Ables v. United States

2 Cl. Ct. 494, 1983 U.S. Claims LEXIS 1743
CourtUnited States Court of Claims
DecidedMay 19, 1983
DocketNo. 666-80C
StatusPublished
Cited by21 cases

This text of 2 Cl. Ct. 494 (Ables v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ables v. United States, 2 Cl. Ct. 494, 1983 U.S. Claims LEXIS 1743 (cc 1983).

Opinion

OPINION

LYDON, Judge:

This case comes before the court on defendant’s motion for summary judgment and plaintiff's opposition thereto. The issue in this case is whether plaintiff, a neutral arbitrator, on a tripartite arbitration panel, has standing to sue as a third-party beneficiary of an arbitration agreement between the American Federation of Government Employees (AFGE) and the United States Air Force Logistics Command (AFLC). This issue was framed by the United States Court of Claims in its Order of March 26, 1982. Ables v. United States, 230 Ct.Cl.-.

I

In January 1978, the AFGE was certified as the exclusive bargaining agent for civilian employees of the AFLC. Negotiations between AFGE and AFLC representatives on a collective bargaining agreement began in June 1978. These negotiations continued through the summer of 1978. At some point during this period, the AFGE called in the Federal Mediation and Conciliation Service (FMCS) in an effort to resolve a number of differences between the parties. When a last attempt at settlement failed in October 1978, the parties, AFGE and AFLC, decided to resolve remaining differences by using a new procedure called interest (or contract) arbitration.1 This arbitration procedure, agreed to by the parties on October 11, 1978, provided in pertinent part:

5. The arbitration panel shall decide only issues which are negotiable. In the event of a dispute over negotiability, the arbitration panel shall not presently decide such issue, but shall retain jurisdiction pending determination of the negotiability of that issue.
******
10. Each party shall pay the costs and expenses of the member they select. The parties shall share equally the costs and expenses of the neutral member.

Under the arbitration agreement, the parties agreed to submit their differences to a tripartite panel composed of one member selected by each party. The neutral member, designated chairman of the panel, was chosen by the parties from a list of arbitrators provided by the FMCS. The parties selected plaintiff to serve as the neutral member of the tripartite panel.

On October 26, 1978, the FMCS wrote to plaintiff as follows:

You are hereby appointed neutral member of the tri-partite panel in accordance with the agreement between the parties above captioned. A copy of the pertinent agreement is enclosed.
The parties plan to start the hearings on November 13,1978 and at least a week should be blocked out. If more time is [496]*496necessary, the parties would like to begin again on November 27, 1978. Further details will have to come from the parties or the other members of the board. You will find their names and addresses on the attached page.
I want to thank you for agreeing to serve as the neutral member of the board.

The arbitration agreement of October 11, 1978 was executed on behalf of AFLC by Val Buxton (Buxton), who was then chief labor negotiator for the AFLC, Robert M. Watson (Watson), who was then Director of Civilian Personnel for AFLC, and Ronald Sanders (Sanders), who was then a Labor Relations Specialist for AFLC. It would appear that this agreement was drafted by the FMCS and presented to the parties for review and approval. With respect to paragraph 10 of this agreement, the affidavits of Buxton, Watson, and Sanders, submitted in support of defendant’s motion for summary judgment and not otherwise disputed, establish that there were no discussions whatsoever between the parties and/or the members of the panel relative to this paragraph, which ostensibly was accepted by the parties as drafted by the FMCS without discussion, prior to execution of the arbitration agreement.

Buxton, Watson and Sanders stated that at the time they signed the arbitration agreement, they believed the sole purpose of said agreement was to resolve the differences that existed between the parties. In signing the agreement, Buxton, Watson and Sanders stated that there was no intent to affect AFLC’s practice, policy or procedure for payment of arbitrators; that they had no authority to obligate government funds for payment of arbitration services; and that they did not intend that the agreement create any right of payment to any of the arbitrators. The FMCS did not, at any time material herein, discuss the specific language nor the intent of paragraph 10 with the parties. Further, the parties never questioned FMCS as to the intent or meaning of paragraph 10 nor did they ask the FMCS relative to the interpretation to be placed on said paragraph. At the time the October 11, 1978, agreement was executed by the parties, neither party knew that plaintiff would be the neutral arbitrator. At the time the arbitration agreement was executed, Buxton, Watson and Sanders stated they were aware that in rights (or grievance) arbitration proceedings the parties thereto generally shared the cost and expense connected with the use of arbitrators. Further, they were also aware that the Air Force had separate internal procedures for contracting with and paying arbitrators for their services. Finally, neither Buxton, Watson nor Sanders, individually, or as a group, had any authority to obligate Air Force funds to pay for arbitration services, and their participation in the arbitration agreement conferred no authority on them to waive their lack of authority to bind the Air Force by obligation of Air Force funds to pay for arbitration services. The authority to pay for arbitration services rested on action by Air Force personnel other than Buxton, Watson and Sanders and such authority was separate from and independent of the arbitration agreement.

At times material herein, it was the practice, policy and procedure, sanctioned by pertinent regulations, of the AFLC to issue purchase order contracts in connection with the use of and payment for arbitrators, whose services were considered by AFLC to be “Non Personal Services,” within the purview of applicable regulations. See Defense Acquisition Regulations (DAR), Secs. 22-102.2,22-102.3, and 22-102.4. Contracts with arbitrators are deemed “Service Contracts” under applicable regulations. DAR 22-101(b)(xx). These purchase order contracts were separate and distinct from the arbitration agreement referred to above.

On November 21,1978, AFLC issued purchase order contract No. ,F 3360179M1290 which designated plaintiff as the “Contractor/Quoter,” noted that a confirmation order had been placed with plaintiff, and stated that plaintiff was to perform:

Non Personal Services
Serve As The Neutral Member Of A Tripartite Arbitration Panel Convened To Resolve Issues In Dispute Between The [497]*497Air Force Logistics Command and The American Federation Of Government Employees In Their Negotiations For A Command-Wide Labor Agreement

Plaintiff thereafter signed this purchase order contract. The purchase order contract provided for payment for arbitration services by plaintiff covering the period October 27, 1978 through December 29, 1978. It also specified that these services were to be performed in two job units, one job unit running from October 27,1978 through November 28,1978, in the amount of $1,369.89, and one job unit from December 1, 1978, through December 29, 1978, in the amount of $3,388.06, for a total of $4,757.95.

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Cite This Page — Counsel Stack

Bluebook (online)
2 Cl. Ct. 494, 1983 U.S. Claims LEXIS 1743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ables-v-united-states-cc-1983.