Dixie Warehouse & Cartage Co. v. General Drivers, Warehousemen, & Helpers, Local Union No. 89

35 F. App'x 169
CourtCourt of Appeals for the Sixth Circuit
DecidedMay 7, 2002
DocketNo. 00-5777
StatusPublished
Cited by2 cases

This text of 35 F. App'x 169 (Dixie Warehouse & Cartage Co. v. General Drivers, Warehousemen, & Helpers, Local Union No. 89) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dixie Warehouse & Cartage Co. v. General Drivers, Warehousemen, & Helpers, Local Union No. 89, 35 F. App'x 169 (6th Cir. 2002).

Opinion

WILLIAMS, Senior District Judge.

Plaintiff-Appellant Dixie Warehouse and Cartage Company has filed an appeal of the district court’s grant of summary judgment affirming an arbitrator’s decision in favor of Defendant-Appellee General Drivers, Warehousemen, and Helpers, Local Union No. 89. For the reasons set forth below, we AFFIRM the district court.

I. BACKGROUND

Dixie Warehouse and Cartage Company (“Dixie”) engaged in the public warehouse and trucking business in Louisville, Kentucky, from 1938 until March 1999. On September 1, 1995, Dixie entered into a Collective Bargaining Agreement (“Agreement”) with General Drivers, Warehouse-men, and Helpers, Local Union No. 89 (“Union”) governing the terms and conditions of employment for those employees represented by the Union. This Agreement was in effect at the time of this controversy.

The Agreement categorized Dixie’s sixty-four employees into one of three discrete classes: warehouse employees, garage employees, or truck drivers. The Agreement included a provision to deter[170]*170mine who would be laid off during times when business decreased. The relevant portion of Article 21(b) provides as follows:

In all cases of layoff, plant-wide seniority shall prevail provided the remaining employees are reasonably qualified to perform the work. A man shall be considered reasonably qualified to perform the work if he has performed the job in question before and was not taken off the said job for incompetence.

(Article 21(b), Agreement at 19.)

The Agreement also provided a four-step procedure for resolving disputes concerning the Agreement, culminating in submission of any dispute to an arbitration board should other procedures fail. The Agreement limited the power of the arbitration board with the last sentence of Article 12, which reads, “The Arbitration Board may only interpret this Agreement, and shall not add to, subtract from, or otherwise change or modify it.” (Article 12, Agreement at 10.)

In November 1998, Dixie lost a major trucking account causing the lay-off of sixteen employees, all truck drivers. All sixteen sought to “bump,” or replace, existing employees in the warehouse division based on seniority. Four of the sixteen were allowed to bump warehouse employees based on seniority and previous work experience within Dixie’s warehouse. The remaining twelve were laid off despite having more seniority than existing warehouse employees because they had not previously worked in the warehouse.

The Union filed a grievance pursuant to Article 12 of the Agreement, which was processed according to the provisions of that Article. On May 5, 1999, a hearing was held before arbitrator Edwin R. Render. At that hearing, the Union presented two witnesses, Doug Rigdon and Kenneth Harp. Both Mr. Rigdon and Mr. Harp testified that the laid-off drivers were qualified to load and unload trucks, fill and pack orders, and generally do the work of a warehouseman. Mr. Rigdon further testified that none of the laid-off employees were asked about any warehouse experience outside of Dixie. Also of particular importance to the arbitrator, Mr. Rigdon testified that in 1971, he was laid off from driving for Dixie but went directly to work in the warehouse despite having no prior experience.

Dixie presented no witnesses on its behalf. However, Dixie argued, as it does here, that the term “reasonably qualified” is defined by the language of Article 21(b) in the Agreement to include only those employees who have previously worked in Dixie’s warehouse without being removed for incompetence.

The arbitrator issued an opinion on July 12, 1999, sustaining the Union’s grievance against Dixie. He found Dixie’s lack of any evidence that the truck drivers were unqualified to perform warehousing tasks particularly persuasive. The arbitrator focused on the more general application of “reasonably qualified” as mentioned in the first sentence of the clause at issue, applying it to all employees of Dixie and requiring Dixie to ascertain each employees’ capabilities. The second clause, according to the arbitrator’s interpretation, simply required Dixie to utilize any employee who had previously performed a given job, unless the employee had been removed for incompetence.

Dixie filed suit in the United States Court for the Western District of Kentucky seeking to vacate the arbitrator’s award on the basis that the award was not drawn from the Agreement but instead relied on outside factors, thus conflicting with Article 12 of the Agreement. On cross motions for summary judgment, the court upheld the arbitrator’s award determining that the arbitrator simply interpreted the Agreement as he was called upon to do. The district court pointed out [171]*171that the term “reasonably qualified” was ambiguous “at most” and relied on Sixth Circuit precedent to determine that the arbitrator’s interpretation was definitive. (Mem. Op. & Order at 4, citing Molders & Allied Workers Union AFL-CIO v. Brooks Foundry, Inc., 892 F.2d 1283, 1286 (6th Cir.1990).)

Dixie now appeals that decision seeking reversal of the lower court and vacation of the arbitrator’s award.

II. ANALYSIS

This court’s review of an arbitral award is limited. This axiom has been confirmed repeatedly both by this court and by the Supreme Court. The Supreme Court recently revisited and reiterated this position in Major League Baseball Players Ass’n. v. Garvey, 532 U.S. 504, 121 S.Ct. 1724, 149 L.Ed.2d 740 (2001). In Garvey, the Court stated that “[c]ourts are not authorized to review the arbitrator’s decision on the merits despite allegations that the decision rests on factual errors or misinterprets the parties’ agreement.” 121 S.Ct. at 1728 (citations omitted). The Court further stated “that if an arbitrator is even arguably construing or applying the contract and acting within the scope of his authority, the fact that a court is convinced he committed serious error does not suffice to overturn his decision.” 121 S.Ct. at 1728 (quoting Eastern Associated Coal Corp. v. Mine Workers, 531 U.S. 57, 121 S.Ct. 462, 148 L.Ed.2d 354 (2000)) (internal quotations and citations omitted).

The Court’s decision in Garvey simply reaffirmed the standard of review to be employed by lower courts. This standard has been consistently applied to cases involving labor arbitration. The Court elaborated on the reasoning behind this standard in United Paperworkers International Union v. Misco, Inc.:

Because the parties have contracted to have disputes settled by an arbitrator chosen by them rather than by a judge, it is the arbitrator’s view of the facts and of the meaning of the contract that they have agreed to accept. Courts thus do not sit to hear claims of factual or legal error by an arbitrator as an appellate court does in reviewing decisions of lower courts. To resolve disputes about the application of a collective-bargaining agreement, an arbitrator must find facts and a court may not reject those findings simply because it disagrees with them....

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Bluebook (online)
35 F. App'x 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dixie-warehouse-cartage-co-v-general-drivers-warehousemen-helpers-ca6-2002.