Chicago Typographical Union No. 16 v. Chicago Sun-Times, Incorporated

935 F.2d 1501, 20 Fed. R. Serv. 3d 74, 137 L.R.R.M. (BNA) 2731, 1991 U.S. App. LEXIS 13107, 1991 WL 110822
Court of Appeals for the Seventh Circuit·Decided June 25, 1991·No. 90-3501, 90-3503·Published·Cited by 128 cases

Opinion

*1503 POSNER, Circuit Judge.

We have consolidated for decision these two appeals because though they arise from separate cases before different district judges, the parties and counsel are the same, both appeals involve arbitration issues, and both cases derive ultimately from the same arbitration award.

Chicago Typographical Union No. 16, the plaintiff and appellant in both eases, represents the composing-room employees of both the Chicago Sun-Times, Inc. — the publisher of Chicago’s second-largest newspaper, and the defendant and appellee in these cases — and the publisher of Chicago’s largest newspaper, the Chicago Tribune. We shall call the respective publishers the Sun-Times and the Tribune. The union and the Sun-Times had long operated under a succession of term collective bargaining agreements. In 1975 they added a “Supplemental Agreement” that conferred certain rights on the workers and that by its terms was to be a part of all future collective bargaining agreements between the parties and could be amended only by mutual agreement.

The most recent term agreement — what we shall call the “Main Agreement” — expired in 1989, but the parties agreed to keep it in force, subject to cancellation upon 48 hours’ notice by either party. Section 7(a) of the Main Agreement is a “most favored nations” clause: it entitles the Sun-Times to any concessions that the union grants the Tribune. Section 7(b), however, states that “it is understood that the provisions of the Supplemental Agreement of 1975 are neither superseded, affected, or supplanted by the language of” section 7(a). The Main Agreement contains an arbitration clause; the Supplemental Agreement does not.

In 1989 the union signed a collective bargaining agreement with the Tribune that, in the Sun-Times’ view, made significant concessions to the Tribune. In July of that year, in reliance on the most favored nations clause in the Main Agreement and over the opposition of the union, the Sun-Times changed some of the terms and conditions of employment in its composing room. The union filed a grievance, which was submitted to arbitrator Fred Witney, who in a written opinion issued later in 1989 found that some of the changes were authorized by the most favored nations clause and others were not. To the objection that even the former changes were forbidden because they violated the Supplemental Agreement and hence (the union argued) were excluded from the most favored nations clause by section 7(b), Wit-ney in his opinion responded in a single sentence: “Nor is there need to determine the application of Section 7(b) to the circumstances of this case.”

On January 10, 1990, the union filed suit in federal district court challenging Witney’s award insofar as it permitted the Sun-Times to make changes that infringed rights conferred by the Supplemental Agreement. The basis of federal jurisdiction was section 301 of the Taft-Hartley Act, 29 U.S.C. § 185, which creates federal jurisdiction over suits to enforce labor contracts. There is no doubt of the applicability of section 301. A suit to throw out a labor arbitrator’s award is, in the usual ease anyway — including this case — a suit to enforce the labor contract that contained the clause authorizing the arbitration of disputes arising out of the contract. For in arguing against the award, the plaintiff normally will be pointing to implicit or explicit limits that the contract places on the arbitrator’s authority — principally that he was to interpret the contract and not go off on a frolic of his own — and arguing that the arbitrator exceeded those limits. Kallen v. District 1199, 574 F.2d 723, 725 (2d Cir.1978); Harry Hoffman Printing, Inc. v. Graphic Communications, International Union, 912 F.2d 608, 612 (2d Cir.1990).

If the plaintiff were challenging the award on grounds neither explicitly nor implicitly contractual, it might seem problematic to base federal jurisdiction on a statute (section 301) that authorizes only “suits for violations of [labor] contracts.” We are sympathetic to the view of the Second Circuit in Rallen, however, that the statute can and should be stretched a bit to em *1504 brace all suits arising out of awards by arbitrators appointed under labor contracts, whether it is a suit to enforce or to set aside the award, and if the latter whether the suit is based on contractual or noncontractual grounds. 574 F.2d at 725; cf. International Brotherhood of Electrical Workers v. Sign-Craft, Inc., 864 F.2d 499, 502 (7th Cir.1988). It would not only be odd, it would be pointless, to make federal jurisdiction depend on whether the winner was seeking to enforce the arbitration award or the loser to challenge it, since the loser could by disregarding the award force the winner to sue, and by this oblique means gain access to the federal court (if necessary removing the case to that court). In any event, since the suit here was based on contractual grounds, it was a suit to enforce a labor contract and the district court therefore unquestionably had jurisdiction. The court upheld Wit-ney’s award. The union’s appeal from that decision is No. 90-3503.

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Chicago Typographical Union No. 16 v. Chicago Sun-Times, Incorporated, 935 F.2d 1501, 20 Fed. R. Serv. 3d 74, 137 L.R.R.M. (BNA) 2731, 1991 U.S. App. LEXIS 13107, 1991 WL 110822 (7th Cir. 1991).

935 F.2d 1501 (Chicago Typographical Union No. 16 v. Chicago Sun-Times, Incorporated) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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