Chauffeurs, Teamsters & Helpers v. Terry
Facts
McLean Trucking and the union were parties to a collective-bargaining agreement covering the respondent truckdrivers. After operational changes and layoffs, respondents filed grievances claiming McLean violated the agreement by giving laid-off inactive drivers priority over them and by undermining their special seniority rights; the union later declined to refer a third grievance to the grievance committee. Respondents then sued, alleging McLean breached the collective-bargaining agreement and the union breached its duty of fair representation. After McLean's bankruptcy, respondents dismissed the employer and all injunctive claims, leaving only claims against the union for compensatory damages consisting of lost wages and health benefits.
Issue
Does the Seventh Amendment entitle employees to a jury trial when they seek backpay and benefits from a union for an alleged breach of the duty of fair representation? More specifically, is that remaining claim against the union legal rather than equitable in nature?
Rule
To determine whether the Seventh Amendment guarantees a jury trial, a court compares the action to 18th-century actions in English courts before the merger of law and equity and examines whether the remedy sought is legal or equitable, with the remedy inquiry being more important. In a duty-of-fair-representation action where the plaintiff seeks only compensatory damages for lost wages and benefits from the union, the relief is legal, not equitable, and the plaintiff is entitled to a jury trial.
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Are the employees entitled to a jury trial on their remaining claim against the union?