International Longshoremen's Ass'n, Local Union No. 1768 v. Midwest Terminals of Toledo International, Inc.

49 F. Supp. 3d 511, 2014 U.S. Dist. LEXIS 145602, 2014 WL 4954474
CourtDistrict Court, N.D. Ohio
DecidedSeptember 18, 2014
DocketNo. 3:13CV2213
StatusPublished

This text of 49 F. Supp. 3d 511 (International Longshoremen's Ass'n, Local Union No. 1768 v. Midwest Terminals of Toledo International, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Longshoremen's Ass'n, Local Union No. 1768 v. Midwest Terminals of Toledo International, Inc., 49 F. Supp. 3d 511, 2014 U.S. Dist. LEXIS 145602, 2014 WL 4954474 (N.D. Ohio 2014).

Opinion

ORDER

JAMES G. CARR, Senior District Judge.

This is a suit under the Labor Management Relations Act, 29 U.S.C. § 141 et [513]*513seq., to enforce a company’s duty to arbitrate a union member’s grievance.

The International Longshoremen’s Association, Local Union No. 1768 (the Union), alleges defendant Midwest Terminals of Toledo violated its duty under a collective bargaining agreement (CBA) to arbitrate grievances. The Union contends Midwest wrongly refused to arbitrate a grievance that arose after the parties’ CBA expired, and before they executed a successor agreement.

Jurisdiction is proper under 29 U.S.C. § 185.

Pending are the parties’ counter-motions for summary judgment. (Docs. 13, 14). For the following reasons, I grant the Union’s motion and deny Midwest’s motion.

Background

The Union is the exclusive bargaining agent for certain employees at Midwest’s ballast dock in Toledo, Ohio.

In 2008, the Union and Midwest agreed to a CBA. Although the parties did not execute the CBA until October 21, 2008, they gave the CBA retroactive effect by making its effective date April 4, 2008. From April to October, the parties had a verbal agreement they would work under the terms and conditions of their prior CBA.

Article IX of the 2008 CBA guaranteed Union members’ right to file grievances and appeal unresolved grievances to an arbitrator.

With the 2008 CBA set to expire on March 31, 2012, the Union notified Midwest, in January, 2012, it wished to negotiate a successor CBA.

Negotiations began on March 8. Union President Bill Shrewsbery testified the parties had a verbal agreement that, while negotiations went forward, they would operate under the terms and conditions of the 2008 CBA. The Union’s bargaining notes from March 8 also state “work under agreement (current) with retroactive pay understood by both parties.” (Doc. 13-4 at 1).

Negotiations continued through November 15, 2012, when the parties reached a tentative agreement. The Union and Midwest ultimately executed the successor CBA on April 15, 2013.

Despite the April, 2013 execution date, the successor agreement stated it was effective from April, 2012, through March, 2014. The successor CBA also contained the same arbitration provision that the 2008 CBA contained.

In mid-January, 2013—before the parties executed the successor CBA—Mid-west suspended Union member Farrell Spence from work for five days. The parties met to discuss Spence’s suspension, but Midwest ultimately decided to fire Spence.

On February 2, and consistent with the grievance and arbitration rules in the 2008 CBA, Spence reduced his grievance to writing and submitted it to Midwest. In a response that referred to “Article IX of the current collective bargaining agreement between [the Union] and Midwest terminals[,]” Midwest denied that firing Spence had “violate[d] the CBA[.]” (Doc. 13-12).

Two weeks later, the Union informed Midwest it would invoke the arbitration provision of “the current CBA[.]” (Doc. ISIS). Midwest did not object to the Union’s proposed action or its characterization of the lapsed agreement as “the current CBA[.]” Rather, Midwest represented—in a letter referring to “Article IX of the current Collective Bargaining Agreement”—it would “abide by the stipulations [514]*514in Section 8: Selection of Arbitrator.” (Doc. 14-25).

In March, 2013, the parties jointly requested the Federal Mediation and Conciliation Services to propose a list of potential arbitrators. The parties’ letter, which both sides signed, began:

Chris Blakely of Midwest Terminals and William Shrewsberry [sic ] of ILA Local 1768 are jointly contacting you to request a list of seven (7) impartial arbitrators as stipulated in [a] collective bargaining agreement.

(Doc. 13-14 at 1).

However, on April 25, 2013—after the parties executed the successor CBA—Mid-west told the Union it would not participate in arbitration. According to Midwest, “there was no [CBA] with a binding arbitration clause in effect” when Spence’s grievance arose. (Doc. 14-27).

Discussion

The Union argues it is entitled to summary judgment on its claim that Midwest must arbitrate Spence’s grievance.

In support, the Union argues: 1) the parties verbally agreed to operate under the terms and conditions of the 2008 CBA while negotiating the successor CBA; 2) the parties’ conduct during the hiatus period created an implied contract to arbitrate; and 3) because the successor CBA is retroactively applicable, it obligates Midwest to submit to arbitration.

Midwest contends it is entitled to summary judgment because: 1) there was no written agreement to operate under the 2008 CBA while negotiating the successor CBA; 2) its conduct during the hiatus period does not suggest it agreed to arbitration, given that federal law required it adhere to certain terms of the 2008 CBA; and 3) the successor CBA is retroactive only with respect to Union members’ pay.

A party is entitled to summary judgment under Fed.R.Civ.P. 56 where the opposing party fails to show the existence of an essential element for which that party bears the burden of proof. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The movant must initially show the absence of a genuine issue of material fact. Id. at 323, 106 S.Ct. 2548.

Once the movant meets that initial burden, the “burden shifts to the nonmoving party [to] set forth specific facts showing there is a genuine issue for trial.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Rule 56(e) “requires the nonmoving party to go beyond the [unverified] pleadings” and submit admissible evidence supporting its position. Celotex, supra, 477 U.S. at 324, 106 S.Ct. 2548.

On summary judgment, I accept the non-movant’s evidence as true and construe all evidence in its favor. Eastman Kodak Co. v. Image Tech. Servs., Inc., 504 U.S. 451, 456, 112 S.Ct. 2072, 119 L.Ed.2d 265 (1992):

A. The Duty to Arbitrate

“Arbitration is a preferred method of settling labor disputes.” Cincinnati Typographical Union No. 3, Local 14-519 v. Gannett Satellite Info. Network, Inc., 17 F.3d 906, 909 (6th Cir.1994).

However, “arbitration is a matter of consent,” and “[t]he law compels a party to submit his grievance to arbitration only if he has contracted to do so.” Litton Fin. Printing Div. v. NLRB, 501 U.S.

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49 F. Supp. 3d 511, 2014 U.S. Dist. LEXIS 145602, 2014 WL 4954474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-longshoremens-assn-local-union-no-1768-v-midwest-ohnd-2014.