Ceres Marine Terminals, Inc. v. International Longshoremen's Association, Local 1969, Afl-Cio

683 F.2d 242, 111 L.R.R.M. (BNA) 2016, 1982 U.S. App. LEXIS 17221
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 22, 1982
Docket81-1085
StatusPublished
Cited by31 cases

This text of 683 F.2d 242 (Ceres Marine Terminals, Inc. v. International Longshoremen's Association, Local 1969, Afl-Cio) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ceres Marine Terminals, Inc. v. International Longshoremen's Association, Local 1969, Afl-Cio, 683 F.2d 242, 111 L.R.R.M. (BNA) 2016, 1982 U.S. App. LEXIS 17221 (7th Cir. 1982).

Opinions

WILL, Senior District Judge.

Ceres Marine Terminals, Inc. (“Ceres” or “the Company”), alleges that employees at its Burns Waterway Harbor in Portage, Indiana, engaged in a work slow-down in violation of the collective bargaining agreement1 (“the Agreement”) between Ceres and the International Longshoremen’s Association (“the Union"). Ceres also alleges that the Union encouraged the slow-down, again in violation of the Agreement, and that the slow-down caused Ceres to incur damages totaling $38,000. Ceres filed an action2 for damages in the state court, and the Union removed it to the United States District Court for the Northern District of Indiana.

The district court stayed further proceedings pending arbitration of Ceres’ complaint. The court determined that Ceres’ claim was a “grievance” which the Agreement required Ceres to submit to arbitration before bringing a civil action (based on that grievance) in the courts. Ceres appeals from that decision which stayed further proceedings pending arbitration, and the sole issue is whether, under the Agreement entered into by Ceres and the Union, arbitration is a prerequisite to Ceres’ filing of a civil action whose basis is an alleged violation of the Agreement by the Union or its members. We affirm.

It is axiomatic that the analysis of whether a dispute between the parties to a collective bargaining agreement must be submitted to arbitration starts with the collective bargaining agreement itself. “Arbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.” United Steelworkers of America [244]*244v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582, 80 S.Ct. 1347, 1352, 4 L.Ed.2d 1409 (1960). Our function is therefore confined to ascertaining whether the particular claim is governed by the parties’ collective bargaining agreement. United Steelworkers of America v. American Manufacturing Co., 363 U.S. 564, 567-68, 80 S.Ct. 1343, 1346-1347, 4 L.Ed.2d 1403 (1960). However, even where a collective bargaining agreement is ambiguous regarding the effect of its arbitration provisions, doubts should be resolved in favor of arbitration. Warrior & Gulf, 363 U.S. at 582-83, 80 S.Ct. at 1352-1353; Gateway Coal Co. v. United Mine Workers of America, 414 U.S. 368, 377-78, 94 S.Ct. 629, 636-637, 38 L.Ed.2d 583 (1974).

Section 14.2 of the Agreement defines “grievance” as

a complaint, dispute or controversy in which an employee or the Union claims that the Company has failed to carry out a provision of this Agreement and which involves a question concerning the effect, interpretation, application of or claim of breach or violation of this Agreement.

This section is worded in terms of complaints, disputes, or controversies presented by “an employee or the Union,” and does not, viewed in isolation, contemplate the possibility of a “grievance” which might be presented by the Company. However, section 14.5 states that “[t]he Company may present a grievance.” The Agreement does not provide a separate definition of “Company Grievances.”

Section 14.3 of the Agreement establishes a three-step grievance procedure which is preliminary to arbitration.3 This preliminary procedure consists of informal negotiations between various representatives of the Union and the Company. If the grievance is not resolved in this manner within a period of approximately nine “working calendar days” then the grievance “may be referred to arbitration.”

Section 14.5 provides for a less extensive procedure preliminary to the arbitration of a “company grievance:”

[The Company’s] grievance may be presented orally or in writing to the Terminal Steward or the Recording Secretary of the Union and the Union shall give a written answer thereto within three (3) working calendar days after presentation thereof. In the event the answer is unsatisfactory or if no answer is timely received, the Company may refer the grievance to arbitration by written notice of appeal to the Union.

The agreement recognizes that certain kinds of “complaints, disputes or controversies” are of extraordinary importance. These “extraordinary grievances” are “any strike, work stoppage, picketing, slow-down, sit-down, or other interruption of work,” section 16.1, any endorsement or encouragement by the Union of any of these variations of an “interruption of work,” id., and any lockout by the Company. Section 16.3.

Section 16.4 of the Agreement provides an “Additional Procedure” (which, as will become apparent, would be more appropriately entitled “Alternative Procedure”) should one of the parties present any of the [245]*245extraordinary grievances which sections 16.1 and 16.3 specify:

In the event of a violation of Paragraph 16.1 hereof, in addition to any other remedy, the Company may file a grievance regarding such violation by telegraphic notice thereof to the Union and to the American Arbitration Association, which latter shall immediately, upon receipt of the telegraphic notice, appoint an arbitrator to hear the matter. The American Arbitration Association shall appoint an arbitrator who is immediately available. The arbitrator shall hold a hearing forthwith, upon telegraphic notice to the Company and the Union, and in such event, shall have jurisdiction to issue a cease and desist order with respect to such violation. No opinion shall be required, but only a written award and order by the arbitrator. It is agreed that such award and order may be immediately confirmed without notice to any other interested person or party by any court of competent jurisdiction upon the motion, application or petition of the Company. The same procedure shall be applicable in the event of a violation of Paragraph 16.3 by the Company.

Section 16.4 allows Ceres, when confronted with a work slow-down, to dispense with the preliminary grievance procedure which section 14.5 provides for more general and less urgent “company grievances.”4 Instead, it may proceed immediately to arbitration, and to an expedited summary arbitration at that.5 The final sentence of section 16.4 makes this expedited procedure available to the Union, allowing it to bypass the preliminary and time-consuming process of section 14.3, in the event of a lockout by the Company.

Ceres argues that although the Union and its members’ grievances — whether they are of an ordinary or extraordinary nature — must be referred to arbitration, and cannot be brought in the courts in any form other than as actions to confirm or vacate an arbitrator’s award,6 arbitration of its own grievances, again whether ordinary or extraordinary, is an optional rather than a mandatory procedure under this Agreement. Ceres relies primarily upon section 14.5. It argues that the language “[t]he Company may present a grievance ...” and “the Company may refer the grievance to arbitration...” is permissive and gives Ceres a choice between arbitration and immediate filing of a civil action.

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683 F.2d 242, 111 L.R.R.M. (BNA) 2016, 1982 U.S. App. LEXIS 17221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ceres-marine-terminals-inc-v-international-longshoremens-association-ca7-1982.