Demetris v. Transport Workers Union of America

After American filed for Chapter 11 bankruptcy, it sought to reject and to renegotiate its collective bargaining agreements with TWU. American and TWU negotiated new agreements, including an early separation program. TWU members who took advantage of the Early Separation Program filed two putative class-actions alleging that TWU breached its duty of fair representation by excluding them from the bulk of the equity distribution. The Ninth Circuit affirmed the district court's dismissal of the consolidated actions, holding that TWU did not breach its duty of fair representation. In this case, TWU's equity distribution scheme was not arbitrary; the allegations of discrimination were implausible; and TWU did not act in bad faith. View "Demetris v. Transport Workers Union of America" on Justia Law