International Brotherhood of Electrical Workers Lo v. Energy Harbor Nuclear Corp

CourtCourt of Appeals for the Third Circuit
DecidedMarch 23, 2026
Docket25-1066
StatusPublished

This text of International Brotherhood of Electrical Workers Lo v. Energy Harbor Nuclear Corp (International Brotherhood of Electrical Workers Lo v. Energy Harbor Nuclear Corp) 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
International Brotherhood of Electrical Workers Lo v. Energy Harbor Nuclear Corp, (3d Cir. 2026).

Opinion

U.S. COURT OF APPEALS FOR THE THIRD CIRCUIT No. 25-1066

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, LOCAL UNION 29, AFL-CIO

v.

ENERGY HARBOR NUCLEAR CORP., Appellant _____________________________

Appeal from the U.S. District Court, W.D. Pa. Judge Cathy Bissoon, No. 2:23-cv-00761

Before: BIBAS, SCIRICA, and SMITH, Circuit Judges Argued Oct. 29, 2025; Decided Mar. 23, 2026 _____________________________

OPINION OF THE COURT

BIBAS, Circuit Judge. Even if parties agree to arbitrate some disputes, not every disagreement must go to an arbitra- tor. We must heed the scope of their arbitration agreement. Here, a labor union filed a grievance against management. The contract contains a broad arbitration clause, so the District Court sent the grievance to arbitration. But because it falls beyond the clause’s scope, we will REVERSE. I. TWO DISPUTES OVER EMPLOYEE BENEFITS A. Energy Harbor and the Union arbitrate a 2021 benefits dispute Energy Harbor Nuclear Corporation owned and operated the Beaver Valley Power Station, a nuclear power plant in Pennsylvania. IBEW Local 29 is the union that represents roughly 400 of the plant’s employees. Before October 2021, the parties’ relationship was governed by both a collective- bargaining agreement and a set of framework agreements that led Energy Harbor to operate the plant. In 2021, the parties had a benefits dispute, so they went to arbitration. Under the then-existing collective-bargaining agreement, the Union could either choose Energy Harbor’s Flexible Benefits Plan or offer its own health care plan. If the Union chose its own, Energy Harbor had to “contribute pre- mium payments” to the Union’s plan that were proportional to the premiums that it paid for its own plan. App. 82. And the collective bargaining agreement mandated that Energy Har- bor’s “monthly contributions [to the Union plan] … be increased by the same percentage as any increase incurred by [Energy Harbor’s] Health Care Plan from the previous year.” App. 83. Under the framework agreements, Energy Harbor also had to “provide [employees] the same [healthcare] benefits” that its predecessor company did. App. 206 (second alteration in the original). The Union alleged that Energy Harbor had violated these agreements by providing worse benefits than its prede- cessor. In February 2022, the arbitrator agreed. She found that, under the matching requirement, Energy Harbor should have raised its 2021 contributions by 6.7% rather than the 2.77%

2 increase that it actually paid, and ordered the company to pay the unions the difference. She said nothing about 2022, and nothing in the order changed Energy Harbor’s health care plan. B. The parties execute a new agreement, and a new dis- pute arises for 2022 On October 1, 2021, Energy Harbor and the Union signed a new collective-bargaining agreement. Three provisions are relevant. First, as before, if the Union chose to offer its own health care plan, Energy Harbor had to contribute premiums to it. And it again had to “increase[ ]” its contribution to the Union plan “by the same percentage as any increase incurred by the Company’s Health Care Plan from the previous year.” App. 83 (Art. VIII, ¶ C.2(a)). Second, the parties agreed to arbitrate dis- putes “as to the interpretation, application, or operation of any provision of” the collective-bargaining agreement, as well as “any matter relating to the interpretation of” the agreement. App. 86. Third, under the merger clause, “any and all prior agreements, whether reduced to writing or not,” were “null and void and of no further force” unless identified and appended to the new collective-bargaining agreement. App. 89 (Art. XI). Neither the February 2022 arbitration award, which assessed Energy Harbor’s 2021 contributions, nor the framework agree- ments were identified or appended to the new agreement. Later in 2022, the Union thought that Energy Harbor was still underpaying the contributions it owed the Union health care plan. So the Union filed a grievance, alleging that “Energy Harbor failed to adjust the 2022 health care contributions by the percentage needed to satisfy the [February 2022] arbitra- tion award.” App. 137. The Union argued that, in setting its

3 2022 contribution amounts, Energy Harbor had failed to account for the 2021 benefits-payments increases awarded by the arbi- trator. In turn, the Union contended, the Company owed higher contributions for 2022. Energy Harbor refused to arbitrate, asserting that the grievance related to the arbitration award and the framework agreements, not the new collective-bargaining agreement, so the new agreement’s arbitration clause did not apply. Then the Union filed this suit in federal district court to compel Energy Harbor to arbitrate. Both sides moved for sum- mary judgment. The magistrate judge recommended granting the Union’s motion and denying Energy Harbor’s. She noted that the “broad” arbitration clause “provides that a party may compel arbitration ‘of any matter relating to the interpretation of this Agreement.’ ” App. 9, 11 (quoting Art. IX, ¶ A). She set aside Energy Harbor’s “extrinsic evidence … related to the rea- son for the Union’s demanded increase” because it “goes to the merits,” not arbitrability. App. 10. Instead, she reasoned that because the grievance challenged Energy Harbor’s compliance with the contribution-increase provision (Art. VIII, ¶ C.2(a)), it implicated the arbitration clause. App. 11. And because Energy Harbor had no “forceful evidence of a purpose to ex- clude the claim at issue,” the arbitration clause applied. Id. The District Court adopted the magistrate judge’s recommendation. II.THIS DISPUTE FALLS OUTSIDE THE ARBITRATION CLAUSE

We review the District Court’s reading of the arbitration provision de novo. Rite Aid of Pa., Inc. v. United Food & Com. Workers Union, Loc. 1776, 595 F.3d 128, 131 (3d Cir. 2010).

4 Federal law governs interpretation of collective-bargaining agreements. Sheet Metal Workers, Loc. 19 v. 2300 Grp., Inc., 949 F.2d 1274, 1284 (3d Cir. 1991). But federal law follows general rules of state contract law unless federal labor law con- flicts with those rules. Id. To decide whether an arbitration clause applies, we first ask whether it is broad. Rite Aid, 595 F.3d at 131. If so, we presume the dispute arbitrable. Id. The arbitration clause here is broad. It covers “any dispute or difference” regarding the “interpreta- tion, application, or operation of any provision of this agree- ment.” App. 86 (Art. IX, ¶ A). That resembles another clause that we found broad. See Trap Rock Indus., Inc. v. Loc. 825, Int’l Union of Operating Eng’rs, AFL-CIO, 982 F.2d 884, 888 n.5 (3d Cir. 1992) (describing as broad a clause that applied to “[a]ny dispute arising out of a claimed violation of this Agree- ment”). So we presume the parties’ dispute arbitrable. Next, we ask if the parties’ dispute falls outside the clause’s scope. Rite Aid, 595 F.3d at 131. To do that, we consider not only the clause itself, but also any other relevant contractual provisions; we are looking for “the most forceful evidence of a purpose to exclude the claim from arbitration.” AT & T Techs., Inc. v. Commc’ns Workers of Am., 475 U.S. 643, 650 (1986) (internal quotation marks omitted).

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International Brotherhood of Electrical Workers Lo v. Energy Harbor Nuclear Corp, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-brotherhood-of-electrical-workers-lo-v-energy-harbor-nuclear-ca3-2026.