American Federation of State, County & Municipal Employees v. Giordano

448 N.E.2d 269, 114 Ill. App. 3d 142, 69 Ill. Dec. 809, 1983 Ill. App. LEXIS 1715
CourtAppellate Court of Illinois
DecidedApril 18, 1983
DocketNo. 4—82—0638
StatusPublished
Cited by4 cases

This text of 448 N.E.2d 269 (American Federation of State, County & Municipal Employees v. Giordano) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Federation of State, County & Municipal Employees v. Giordano, 448 N.E.2d 269, 114 Ill. App. 3d 142, 69 Ill. Dec. 809, 1983 Ill. App. LEXIS 1715 (Ill. Ct. App. 1983).

Opinion

PRESIDING JUSTICE WEBBER

delivered the opinion of the court:

Plaintiffs appeal from an order of the circuit court of Sangamon County which dismissed their complaint, holding that it lacked jurisdiction.

The controversy centers about a reduction in health benefits provided by the State. Plaintiffs are the collective bargaining agents for certain groups of employees of the State and the defendant is the Director of Personnel of the State. As such the defendant is responsible for the administration of the State Employees Group Insurance Act of 1971. (Ill. Rev. Stat. 1981, ch. 127, par. 521 et seq.) The complaint alleged that the defendant unilaterally and without negotiations with the plaintiffs reduced health and insurance benefits effective July 1, 1981. It was originally filed in Cook County, but on motion of the defendant venue was transferred to Sangamon County.

The complaint sought a declaration of plaintiffs’ rights and injunctive relief commanding the defendant to restore benefits to the level maintained prior to July 1, 1981. The suit was filed in October 1981 and in April 1982 plaintiffs moved for summary judgment on the basis that the defendant had not responded to it. The defendant then responded by filing a motion to dismiss under section 2 — 615 of the Code of Civil Procedure (Ill. Rev. Stat. 1981, ch. 110, par. 2 — 615) alleging legal insufficiency of the complaint by reason of sovereign immunity (Ill. Rev. Stat. 1981, ch. 127, par. 801). The trial court ordered the parties to proceed on plaintiffs’ motion for summary judgment.

The defendant then filed a memorandum in opposition to the motion. As exhibits to it, the collective bargaining agreements with the plaintiffs were submitted, and each of these contained comprehensive four-step grievance procedures leading to binding arbitration. Also attached was the affidavit of Peter Yallone, the State’s chief labor negotiator, in which he stated that none of the plaintiffs had filed grievances regarding insurance benefits. The defendant also maintained in the memorandum that the collective bargaining agreements did not specify what health and life insurance benefits union employees were to receive and that such benefits need not be, and were not, the subject of collective bargaining or negotiation by the State. Vallone’s affidavit stated that Executive Order No. 6, signed by Governor Walker in 1973, provided that State insurance benefits were not to be the subject of collective bargaining, and that such benefits had never been the subject of negotiations. *

The trial court denied the motion for summary judgment. A controversy then arose over the written order to be entered. Plaintiffs submitted an order which provided in pertinent part:

“1. The contract issues raised in this cause are hereby resolved to arbitration before an arbitrator to be selected by the parties; and
2. This Court retains jurisdiction for the purpose of resolving any procedural or other questions that may arise in connection with said arbitration.”

The defendant objected to the order, primarily on the basis that the question of health insurance benefits was not subject to arbitration, and stated further in his memorandum in opposition to plaintiffs’ order:

“It is explicitly conceded in each contract that the question of the arbitrability of any issue is for the arbitrator to decide. Thus, if the Plaintiffs filed a grievance, the first question would be whether or not the grievance was permissible under the collective bargaining agreement.”

The defendant then submitted his own order which provided in pertinent part:

“The COURT FINDS AS FOLLOWS:
1. The Defendant contends that the Plaintiffs may not bring this action because the contracts upon which the Plaintiffs’ claims are founded provide for binding arbitration.
2. The Plaintiffs agree that the Court lacks jurisdiction because of the binding arbitration provision.
WHEREFORE, the Court hereby orders that Plaintiffs’ Complaint be dismissed. [The Plaintiffs are, of course, free to file grievances under the grievance procedures in their respective contracts. This order should not be construed to decide whether the question in issue is arbitrable.]”

The trial court signed the defendant’s proposed order but struck therefrom by overlineation with a felt pen the bracketed material. Plaintiffs have appealed from this order, and the defendant has cross-appealed from the trial court’s failure to dismiss on the basis of sovereign immunity. So far as the record discloses, that motion was never specifically ruled upon below.

The principal difficulty with this case is that both sides have assumed something which has not taken place: arbitration. Plaintiffs, by urging that the cause be remanded for arbitration under supervision of the circuit court, assume the very fact in issue, namely, that the matter is arbitrable. Defendant, by urging sovereign immunity, assumes that an arbitration has been ordered. Neither position is tenable.

Plaintiffs’ position is rather inconsistent. They agree that the trial court was without jurisdiction; yet they desire that the court retain jurisdiction to supervise arbitration. There is no middle ground. Either the trial court has jurisdiction or it does not. Plaintiffs point to the Federal system (e.g., Drake Bakeries, Inc. v. Local 50, American Bakery & Confectionery Workers International (1962), 370 U.S. 254, 8 L. Ed. 2d 474, 82 S. Ct. 1346; John Wiley & Sons, Inc. v. Livingston (1964), 376 U.S. 543, 11 L. Ed. 2d 898, 84 S. Ct. 909), wherein the trial court determines the issue to be arbitrable and then remands to the arbitrator for decision of both procedural issues and the merits. Plaintiffs urge economy of judicial time and effort in support of this system. However appealing such an argument may be, it is not the law of Illinois.

In this State the procedure is controlled by section 2(a) of the Uniform Arbitration Act (Ill. Rev. Stat. 1981, ch. 10, par. 102(a)), which provides as follows:

“On application of a party showing an agreement described in Section 1, and the opposing party’s refusal to arbitrate, the court shall order the parties to proceed with arbitration, but if the opposing party denies the existence of the agreement to arbitrate, the court shall proceed summarily to the determination of the issue so raised and shall order arbitration if found for the moving party, otherwise, the application shall be denied.”

In the instant case even a most liberal reading of plaintiffs’ complaint will not yield a conclusion that arbitration is demanded and that the defendant has refused. As has been indicated, the prayer was for a declaration of rights and for mandatory injunctive relief.

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Cite This Page — Counsel Stack

Bluebook (online)
448 N.E.2d 269, 114 Ill. App. 3d 142, 69 Ill. Dec. 809, 1983 Ill. App. LEXIS 1715, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-federation-of-state-county-municipal-employees-v-giordano-illappct-1983.