Kinder Morgan Bulk Terminals, Inc. v. United Steel, Paper & Forestry, Rubber Manufacturing, Energy, Allied Industrial & Service Workers International Union

9 F. Supp. 3d 507, 199 L.R.R.M. (BNA) 3172, 2014 U.S. Dist. LEXIS 47533, 2014 WL 1330032
CourtDistrict Court, E.D. Pennsylvania
DecidedApril 4, 2014
DocketCivil Action No. 13-4386
StatusPublished
Cited by3 cases

This text of 9 F. Supp. 3d 507 (Kinder Morgan Bulk Terminals, Inc. v. United Steel, Paper & Forestry, Rubber Manufacturing, Energy, Allied Industrial & Service Workers International Union) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kinder Morgan Bulk Terminals, Inc. v. United Steel, Paper & Forestry, Rubber Manufacturing, Energy, Allied Industrial & Service Workers International Union, 9 F. Supp. 3d 507, 199 L.R.R.M. (BNA) 3172, 2014 U.S. Dist. LEXIS 47533, 2014 WL 1330032 (E.D. Pa. 2014).

Opinion

MEMORANDUM

DALZELL, District Judge.

Kinder Morgan Bulk Terminals, Inc. (“Kinder Morgan” or “the Company”) brings this action against United Steel, Paper and Forestry, Rubber Manufacturing, Energy Allied Industrial and Service Workers of America and its Local 15253 (“the Union” or “United Steel”), seeking to vacate an arbitration award issued in favor of United Steel. The arbitration concerned the termination of a Kinder Morgan employee, Michael Hires, and the arbitrator found that Kinder Morgan lacked just cause to fire Hires and concluded that Hires should be reinstated with full back pay and benefits. In response to Kinder Morgan’s suit, United Steel counterclaimed, seeking an order that Kinder Morgan reinstate Hires with unimpaired seniority and pay him back pay, benefits, and prejudgment interest. Before us are the parties’ cross-motions for summary judgment.

We exercise jurisdiction pursuant to 29 U.S.C. § 1851 and 28 U.S.C. § 1331.

[511]*511I. Facts

A. Background

Kinder Morgan operates a marine terminal in Fairless Hills, Pennsylvania, where employees load and unload cargo and transfer cargo for storage or ground transport by road and rail. Stip. of Facts at ¶ 1. United Steel is a labor organization that represents Kinder Morgan’s bargaining unit employees at the Fairless Hills terminal. Id. at ¶ 3. Hires is a longshoreman who worked for Kinder Morgan at the Fairless Hills terminal and was a member of the bargaining unit there. Id. at ¶ 6.

Kinder Morgan and United Steel signed a collective bargaining agreement (“CBA”), effective from April 14, 2008 through April 1, 2013, pursuant to which the parties resolved disputes through a three-step grievance procedure. Id. at ¶ 4; CBA Art. 10, Stip. of Facts Ex. Jl. If they could not resolve their disputes through the internal grievance system, the Union was entitled to appeal the grievance to arbitration. CBA § 10.2.4. The arbitration provision of the CBA provided that the arbitrator will “have jurisdiction only over the interpretation or application of specifically identified provisions of the Agreement,” and that his decisions will be “final and binding.” Id. § 10.3.B. The CBA also provided that “[sjeniority and employment shall be lost” by “a lapse of (12) consecutive calendar months during which the employee performs no work for the Company”, id. at § 25.5.

On September 9, 2010, Hires .injured his neck and aggravated an earlier injury to his right arm while he was driving a water truck at the Fairless Hills terminal. Stip. of Facts at ¶ 13. Hires remained out of work and received longshoreman benefits under the Longshore and Harbor Workers’ Compensation Act (LHMCA), 33 U.S.C. § 901 et seq. until September 8, 2011. Id. at ¶¶ 17, 25.

While Hires was away from work he received medical opinions from three doctors, Dr. Plastaras, a physiatrist, and Drs. Mahaltru and Cohen, both neurosurgeons2

. It appears that Dr. Plastaras performed an MRI on Hires that revealed that Hires had Arnold Chiari Malformation (“ACM”), a congenital condition, and a C herniated disc. Id. at ¶¶ 19-21. Dr. Plastaras referred Hires to Dr. Mahaltru, and Dr. Mahaltru “discussed surgery with Hires.” Id. at ¶ 21. Dr. Cohen examined Hires as part of the LHMCA claim, id. at ¶ 22, and on July 28, 2011, Dr. Cohen wrote:

This man cannot return to work (RTW) at this time — but the reason for this has nothing whatever to do with his Arnold [512]*512Chiari Malformation (ACM), his congenital condition. Rather, he cannot return to work because his cervical spinal cord is being compressed significantly in his neck. Because of that, I would not allow him to RTW until his C cord is decompressed. To allow work in this circumstance would endanger his ability to move — and that would endanger both the patient and his employer.

July 28, 2011 Letter from Dr. Robert M. Cohen, Ex. C4 to Stip. of Facts.

On September 8, 2011 Hires returned to work with a note from Dr. Plastaras, whom he had seen on September 7, 2011, which read, “I had the pleasure of seeing Michael T. Hires. He is not taking any medications. He may return to work full duty.” Stip. of Facts ¶ 25.

During the hearing before the arbitrator, David Price, a human resources manager at Kinder Morgan, testified that Hires had returned to work on September 8, 2011, but that Bruce Kelly, a superintendent at the terminal, told Hires to leave and not return until he had spoken to Price. Tr. at 95:2-7.

Kinder Morgan then asked the United States Department of Labor’s Office of Workers’ Compensation Programs (“DOL”) to appoint a doctor to conduct an independent medical examination (“IME”) on Hires. Id. at ¶ 26. The DOL selected Dr. Bong Lee, a neurosurgeon. Id. Dr. Lee examined Hires on February 16, 2012, and issued a report in which he made the following recommendation:

As far as the injury to the right ulnar nerve associated with the incident of September 14, 2009, is concerned, Mr. Hires has had a complete recovery with no disability or any permanent impairment of function, and he would therefore be able to return to work as a longshoreman based on this injury. However, he has a very serious cervical spondylosis with a disc herniation and Chiari malformation which is not a direct result of the incident of September 9, 2010, but rather, is a preexisting condition and one which could represent a great risk factor for more serious physical damage if he is involved in any future accidents, even in the case of a mild accident. Therefore, it is not advisable for him to return to the nature of a job such as a longshoreman due to the risk factors regarding his cervical spine problems.

Feb. 16, 2012 Dr. Bong Lee Report, Stip. of Facts Ex. C3 at 5.

On March 16, 2012 Price had a conference call with Hires and Joe Padavan, a union representative, to discuss Hires’s return to work in light of Dr. Lee’s report. Stip. of Facts at ¶ 29; Tr. 97:17-25. Price told Hires and Padavan that Kinder Morgan did not have any light duty work to offer Hires, and Hires and Padavan responded that Hires did not require an accommodation. Stip. of Facts at ¶¶ 30-31.

On March 27, 2012 Kinder Morgan told Hires that based on the opinions of Dr. Cohen and Dr. Lee, the company would not allow Hires to return to work. Id. at ¶ 32. At the arbitration hearing, John Dalton, Vice President for Kinder Morgan East, testified that the decision not to allow Hires to return to work was based on the fear that “because of his spinal cervical condition” Hires could be seriously injured if he returned. Id. Kinder Morgan fired Hires under Section 25.5 of the CBA, based on the finding that he had been out of work for more than twelve months. His firing was thus made retroactive to September 9, 2011. Id. at ¶ 33.

On April 10, 2012 the Union filed a grievance pursuant to the CBA, and on May 7, 2012 the grievance was denied and referred to arbitration pursuant to Article [513]

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9 F. Supp. 3d 507, 199 L.R.R.M. (BNA) 3172, 2014 U.S. Dist. LEXIS 47533, 2014 WL 1330032, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kinder-morgan-bulk-terminals-inc-v-united-steel-paper-forestry-paed-2014.