Patricia Joyce Coppage v. U.S. Postal Service

                                                            [PUBLISH]


             IN THE UNITED STATES COURT OF APPEALS

                     FOR THE ELEVENTH CIRCUIT                    FILED
                                                        U.S. COURT OF APPEALS
                                                          ELEVENTH CIRCUIT
                                                           FEBRUARY 5, 2002
                                                           THOMAS K. KAHN
                               No. 01-11147                     CLERK

                  D. C. Docket No. 00-00018 CV-WDO-7

PATRICIA JOYCE COPPAGE,

                                               Plaintiff-Appellee,

                                   versus

UNITED STATES POSTAL SERVICE,
NATIONAL RURAL LETTER CARRIERS
ASSOCIATION,

                                               Defendants-Appellants.



                Appeals from the United States District Court
                    for the Middle District of Georgia


                            (February 5, 2002)


Before EDMONDSON, DUBINA and COX, Circuit Judges.

DUBINA, Circuit Judge:
      In 1997, Patricia Coppage (“Coppage”), angered by her termination from the

United States Postal Service (“Postal Service”), filed a grievance with the National

Rural Letter Carriers’ Association (the “Union”). Although Coppage’s grievance

led to a favorable arbitration award, she later filed a second grievance regarding the

enforcement of the arbitrator’s award, which the Union and the Postal Service

settled to her dissatisfaction. Ultimately, Coppage filed a federal district court

action disputing the settlement of her second grievance. The district court granted

summary judgment in favor of Coppage on her claims that the Postal Service and

the Union breached the collective bargaining agreement and that the Union

violated its duty of fair representation. The Postal Service and the Union appeal.

We hold that Coppage’s complaint was untimely as barred by the applicable six-

month statute of limitations. Accordingly, we reverse.

                                I. BACKGROUND

      A. Facts

      In 1983, the Postal Service hired Coppage as a rural letter carrier in

Valdosta, Georgia. As an employee of the Postal Service, Coppage was a member

of a collective bargaining unit of Postal Service employees for which the Union

was the exclusive bargaining agent. Thus, Coppage turned to the Union when the

Postal Service terminated her employment.


                                           2
      In March of 1997, the Postal Service discharged Coppage for making

allegedly threatening gestures and comments. Upon her discharge, Coppage filed a

grievance with the Union, alleging that her discharge violated the collective

bargaining agreement between the Union and the Postal Service. Coppage’s

grievance proceeded to arbitration. On May 12, 1998, the arbitrator issued an

award sustaining her grievance. Specifically, the award directed the Postal Service

to reinstate Coppage immediately, expunge the removal from her records, restore

her seniority, and give her back pay with interest.1

      The Postal Service promptly reinstated Coppage. However, it refused to

pay Coppage full back pay because she failed to find other employment during the

pendency of the grievance process. The Postal Service based its decision on its

Employee and Labor Relations Manual, which the National Collective Bargaining

Agreement specifically incorporates. The Employee and Labor Relations Manual

requires an employee to mitigate damages by locating or attempting to locate other

employment before receiving back pay.2 After the Postal Service disallowed


      1
        Coppage’s back pay award excluded any earnings that she had during her
period of separation from the Postal Service.
      2
        In particular, the Postal Service’s Employee and Labor Relations Manual
governs back pay awards in the Postal Service and provides that “[b]ack pay is
allowed . . . provided the employee has made reasonable efforts to obtain other
employment, except that the employee is not required to make such efforts during the
                                          3
Coppage any back pay for the period from September 19, 1997, through May 20,

1998, she filed a second grievance with the Union in October of 1998. Coppage’s

second grievance complained that the Postal Service failed to comply with the

arbitrator’s award in at least four respects: (1) she received no interest; (2) she

received no step increase; (3) she received no pay increase that should have

resulted from the step increase; and (4) the Postal Service denied a portion of her

back pay award.3

      On July 27, 1999, the Union and the Postal Service settled Coppage’s

second grievance. The Union secured three of the four items claimed by Coppage

– interest, the step increase, and the step increase’s resulting pay increase.

However, the Union and the Postal Service agreed that the arbitrator wrongfully

awarded Coppage back pay due to her failure to mitigate damages. Coppage

received a copy of the settlement agreement on August 14, 1999, and shortly

thereafter, retained private counsel to challenge the settlement agreement.

      On August 23, 1999, Coppage’s counsel sent a letter to the Union contesting

the settlement and demanding that the Union “reopen the issues in this grievance


first 45 days of the back pay period.” [Appellant Postal Serv. Br. at Addendum.]
      3
         Coppage’s second grievance also contained a request for conversion of
certain periods of leave without pay to sick leave. The Postal Service made that
change. Thus, it became a moot issue in the grievance process.
                                           4
and vigorously process it until Ms. Coppage secures back pay for the entire period

she was deprived of employment by the Postal Service.” [R. Vol. 1, Tab 18.]

Coppage’s attorney threatened to file suit immediately if the Union failed to act.

The Union replied to the August 23, 1999, letter on August 31, 1999. In that reply,

the Union refused to proceed, claiming that it satisfied its duty of fair

representation with regard to Coppage’s second grievance. On September 17,

1999, Coppage’s attorney once again wrote the Union demanding that it fully

prosecute Coppage’s grievance and seek enforcement of the arbitrator’s award.

Coppage’s attorney also repeated his threat of immediate litigation if the Union

failed to do as requested. Through a letter dated September 22, 1999, the Union’s

counsel replied and stated, “I have your letter of September 17, 1999. You may

govern yourself accordingly.” [R. Vol. 1, Tab 18.]

      B. Procedural History

      Instead of filing suit immediately, as threatened, Coppage waited until

February 29, 2000, to file her complaint. Her complaint alleged that the Postal

Service breached the employment agreement by failing to adhere to the binding

arbitration award and that the Union ratified the Postal Service’s breach. The

complaint also alleged that the Union breached its duty of fair representation by

failing to enforce the arbitrator’s award. The Postal Service and the Union argued


                                           5
that a six-month statute of limitations barred Coppage’s complaint and that she

failed to state a claim upon which relief could be granted. On cross motions for

summary judgment, the district court granted summary judgment in favor of

Coppage on her claims against both the Postal Service and the Union. The district

court found that Coppage’s complaint was timely as the statute of limitations began

to run on September 22, 1999, when the Union replied to Coppage’s attorney’s

second letter directing that he “govern [himself] accordingly.” This timely appeal

followed.

                                    II. ISSUES

      (1) Whether the district court erred by finding that Coppage’s complaint

was timely.

      (2) Whether the district court erred by finding that the Postal Service failed

to comply with the arbitration award, and consequently, violated its collective

bargaining agreement with the Union.

      (3) Whether the district court erred by finding that the Union breached its

duty of fair representation to Coppage.

                         III. STANDARD OF REVIEW

      This court reviews a district court’s grant of summary judgment de novo,

viewing the evidence in the light most favorable to the party opposing the motion.


                                          6
Transamerica Leasing, Inc. v. Institute of London Underwriters, 267 F.3d 1303,

1307 (11th Cir. 2001).

                                 IV. DISCUSSION

      Coppage’s complaint alleges that the Postal Service breached its obligations

under the employment agreement and that the Union violated its duty of fair

representation. The Supreme Court of the United States describes such a lawsuit as

a “hybrid § 301/ fair representation claim.” DelCostello v. International

Brotherhood of Teamsters, 462 U.S. 151, 165, 103 S. Ct. 2281, 2291, 76 L. Ed. 2d

476 (1983). Coppage’s claim is a hybrid claim because it “comprises two causes

of action.” DelCostello, 462 U.S. at 164, 103 S. Ct. at 2290. The first cause of

action involved is against the employer for breach of the collective bargaining

agreement. This claim rests on section 301 of the Labor Management Relations

Act. See 29 U.S.C. § 185(a) (1994). The second claim is against the union for

breach of the union’s duty of fair representation. DelCostello, 462 U.S. at 164, 103

S. Ct. at 2290 (explaining that the union’s duty of fair representation is implied

under the National Labor Relations Act). “Yet the two claims are inextricably

interdependent.” DelCostello, 462 U.S. at 164, 103 S. Ct. at 2291 (quoting United

Parcel Serv., Inc. v. Mitchell, 451 U.S. 56, 66-67, 101 S. Ct. 1559, 1565-1566

(1981)).


                                          7
        In DelCostello, the Supreme Court adopted the six-month statute of

limitations found in section 10(b) of the National Labor Relations Act, 29 U.S.C. §

160(b), for all such hybrid cases. DelCostello, 462 U.S. at 169-171, 103 S. Ct. at

2293-2294. Thus, Coppage had six months to file her hybrid suit against the

Union and the Postal Service from “the date [she] knew or should have known of

the Union’s final action or the [Postal Service’s] final action, whichever is later.”

Adams v. United Paperworkers Int’l, 189 F.3d 1321, 1322 (11th Cir. 1999). The

“final action” is the point at which “the grievance procedure was exhausted or

otherwise [broken] down to the employee’s disadvantage.” Proudfoot v.

Seafarer’s Int’l Union, 779 F.2d 1558, 1559 (11th Cir. 1986) (citing Howard v.

Lockheed-Georgia Co., 742 F.2d 612 (11th Cir. 1984)).

      All parties involved, Coppage, the Postal Service, and the Union, agree that

Coppage’s action must have been filed within six months of the “final action” to be

timely. However, the parties disagree on when the “final action” occurred and

when Coppage knew or should have known of the “final action.” The Postal

Service and the Union argue that the “final action” occurred on July 27, 1999,

when they met and settled Coppage’s second grievance. Coppage argues that the

“final action” did not occur on July 27, 1999, because the agreement reached on

that date was not binding. The settlement agreement provided that


                                           8
      It is our understanding that the grievant has received payment on the
      interest that should have been originally included in back-pay. It is
      further understood, that the grievant has received all step increases
      that are due per the arbitration decision, and the pay increases as a
      result of said step increases. The period of back-pay that was
      disallowed was in accordance with the [Employee and Labor
      Relations Manual] is not under the jurisdiction of an arbitrator.

      If the grievant has not received any of the above, she may notify the
      State Steward within 10 days of the receipt of this decision and a
      determination will be made as to whether to re-open any issue at Step
      2. Time limits will be extended to this end.


[R. Vol. 1, Tab 18.] Coppage contends that this provision allows for the re-

opening of any issue. However, Coppage misreads the settlement agreement.

      The settlement agreement provides for the receipt of interest, a step increase,

and a pay increase, but it does not provide for back pay. The re-opening provision

applies only to those items which the settlement provided she was to “receive” –

interest, a step increase, and a pay increase. It does not apply to back pay. In

addition, the re-opening provision applies only if she did not receive the interest,

step increase, or pay increase. Because Coppage received these items, the

agreement was final. Furthermore, the settlement agreement was binding on

Coppage. The Union, acting as Coppage’s exclusive bargaining representative




                                          9
under the collective bargaining agreement,4 entered into the agreement on her

behalf. See Bowen v. United States Postal Serv., 459 U.S. 212, 226, 103 S. Ct.

588, 597, 74 L. Ed. 2d 402 (1983) (“When the union, as the exclusive agent of the

employee, waives arbitration or fails to seek review of an adverse decision, the

employer should be in substantially the same position as if the employee had had

the right to act on his own behalf and had done so. Indeed, if the employer could

not rely on the union’s decision, the grievance procedure would not provide the

‘uniform and exclusive method for [the] orderly settlement of employee

grievances,’ which the Court has recognized is essential to the national labor

policy.”) (citations omitted). Therefore, July 27, 1999, marks the final action by

the Union and the Postal Service because the settlement agreement reached on that

date exhausted the grievance process. The key inquiry then becomes when

Coppage knew, or should have known, about the Union’s decision to no longer

pursue her second grievance.

      Coppage argues that the district court correctly determined that the statute of

limitations began to run on September 22, 1999, when her attorney received the


      4
         The national collective bargaining agreement between the Postal Service and
the Union provides that the Union is the exclusive bargaining agent for all members
of its bargaining unit and that “at any step in the grievance procedure, the Union
representative shall have full authority to settle or withdraw the grievance in whole
or in part.” [R. Vol. 1, Tab 13.]
                                         10
Union’s final letter advising him to “govern yourself accordingly.” Coppage

argues that even if the district court erred in determining that the statute of

limitations began to run on September 22, 1999, her complaint was still timely

because the earliest possible notice that the Union refused to process her grievance

any further was the Union’s letter, written in reply to Coppage’s attorney’s first

letter, on August 31, 1999.

      The Union and the Postal Service, on the other hand, submit that the statute

of limitations began to run on August 14, 1999, when Coppage received a copy of

the binding grievance settlement agreement because the final action in the

grievance process occurred on July 27, 1999.5 We agree.

      In the typical hybrid suit, where the employee is attempting to overturn an

unfavorable arbitration award based on a union’s errors during the arbitration

proceeding, the claim accrues when the employee learns of the arbitrator’s

unfavorable award. Samples v. Ryder Truck Lines, Inc., 755 F.2d 881, 887 n.7


      5
         The Postal Service and the Union assert, alternatively, that at the very latest,
the statute of limitations began to run on August 23, 1999, when Coppage’s private
counsel wrote a letter to the Union threatening to sue if the Union refused to “reopen”
the back pay mitigation issue. They contend that the letter proves that Coppage was
fully aware of the provisions of the grievance settlement, including the provision
reducing her back pay, and that the grievance process had exhausted itself as
evidenced by her attorney’s demand that they “reopen” the issue. If the statute of
limitations began to run on August 23, 1999, or before, Coppage’s complaint, filed
February 29, 2000, was untimely.
                                           11
(11th Cir. 1985) (“Because questions as to the union’s breach of its duty of fair

representation usually arise in an action to overturn an unfavorable arbitration

award, knowledge of the union’s breach can normally be attributed to the

employee at the moment when he learns of the unfavorable award.”); see also

Hayes v. Reynolds Metals Co., 769 F.2d 1520, 1522-23 (11th Cir. 1985) (holding

that the grievance process came to a halt when an employee “was notified by letter

dated June 17, 1982, that the union would not take his claim to arbitration” and that

he had six months from the date that he received the letter to bring a hybrid claim);

Howard v. Lockheed-Georgia Co., 742 F.2d 612 (11th Cir. 1984) (holding that an

employee’s action accrued when the employee actually knew that

the union denied his grievance even though written notice followed later).

      Unlike the typical hybrid suit, Coppage received a favorable arbitration

award. She objects to the Union’s refusal to enforce the award as requested in her

second grievance.6 However, Coppage’s claim should accrue as in a typical


      6
         All of Coppage’s claims arise from the Union and Postal Service’s actions in
settling the second grievance. For example, Coppage’s complaint states

      [b]y agreeing without sufficient justification to her employer’s
      unilaterally imposed reduction in the back pay the Arbitrator awarded
      Plaintiff, by failing to permit Plaintiff to participate in the “settlement”
      negotiations of her grievance on the back pay, by failing to accord
      Plaintiff the opportunity to consent to the “settlement,” by dropping a
      patently valid claim without securing any relief to Plaintiff, and by
                                          12
hybrid suit involving an unfavorable arbitration award. In other words, Coppage’s

knowledge of the unfavorable settlement agreement is akin to a plaintiff’s

knowledge of an unfavorable arbitration award.

      Coppage’s claim accrued when she learned of the unfavorable settlement.

The Union did not continue to process her grievance by receiving two letters from

her counsel, reading the letters, and replying to them advising Coppage that she

had no further recourse on her claim. The settlement agreement exhausted the

grievance process. Coppage’s attorney cannot toll the statute of limitations simply

by writing letters to the Union protesting the binding final settlement of Coppage’s

grievance. Allowing an attorney to toll the statute of limitations in such a manner

would undermine the purpose of statutes of limitations, which is to require the

“prompt presentation of claims.” United States v. Kubrick, 444 U.S. 111, 117, 100

S. Ct. 352, 357, 62 L. Ed. 2d 259 (1979); see also Vadino v. A. Valey Eng’rs, 903

F.2d 253, 262-63 (3d Cir. 1990) ( “If repeated requests to a union to institute a

grievance were to perpetually toll the statute of limitations . . . the statutory time

bar would be illusory.”). Therefore, the six-month statute of limitations began to


      refusing without sufficient justification to process Plaintiff’s backpay
      grievance to arbitration, [the Union] breached the duty of fair
      representation it owed to Plaintiff.

[R. Vol. 1, Tab 1.]
                                           13
run on August 14, 1999, when Coppage received the grievance settlement

agreement. Because Coppage did not file her suit until February 29, 2000, her

complaint was untimely.7

                               V. CONCLUSION

      The six-month statute of limitations on Coppage’s hybrid action against the

Postal Service and the Union began to run on August 14, 1999, when she received

notice of the settlement agreement ending the grievance process. As a result, her

complaint filed on February 29, 2000, was time-barred. Accordingly, we reverse

the district court’s grant of summary judgment in her favor and remand this case

with directions to enter judgment in favor of the Postal Service and the Union.

      REVERSED AND REMANDED.




      7
        Because of our disposition as to the timeliness of Coppage’s complaint, we
need not address the Postal Service and Union’s remaining claims.
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