Arroyo v. Puerto Rico Sun Oil Co.

919 F. Supp. 62, 1996 U.S. Dist. LEXIS 3311, 1996 WL 117957
CourtDistrict Court, D. Puerto Rico
DecidedFebruary 16, 1996
DocketCivil Nos. 91-1975 (DRD), 91-2621
StatusPublished

This text of 919 F. Supp. 62 (Arroyo v. Puerto Rico Sun Oil Co.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arroyo v. Puerto Rico Sun Oil Co., 919 F. Supp. 62, 1996 U.S. Dist. LEXIS 3311, 1996 WL 117957 (prd 1996).

Opinion

OPINION AND ORDER

DOMINGUEZ, District Judge.

On July 16, 1991 and November 18, 1991, plaintiffs/respondents Ana E. Acevedo Arroyo, et al., and Sonia Aponte Laboy, et al., respectively filed an action pursuant to the provisions of the Commonwealth of Puerto Rico Law Number 379 of May 15, 1948, as amended, 29 P.R.L.A. § 271 et seq., Sec. 283, against defendant-petitioner before the Superior Court of Puerto Rico, Humacao Section, under dockets CS 91-1141 and CS-91-1933, respectively.

Both complaints alleged that defendant-petitioner owed plaintiffs back wages for unpaid meal periods retroactive for the last ten (10) years from the day the complaints were filed, allegedly the meal periods had been improperly compensated in violation of Act 379, supra.1

On August and December, 1991, timely petitions of removal were filed in each case by defendant-petitioner claiming that this Court had original jurisdiction on the basis of federal question jurisdiction since the underlying state law claims arose under the provisions of Section 301 of the Labor Management Relations Act, 29 U.S.C. § 185. Section 301, gives district courts jurisdiction over “suits for violations of contracts between an employer and a labor organization representing employees in an industry affecting commerce.”

On March 25, 1992, Chief U.S. District Judge Gilberto Gierbolini, issued an “Opinion and Order” (Docket No. 16) granting defendants’ requests for removal and defendants’ Motion to Consolidate both claims. The Court held that plaintiffs’ portion of its state law claims which fell within the time period covered by the provisions of the collective bargaining agreements between the parties was “preempted and that removal of that portion of the plaintijfs-respondents’ claims to this forum is proper ”. The Court stressed that the preemptive force of § 301 is so powerful that it displaces entirely any state cause of action for violation of a contract between an employer and a labor organization. Franchise Tax Board v. Construction Laborers Vacation Trust, 463 U.S. 1, 23, 103 S.Ct. 2841, 2853-54, 77 L.Ed.2d 420 (1983).

The Court further ordered the parties to file an informative motion notifying the specific time periods the collective bargaining agreements between the parties were in effect.

Consequently, on April 24, 1992 a joint informative motion (Docket No. 17) was filed notifying the Court that “there has been in existence and effect a series of three (3) collective bargaining agreements between the parties from July 24, 1988 until this date [64]*64(April 24, 1992) and continuing until June 1, 1994”.

The first of these collective bargaining agreements was in effect from July 24, 1988 through June 1,1989, and was extended until the parties negotiated a second collective bargaining agreement, which became effective on July 7, 1989 through June 1, 1991. The third collective bargaining agreement covered the period from June 1,1991 to June 1, 1994. At present the parties are being governed by a fourth collective bargaining agreement. Prior to July 24, 1988, the employees of Puerto Rico Sun Oil Company had been working in a non-union environment.

This Court has sole and exclusive jurisdiction over all of those claims ordered removed which fall within the time period covered by the collective bargaining agreements in existence between the parties prior to July and November of 1991, dates in which plaintiffs’ claims were filed before the Huma-cao Superior Court of P' srto Rico.

Neither the Superior Court of Puerto Rico, nor the arbitrator who will be presiding over the claims filed under the grievance procedure of the collective bargaining agreement today in effect, has jurisdiction to entertain these claims. According to Section 301 of the Labor Management Relations Act, (29 U.S.C. § 185), they ARE ABSOLUTELY PREEMPTED FROM EXERCISING JURISDICTION OYER THE CLAIMS ORDERED REMOVED, SPECIALLY SINCE THOSE CLAIMS ARISE OUT OF EXPIRED COLLECTIVE BARGAINING AGREEMENTS. Franchise Tax Board v. Construction Laborers Vacation Tmst, supra.

As indicated by Judge Gierbolini in his Order of March 25, 1992, the instant complaint is an action arising under § 301 of the Tafb-Hartley Act, 29 U.S.C. § 185. The substantive law to apply in 301 suits “is federal law, which the courts must fashion from the policy of our National Labor Laws .., but state law, if compatible with the purposes of § 301, may be resorted to in order to find the rule that will best effectuate the federal policy.” Textile Workers Union v. Lincoln Mills of Alabama, 353 U.S. 448, 456-457, 77 S.Ct. 912, 918, 1 L.Ed.2d 972 (1957). However, in Section 301 causes of action under LMRA “incompatible doctrines of local law must give way to principles of federal labor law.” Local 174, Teamsters v. Lucas Flour Co., 369 U.S. 95, 102, 82 S.Ct. 571, 576, 7 L.Ed.2d 593 (1962). Expressly rejected by the Supreme Court was that states remained “free to apply local rules when called upon to enforce such agreements.” Local 174, Teamsters v. Lucas Flour, id. at p. 102, 82 S.Ct. at p. 576.

On September 28, 1995 the court (Docket No. 42) issued an order to show cause why the wage claim spanning retroactively various years in duration should not be limited exclusively to the collective bargaining agreement in effect when the case was filed pursuant to the doctrine of Litton Financial Printing v. NLRB, 501 U.S. 190, 209, 111 S.Ct. 2215, 2227, 115 L.Ed.2d 177 (1991) and Dorado Beach Corp. v. Local 610, 811 F.Supp. 41 (D.P.R.1993). Expressing the issue in a different light, does the doctrine of Litton Financial Printing v. NLRB, supra, that grievances filed after the expiration of contracts are not arbitrable prevail or does local state law authorizing wage grievances retroactive to ten years prevail under 29 LPRA 246b over the doctrine of Litton Financial Printing v. NLRB, supra.

In the cases of Litton Financial Printing v. NLRB, supra, and Dorado Beach Hotel Corp. v. Local 610, supra, the Courts held that grievances occurring after the expiration of a collective bargaining agreement, during a period in which no agreement was in effect, as well as those occurring before the effectiveness of an agreement, are not arbitrable because arbitration is a matter of contract and will not be imposed beyond the scope of the parties agreement. Hence, the arbitrator cannot adjudicate these grievances, neither can this Court.

There are some exceptions. In Litton, the Court stated that some post contract grievances would be arbitrable. 501 U.S. at 209, 111 S.Ct. at 2227.

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919 F. Supp. 62, 1996 U.S. Dist. LEXIS 3311, 1996 WL 117957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arroyo-v-puerto-rico-sun-oil-co-prd-1996.