Elsinore Shore Associates v. Local 54, Hotel Employees And Restaurant Employees International Union

820 F.2d 62
CourtCourt of Appeals for the Third Circuit
DecidedJune 25, 1987
Docket86-5660
StatusPublished

This text of 820 F.2d 62 (Elsinore Shore Associates v. Local 54, Hotel Employees And Restaurant Employees International Union) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elsinore Shore Associates v. Local 54, Hotel Employees And Restaurant Employees International Union, 820 F.2d 62 (3d Cir. 1987).

Opinion

820 F.2d 62

125 L.R.R.M. (BNA) 2690, 55 USLW 2675,
106 Lab.Cas. P 12,417,
Bankr. L. Rep. P 71,820

ELSINORE SHORE ASSOCIATES f/k/a Playboy Elsinore Associates,
a New Jersey Partnership d/b/a The Atlantis Casino Hotel
v.
LOCAL 54, HOTEL EMPLOYEES AND RESTAURANT EMPLOYEES
INTERNATIONAL UNION, an unincorporated association on behalf
of itself and all of its members as members and
individually, and Roy Silbert, and Jon Doe and Jane Doe, et al.
Appeal of HOTEL AND RESTAURANT EMPLOYEES INTERNATIONAL UNION LOCAL 54.

Nos. 86-5660 and 86-5711.

United States Court of Appeals,
Third Circuit.

Submitted Pursuant To Third Circuit
Rule 12(6)
Feb. 10, 1987.
Decided May 26, 1987.
Rehearing and Rehearing In Banc Denied June 25, 1987.

Ronald H. Surkin, Peter S. Pantaleo, Sarah A. Kelly, Blank, Rome, Comisky & McCauley, Philadelphia, Pa., for appellee.

Bernard N. Katz, Michael N. Katz, Meranze and Katz, Philadelphia, Pa., for appellant.

Before HIGGINBOTHAM and STAPLETON, Circuit Judges and CONABOY, District Judge*.

OPINION OF THE COURT

STAPLETON, Circuit Judge:

Local 54 of the Hotel Employees and Restaurant Employees International Union (the Union) appeals from the temporary restraining order and subsequent preliminary injunction entered by the U.S. Bankruptcy Court for the District of New Jersey, 66 B.R. 743, that prohibit the Union from striking against or otherwise interfering with the operations of the Atlantis Casino Hotel in Atlantic City, New Jersey. Appellee Elsinore Shore Associates (Elsinore), a debtor-in-possession under the protection of Chapter 11 of the Bankruptcy Code, does business as the Atlantis Casino Hotel. The bankruptcy court granted this injunctive relief after concluding that Elsinore had satisfied the prerequisites for such relief prescribed by the Supreme Court in Boys Markets, Inc. v. Retail Clerks Union, Local 770, 398 U.S. 235, 90 S.Ct. 1583, 26 L.Ed.2d 199 (1970). The lower court based its decision on findings that: 1) the dispute triggering the strike was a disagreement about the respective rights of the parties under the "wage reopener" clause; 2) this issue was arbitrable; 3) Elsinore had offered to arbitrate this issue; 4) a strike would cause irreparable injury to Elsinore; and 5) the injury caused by a strike would exceed the injury to the Union caused by an injunction.

As a preliminary matter, we conclude that this court has appellate jurisdiction over the direct appeal of the preliminary injunction from the bankruptcy court. Despite the general practice of appealing bankruptcy court decisions to the district courts, 28 U.S.C. Sec. 158 (Supp. II 1984), we hold that the Norris-LaGuardia Act, 29 U.S.C. Sec. 110 (Supp. II 1984), authorizes the Union to appeal directly to this court from the bankruptcy court's issuance of a preliminary injunction in this case involving a labor dispute. We decline to review the validity of the temporary restraining order because it is no longer in effect and no contempt order has been issued for violation thereof.

With respect to the propriety of the preliminary injunction, we hold that the bankruptcy court committed clear error in finding that the underlying dispute was arbitrable. Finding that the prerequisites for a Boys Markets injunction were not satisfied, we vacate that portion of the preliminary injunction that prohibits work stoppages. We do not disturb that portion of the injunction which requires the parties to arbitrate their dispute concerning the legality of a strike under the contract.

I.

Local 54 and Elsinore are parties to a collective bargaining agreement which became effective on October 19, 1983 and remains in effect until September 14, 1988. Article XXI of the contract, entitled "Term of Contract," states in part:

2. This contract shall remain in full force and effect until September 14, 1988, provided, however, that for the exclusive purpose of negotiating wage rates and contribution levels for existing benefit funds as described in Article XV, this contract shall be reopened on September 15, 1986. Failing agreement if this Agreement is reopened (consistent with terms and limits of the reopener), the Union may strike as if the contract had been terminated in accordance with all of the provisions of ARTICLE XVII. Provided further that sixty (60) days prior written notice of an intention to terminate, modify or amend the contract is given by one (1) Party to the other. In the event no such notice is given, then this contract shall continue in full force and effect until such time as a sixty (60) day notice is so given.

App. at 46 (emphasis in original). Article XVII, entitled "No Strikes--No Lockouts," states in part:

1. ... The Union agrees that it will not call, engage in or sanction any strike, sympathy strike, work stoppage, slow-down, picketing, sit-down, sit-in, boycott, refusal to handle merchandise or any other interference with the conduct of Employer's business for any reason whatsoever....

2. The Union agrees that notwithstanding the provisions for the termination of this contract, during the time of negotiations after the expiration date, the Parties hereto shall continue to operate in accordance with the terms of this Agreement as though same had not expired, unless Employer shall give written notice to the Union that it does not intend to operate under the terms of this Agreement, and the Union agrees that unless said notice is given by Employer, the provisions of Articles XVII and XVIII herein shall be applicable during said period of negotiations.

App. at 42.

Prior to September 15th, 1986, the parties conducted negotiations pursuant to the Article XXI "wage reopener" provision. The Union sought increased wages and fringe benefit contributions, while Elsinore offered only to continue paying Union employees according to the existing wage and benefit schedules in the contract. The Union offered to engage in voluntary arbitration on the question of wage and benefit levels for the final two contract years and threatened to strike at 12:01 a.m. on September 16th if no agreement was reached and the offer of voluntary arbitration was rejected. Elsinore rejected the Union's offer to arbitrate wage levels. Elsinore took the position that the contract remained in effect until September 1988 if no agreement was reached under the reopener so long as Elsinore complied with the terms of the contract, including the most recent wage and benefit schedules.1 Elsinore further claimed that a strike was not authorized under the contract because Elsinore had not given the Union notice of termination as required under Article XVII, the "no-strike" clause. Elsinore offered to arbitrate the contractual rights of the parties under the wage reopener. The Union rejected this arbitration offer.

On the afternoon of September 15th, Elsinore sought a temporary restraining order from Judge Rosemary Gambardella of the U.S.

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820 F.2d 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elsinore-shore-associates-v-local-54-hotel-employees-and-restaurant-ca3-1987.