Capital City Telephone Co. v. Communication Workers of America

575 F.2d 655
CourtCourt of Appeals for the Eighth Circuit
DecidedMay 8, 1978
DocketNo. 77-1990
StatusPublished
Cited by3 cases

This text of 575 F.2d 655 (Capital City Telephone Co. v. Communication Workers of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capital City Telephone Co. v. Communication Workers of America, 575 F.2d 655 (8th Cir. 1978).

Opinion

STEPHENSON, Circuit Judge.

Capital City Telephone Company (Capital) appeals from the district court’s1 order of November 18, 1977, affirming the award of an arbitrator. On this Appeal Capital contends that the district court erred in deferring the issue of compensatory damages to arbitration. We affirm.

Capital is a corporation primarily engaged in providing telephone service to the public, in or affecting interstate commerce. On July 30, 1971, Capital entered into a collective bargaining agreement with the Communication Workers of America and Locals Nos. 6301 and 6314 of the Communication Workers of America (defendants). The agreement provided for wages, hours and other working conditions for Capital’s employees in the bargaining units represented by the defendants. The agreement contained a “no strike — no lockout” provision, which stated as follows:

The parties agree that the public utility operations upon which the employees covered by this Agreement are engaged, are essential to the public welfare and recognize their obligations to furnish continuous public service. Accordingly, the Company agrees that during the term of this Agreement or extension thereof there shall be no lockouts of the members of the Union. The Union on its part agrees there shall be no strikes, walkouts, slowdowns, or cessations of work during the term of this Agreement.

In addition to the “no strike — no lockout” provision, the agreement also contained an article entitled “Grievance and Arbitration” which established an arbitration procedure. According to the agreement, the arbitration decision and awards were to be “final, conclusive and binding upon all parties.”

On October 12, 1973, members of Local No. 2, International Brotherhood of Electrical Workers, AFL-CIO, commenced a lawful strike against Capital and established a lawful picket line at its facilities in Jefferson City, Missouri. Employees of Capital who were members of Local No. 6301 and Local No. 6314 refused to cross the picket line established by Local No. 2, and report to work. On December 4, 1973, Capital brought the instant action against the defendants pursuant to 29 U.S.C. § 185(a), alleging that defendants breached the collective bargaining agreement between the parties by refusing to cross the picket line of striking members of another union. Capital sought an injunction restraining defendants from continuing the work stoppage and money damages for the breach of the “no strike” provision of the collective bargaining agreement.

On December 26, 1973, Capital filed a motion for a temporary restraining order and preliminary injunction pending arbitration of the dispute. The district court declined to grant injunctive relief,2 and deferred the issues of breach of contract and compensatory damages to arbitration.

On January 31, 1974, the arbitrator rendered his decision that the “refusal of bargaining unit members to cross the IBEW picket line is a violation of the no-strike clause of the collective bargaining agreement of the parties.” On February 12, [657]*6571974, Capital withdrew its motion for temporary restraining order because the arbitrator’s action had rendered it moot. The arbitration proceeding on the issue of damages for breach of contract was held on June 7, 1976. On December 31, 1976, the arbitrator rendered his decision that “the claim for damages against the Union is denied.” The district court affirmed the arbitrator’s award and this appeal by Capital followed.

Capital’s principal contention is that the district court erred in confirming the arbitrator’s decision on the compensatory damage issue. More specifically, Capital argues that it was not contractually required to submit the issue of damages for breach of the no-strike clause to arbitration. According to Capital, the district court should have conducted a trial on the damage issue rather than deferring it to arbitration. Capital asks this court to reverse the decision of the district court confirming the arbitrator’s award and remand for a trial on the merits of its damage claim.

Arbitration is a matter of contract and a party is bound by an award only if he agrees to submit the issue to arbitration. Gateway Coal Co. v. United Mine Workers, 414 U.S. 368, 374, 94 S.Ct. 629, 38 L.Ed.2d 583 (1974). In reviewing a collective bargaining agreement this court has observed that “[a] grievance under a particular collective bargaining agreement is deemed ar-bitrable ‘unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute. Doubts should be resolved in favor of coverage.’ United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582-83, 80 S.Ct. 1347, 1353, 4 L.Ed.2d 1409, 1417 (I960).” General Drivers Local 120 v. Sears, Roebuck & Co., 535 F.2d 1072, 1075 (8th Cir. 1976).

The district court properly noted that in several filings before it, Capital expressed its willingness to submit all disputes to arbitration. For example, shortly after Capital brought the instant action against the defendants pursuant to 29 U.S.C. § 185(a), it sought a temporary restraining order and preliminary injunction.3 In its attempt to secure the preliminary injunction, Capital stated to the district court in -its motion that the “plaintiff and defendant Unions have a collective bargaining agreement between themselves which provides that work stoppages shall not occur during the life of the said agreement, and that any grievances or disputes between the parties are subject to a grievance procedure and arbitration in lieu of a strike or work stoppage.” (Emphasis added.) Similarly, in its suggestions in support of the preliminary injunction, Capital urged the district court to compel the defendants “to enter into the arbitration process instead of maintaining the work stoppage.” Furthermore, in a hearing memorandum dated January 16, 1974, in the arbitration proceeding, Capital stated that the parties had agreed to arbitrate the question of contract interpretation. Finally, after the arbitrator had found that the defendants had breached the contract, Capital stated in a post-hearing brief of December 31, 1976, to the arbitrator, that “[a]lthough the Union has not objected to the jurisdiction of the Arbitrator to make a damage award, there can be no doubt that such jurisdiction is inherently vested in this Arbitrator.” In our opinion these filings by Capital prohibit us from saying with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute. Although a doubt may exist, it will be resolved in favor of coverage.

[658]*658Even more damaging to Capital’s position, however, is a stipulation entered into by Capital and the defendants and filed with the district court on April 19, 1974. This stipulation followed the arbitrator’s initial finding that the refusal of the defendants’ members to cross the picket line of another union was a violation of the no-strike clause of the collective bargaining agreement.

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575 F.2d 655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capital-city-telephone-co-v-communication-workers-of-america-ca8-1978.