Johns Manville Corp. v. Local 20, International Brotherhood of Teamsters

37 F. Supp. 3d 901, 2014 WL 3908036, 2014 U.S. Dist. LEXIS 111534
CourtDistrict Court, N.D. Ohio
DecidedJuly 3, 2014
DocketCase No. 3:13CV2015
StatusPublished

This text of 37 F. Supp. 3d 901 (Johns Manville Corp. v. Local 20, International Brotherhood of Teamsters) 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
Johns Manville Corp. v. Local 20, International Brotherhood of Teamsters, 37 F. Supp. 3d 901, 2014 WL 3908036, 2014 U.S. Dist. LEXIS 111534 (N.D. Ohio 2014).

Opinion

[903]*903ORDER

JAMES G. CARR, Senior District Judge.

Plaintiff Johns Manville Corporation (Johns Manville or the Company) brings this suit against defendant Local 20, International Brotherhood of Teamsters (the Union) seeking a declaratory judgment to vacate an arbitrator’s award reinstating former employee James Kruzel.

This court has jurisdiction pursuant to 29 U.S.C. § 185.

Defendant brings a counterclaim to enforce the Arbitrator’s award. Pending are cross-motions for summary judgment. (Docs. 11, 12). For the following reasons, I grant plaintiffs motion and deny defendant’s motion.

Background

Johns Manville is a Delaware corporation with a plant in Waterville, Ohio. The Company is a party to a collective bargaining agreement (CBA) with the Union.

Since November, 2008, the Company has had a policy prohibiting smoking. The policy bars smoking except in designated areas outside of the plant. The Company enacted the policy to comply with Ohio law, which prohibits smoking indoors. The policy states that violators “will be subject to discipline up to and including discharge.” (Doc. 1, at 3).

The CBA covered James Kruzel, the grievant in this dispute. On June 29, 2012 a supervisor found Kruzel smoking. He was in a room smelling of smoke and with the exhaust fans on. The fans should not have been on, as the Company reserves their use to specific purposes. The supervisor saw a cigarette on the floor. (Doc. 1, at 4).

The supervisor told Kruzel to go to his office. The supervisor did not bring the cigarette, and it was gone when he went back to pick it up. The supervisor suspended Kruzel pending an investigation. After the investigation, the Company fired Kruzel. The Company considered Kruz-el’s smoking violation to be a very serious violation of Company policy and its legal obligations. For those reasons, it determined firing was appropriate. (Id.).

After unsuccessfully grieving the termination, the Union requested arbitration under the CBA. The parties selected Col-man R. Lalka as the Arbitrator. The Arbitrator held a hearing on April 19, 2013. He issued an award in favor of the Union on July 15, 2013.. (Doc. 1, at 5).

Four provisions of the CBA are relevant:

Article XV: establishes a four-step grievance procedure for resolving differences between the parties.
Under Article XV, the Union can submit to arbitration if it is not satisfied after step one. The jurisdiction of the arbitrator is limited to specific issues outlined in the agreement. The arbitrator cannot reverse "the Company on discipline or discharge decisions unless the arbitrator finds the Company has acted arbitrarily and without just cause, or in violation of the agreement. (Doc. 1-1, at 33).
Article XVII: reserves, to the Company, the right to “discipline or discharge employees for just cause.” (Doc. 1-1, at 37).
Article V: “refusal or failure to comply with the Company rules may be cause for disciplinary action up to and including discharge of an employee for such violations.” (Doc. 1, Ex. 1-1, at 9).
A “Stipulation of Understanding:”
In the Stipulation, the parties agree that Johns Manville will use progressive discipline for less serious infractions. It further states the Company has the [904]*904right to determine the severity of infractions. The Company can choose which infractions warrant progressive discipline and which do not. (Doc. 1-1, at 62).

The Arbitrator found Kruzel knowingly violated the no-smoking policy. He acknowledged Kruzel also was untruthful, tried to conceal his misconduct, and subjected the Company to potential fines. The Arbitrator, however, determined there was not just cause for dismissal. Instead, he found that Kruzel deserved a lesser penalty. (Doc. 1-2, at 7).

To support his conclusion, the Arbitrator found the Company’s failure to apply progressive discipline was not justified. The Arbitrator concluded such failure violated the “just cause” standard in Article XXVII. In his opinion, the Company had to show justification to forego progressive discipline. (I'd).

The Company seeks to have me vacate or modify the Arbitrator’s award. Counterclaiming, the Union seeks injunctive relief to compel the Company’s compliance with the Arbitrator’s award.

Summary Judgment Standard

A party is entitled to summary judgment on motion under Fed.R.Civ.P. 56 where the opposing party fails to show the existence of an essential element for which the 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 nonmov-ing 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.

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

Discussion

The Union moves for summary judgment on grounds that: 1) the Arbitrator’s decision was consistent with the CBA; and 2) the Company, not having made the arguments during the arbitration that it makes here, waived its contention that I should find the Arbitrator’s decision arbitrary. According to the Union, both parties bargained for the right to arbitrate and the Arbitrator’s decision is consistent with the CBA and standards of fairness.

Johns Manville counters that: 1) the Arbitrator exceeded his authority by failing to find, as the CBA requires, that it acted arbitrarily; 2) the Arbitrator was not arguably construing or applying the contract’s terms; and 3) it did not waive its ability to rely on the express language of the CBA in this proceeding.

A. Waiver

I deal first with the issue of waiver.

The Union accurately notes that a party may not raise arguments on appeal that it did not make to the Arbitrator. Titan Tire Corp. of Bryan v. United Steelworkers of America, Local 890L, 656 F.3d 368, 373 n. 3 (6th Cir.2011).

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37 F. Supp. 3d 901, 2014 WL 3908036, 2014 U.S. Dist. LEXIS 111534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johns-manville-corp-v-local-20-international-brotherhood-of-teamsters-ohnd-2014.