Swanigan v. Fiat Chrysler Automobiles U.S., LLC, No. 18-2303 (6th Cir. 2019)Annotate this Case
The UAW negotiates collective-bargaining agreements (CBAs) with automotive manufacturers including Fiat Chrysler (FCA). Plaintiffs claim that FCA officials bribed UAW officials to get a more company-friendly CBA. The scandal resulted in federal convictions and indictments. Plaintiffs filed a purported class action, alleging violations of Labor-Management Relations Act (LMRA) section 301, 29 U.S.C. 185. The Second Amended Complaint named individuals formerly employed by both FCA and UAW, alleges that “FCA executives and FCA employees agree[d] ... and willfully paid and delivered, money and things of value to officers and employees of the UAW,” and that plaintiffs have been unable to discover the complete extent of defendants’ collusive conduct because of the secrecy of the ongoing federal criminal investigations. The complaint refers to a “hybrid 301 claim” and raises two counts: violation of the LMRA and breach of the LMRA duty of fair representation, both of which must be properly alleged in a hybrid claim. The Sixth Circuit affirmed the dismissal of the complaint. A section 301 “hybrid claim” requires evidence of the violation of a contract or CBA and the complaint explicitly does not allege that defendants violated any CBA provision. Plaintiffs failed to allege that they exhausted internal union remedies and CBA grievance procedures and did not establish proximate cause between defendants’ alleged malfeasance and plaintiffs’ injuries.