Allis-chalmers Corp. v. Lueck (471 U.S. 202)
U.S. Supreme Court · decided April 16, 1985 · Supreme Court Database (Spaeth)
- Citation
- 471 U.S. 202 · 105 S. Ct. 1904
- Decided
- April 16, 1985
- Term
- October Term 1984
- Vote
- 8–0
- Majority author
- Justice Blackmun
- Issue area
- Federalism
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Liberal
Opinion excerpt
Justice Blackmun delivered the opinion of the Court. The Wisconsin courts have made the bad-faith handling of an insurance claim a tort under state law. Those courts have gone further and have applied this tort to the handling of a claim under a disability plan included in a collective-bargaining agreement. The question before us is whether, in the latter case, the state tort claim is pre-empted by the national labor laws. I A Respondent Roderick S. Lueck began working for petitioner Allis-Chalmers Corporation in February 1975. He is a member of Local 248 of the United Automobile, Aerospace and Agricultural Implement Workers of America. Allis-Chalmers and Local 248 are parties to a collective-bargaining agreement. The agreement incorporates by reference a separately negotiated group health and disability plan fully fimded by Allis-Chalmers but administered by Aetna Life & Casualty Company. The plan provides that disability benefits are available for nonoccupational illness and injury to all employees, such as petitioner, who are represented by the union. The collective-bargaining agreement also establishes a four-step grievance procedure for an employee’s contract grievance. This procedure culminates in final and binding arbitration if the union chooses to pursue the grievance that far. App. 18-29. A separate letter of understanding that binds the parties creates a special…
Excerpt of a 37,086-character opinion. The full text and citation network load in the interactive viewer above.