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Contracts
Breach of Contract
Labor Management Relations Act

Granite Rock Co. v. Local 287 of the International Brotherhood of Teamsters, The International Brotherhood of Teamsters

Published: Aug. 25, 2007 | Result Date: May 3, 2007 | Filing Date: Jan. 1, 1900 |

Case number: 5:04-cv-02767-JW Verdict –  Contract enforceability

Court

USDC Northern


Attorneys

Plaintiff

Alan S. Levins
(Littler Mendelson PC)

Kimberly L. Owens

Garry G. Mathiason

Adam J. Peters


Defendant

Lisa W. Pau

Duane B. Beeson


Experts

Plaintiff

John Raudabaugh
(technical)

Defendant

Don Wollett
(technical)

Facts

On July 2, 2004, while the plaintiff concrete manufacturer and supplier Granite Rock Co.'s employees were on strike, it reached a tentative collective bargaining agreement with Local 287 of the International Brotherhood of Teamsters around 4 a.m. The Teamsters scheduled a meeting to consider the Teamster's agreement later that day. The meeting took place and a vote was taken. On July 6, the union resumed its strike.

Claiming economic damages, Granite Rock sued Local 287 for breach of contract under the Labor-Management Relations Act (29 U.S.C. Section 185). The International Brotherhood of Teamsters was originally included as a defendant, but was dismissed before trial.

Contentions

PLAINTIFF'S CONTENTIONS:
Granite Rock claimed the strike breached the collective bargaining agreement, which was valid and included a specific no-strike clause. Accordingly, Granite Rock claimed Local 287's strike breached the labor contract.

Granite Rock had witnesses testify that the union had voted to approve the entire contract because it was either a vote on the entire agreement or because it was a vote only on the disputed item in the tentative agreement.

DEFENDANT'S CONTENTIONS:
Local 287 claimed there was no collective bargaining agreement because the contract was not ratified at the July 2 membership meeting.

Damages

Granite Rock sought more than $20 million in damages for replacement costs, lost business and other financial losses.

Result

The jury returned a verdict for Granite Rock, finding that Local 287 had ratified the contract. Judge James Ware ordered the breach and damages phase be decided via arbitration.

Other Information

Local 287 filed a renewed motion for judgment as a matter of law and moved for a partial new trial.

Deliberation

one day

Poll

8-0

Length

eight days


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