The lawsuit, originating in June, alleged that the International Brotherhood of Teamsters and its affiliates obstructed Yellow’s restructuring efforts by demanding higher wages for workers. Yellow claimed that the union’s reluctance to endorse the restructuring plan, crucial for Yellow’s survival, led to its eventual bankruptcy filing in August.
Teamsters $137M Suit Ducked : Legal Maneuvers
The Teamsters countered, citing the NMFA’s mandate to exhaust the grievance process before resorting to litigation. Yellow, however, argued exemption due to the nature of damages sought and purported futility in pursuing the grievance.
Judge Robinson dismantled Yellow’s arguments, asserting the necessity for Yellow to have made an attempt to engage in the grievance procedure before escalating the matter to court. She pointedly remarked, “Even under the futility exception to exhaustion, there is an attempt requirement. Plaintiffs fail to allege that they even attempted to follow the NMFA’s grievance procedure.”
What Lies Ahead
While Judge Robinson dismissed the lawsuit without prejudice, denying Yellow’s request to amend its complaint, the ruling offers Yellow a chance to recalibrate its legal strategy and potentially refile the claims.
