Appeals Court Reinstates Yellow’s $137 Million Lawsuit Against Teamsters Over 2023 Bankruptcy

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of contract suit in March 2024, saying Yellow failed to follow the internal grievance procedures under the terms of its contract with the Teamsters before making the claims.More from Sourcing JournalFreight Recession Drags On: Trucking Volumes Slide Again Despite Capacity ExitsExperts Say Added Costs From FedEx, UPS Will Drive Up Parcel Costs Through Remainder of 2025Trump Reveals Details of 25% Truck Tariffs, Offsets for Domestic AssemblyThe three-judge Tenth Circuit panel reversed the court decision, determining that it erred by denying Yellow’s post-judgment motion for leave to amend its complaint to include new evidence alleging that the Teamsters repudiated the terms of their collective bargaining agreement.The panel’s decision focused on the legal principle of repudiation, which exempts a party from following grievance procedures if the other party, in this case the Teamsters, indicates that they refuse to participate in the process.The case will now return to the district court where Yellow can file the amended complaint.Yellow first filed the lawsuit in June 2023, less than two months before the less-than-truckload (LTL) company ceased operations and filed for bankruptcy.The firm alleged that the Teamsters, directed by then-newly elected president Sean O’Brien, intentionally and unlawfully obstructed the second phase of the trucking company’s “One Yellow” restructuring plan.That plan would have merged four separate subsidiaries within Yellow and consolidated operations at its terminals, and was designed to help the company cut costs amid swelling debt that soared to $1.3 billion by the time the suit was filed.Yellow has claimed that the move from the Teamsters violated the collective bargaining agreement, while the union has always contended they have fully honored the terms of the agreement. The Teamsters represented 22,000 of Yellow’s 30,000 employees at the time.As part of the agreement, Yellow had to present any restructuring plans, called change of operations (CHOPS) proposals, to the Teamsters.According to the order, written by circuit judge Richard Federico, the changes required by Phase 2 were “substantively the same” as Phase 1, but the Teamsters rejected the proposed second proposals as leverage for unrelated wage increases.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,890.50 +14.75 (+0.21%)Dow Futures48,485.00 +117.00 (+0.24%)Nasdaq Futures25,712.25 +88.50 (+0.35%)Russell 2000 Futures2,463.70 +3.80 (+0.15%)VIX17.51 +0.23 (+1.33%)Gold4,214.90 +1.30 (+0.03%)PortfolioSign in to access your portfolioSign inTop gainersMH McGraw Hill, Inc. 14.09 +2.72 (+23.92%)CNTA Centessa Pharmaceuticals plc 26.70 +4.16 (+18.46%)BBAI BigBear.ai Holdings, Inc. 7.17 +1.11 (+18.32%)ONON On Holding AG 41.51 +6.33 (+17.99%)ORLA Orla Mining Ltd. 12.04 +1.46 (+13.80%)Top losersDGNX Diginex Limited 14.00 -2.35 (-14.37%)CRCL Circle Internet Group 86.30 -12.00 (-12.21%)RGTI Rigetti Computing, Inc. 28.30 -3.10 (-9.87%)MENS Jyong Biotech Ltd. 36.70 -3.96 (-9.74%)DQ Daqo New Energy Corp. 32.15 -3.46 (-9.72%)Most activeOPEN Opendoor Technologies Inc. 9.37 +0.89 (+10.50%)BBAI BigBear.ai Holdings, Inc. 7.17 +1.11 (+18.32%)PLUG Plug Power Inc. 2.7300 +0.2000 (+7.91%)NVDA NVIDIA Corporation 193.80 +0.64 (+0.33%)AMD Advanced Micro Devices, Inc. 258.89 +21.37 (+9.00%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 103,976.26 +519.47 (+0.50%)CSCO Cisco Systems, Inc. 73.96 +2.25 (+3.14%)ETH-USD Ethereum USD 3,553.87 +109.58 (+3.18%)XRP-USD XRP USD 2.52 +0.13 (+5.38%)CRCL Circle Internet Group 86.30 -12.00 (-12.21%)Top economic events