Brown v. Witco Corporation

340 F.3d 209, 172 L.R.R.M. (BNA) 3134, 2003 U.S. App. LEXIS 14713, 2003 WL 21701250
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 23, 2003
Docket02-30508
StatusPublished
Cited by58 cases

This text of 340 F.3d 209 (Brown v. Witco Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Witco Corporation, 340 F.3d 209, 172 L.R.R.M. (BNA) 3134, 2003 U.S. App. LEXIS 14713, 2003 WL 21701250 (5th Cir. 2003).

Opinion

*211 E. GRADY JOLLY, Circuit Judge:

Plaintiff-appellant Glenn Brown filed this action in state court seeking enforcement of an arbitration award in his favor against his employer Witco Corporation. After the case was removed to federal court by Witco, the district court stayed the case and remanded the award to the arbitrator for a specifically limited purpose. Following the arbitrator’s decision on remand, the district court determined that the arbitrator had exceeded the limited authority it had granted him. Accordingly, the district court vacated that part of the arbitrator’s decision that exceeded his authority on remand and enforced the remainder of the award.

Brown and his union, the Paper, Allied-Industrial, Chemical and Energy Workers International Union, Local 4-447 (the intervening plaintiff-appellant) now appeal the district court’s judgment. After threading our way through the twists and turns of the case, and after considering the several arguments made by the parties, we affirm the judgment of the district court.

I

The procedural history of this arbitration case is unusually long and sinuous, and a recitation of that history is necessary to explain the issues raised on appeal.

In 1997, Witco discharged Brown because of chronic absenteeism; however, the company failed to give Brown timely notice of its decision to discharge him, as required by the collective bargaining agreement between Witco and Brown’s Union. In response, the Union filed a formal grievance against Witco on Brown’s behalf, and Witco and the Union ultimately arbitrated their dispute before Arbitrator Raymond L. Britton on January 22, 1999. On May 24, 1999, the arbitrator ordered that Brown “be reinstated with full back pay and seniority and that he be made whole except for overtime.” (The “May 24 Award.”)

Brown was reinstated in accordance with the May 24 Award. However, Witco and the Union were unable to reach an agreement on the calculation of Brown’s back pay award, 1 Consequently, in July and August 1999, Witco and the Union each asked Arbitrator Britton to clarify how the parties should calculate Brown’s back pay award. The Union asked the arbitrator to clarify whether the award included regularly scheduled overtime and night shift premium payments. Witco asked the arbitrator to clarify whether the award should be reduced based on Brown’s interim earnings and Brown’s apparent failure to mitigate his damages by seeking new employment. 2 Neither Witco nor the Union — Brown’s exclusive bargaining representative — ever objected to the clarification requests of the other.

On August 27, 1999, the arbitrator responded to the parties’ clarification re *212 quests. (The “August 27 Clarification Letter.”) The arbitrator noted that “neither party requested that jurisdiction be retained for the purpose of addressing any questions that might arise as to the implementation of the remedy awarded,” and he expressed the view that, therefore, “jurisdiction was not retained.” Nevertheless, the arbitrator provided guidelines for construing the original May 24 Award. He stated that the language of the back pay award was intended to grant Brown back pay based only on the company’s “straight time” hourly rate for all hours of Brown’s regular shifts. Because payment of night shift premiums and regularly scheduled overtime would be in addition to the “straight time” hourly rate, the arbitrator concluded that such payments would not comport with the intent of his original May 24 Award. Turning to the interim earnings and mitigation issues raised by Witco, the arbitrator noted that the May 24 Award was silent with respect to these issues; nevertheless, he concluded that it was appropriate to consider these issues in order to clarify the intent of the original May 24 Award. He also concluded that Brown did have an “affirmative duty to reasonably mitigate the amount of loss that he suffered as a result of [Witco’s wrongful] discharge and to show that he made a good faith effort to satisfy this obligation by seeking comparable employ.” The arbitrator further stated that the “[f]ailure of the Grievant to establish that he actively and adequately searched for comparable work justifies that a reasonable deduction be made from the $85,801.58 figure calculated as back wages.” 3 Witco urged the arbitrator to deduct about $50,000 or $60,000 from the $85,801.58 figure calculated as back wages by the parties. However, the arbitrator rejected this suggestion because it was not based on any formula or evidence that demonstrated the amount Brown should have been able to earn if he had taken reasonable steps to mitigate his damages. Instead, the arbitrator stated that, for the purposes of mitigation of Brown’s damages, the parties should use the average wage of similar workers in the New Orleans area as a “guide.” Specifically, the arbitrator said:

In endeavoring to determine an appropriate reduction to the Grievant’s back-pay award, the Arbitrator is of the view that it would be more in keeping with the Award if the parties use as a guide, the average wage paid to employees possessing the experience, skills and background of the Grievant in the New Orleans area. Further, the Grievant should be afforded a grace period of three (3) months as representative of the time reasonably necessary to obtain comparable employment.

August 27 Clarification Letter at 2. 4 After receiving the arbitrator’s August 27 Clari *213 fication Letter, Witco tendered to Brown a check for $13,441.57, reflecting three months back wages for the “grace period” prescribed by the arbitrator and a bonus that was paid to all Witco employees during the period between Brown’s discharge and his reinstatement. Brown cashed Witco’s check. However, the Union and Witco were unable to reach any further agreement regarding any additional amount of back pay owed to Brown.

In November 1999, while Witco and the Union were still negotiating the total amount of Brown’s back pay award, Brown personally filed suit against Witco in state court seeking confirmation and enforcement of the original May 24 Award. The Union was not a party to the case at this point. Witco promptly removed the case to federal district court based on federal question jurisdiction and answered Brown’s complaint. 5 Witco then moved to stay Brown’s enforcement action and remand the case to the arbitrator to clarify further how to implement Brown’s back pay award. Brown opposed the remand motion, arguing that the May 24 Award was final and unambiguous in its determination that Brown was entitled to full back pay. The case was referred to a magistrate judge for all proceedings and for judgment in accordance with 28 U.S.C. § 636(c) upon written consent of all parties.

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Bluebook (online)
340 F.3d 209, 172 L.R.R.M. (BNA) 3134, 2003 U.S. App. LEXIS 14713, 2003 WL 21701250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-witco-corporation-ca5-2003.