City of Ann Arbor v. American Federation of State Employees Local 369

771 N.W.2d 843, 284 Mich. App. 126, 2009 Mich. App. LEXIS 1255
CourtMichigan Court of Appeals
DecidedMay 28, 2009
DocketDocket No. 283814
StatusPublished
Cited by62 cases

This text of 771 N.W.2d 843 (City of Ann Arbor v. American Federation of State Employees Local 369) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Ann Arbor v. American Federation of State Employees Local 369, 771 N.W.2d 843, 284 Mich. App. 126, 2009 Mich. App. LEXIS 1255 (Mich. Ct. App. 2009).

Opinion

BANDSTRA, EJ.

Defendant, American Federation of State, County, and Municipal Employees (AFSCME) Local 369, appeals as of right the trial court’s order granting summary disposition to plaintiff, city of Ann Arbor, in this action arising from a dispute over the scope of an arbitration award. We reverse and remand for the entry of an order granting summary disposition in favor of defendant.

[128]*128At issue here is the meaning of language in a so-called “me too” provision of a collective bargaining agreement (CBA) entered into by the parties for the three-year period from July 1, 1998, to June 30, 2001.1 This “me too” provision provides that

[i]f another bargaining unit receives an increase higher than the settlement with AFSCME, such increase will also be granted to AFSCME for this contract period as a “me too” on wages. If gained by Police or Fire bargaining units, a “me too” [sic] retroactivity on wages for retirees.

The parties did not reach agreement on a successor contract as of the CBA’s June 30, 2001, expiration date. By virtue of “ground rules” mutually agreed to by the parties on April 21,2001, the CBA was to remain in effect until a successor contract was ratified by both parties. Before the parties reached agreement on a successor contract, defendant filed its grievance, alleging that plaintiff violated the “me too” provision of the CBA by refusing to give defendant’s members wage increases provided to members of another bargaining unit.

The parties executed a successor collective bargaining agreement, which was ratified by plaintiff on October 7,2002. Defendant ratified the agreement sometime between August 21, 2002, and October 7, 2002. Thus, pursuant to the “ground rules,” the CBA remained in effect until October 7, 2002.

Defendant’s grievance remained unresolved through the process outlined in the CBA, and on March 25,2002, defendant demanded arbitration. Ultimately, the arbitrator determined that defendant was entitled to the [129]*129“me too” increase it sought, concluding that “the longevity/wage structure increases received by the [other bargaining unit] shall be awarded to AFSCME for the contract period from July 1, 1998, to June 3[0], 2001, and as extended by the parties.”

Following the issuance of the arbitrator’s opinion, plaintiff granted the “me too” increases to defendant, limited to the period from July 1, 1998, to June 30, 2001. Plaintiff asserted that the arbitration award did not include the period during which the CBA was extended pursuant to the mutually agreed to “ground rules” pending completion of a successor agreement, because that period was not part of the “contract period” within the meaning of the CBA’s “me too” provision. Plaintiff argued that the phrase “and as extended by the parties” in the arbitration award meant only that the awarded “me too” increases would continue if, but only if, the parties agreed to extend the “me too” benefit by including it in the successor agreement. Defendant disagreed, asserting that the arbitrator’s language “and as extended by the parties” referred to and encompassed the parties’ mutual agreement, set forth in the “ground rules,” to extend the CBA until such time as a successor agreement was ratified by both parties and that the increases thus extended until October 7,2002. Unable to resolve their disagreement, the parties ultimately agreed to return to the arbitrator to seek clarification of the award.

Following a hearing on this issue and the submission of posthearing briefs, on April 24, 2007, the arbitrator issued a second opinion and award clarifying that “ ‘[a]s extended by the parties’ means until ratification by the parties on October 7, 2002. The ground rules mutually adopted on April 24, 2001, stated that the agreement is to remain in effect until both parties ratify the successor contract.” The arbitrator reasoned that, by mutual [130]*130agreement of the parties, “[t]he employees continued to be paid under the terms and conditions of the 1998-2001 contract until the new contract was ratified. This means that the ‘me-too’ wage increases continued to be part of the 1998-2001 agreement until it was officially superceded.”

On May 16, 2007, 21 days after the arbitrator clarified his award, plaintiff filed a complaint to vacate a portion of arbitrator’s award. It asserted that the arbitrator exceeded his authority under the CBA by awarding defendant the “me too” increases for the period from June 30, 2001, until October 7, 2002.

Defendant moved for summary disposition pursuant to MCR 2.116(C)(7). Defendant relied on a decision issued by the United States Court of Appeals for the Sixth Circuit, Badon v Gen Motors Corp, 679 F2d 93 (CA 6, 1982), a case filed under § 301 of the Labor Management Relations Act, 29 USC 185, to argue that the Michigan limitations period for an action to vacate a labor arbitration award is six months. Thus, defendant argued that plaintiffs complaint should be dismissed as untimely because it was filed more than six months after the arbitrator issued his October 28, 2005, award granting defendant’s grievance.

Plaintiff initially acknowledged that a six-month limitations period generally applies to such claims, but argued that the limitations period should be equitably tolled given the unusual circumstances presented here, including the necessity of seeking clarification of the award from the arbitrator, that much of the delay in returning to the arbitrator was caused by defendant, and that plaintiff filed its complaint less than one month after the arbitrator issued his second opinion clarifying the phrase “and as extended by the parties.” Later, in a reply to defendant’s motion, plaintiff denied [131]*131that Michigan imposes a six-month limitations period on claims to vacate an arbitration award, asserting for the first time that such actions are subject to the six-year residual statute of limitations set forth in MCL 600.5813.

The trial court agreed and denied defendant’s motion for summary disposition. The trial court ruled that the residual six-year limitations period set forth in MCL 600.5813 applied to plaintiffs claim to vacate a portion of the arbitration award and that even if a six-month limitations period applied, it would be equitably tolled considering the circumstances presented.

Plaintiff likewise moved for summary disposition, asserting that the arbitrator exceeded his authority by extending the “me too” benefits until October 7, 2002, because he did so relying on the “ground rules” (which extended the CBA pending ratification of a successor agreement) and not by interpreting language contained in the CBA. Defendant opposed the motion, asserting that the arbitrator was acting within his authority when he interpreted the “contract period” as including the parties’ mutually agreed extension of the CBA until such time as the successor agreement was ratified. At the conclusion of oral argument, the trial court granted plaintiffs motion. It concluded that the arbitrator exceeded his authority by relying on the “ground rules,” and not solely on the CBA, to determine that the “contract period” for purposes of the “me too” increases concluded on October 7, 2002.

Defendant first argues on appeal that the trial court erred in determining that actions to vacate an arbitration award are governed by a six-year limitations period. We disagree.

This Court reviews a trial court’s decision on a motion for summary disposition de novo.

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Bluebook (online)
771 N.W.2d 843, 284 Mich. App. 126, 2009 Mich. App. LEXIS 1255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-ann-arbor-v-american-federation-of-state-employees-local-369-michctapp-2009.