Garland Coal & Mining Co. v. United Mine Workers of America

778 F.2d 1297, 121 L.R.R.M. (BNA) 2029
CourtCourt of Appeals for the Eighth Circuit
DecidedDecember 5, 1985
DocketNos. 84-2464, 84-2465 and 84-2529
StatusPublished
Cited by6 cases

This text of 778 F.2d 1297 (Garland Coal & Mining Co. v. United Mine Workers of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garland Coal & Mining Co. v. United Mine Workers of America, 778 F.2d 1297, 121 L.R.R.M. (BNA) 2029 (8th Cir. 1985).

Opinion

HEANEY, Circuit Judge.

The United Mine Workers of America (UMWA) appeals from an order of the district court, 596 F.Supp. 747 (D.C.Ark.1984), holding that Garland Coal & Mining Company has no contractual duty to arbitrate grievances which arose after the parties’ collective bargaining agreement expired. The UMWA also appeals from an order dismissing its counterclaims and third-party complaint. Garland cross-appeals the district court’s order holding that pre-contract expiration grievances are no longer arbitrable. For the reasons set forth below, we affirm in part, reverse in part, and remand for further proceedings.

I. FACTS.

From March 27, 1978, to March 27, 1981, a collective bargaining agreement (the “1978 Agreement”) was in effect between Garland and the UMWA and various local UMWA unions (collectively, the “Union”). On January 12, 1981, the UMWA notified Garland of its intention to terminate the 1978 Agreement as of March 27, 1981, and to negotiate a new agreement. The parties apparently failed to agree on a new contract, and Garland’s UMWA employees went on strike. Shortly before and after the contract expired on March 27, 1981, Garland discharged a number of its “striking” employees.

At the time the 1978 Agreement expired, several grievances were pending under its five-step grievance/arbitration procedure. On April 8, 1981, Garland notified the Union that the Company would no longer arbitrate grievances. In May of 1981, the Union filed a charge with the NLRB that Garland’s repudiation of the arbitration procedure was unlawful for two reasons. First, with respect to grievances arising prior to expiration, the Union claimed that Garland’s repudiation violated the parties’ contractual agreement to arbitrate disputes arising under the contract. Second, with respect to grievances arising after expiration, the Union claimed that Garland had violated section 8(a)(5) of the Labor Management Relations Act, 29 U.S.C. § 158(a)(5), by repudiating the arbitration procedures before bargaining to impasse.

In early 1982, the NLRB Regional Director executed a settlement with Garland which provided in part:

WE WILL upon request bargain collectively concerning * * * rates of pay, hours of work, and other terms and conditions of employment, including rejection of proffered insurance premium checks under prevailing grievance and arbitration procedure.

Garland Coal & Mining Co., NLRB Case No. 16-CA-9839.

Notwithstanding the settlement agreement, Garland continued to refuse to arbitrate any grievances. On June 30, 1982, the NLRB Regional Director set aside the settlement agreement and issued a complaint alleging that Garland had violated the National Labor Relations Act by refusing to process and arbitrate grievances and by refusing to provide relevant information regarding the interconnections between Garland and two companies — Great Western, Inc., and Toltec Coal Company— that the Union claimed were “alter egos” of or successors to Garland and bound by the 1978 Agreement. Garland Coal Mining Co., NLRB Consolidated Case Nos. 16-CA-9839 and 16-CA-10442.

Meanwhile, the trustees of the United Mine Workers of America 1950 Benefit Plan and Trust filed an involuntary bankruptcy petition against Garland. Acting under 11 U.S.C. § 362(a), the bankruptcy court stayed all litigation against Garland, including the proposed arbitrations and pending NLRB proceedings. Garland [1300]*1300thereafter successfully opposed a union motion to lift this stay.1

In September, 1983, Garland filed this action in the district court. Count One seeks a declaratory judgment stating that Garland does not have a contractual obligation to arbitrate eleven grievances which allegedly arose after expiration (post-expiration grievances).2 It also seeks an injunction. Count Two seeks an injunction and declaration that Garland has no obligation to arbitrate any grievances arising and filed before expiration,3 or arising before but not filed until after expiration (pre-expiration grievances).4

The Union filed four counterclaims against Garland. Each counterclaim incorporates a third-party complaint against Great Western, Inc., and Toltec Coal Company, alleging that they are bound by the same contractual obligations to the Union as is Garland.

The district court dismissed the counterclaims and third-party complaint, granted the relief requested in Count One of Garland's amended complaint and denied that requested in Count Two. This appeal followed.

II. DISCUSSION.

A. The Post-Expiration (Count One) Grievances.

Having considered and rejected several preliminary arguments presented by the Union,5 we turn to its primary argu[1301]*1301ment — that the trial court erred in holding that the post-expiration grievances are not arbitrable. The relevant standard for deciding this issue is set forth in Nolde Bros. v. Local 358, Bakery & Confectionary Workers, 430 U.S. 243, 255, 97 S.Ct. 1067, 1074, 51 L.Ed.2d 300 (1977). Under Nolde Bros., post-expiration grievances6 which arise under7 a contract containing an arbitration clause are arbitrable unless “the presumptions favoring arbitrability * [are] negated expressly or by clear implication.” 430 U.S. at 255, 97 S.Ct. at 1074. Although it is a close issue, we find that the district court did not clearly err, see Anderson v. Bessemer City, — U.S. -, ---, 105 S.Ct. 1504, -, 84 L.Ed.2d 518, 528-29 (1985), in finding that the duty to arbitrate post -expiration grievances was negated by clear implication.

First, unlike the broad provision at issue in Nolde Bros, which required arbitration of “ ‘any grievance’ arising between the parties,” 430 U.S. at 245, 97 S.Ct. at 1068, Article XXIII of the 1978 Agreement applies only to “disputes arising under this Agreement.” Although disputes arising after contract expiration may arise under that contract, id. at 249, 97 S.Ct. at 1070, other provisions of the 1978 Agreement and the parties’ bargaining history support the trial court’s conclusion that “disputes arising under this Agreement” refers only to disputes based on events which occurred while the contract was still in effect.

Second, the trial court concluded that Article XXIII, Section (K), clearly implied that the duty to arbitrate ended with contract expiration. That Article provides, in relevant part, that

[a]ny dispute and/or difference which as 0f the effective date of this agreement is %n the process of adjustment under the Settlement of Disputes section of the prior agreement or any dispute and/or difference presented on or after the effective date of this Agreement which is based on the occurrence or nonoccurrence of an event which arose prior to the effective date of this Agreement shall be processed under the procedural provisions of this Agreement and shall be

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778 F.2d 1297, 121 L.R.R.M. (BNA) 2029, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garland-coal-mining-co-v-united-mine-workers-of-america-ca8-1985.