The United States Supreme Court has ruled in favor of
Graniterock in a case against Teamsters Local 287 stemming from a
labor dispute in 2004 that the company argued had violated a
no-strike clause in a contract, according to a press release from
Graniterock. The high court’s ruling also opened the door for
Graniterock to pursue claims against the International Brotherhood
of Teamsters.
The United States Supreme Court has ruled in favor of Graniterock in a case against Teamsters Local 287 stemming from a labor dispute in 2004 that the company argued had violated a no-strike clause in a contract, according to a press release from Graniterock. The high court’s ruling also opened the door for Graniterock to pursue claims against the International Brotherhood of Teamsters.
The court voted 7-2 in upholding Graniterock’s jury verdict from 2008 finding that the agreement containing the no-strike clause had been ratified before Teamsters Local 287 went on strike. Justices also unanimously ruled in favor of Graniterock in its pursuit of claims against the International Brotherhood of Teamsters, according to the company in the statement released today.
Watsonville-based Graniterock, which has a major presence in San Benito County, had filed action against Local 287 and the International Brotherhood of Teamsters in U.S. District Court on two issues – whether the 2004 strike violated the labor contract and if the company could pursue claims against the international union.
More than 450 workers had gone on strike in June 2004. After a collective bargaining agreement was approved in early July that year, and the union agreed to return to work immediately, the Teamsters refused to let its workers come back unless the company agreed to release the union from “damage claims and unfair labor practice charges that arose during the strike,” according to Graniterock.
The district court had dismissed Graniterock’s claims against the international union, ruling the claims were preempted by federal law, according to the press statement. The no-strike action went to a jury, which ruled in favor of the company. The union then appealed to the Ninth Circuit Court of Appeal, which ruled in favor of the unions on both matters.
Graniterock’s case was among 75 chosen by the Supreme Court from about 10,000 considered for review, according to Graniterock.
