AUTO., PETRO. & ALLIED INDUS. EMP. UN. v. Sears

581 F. Supp. 672
CourtDistrict Court, E.D. Missouri
DecidedMarch 13, 1984
Docket83-783C(1)
StatusPublished

This text of 581 F. Supp. 672 (AUTO., PETRO. & ALLIED INDUS. EMP. UN. v. Sears) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AUTO., PETRO. & ALLIED INDUS. EMP. UN. v. Sears, 581 F. Supp. 672 (E.D. Mo. 1984).

Opinion

581 F.Supp. 672 (1984)

AUTOMOTIVE, PETROLEUM AND ALLIED INDUSTRIES EMPLOYEES UNION, LOCAL 618, Plaintiff,
v.
SEARS, ROEBUCK AND CO., Defendant.

No. 83-783C(1).

United States District Court, E.D. Missouri, E.D.

March 13, 1984.

*673 *674 Wiley, Craig, Armbruster, Wilburn & Mills, Fred A. Ricks, Jr., St. Louis, Mo., for plaintiff.

Dennis C. Donnelly, Bryan, Cave, McPheeters & McRoberts, St. Louis, Mo., Robin S. Rothschild, Skokie, Ill., for defendant.

MEMORANDUM

NANGLE, Chief Judge.

This case is now before this Court on plaintiff's motion for summary judgment or, in the alternative, to remand this case to the arbitration board for clarification of the arbitrator's award. Defendant also moved for summary judgment or to dismiss plaintiff's complaint. Because it is the opinion of this Court that the arbitration award in question is patently ambiguous and that remand is not necessary, this Court grants plaintiff's motion for summary judgment and denies defendant's motions.

I. FACTS:

Plaintiff's cause of action arises out of an arbitration award entered by Impartial Arbitrator Raymond Roberts on a grievance filed by David Timmerman, an employee of defendant who is represented by plaintiff. The essential facts in this case are not in dispute. Pursuant to a collective bargaining contract between plaintiff and defendant, which covered the period from August 1, 1979, to August 1, 1982, David Timmerman filed a grievance on March 15, 1982, complaining of his discharge on March 12, 1982, from the job of automotive salesperson at defendant's St. Ann, Missouri, store. Article 10 of the contract prescribed a mandatory grievance procedure culminating in arbitration by an arbitration board consisting of one company, one union, and one impartial member. The contract provided that a decision of this "Arbitration Board" "shall be final and binding on both parties." Article 10, Step 4, ¶ 2. The contract further provided that:

[t]he Arbitrator shall have the power to compensate the parties or employes (sic) covered by this Agreement for damages shown to have resulted from a misinterpretation or breach of this Agreement but shall have no power to award exemplary or punitive damages.

Article 10, Step 4, ¶ 3.

David Timmerman was employed by defendant as an Automotive Sales Person. In this position he worked on the sales floor and sold automotive carry out tires, auto parts and accessories. In re Timmerman at 4. According to the written decision of the Arbitration Board, David Timmerman was "paid, in addition to a base hourly rate, a 3% commission on sales which" he made. Id. (emphasis added) The merits of David Timmerman's grievance are not important to the dispute herein, but by way of background David Timmerman was discharged for his alleged refusal to remove a charge for a particular automotive service from the sales ticket for a set of tires. See id. at 4-17. David Timmerman grieved his discharge through the mandatory grievance procedure and took it to an Arbitration Board, with Raymond Roberts acting as the impartial member, on September 1, 1982. Arbitrator Roberts drafted a decision and award on the grievance and sent a copy to both the union and the company representative for their consideration on December 2, 1982. The Arbitration Board met by means of a telephone conference call on January 4, 1983, and thereafter the award became final.

The award of the Arbitration Board found in favor of David Timmerman, called for his reinstatement as of July 12, 1982, and provided for back pay and appropriate fringe benefits for the period from July 12, 1982, to the date of his actual reinstatement. The specific meaning of the language of the award is in dispute. The relevant portions of the award provided as follows:

The prayer for back pay and any appropriate fringe benefits is sustained between July 12, 1982 and the date of *675 Grievant's actual reinstatement, hereinafter called "back pay period", which period shall be reduced by any period when Grievant would have been laid off but for his termination as aforesaid. Back pay shall be at Grievant's regular straight time hourly rate for the time he would have actually been scheduled according to his regular schedule, seniority and classification.
... Provided further, that if by reason of this Award Grievant should be required to repay any sum for which the Company was credited, including unemployment compensation, the Company shall make him whole by such amount. Provided further, that if Grievant shall again become eligible for any benefit for which the Company received a credit, including unemployment compensation, but the amount of that benefit shall be reduced by reason of the amount credited to the Company for the back pay period only, the Company shall make Grievant whole for the difference in the benefit which Grievant would have been entitled but for his discharge and the credit afforded the Company, for the back pay period only, and the amount which Grievant actually receives, in no event to exceed the credit given the Company against gross back pay.
... Reinstatement or payment, whether to Grievant or on his behalf, of all applicable fringe benefits shall also be limited to the back pay period provided, however, that if Grievant shall have sustained any loss or expense by reason of the loss of the fringe benefits during the back pay period, such as medical expenses which would have been covered by health insurance provided by the Company, the Company shall make him whole for such losses.

In re Timmerman at 34-36 (emphasis added).

Defendant did not, and does not here, contest the result of the Arbitration Board. David Timmerman was reinstated on January 24, 1983. Thereafter, the Company paid him back pay for the period July 12, 1982, through January 24, 1983. The amount of back pay was calculated by using David Timmerman's base hourly rate of pay, which was $7.00/hour. Plaintiff, however, claimed that David Timmerman's back pay should be calculated by using what it called his "benefit rate of pay", which it claimed was $13.67/hour. According to plaintiff, this benefit rate of pay is reflected in defendant's records. It is a calculation, made on a quarterly basis, of the average hourly commission sales of its commission salespeople. A document submitted by defendant in response to plaintiff's request to produce indicates that David Timmerman's benefit rate of pay was $6.67/hour on March 27, 1982. Thus, plaintiff argues that $13.67/hour is a more accurate reflection of David Timmerman's average rate of pay.

Plaintiff brought this action, under § 301 of the Labor Management Relations Act of 1947 (LMRA), as amended, 29 U.S.C. § 185, seeking an order directing defendant to comply with the decision of the Arbitration Award. Specifically, plaintiff seeks an order requiring defendant to calculate David Timmerman's back pay utilizing an hourly rate of $13.67. Plaintiff's complaint alleges that the Arbitration Award required defendant to "make [David Timmerman] whole for back pay and appropriate fringe benefits ...." Plaintiff's Complaint ¶ 11. By not paying David Timmerman at a rate of $13.67/hour, plaintiff's allege, defendant failed to make David Timmerman "whole" for the period in question and thereby failed to comply with the Arbitration Award.

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Bluebook (online)
581 F. Supp. 672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/auto-petro-allied-indus-emp-un-v-sears-moed-1984.