H. K. Porter Co. v. Local 37, United Steelworkers of America

264 F. Supp. 203, 65 L.R.R.M. (BNA) 2650, 1967 U.S. Dist. LEXIS 7741
CourtDistrict Court, S.D. West Virginia
DecidedFebruary 24, 1967
DocketNo. 2257
StatusPublished
Cited by2 cases

This text of 264 F. Supp. 203 (H. K. Porter Co. v. Local 37, United Steelworkers of America) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H. K. Porter Co. v. Local 37, United Steelworkers of America, 264 F. Supp. 203, 65 L.R.R.M. (BNA) 2650, 1967 U.S. Dist. LEXIS 7741 (S.D.W. Va. 1967).

Opinion

CHRISTIE, District Judge:

This matter is before the Court pursuant to defendants’ (hereinafter called the Union) motion to dismiss the complaint, in that it fails to state a claim upon which relief can be granted. The action was instituted pursuant to Section 301 of the N.L.R.A. of 1947, 29 U.S.C.A. § 185,1 (hereinafter called the Act) to recover damages alleged to have been caused by an unlawful work stoppage at plaintiff's Huntington, West Virginia plant (hereinafter called the Company), or in the alternative for an order compelling the Union to submit the matter to arbitration. In essence, the Union contends that the subject-matter about which the Company seeks arbitration is not a grievance within the meaning of Section 10 of the collective bargaining agreement — “ADJUSTMENT OF GRIEVANCES” — and that under Section 12 — “NO-SUE CLAUSE” — the Company relinquished its right to institute civil suits or legal proceedings for violation of the contract, and that its only remedy under Section 13 — “NO-STRIKE CLAUSE” — is the right to discipline employees responsible for or participating in the improper work stoppage or strike.

At the outset, it will be well to make certain observations concerning national labor relations law generally, which we, as all other federal courts, are bound to heed. Collective bargaining agreements are recognized as a special species of contracts to which general contract rules are not always applicable, and whether or not a matter is arbitrable is to be determined by the Court on the basis of the contract between the parties, John Wiley & Sons v. Livingston, 376 U.S. 543, 84 S.Ct. 909, 11 L.Ed.2d 898, for arbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed to so submit. However, a finding that a particular grievance is not arbitrable should be made only when it can be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute, with any doubt to be resolved in favor of coverage. United Steelworkers of America v. Warrior & Gulf Nav. Co., 363 U.S. 574, 80 S. Ct. 1347, 4 L.Ed.2d 1409.

When, as here, the question is in essence whether a particular matter is arbitrable, the Courts have no cause to delve into the actual merits of the alleged grievance. They are limited to a determination as to its being subject to arbi[205]*205tration. Local Union No. 24, Int. Bro. of Elec. Wkrs. AFL-CIO v. Hearst Corp., 352 F.2d 957 (4th Cir. 1965).

From an examination of the present contract’s four-step grievance procedure (see Appendix), it appears designed only for the handling of employee disputes against the Company, as the Union contends, and at no step is there mention of the Company’s right to institute further proceedings, particularly at step 4, the arbitration clause. Thus, standing alone, this particular procedure would apparently exclude the Company from initiating a complaint against the Union. The Union buttresses this contention by relying upon Atkinson v. Sinclair Refining Co., 370 U.S. 238, 82 S.Ct. 1318, 8 L.Ed. 2d 462, in which an employer had instituted a civil action for damages allegedly caused by violation of a no-strike clause. The union sought to have the matter dismissed or stayed pending arbitration under the grievance procedure.2 The Court held that the contract involved was not susceptible of a construction binding the company to arbitration on its claim for damages and, consequently, the suit was maintainable under Section 301 of the Act.

On the other hand, the Company relies upon the pronouncements in Drake Bakeries, Inc. v. Local 50, America Bakery and Confectionery Workers, 370 U.S. 254, 82 S.Ct. 1346, 8 L.Ed.2d 474, decided the same day as Atkinson, supra, in which the Court held that an employer’s claim against the union for damages resulting from an alleged breach of the contract’s “no-strike clause” was clearly within the scope of the arbitration provisions of the contract. 3

We believe that the instant contract’s provisions fall into a “no-man’s land” between the two, wherein the Company is neither expressly excluded from instituting arbitration proceedings nor explicitly granted the privilege to do so.

The Company argues that the wording of the “NO-SUE CLAUSE” (“It is understood and agreed that neither party will institute civil suits or legal proceedings against the other for alleged viola[206]*206tion of any of the provisions of this labor contract; instead all disputes will be settled in the manner outlined in Section 10 —Grievances”), taken together with the broad introductory paragraph in the grievance procedure (“Should any difference arise as to the meaning and application of the provisions of this agreement * * *”), indicates an intention on the part of the contracting parties to allow either to bring an issue in dispute before the proper tribunal for resolution, and that since the first three steps of the grievance procedure are designed for employee-instituted complaints, it must of necessity have reference to the arbitration clause in step four. The reference in the “NO-SUE CLAUSE” to “neither party” can only have reference to the Union and the Company, and we find the conclusion inescapable that the phrase “any of the provisions of this labor contract” means just that.

We see no reason for the courts to strain the reading of collective bargaining agreements to rectify that of which a party should have been cognizant at the time of negotiation; neither are we inclined to read provisions so narrowly that a party will be deprived of rights he indicated every intention of retaining. Although perhaps literally correct, the Union’s position that notwithstanding the agreement, disputes must be settled under the grievance procedure but that this method is only proeedurally designed to accommodate employee grievances against the Company, thus the Company is precluded from its use, strikes us as hardly the intent of the parties at the time of the agreement. The question before us is not whether the Company could have bargained away its statutory right, under Section 301, to sue the Union for breaches of its contract, without receiving or retaining a means of recourse against the other party, but whether it did so in this instance. We are of the opinion that in order to find such a relinquishment it should be explicit and beyond doubt.

It is difficult to see, as the Union contends, in view of the wording of the No-Sue Clause, how the No-Strike Clause4 concerning disciplining of individual participants in an illegal strike became the quid pro quo for a damage claim against the Union, however, this is a matter involving the interpretation of a clause in the agreement. Justice Douglas observed in Warrior & Gulf Nav. Co., supra, 363 U.S. page 578, 80 S.Ct. page 1351,

“The collective bargaining agreement states the rights and duties of the parties.

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264 F. Supp. 203, 65 L.R.R.M. (BNA) 2650, 1967 U.S. Dist. LEXIS 7741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-k-porter-co-v-local-37-united-steelworkers-of-america-wvsd-1967.