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CUBAS v. RAPID AMERICAN CORP.

August 21, 1976

ROSE MARY CUBAS
v.
RAPID AMERICAN CORP., INC. and THE AMALGAMATED CLOTHING WORKERS OF AMERICA; PHILADELPHIA CHAPTER: Local 139, Amalgamated Clothing Workers of America



The opinion of the court was delivered by: NEWCOMER

 Newcomer, J.

 This action was brought by a Cuban born naturalized American citizen against her former employer, J. H. Cohen and Sons (hereinafter Cohen), and against the union representing Cohen's employees (hereinafter the Local). She alleges that Cohen, in collusion with the Local, discharged her in retaliation against her organizing activities on behalf of a dissident faction within the union. This faction concerned itself with the grievances of non-white minority group workers. The complaint alleges ten causes of action, based on the Civil Rights Act of 1866, 42 U.S.C. § 1981, 1983, 1985(3); The National Labor Relations Act, 29 U.S.C. § 185(a) and (b), and the Labor Management Act, 29 U.S.C. § 411. Each defendant has filed a motion to dismiss. For the reasons stated below the motions will be denied as to counts 1, 2, 3, 4, 5, 6, 9 and 10, and will be granted as to counts 7 and 8.

 Count 1 is based on the Civil Rights Act of 1866, 42 U.S.C. § 1981. *fn1" It is well settled that § 1981 applies to employment contracts. The right to equal treatment which is guaranteed by the statute, protects against discrimination based on race, or on alienage. Jones v. United Gas Improvement Company, 68 F.R.D. 1 (E.D. Pa. 1975). National origin discrimination is actionable only to the extent that it is motivated by or indistinguishable from racial discrimination. Plaintiff Rose Mary Cubas describes herself as a naturalized citizen of the United States, who is Cuban born. Plaintiff contends that Cuban-Americans may be considered a non-white racial group within the meaning of § 1981. Hispanic Americans claiming that they have been discriminated against in violation of § 1981 are entitled to introduce evidence to prove that the alleged discrimination was racial in character. Maldonado v. Broadcast Plaza, Inc., 10 FEP Cases 839 (D.Conn. 1974); Miranda v. Clothing Workers, Local 208, 10 FEP Cases 557 (D.N.J. 1974). We cannot find, as a matter of law, that the alleged discrimination against the plaintiff as a Cuban American did not contain elements of racial discrimination. *fn2"

 An alternative ground for refusing to dismiss count 1 of the complaint is that the plaintiff, even if she cannot be considered a non-white for the purposes of § 1981, is nevertheless entitled to relief under the statute. Section 1981 affords a federal remedy against discrimination in private employment on the basis of race. Johnson v. Railway Express Agency, 421 U.S. 454, 44 L. Ed. 2d 295, 95 S. Ct. 1716 (1975). The statute prohibits racial discrimination against whites as well as against non-whites. McDonald v. Santa Fe Trail Transportation Co., 427 U.S. 273, 96 S. Ct. 2574, 49 L. Ed. 2d 493, 44 U.S.L.W. 5076 (1976). Assuming, for this discussion, that plaintiff is white, the precise issue raised in count 1 is whether an employer violates § 1981 if he intentionally causes damage to a person of one race, in order to advance a policy of racial discrimination against persons of a different race. The Supreme Court was not faced with this question in McDonald v. Santa Fe Transportation Co., supra,3 and we know of only one circuit court decision which has decided it. In DeMatteis v. Eastman Kodak Co., 511 F.2d 306 (2d Cir. 1975), the Second Circuit held that a white man whose employer allegedly forced him into retirement solely because he had sold his house (located in a neighborhood occupied by many of defendant's white employees) to a black person, had stated a cause of action under § 1981. The decision was based on Sullivan v. Little Hunting Park, 396 U.S. 229, 24 L. Ed. 2d 386, 90 S. Ct. 400 (1969), and on the common legislative history of §§ 1981 and 1982 of Title 42, which are both derived from § 1 of the Civil Rights Act of 1866.

 
"[White] persons [must] be accorded standing to sue under both § 1981 and § 1982 in circumstances similar to those present in Sullivan." 511 F.2d 306, 312 n.9.

 We agree with this conclusion. Because the instant case presents circumstances that are in all material respects similar to Sullivan, we hold that Cubas has stated a cause of action under § 1981. *fn4"

 Although we have found no Third Circuit opinions directly in point, we note that our decision is consistent with Richardson v. Miller, 446 F.2d 1247 (3d Cir. 1971). In Richardson, it was held that the plaintiff stated a cause of action under § 1985(3) when he alleged that the defendants conspired against him (for racially discriminatory reasons) to deprive him of equal protection of the law. The plaintiff was not himself a member of the racial group against which the defendants' animus was allegedly directed. Nevertheless, his discharge from employment by the defendants -- allegedly because of his opposition to their racially discriminatory employment practices -- was held actionable under § 1985(3). *fn5" As recently stated in Whetzler v. Krause, 411 F. Supp. 523 (E.D. Pa. 1976), the Third Circuit's interpretation of the class-based requirement in § 1985(3) is

 
"[that] one must be a member of a race or class discriminated against, or at least involved with a race or class discriminated against . . . ." 411 F. Supp. at 529.

 Count 2 is based on the defendant employer's alleged breach of provisions in pertinent local and national labor agreements which establish procedures for calculating "down time" pay. *fn6" Under the agreements, a sewing machine operator in Cohen's factory is entitled to down time pay for any period in which she is idled by a machine breakdown. Because her regular wages are computed on a piece work basis, she otherwise would earn nothing for periods of idleness forced upon her by a defective machine. Cubas alleges that despite the fact that she reported her machine breaking down, Cohen refused to give her down time credit. She further contends that when she asked a union representative to take action against this deprivation, the representative made it clear to her that the union was willing to take no action in her behalf. The theory of liability against the employer is breach of the collective bargaining agreement; the theory of recovery against the union is breach of its duty of fair representation. *fn7" Cohen argues that plaintiff's claim is barred because a) she failed to exhaust internal union remedies; and b) she failed to exhaust remedies provided for in the collective bargaining agreement. *fn8"

 Ordinarily, an employee bringing an action under § 301 must allege with specificity her exhaustion of contractual remedies for her grievance. She must describe the efforts taken through her union to process her grievance. Also, to the extent that there is grievance machinery she can activate by her own action, she must allege her efforts in that regard. We find that the plaintiff has satisfied the latter requirement by pleading (with sufficient support in the language of the collective bargaining agreement) that the grievance machinery provided for in the applicable contracts leaves the control of the higher reaches of the grievance process in the hands of the union. *fn9"

 This leaves us with the question of exhaustion of intra-union remedies. Plaintiff has not attempted to plead that she exhausted the grievance procedure, but has instead attempted to plead that she began to utilize intra-union procedures but ceased her efforts when they became futile. The Supreme Court has recognized two kinds of futility exceptions to the ordinary rule of exhaustion. In the first situation, the employee has a grievance against her employer and does not initially have reason to believe that she will be unfairly treated by the union in processing her grievance. But once the grievance is submitted the union then breaches its duty of fair representation. Vaca v. Sipes, 386 U.S. 171, 17 L. Ed. 2d 842, 87 S. Ct. 903 (1967). The second exception applies to cases in which the union behaves unfairly prior to the time that the grievance might be filed, and where the union may indeed have contributed to that very grievance by its own actions. Glover v. St. Louis - San Francisco Railroad Co., 393 U.S. 324, 89 S. Ct. 548, 21 L. Ed. 2d 519 (1969).

 Viewing the pleadings in the light most favorable to the plaintiff, as we must do on a motion to dismiss, Conley v. Gibson, 355 U.S. 41, 78 S. Ct. 99, 2 L. Ed. 2d 80 (1957), we find that one or the other of the futility exceptions applies to each of the plaintiff's claims. The down time pay allegations conform to the Vaca exception (if not to both), and the discharge allegations satisfy the Glover exception. This is not a case where the plaintiff has "merely [alleged] . . . a conspiracy between the company and the union to get rid of plaintiff." Aldridge v. Ludwig-Honold Manufacturing Co., 385 F. Supp. 695 (E.D. Pa. 1974). Rather, plaintiff has described the goals, actions, and effect of the actions of an alleged conspiracy. As readily admitted by plaintiff's counsel at oral argument, plaintiff bears the ultimate burden of proving these allegations before she can finally be excused for having not exhausted contractual remedies. However, at this stage of the case the allegations of repeated complaints to company and union officials and of hostile responses thereto make it clear that no allegation of having undertaken "time consuming formalities should be demanded [of ...


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