Lehigh Portland Cement Co. v. Cement, Lime, Gypsum, & Allied Workers Division, International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers & Helpers

849 F.2d 820, 1988 WL 60038
CourtCourt of Appeals for the Third Circuit
DecidedJune 16, 1988
DocketNo. 87-1464
StatusPublished
Cited by1 cases

This text of 849 F.2d 820 (Lehigh Portland Cement Co. v. Cement, Lime, Gypsum, & Allied Workers Division, International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers & Helpers) 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
Lehigh Portland Cement Co. v. Cement, Lime, Gypsum, & Allied Workers Division, International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers & Helpers, 849 F.2d 820, 1988 WL 60038 (3d Cir. 1988).

Opinion

OPINION OF THE COURT

GARTH, Circuit Judge:

Lehigh Portland Cement Company (“Le-high”) appeals from the district court’s order entered July 14, 1987 which granted the motion of the Cement, Lime, Gypsum, and Allied Workers Division of the International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers and Helpers, (“the Union”), dismissing Lehigh’s complaint. Because we agree with Lehigh that the district court erred in concluding that Lehigh’s claim against the Union was arbitrable, we will vacate the judgment of the district court and remand for further proceedings.

This dispute centers on a Collective Bargaining Agreement entered into by Lehigh and the Union, dated May 1, 1981, which expired April 30, 1984. The Agreement provided, among other things, that the parties could not terminate it (and thus engage in a strike or a lockout) without providing notice to the other party. Lehigh charges that the Union did not provide the required notices under the Agreement and thus violated the agreement by striking. Lehigh brought the instant action in the United States District Court, for the Eastern District of Pennsylvania, seeking damages for the Union's breach of contract. The Union, contending that the dispute was arbitrable, moved to dismiss Lehigh’s complaint.

Initially, the district court granted the Union’s motion to dismiss, holding that the Collective Bargaining Agreement required that Lehigh submit the dispute to an arbitrator. Upon Lehigh’s motion for reconsideration, the district court vacated the original judgment of dismissal and held an evi-dentiary hearing to receive evidence concerning the parties’ bargaining history and their negotiations. After this hearing, the district court again ruled in the Union’s favor and again dismissed Lehigh’s complaint on the grounds that an arbitrator, and not the district court, was required to resolve Lehigh’s claim. Lehigh appeals from the district court’s order of July 14, 1987. Our review is plenary. We reverse.

II.

In a labor dispute, “arbitration is a matter of contract, and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.” United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582, 80 S.Ct. 1347, 1353, 4 L.Ed.2d 1409 (1960). Thus, the issue of arbitrability is “a matter to be determined by the courts on the basis of the contract entered into by the parties.” Atkinson v. Sinclair Refining Co., 370 U.S. 238, 241, 82 S.Ct. [822]*8221318, 1320, 8 L.Ed.2d 462 (1962). In interpreting a labor contract, the Supreme Court has instructed the federal courts to resolve ambiguities in favor of arbitration. The Court has established a “strong presumption” in favor of arbitrability. Nolde Brothers, Inc. v. Local 358, Bakery and Confectionery Workers, 430 U.S. 243, 254, 97 S.Ct. 1067, 1073, 51 L.Ed.2d 300 (1977).

However, despite this strong presumption, the touchstone of this type of analysis is still the language of the contract itself. “Absent a contractual obligation to the contrary, a reluctant party [to arbitrate] is free to pursue any available legal remedy to redress its grievances.” Boeing Co. v. Auto Workers, 370 F.2d 969, 970 (3d Cir.1967). A recurring issue in this type of case is whether the company is required to bring its claims to an arbitrator when the collective bargaining agreement establishes procedures which limit the initiation of arbitration solely to the union.

In those cases where some ambiguous language appears in the contract and the contract can be read to provide for the employer initiating arbitration, this court has held that the strong presumption in favor of arbitration requires that the employer must arbitrate his grievance. For example, in Eberle Tanning Co. v. Section 63L, FLM Joint Board, Allegheny Division, United Food and Commercial Workers International Union, 682 F.2d 430 (3d Cir.1982), we held that the district court properly dismissed Eberle’s breach of contract action because the dispute, under the parties’ agreement, was to be decided by an arbitrator. While the first steps of the grievance procedures set forth in the agreement between Eberle and the union were designed to be employee initiated, later steps of the process called for both Eberle and the union to meet monthly to resolve grievances. Significantly, it provided, in addition, that “should the grievance remain unsettled, either party may refer it to a three (3) man Board of Arbitration.” Id. at 432 (emphasis added).1 We held that this quoted language created “an ambiguity concerning the Company’s duty to arbitrate its grievances, an ambiguity which we must resolve consistent with federal labor policy.” Id. at 434. See also Wilkes-Barre Publishing Co. v. Newspaper Guild, 647 F.2d 372 (3d Cir.1981), cert. denied, 454 U.S. 1143, 102 S.Ct. 1003, 71 L.Ed.2d 295 (1982).

However, when a contract contains no language which explicitly contemplates or permits the employer to initiate arbitration procedures, and the grievance structure is designed solely to afford the union the right to arbitrate, we have held that an employer, despite the presence of arbitration procedures in the collective bargaining agreement, is not bound to assert its claims before an arbitrator. Rather, we have permitted the employer to bring its claim against the union in the district court. Affiliated Food Distributors, Inc. v. Local 229, International Brotherhood of Teamsters, 483 F.2d 418 (3d Cir.1973); Boeing, 370 F.2d at 971. Accord Eberle Tanning, 682 F.2d at 435 n. 5 (distinguishing the procedures in Eberle’s agreement from employee-oriented grievance procedures such as those found in Affiliated).

Other Courts of Appeals faced with grievance procedures, which they construed as being wholly employee-oriented, have followed the principles announced in Boeing and Affiliated, and in each instance, have allowed employers to maintain actions against unions in federal district court rather than remitting their disputes to arbitration. Rochdale Village, Inc. v. Public Service Employees Union, 605 F.2d 1290, 1295-96 (2d Cir.1979); Faultless Division v. Local Lodge No. 2040 of District 153, International Association of Machinists and Aerospace Workers, 513 F.2d 987, 990 (7th Cir.1975); Friedrich v. Local No. 780, International Union of Electrical, Radio and Machine Workers, 515 F.2d 225, 228 (5th Cir.1975); Firestone Tire & Rubber Co. v. Rubber Workers Union, 476 F.2d 603, 675-76 (5th Cir.1973); G.T. Schjeldahl Co. v. Machinest Local 1680, [823]*823393 F.2d 502 (1st Cir.1968).

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Lehigh Portland Cement v. Cement, Lime, Wkrs
849 F.2d 820 (Third Circuit, 1988)

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849 F.2d 820, 1988 WL 60038, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lehigh-portland-cement-co-v-cement-lime-gypsum-allied-workers-ca3-1988.