Graphic Arts International Union, Local 199B v. Dayton Press, Inc.

573 F. Supp. 4, 118 L.R.R.M. (BNA) 2085, 1983 U.S. Dist. LEXIS 17391
CourtDistrict Court, S.D. Ohio
DecidedApril 27, 1983
DocketNo. C-3-80-285
StatusPublished
Cited by3 cases

This text of 573 F. Supp. 4 (Graphic Arts International Union, Local 199B v. Dayton Press, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graphic Arts International Union, Local 199B v. Dayton Press, Inc., 573 F. Supp. 4, 118 L.R.R.M. (BNA) 2085, 1983 U.S. Dist. LEXIS 17391 (S.D. Ohio 1983).

Opinion

DECISION AND ENTRY ON PENDING MOTIONS; PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT SUSTAINED; DEFENDANT’S MOTION FOR SUMMARY JUDGMENT OVERRULED; JUDGMENT TO BE ENTERED FOR PLAINTIFF; CASE REMANDED TO ARBITRATOR; TERMINATION ENTRY

RICE, District Judge.

Plaintiff Local 199B of the Graphic Arts International Union (“Union”) and Defendant Dayton Press, Inc., entered into a collective bargaining agreement (“agreement”), in force from April 20, 1978, through April 20, 1983. The Union filed suit in this Court, under § 301 of the Labor Management Relations Act, 29 U.S.C. § 185, and the federal Arbitration Act, 9 U.S.C. § 10, seeking to vacate an arbitration award rendered under that agreement. Such relief is appropriate, the Union alleged, since the arbitrator (1) exceeded his powers by ruling that a grievance was not arbitrable, and (2) was partial towards the Defendant in the arbitration hearing. Complaint, ¶¶ 7-8. At the direction of the Court, Doc. # 8, the parties submitted cross-motions for summary judgment on the first issue. For the reasons set forth below, Plaintiff’s motion (Doc. #9) is sustained, and Defendant’s motion (Doe. # 10) is overruled. The case is remanded for proceedings consistent with this decision.

An examination of the record reveals the following facts. One Ovalene Buckles, a member of the Union and an employee of the Defendant, filed a grievance pursuant to the agreement, claiming that she was totally and permanently disabled, and entitled to receive life insurance payments in installments (rather than at death) under Article 35 of the agreement.

Article 35 provides, in part, that:

Total & Permanent Disability Benefits: Section (B)(1): Three months after receipt, by the insurance company, of due proof that the employee, while insured for life insurance under the Group Policy and prior to his 60th birthday, has become totally and permanently disabled as a result of bodily injury or disease so as to be prevented thereby from engaging in their occupation at Dayton Press, Inc. or performing any work for compensation or profit, the insurance company will commence to pay, in lieu of the payment of the life insurance at his death, equal installments, as hereinafter described, to the employee or to a person designated by him for the purpose, or of such disability as due to or is accompanied by mental incapacity, as provided in the Group Policy. Balance as current language provides.

The carrier for the group insurance plan referenced in Art. 35 is the Metropolitan Life Insurance Co. Ms. Buckles initially filed a claim with Metropolitan, and only grieved when the carrier denied her cjaim.

After unsuccessful attempts at resolving the grievance, the parties submitted the matter to “final and binding” arbitration, under Art. 23, § 4 of the agreement. The arbitrator held a hearing on February 22, 1980, and rendered a decision on June 3, 1980. Said decision is published at [1980-2 Binder] Lab. Arb. Awards (CCH) ¶ 8373 (1980). In the decision, the arbitrator stated the issue as follows: “What is the proper resolution of Grievance No. 79-13 under the terms of the Agreement between the parties?” (Appendix at 3, filed with Doc. # 10) (hereinafter “App.”). After an exhaustive summary of the relevant provisions of the agreement, as well as the evidence presented at the hearing, the arbitrator concluded that the grievance was not [6]*6arbitrable under the agreement. App. 29. Relying on reasoning in other arbitration awards, App. 25-27, the arbitrator found that, under Art. 35 of the agreement, Defendant had, in effect, delegated the responsibility to issue insurance benefits to Metropolitan. App. 28. He continued:

... it is apparent that the Group Insurance Policy provides all the total and permanent disability insurance benefits negotiated by the parties and set forth in Article 35 of their Agreement. Because the Company provides through the Group Insurance policy all the benefits it agreed to provide in the Union-Company Agreement, the Grievant’s claim is not arbitrable under this agreement.
Even though Ms. Buckles had been issued a Social Security Award Certificate stating that she was entitled to disability benefits under the Social Security Act, the Insurance Company denied her disability insurance benefits on the basis of its judgment that she was not totally and permanently disabled. It is the judgment that the Union is contesting in Grievance Number 79-13. It is a question of the Insurance Company’s performance with respect to the Group Insurance Policy.
The Group Insurance Policy provides the total and permanent disability benefits set forth in Article 35 of the Agreement. The Union was fully aware that it did and agreed to continue the insurance policy in effect as the vehicle for providing those benefits. Therefore, the Insurance Company’s performance under the Group Insurance Policy is not arbitrable under the collective bargaining agreement. If the Union believes the insuror’s decision regarding Ms. Buckles’s physical condition breaches the insurance contract, it may seek redress through the courts. The question does not arise under the Agreement between the parties.

App. 28-29. For these reasons, the arbitrator found the matter not arbitrable and denied the grievance.

Plaintiff advances two major grounds in support of its motion. First, Defendant waived the non-arbitrability issue before the arbitrator; second, even if not waived, said award and decision violates the rule that, absent “clear demonstration” by the parties to the contrary, a court, not the arbitrator, will decide the arbitrability of issues. In support of its motion, Defendant argues that no issue was waived, and that the arbitrator was merely exercising his power to interpret the agreement, when he reached the conclusion he did.

There is no question that a party can waive an issue before an arbitrator, and that it would be error for the arbitrator to rule on such an issue. Kodiak Oil Field Haulers, Inc. v. Teamsters Local No. 959, 611 F.2d 1286, 1290 (9th Cir.1980); Cook Industries v. C. Itoh & Co., 449 F.2d 106, 107-08 (2d Cir.1971) (Hays, J.) cert. denied, 405 U.S. 921, 92 S.Ct. 957, 30 L.Ed.2d 792 (1972). The facts in the record herein on this issue are elusive at best. At the hearing, Plaintiff’s representatives stated that the issue was one of “considering” and “deciding” the grievance and that the “function of an Arbitrator is really to just hear all the evidence, and decide the grievance one way or the other.” App. 34-35. Since Plaintiff insisted on a broad statement of the “issue,” Defendant contends that Plaintiff cannot now complain that the arbitrator decided an issue arguably implicit in the broad statement. Cf. Kroger Co. v. Teamsters Local 661, 380 F.2d 728, 731 (6th Cir.1967) (sweeping statement of issue at hearing included question of relief ultimately awarded by the arbitrator).

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573 F. Supp. 4, 118 L.R.R.M. (BNA) 2085, 1983 U.S. Dist. LEXIS 17391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graphic-arts-international-union-local-199b-v-dayton-press-inc-ohsd-1983.