Tarlochan Sidhu v. The Flecto Company, Inc.

The question before us is whether an employer may refuse to arbitrate a grievance, and later use that refusal to support a claim that the employee has failed to exhaust his arbitral remedies. The answer is no. We hold that when an employer refuses to arbitrate, its action constitutes a repudiation of the collective bargaining agreement as to that grievance.

Background

Appellant Tarlochan Sidhu (“Sidhu”) appeals the district court’s dismissal of his suit filed under § 301 of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 185 (c), alleging breach of the collective bargaining agreement (“CBA”) terms. The district court dismissed Si- dhu’s claim on the grounds that Sidhu failed to exhaust the grievance procedures contained in the CBA. The district court rejected Sidhu’s argument that Appellee Flecto Company, Inc.’s (“Flecto”) repudiation of the grievance procedures excused Sidhu’s failure to exhaust. We have jurisdiction pursuant to 28 U.S.C. § 1291 . Because the district court erred in dismissing Sidhu’s action, we REVERSE.

Sidhu was an employee of Flecto, and at all times relevant to this dispute the CBA to which Flecto and the Union are parties governed the…