In re the Arbitration between Dalcro Corp. & International Ladies' Garment Workers' Union

30 Misc. 2d 456, 213 N.Y.S.2d 661, 48 L.R.R.M. (BNA) 2265, 1961 N.Y. Misc. LEXIS 3374
CourtNew York Supreme Court
DecidedFebruary 16, 1961
StatusPublished
Cited by5 cases

This text of 30 Misc. 2d 456 (In re the Arbitration between Dalcro Corp. & International Ladies' Garment Workers' Union) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Arbitration between Dalcro Corp. & International Ladies' Garment Workers' Union, 30 Misc. 2d 456, 213 N.Y.S.2d 661, 48 L.R.R.M. (BNA) 2265, 1961 N.Y. Misc. LEXIS 3374 (N.Y. Super. Ct. 1961).

Opinion

Jambs D. Hopkins, J.

Three applications arising out of an arbitration clause appearing in a collective bargaining agreement between the parties have been submitted to the court. Dalero Corp., the employer (hereinafter called “ Balero ”), has moved (1) to stay arbitration, and (2) to vacate the arbitrator’s award; the officers of affiliated unions, International Ladies’ Garment Workers’ Union, AFL-CIO, and Snow Suit, Skiwear, Leggings and Infants’ Novelty Wear Workers’ Union, Local 105, International Ladies’ Garment Workers’ Union, AFL-CIO (hereinafter called “Union”, move (3) to confirm the arbitrator’s award. Essentially the issues raised by all [458]*458three applications are the same. The material facts, though somewhat intricate, are largely not controverted.

In October, 1959, Dalcro became a member of the Infants’ and Children Novelties Association (hereafter called “Association ”), a group of employers. At the same time, Dalcro adopted in writing a collective bargaining agreement between the Association and the Union. That agreement recognized the Union as the bargaining representative of employees of the members of the Association. That agreement contained article “Forty-Fifth”, providing for the arbitration of disputes “ involving questions of interpretation or application of any clause of this agreement, or any acts, conduct or relations between the parties or their respective members, directly or indirectly ”. That article further provided that the arbitration procedure should be the exclusive means for the determination of all disputes, complaints or grievances specified therein. The parties to the agreement designated George J. Mintzer to act as a permanent umpire in any dispute to be determined by arbitration. The agreement by its terms expires on May 31, 1961.

Between June and October, 1960, a dispute arose between Dalcro and the Union concerning an alleged oral modification of the agreement, whereby it was claimed that Dalcro promised to increase the wages of its employees by 5% in lieu of paying the wage rates stipulated in the agreement. On October 6, 1960, the Union submitted to Mr. Mintzer a complaint that Dalcro had not increased the wages as promised, and a notice was thereafter sent to Dalcro on October 7, 1960 for a hearing under the arbitration procedure for October 19, 1960. On that date, a representative of Dalcro appeared and asked for an adjournment. The request was granted and an adjournment given until October 25, 1960.

On October 25, 1960, Dalcro was represented by its attorney, who stated to the arbitrator that he appeared specially and asked for an adjournment in order to investigate the facts and properly advise his client. The Union’s representative opposed the request, unless Dalcro would permit its books and records to be inspected by the Union. Dalcro’s attorney did not agree to the condition, and the arbitrator then granted a one-day adjournment until October 26, 1960. In the meantime, and some time during October 25, 1960, one of the employees of Dalcro filed an unfair labor practice charge against both Dalcro and Union with the National Labor Relations Board. That charge alleged an unfair labor practice under sections 7 and 8 of the National Labor Relations Act (U. S. Code, tit. 29, §§ 157, 158), dealing with claimed coercive acts with respect to the exercise of employees’ rights in joining or not joining a labor organization.

[459]*459On October 26, 1960, the parties conferred in an endeavor to compose the dispute, and notified the arbitrator of the conference. During the conference, the application by Dalcro for a stay of arbitration was served on the Union, and shortly thereafter was served on the arbitrator. That application was grounded on the claims that (1) there was no valid arbitration agreement, since the Union did not represent a majority of Dalcro’s employees, nor was the collective bargaining agent of its employees; (2) there was no arbitrable issue; and (3) jurisdiction of the issues and the proceedings had been pre-empted to the National Labor Relations Board. The conference between the parties came to naught; the Union stated that it intended to proceed with arbitration despite the service of the application for a stay, and on the same day the arbitration proceeded without the presence of Dalcro, resulting in an award directing Dalcro to pay the 5% increase in wages. Soon thereafter, Dalcro moved to vacate the award on the grounds that the arbitrator was partial to the Union, was guilty of misconduct in refusing to adjourn the hearing and to stay the proceedings, and had exceeded his powers. The Union then cross-moved to confirm the award.

The issues which fairly flow from the applications are: (1) the right of Dalcro to a stay of the arbitration; (2) the validity of the collective bargaining agreement containing the arbitration article; (3) the jurisdiction of the arbitrator to proceed in the face of the filing of an unfair labor practice charge with the National Labor Relations Board; and (4) the right of Dalcro to an adjournment of the arbitration under all circumstances.

I

Dalcro argues that its application for a stay should now be granted, irrespective of the award, citing subdivision 2 of section 1458 of the Civil Practice Act. That section permits an application for a stay of arbitration on the issue, among others, of the making of the contract to arbitrate. The section provides, however, that the validity of the contract may be raised only if certain requisites are observed — that the applicant has not participated in the selection of arbitrators or in any of the proceedings, and has not been served with an application to compel arbitration. The latter we disregard, since it is conceded that no application to compel arbitration was served. We disregard equally the third requisite that the application for a stay must be served within 10 days of the notice of intention to arbitrate (and here it is clear that it was not), for the notice [460]*460served by the Union for arbitration did not contain the information which is commanded by subdivision 2 of section 1458 (cf. Matter of Hesslein & Co. v. Greenfield, 281 N. Y. 26; Schafran & Finkel v. Lowenstein & Sons, 280 N. Y. 164; Matter of Handler [O’Connor], 18 Misc 2d 109). The question remains whether Dalcro waived its rights to a stay and to put the validity of the contract in issue through participation in the selection of the arbitrator or in the proceedings.

It is now well established that the rights to a stay and to test the arbitrability of a dispute are lost by participation either in the selection of the arbitrator or in the proceedings (Matter of National Cash Register Co., 8 N Y 2d 377, 382-383; Matter of Rosenbaum-Grinell v. Schwarts Int. Textiles, 15 Misc 2d 450; Film Classics v. Roach Studios, 68 N. Y. S. 2d 275).

Here the collective bargaining agreement adopted by Dalcro designates the arbitrator. That alone under the statute constitutes participation. Nevertheless, the validity of the whole agreement is attacked by Dalcro, and perhaps it might be said that the designation falls, if the agreement falls. We discuss beyond the force of Dalcro’s contention that the agreement is invalid.

Suffice it to say at this point that we think that Dalcro participated to such an extent in the proceedings as to forfeit its claim to a stay on the grounds presented.

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30 Misc. 2d 456, 213 N.Y.S.2d 661, 48 L.R.R.M. (BNA) 2265, 1961 N.Y. Misc. LEXIS 3374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-arbitration-between-dalcro-corp-international-ladies-garment-nysupct-1961.