Court rejects Company's federal lawsuit and approves sanctions
The DiPonio Construction Company became embroiled in a labor dispute after the masonry company allegedly refused to bargain with its Local. When the National Labor Relations Board was on the cusp of intervening to compel the company to bargain toward a new collective bargaining agreement (CBA), the company filed a federal lawsuit arguing that the Union had breached the CBA. After hearing the facts, the District Court ruled that the Company's claim was a frivolous mis-use of court proceedings under "Rule 11" and sanctioned the company. The Company appealed and the Union filed a cross-appeal seeking more meaningful sanctions.
The Sixth Circuit reviewed the claims of the parties and concluded that the District Court got it right all the way around.