Irving Materials, Inc. v. Coal, Ice, Building Material & Supply Drivers, Heavy Haulers, Warehousemen & Helpers, Local 716

779 F. Supp. 968, 140 L.R.R.M. (BNA) 2473, 1992 U.S. Dist. LEXIS 111, 1992 WL 1634
CourtDistrict Court, S.D. Indiana
DecidedJanuary 3, 1992
DocketIP 91-408-C
StatusPublished
Cited by3 cases

This text of 779 F. Supp. 968 (Irving Materials, Inc. v. Coal, Ice, Building Material & Supply Drivers, Heavy Haulers, Warehousemen & Helpers, Local 716) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Irving Materials, Inc. v. Coal, Ice, Building Material & Supply Drivers, Heavy Haulers, Warehousemen & Helpers, Local 716, 779 F. Supp. 968, 140 L.R.R.M. (BNA) 2473, 1992 U.S. Dist. LEXIS 111, 1992 WL 1634 (S.D. Ind. 1992).

Opinion

ORDER ON MOTIONS FOR SUMMARY JUDGMENT

McKINNEY, District Judge.

This matter, which raises questions about the power of arbitrators in the labor grievance process, is before the Court on motions for summary judgment by the plaintiff-counterdefendant Irving Materials, Inc. (“Irving” or “the company”), and the defendants-counterclaimants, Coal, Ice, Building Material and Supply Drivers, Heavy Haulers, Warehousemen and Helpers Local 716 (the “Union” or “Local 716”), Local 716 president Kenneth Sutton (“Sutton”), and Local 716 business agent John Marshall (“Marshall”). Jurisdiction and venue are proper, and both motions are ready for resolution.

I. FACTUAL AND PROCEDURAL BACKGROUND

The relevant facts are not in dispute. 1 On January 19, 1990, Fred Morris, a member of Local 716 and a cement truck driver for Irving, collided with a Conrail train at a railroad crossing some 200 feet south of the entrance to Irving’s plant in Greenfield, Indiana. Morris was heading north at 40 miles per hour and failed to see the train, which was approaching from the east, until his truck was approximately 80 feet from the track. Morris, unable to stop, swerved to the left as he passed through the crossing, but failed to clear the track before being hit by the train. The collision caused estimated damage of $15,000. A deputy sheriff who examined the scene concluded that Morris’s negligence and inattentiveness caused the accident, and that Morris violated Indiana law by failing to yield to the train. The deputy issued no ticket, however, apparently because he did not witness the accident first-hand.

Irving promptly discharged Morris. In a letter dated January 19, 1990, the company wrote:

This is your third major accident in two years. In January 1988 you turned your truck over on 96th Street causing $5,000 damage to your truck. In August of 1989 you rear-ended a stopped car on I-465 causing $9,734.79 in damages. This latest accident will cost in excess of $15,-000 in damages.
The police reported [sic] on this accident indicates a high degree of negligence, disregard of safety rules, careless handling of Company equipment, and/or willful damage to Company equipment. In addition, an inspection of your truck reveals that you have added sunscreen to all windows and your windows are so dirty it is difficult to see out of them. These practices also indicate a high degree of negligence and disregard of safety rules.
We are concerned about your personal safety and the safety of the driving public as you are unable to operate a truck safely. [Irving] is exposed to tremendous liability if we continue to allow you to drive one of our trucks. Therefore, we are hereby dismissing you effective January 26, 1990, based on our work rules.

See Opinion and Award of Arbitrator Gil Vernon at 2 [hereinafter “Award”] (quoting from letter). In terminating Morris, Irving apparently relied on two provisions of the collective bargaining agreement (the “Agreement”) 2 it had with Local 716: a clause requiring employees to observe cer *971 tain safety regulations pertaining to tools and equipment; 3 and a clause stating that Irving retained all “rights of the traditions of management” not specifically limited by the Agreement. 4 The company, despite referring to Morris’s 1988 and 1989 accidents in its letter, had never disciplined him in any way for these incidents, and did not precede his discharge with any “progressive discipline” — e.g., a suspension or written warning — as required by the Agreement. 5

Shortly after Morris received the letter, the Union filed a grievance in accordance with procedures outlined in the Agreement, 6 claiming that Morris was discharged without just cause 7 or proper warning, 8 and that he therefore was entitled to reinstatement and back wages. Irving and the Union could not resolve the grievance, and it ultimately was referred to arbitration. 9 *972 The parties selected Gil Vernon to decide the dispute, and he conducted a full hearing on December 13, 1990.

Vernon’s decision, issued on April 3, 1991, focused on two questions: (1) whether Morris was “guilty of the misconduct with which [he was] accused,” and (2) if yes, whether “the punishment fit the crime.” Award at 11. In dealing with the first question, Vernon initially found that the evidence did not support a conclusion that Morris caused “willful damage to Company equipment” as charged in the company’s discharge letter. Vernon went on to determine, however, that Morris’s inattentiveness and consequent failure to see the train did demonstrate a “high degree of negligence.” 10 According to Vernon, this degree of negligence did not rise to the level of gross negligence, recklessness, or a willful disregard of safety; on the other hand, it constituted “something more serious” than simple negligence. Award at 12.

The second question — whether Morris’s misconduct warranted termination — required greater consideration. Vernon first addressed Irving’s three asserted justifications for its decision to discharge Morris: (1) the threat of a “willful retention” suit by the driver of the car involved in Morris’s July 1989 accident; (2) a possible loss of insurance coverage; and (3) Morris’s past record of accidents in company vehicles. 11 Vernon dismissed these rather quickly, stating that no real threat of a negligent retention suit had been shown, and that evidence which suggested that Irving might lose insurance coverage — a letter from an agent — was not probative because the agent was inclined to say whatever Irving wanted. Vernon also concluded that Irving had “waived its right to attach any disciplinary consequence” to Morris’s previous accidents, because it had not imposed timely discipline for them. See Award at 13-14.

Vernon then discussed Irving’s failure to adhere to progressive discipline. Irving admitted that it had not followed the Agreement’s requirement for progressive discipline, but claimed that Morris’s conduct was serious enough to warrant immediate termination. Vernon conceded that some offenses — “theft, punching out a supervisor, etc.” — might justify immediate discharge, but noted that other offenses, such as negligence, “vary in ... seriousness” and “because of varying circumstances, might warrant immediate discharge in one instance but require a warning/suspension prior to discharge in another.” While acknowledging that it was a “difficult call to make,” Vernon concluded that the circumstances did not justify immediate discharge in this case.

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779 F. Supp. 968, 140 L.R.R.M. (BNA) 2473, 1992 U.S. Dist. LEXIS 111, 1992 WL 1634, Counsel Stack Legal Research, https://law.counselstack.com/opinion/irving-materials-inc-v-coal-ice-building-material-supply-drivers-insd-1992.