties have made reference to the CBA, and the plaintiffs refer directly to the CBA in their complaint. Although it is generally improper to consider matters outside of the pleadings on a motion to dismiss, that rule, does not apply to documents referenced by the pleadings themselves that are central to the plaintiffs claim. Greenberg v. Life Ins. Co. of Va., 177 F.3d 507, 514 (6th Cir.1999). In such cases, " the defendant may submit an authentic copy [of the referenced document] to ...