Coca-Cola Bottling Co. v. International Brotherhood of Teamsters

506 F. Supp. 2d 1052, 181 L.R.R.M. (BNA) 3258, 2007 U.S. Dist. LEXIS 34888, 2007 WL 1424590
CourtDistrict Court, S.D. Alabama
DecidedMay 11, 2007
DocketCivil Action 05-0230-WS-B
StatusPublished
Cited by6 cases

This text of 506 F. Supp. 2d 1052 (Coca-Cola Bottling Co. v. International Brotherhood of Teamsters) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coca-Cola Bottling Co. v. International Brotherhood of Teamsters, 506 F. Supp. 2d 1052, 181 L.R.R.M. (BNA) 3258, 2007 U.S. Dist. LEXIS 34888, 2007 WL 1424590 (S.D. Ala. 2007).

Opinion

ORDER

WILLIAM H. STEELE, District Judge.

This matter comes before the Court on remand from the Eleventh Circuit Court of Appeals. See Coca-Cola Bottling Co., Consolidated v. International Brotherhood of Teamsters, 2006 WL 3626955 (11th Cir. Dec. 13, 2006) (doc. 45).

I. Procedural History.

This action arises from a labor dispute between plaintiff, Coca-Cola Bottling Co., Consolidated, Inc. (“CCB”), and defendant, International Brotherhood of Teamsters, Chauffeurs, Warehousemen, and Helpers, Local Union No. 991 (the “Union”), relating to the former’s soft-drink distribution operations in Mobile, Alabama. In spring 2004, CCB implemented a new distribution system for its products in the Mobile area, with attendant restructuring of routes, duties, and wage rates for certain bargaining-unit members. The Union opposed this maneuver, and filed grievances alleging that CCB’s actions violated the parties’ *1053 collective bargaining agreement (“Agreement”). For its part, CCB contended that the Agreement authorized it to implement unilaterally the new distribution system without the Union’s consent. Arbitration proceedings ensued before Arbitrator Harold Curry.

Following a hearing, Arbitrator Curry rendered a lengthy written Opinion and Award (the “Award”) on April 8, 2005. In summary, the arbitrator concluded that the Agreement did not confer authority on CCB to change the method of distribution without Union consent or to implement unilaterally the new distribution system. Such consent having never been granted, the arbitrator upheld the Union’s grievance and deemed CCB in breach of the Agreement. The arbitrator specifically ordered “that the Union shall be made whole for any loss of compensation” in connection with CCB’s implementation of the new system. Because the evidence in the record was insufficient to enable him to make a definitive determination of the amount of lost compensation, Arbitrator Curry did not enter an award for a sum certain, but instead entered a liability award, ordered make-whole compensation generally, and retained jurisdiction for 120 days “to resolve any dispute arising from the implementation of this award, including reopening the record to determine entitlements of the Union or any make whole remedy” (Award, at 47) in the event the parties were unable to resolve those damages issues themselves. In the eyes of the Eleventh Circuit, this approach “constituted a de facto bifurcation of the damages issue to be resolved at a later time.” (Doc. 45, at 2 n. 1.)

One week later, on April 15, 2005, CCB filed a petition in this District Court to vacate the arbitration award (doc. I). 1 As grounds for vacating the Award, CCB argued that it did not draw its essence from the Agreement, that it ignored the premise and language of the Agreement, and that it was irrational and exceeded the authority of the arbitrator. (See doc. 1, ¶¶ 17-19.) CCB further maintained that the Award should be vacated as untimely and incomplete (because the arbitrator did not set a specific dollar amount for the make-whole remedy). After summary judgment briefing, Senior District Judge Pittman (to whom the case was originally assigned) concluded that the timeliness and completeness arguments were not legally viable grounds for vacating the Award, and that the Award was in any event neither vague nor incomplete as to liability. (See doc. 28, at 16-17.) With respect to the contention that the Award did not draw its *1054 essence from the Agreement, Judge Pittman found that it did, inasmuch as the arbitrator had extensively analyzed specific provisions of the Agreement and explained his interpretation of them. (See id. at 20-21.) Because the arbitrator had arguably construed the Agreement, Judge Pittman concluded, the Award must be enforced. On that basis, Judge Pittman granted summary judgment to the Union and denied summary judgment to CCB. CCB appealed.

During the pendency of that appeal, the Union moved the District Court for an award of attorney’s fees. At the close of briefing on the attorney’s fee issue, this case was transferred from Judge Pittman’s docket to that of the undersigned. After familiarizing himself with the record and particularly Judge Pittman’s summary judgment ruling, the undersigned entered an Order (doc. 41) granting the Union’s request for attorney’s fees and awarding fees and expenses totaling $11,785.06. CCB appealed from this ruling too.

On appeal, the Eleventh Circuit candidly observed that “it is difficult to discern what, exactly, the parties are arguing about and what they want the courts to do about it.” (Doc. 45, at 3.) In that regard, the panel noted that CCB had abandoned its challenge to the arbitrator’s conclusion that it had breached the Agreement, and that both parties now agreed that the Award was incomplete. 2 Based on the parties’ statements on appeal, the panel concluded that “[t]he crux of the dispute thus boils down to how the amount of damages should now be determined,” and in particular whether the matter should be shipped back to the original arbitrator for a ■ damages determination (as the Union argued), or whether the parties should be ordered to initiate a new grievance procedure with a new arbitrator (as CCB argued). 3 (See doc. 45, at 3.) Because Judge *1055 Pittman’s summary judgment order failed to address how the amount of damages should be determined, the panel remanded the case for this Court “to determine the appropriate procedure for resolving the damages issue.” (Id. at 4.) Upon receipt of the Eleventh Circuit’s mandate, the undersigned ordered supplemental briefing “on the very narrow question of how damages should be calculated.” (Doc. 46, at 1.) Such briefing having been concluded, the damages question is now squarely presented for resolution by this Court. 4

II. Discussion.

A. Binding Precedent Calls for Remand to the Original Arbitrator.

On remand, CCB claims that the proper procedure for determining the damages award, if any, to which the Union is entitled is via a new grievance arbitration before a different arbitrator. CCB contends that such an outcome is mandated by a footnote in San Antonio Newspaper Guild Local No. 25 v. San Antonio Light Division, 481 F.2d 821 (5th Cir.1973), wherein the court mused that “[tjhere may be ... special circumstances where invocation of grievance machinery might be appropriate following the award of an arbitrator. Ordinarily this would result where a collateral dispute arises from an award which is not self-executing.” Id. at 824 n. 3 (emphasis in original).

But CCB would selectively magnify the language of this footnote while ignoring the context in which it was written, leading to a flawed application of this precedent. In

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506 F. Supp. 2d 1052, 181 L.R.R.M. (BNA) 3258, 2007 U.S. Dist. LEXIS 34888, 2007 WL 1424590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coca-cola-bottling-co-v-international-brotherhood-of-teamsters-alsd-2007.