Repudiation
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Yellow’s $137M-plus lawsuit against Teamsters revived
Yahoo Finance· 2025-11-06 17:44
Core Points - A federal appeals court has reinstated Yellow Corp.'s lawsuit against the International Brotherhood of Teamsters, allowing the company to pursue its breach-of-contract case for over $137 million [1][2] - The lawsuit claims the union blocked a critical restructuring plan, "One Yellow," which was deemed necessary for the company's survival [2][3] - Yellow alleges that the union's actions contributed to its financial decline, leading to its closure on July 30, 2023, which resulted in 30,000 job losses [5][6] Legal Proceedings - The U.S. Court of Appeals for the Tenth Circuit remanded the case back to a federal district court in Kansas, permitting Yellow to amend its complaint [2][7] - The previous dismissal by the U.S. District Court for the District of Kansas was based on Yellow's failure to follow internal grievance procedures before filing the lawsuit [6] - The appeals court found that the union's refusal to participate in the grievance process justified Yellow's legal action without exhausting those procedures [7] Union's Response - The Teamsters have labeled Yellow's claims as "unfounded and without merit," asserting that the company is using the union as a scapegoat for its financial troubles [5] - The union contends that the proposed changes in Phase 2 of the restructuring violated the collective bargaining agreement [5] - Teamsters' leadership has publicly stated their unwillingness to make further concessions, indicating a strong opposition to Yellow's restructuring efforts [8]