Local Union No. 898 of the International Brotherhood of Electrical Workers v. XL Electric, Inc.

380 F.3d 868, 175 L.R.R.M. (BNA) 2449, 2004 U.S. App. LEXIS 16476, 2004 WL 1775943
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 10, 2004
Docket03-10053
StatusPublished
Cited by2 cases

This text of 380 F.3d 868 (Local Union No. 898 of the International Brotherhood of Electrical Workers v. XL Electric, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Local Union No. 898 of the International Brotherhood of Electrical Workers v. XL Electric, Inc., 380 F.3d 868, 175 L.R.R.M. (BNA) 2449, 2004 U.S. App. LEXIS 16476, 2004 WL 1775943 (5th Cir. 2004).

Opinion

DENNIS, Circuit Judge:

Local Union No. 898 of the International Brotherhood of Electrical Workers (“the Union”) appeals the district court’s judgment refusing to enforce an arbitration award against XL Electric, Inc. We affirm.

BACKGROUND

In August 1994, XL Electric signed a Letter of Assenb-A, a pre-hire agreement allowed under section 8(f) of the National Labor Relations Act (“NLRA”), with the Red River Valley Chapter of the National Electrical Contractors Association (“Red River”) authorizing it to act as XL Electric’s representative for collective bargaining with the Union. The Letter of Assent-A (“Letter”) was effective from June 1, 1997 to May 31, 2000 and bound XL Electric to the Inside Agreement (“Agreement”) between Red River and the Union. The Letter provided that it would remain in effect until termination by written notice to Red River at least 150 days prior to the .current anniversary date of the Agreement, which was May 31, 2000.

The Agreement contained an interest arbitration clause that provided for the timely submission of unresolved negotiation issues to arbitration. This clause stated:

Unresolved issues in negotiations that remain on the 20th of the month preceding the next regular meeting for the Council on Industrial Relations, may be submitted jointly or unilaterally by the parties to this Agreement to the Council for adjudication prior to the anniversary date of the Agreement.

Agreement at § 1.02.

On November 12, 1999, more than 150 days prior to the anniversary date, XL Electric sent a letter to Red River and the Union stating, “This letter is to inform you that we will not be bound by any new agreements entered into between NECA and the IBEW. We will negotiate our own agreement.” This letter also included several proposals and terms that XL Electric wanted to negotiate. The parties continued to exchange proposals in an attempt to reach a new agreement.

The parties never reached a new agreement, and on July 10, 2000, XL Electric sent the Union a letter informing it that their relationship had ended on June 1, 2000 when the Letter of Assenb-A had expired. Before the Letter’s expiration, XL Electric abided by the terms of the Letter by paying the wage and benefits required by the Agreement. After the Letter expired, XL Electric began hiring employees not referred from the Union hiring hall and changed the wages and benefits it paid. In addition, Dean Hunt, the XL Electric Vice President, told its electricians that they would no longer be receiving benefits under a union contract.

In August 2000, the Union submitted the unresolved issues between itself and XL Electric to the Council on Industrial Relations (“CIR”), the interest arbitration panel for the electrical contracting industry, pursuant to the interest arbitration clause. On August 15, 2000, the CIR found that although XL Electric followed the proper procedure for terminating the Letter, it did not properly terminate the Agreement. Accordingly, the CIR held that XL Electric was bound by a new Inside Agreement, which was effective from June 1, *870 2000 to May 31, 2003. Although XL Electric challenged the finding, the CIR issued this as its final decision.

When XL Electric refused to be bound by the CIR decision, the Union filed the present suit on June 25, 2001, to enforce the terms of the interest arbitration award under section 301 of the NLRA. After a bench trial, the district court denied the Union’s request for enforcement on November 26, 2002. The district court concluded that XL Electric was not bound by the interest arbitration clause after the Letter expired on May 31, 2000. The court therefore held that the panel award was not enforceable. The Union timely appealed.

ANALYSIS

Standard ofRevieiv

1 In reviewing a district court’s decision on whether the parties agreed to submit their dispute to arbitration, we accept findings of fact that are not “clearly erroneous” but review questions of law de novo. First Options v. Kaplan, 514 U.S. 938, 947-48, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995).

The question of arbitrability is a question for the court.

The threshold, and in this case determinative, question is whether this dispute was subject to a valid agreement to arbitrate. As the district court noted, the question of arbitrability is a question for the court. See Litton Fin. Printing Div. v. NLRB, 501 U.S. 190, 208-09, 111 S.Ct. 2215, 115 L.Ed.2d 177 (1991) (“Whether an employer is contractually required to arbitrate a dispute is a matter to be determined by the court, and a party'cannot be forced to ‘arbitrate the arbitrability question.’ ”) (citing AT&T Technologies, Inc. v. Communications Workers, 475 U.S. 643, 651, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986)). This is true even if answering the arbitra-bility question requires a construction of the contract. Id.

The Union conversely argues that we are instead faced with a question of timeliness, which is a procedural question properly decided by the arbitrator. The Union cites a number of cases for the proposition that procedural issues should be decided by the arbitrator. See, e.g., John Wiley and Sons, Inc. v. Livingston, 376 U.S. 543, 84 S.Ct. 909, 11 L.Ed.2d 898 (1964); Oil, Chemical & Atomic Workers Int’l Union, Local v. Chevron Chem. Co., 815 F.2d 338 (5th Cir.1987); Local No. 406, Int’l Union of Oper. Eng’rs v. Austin Co., 784 F.2d 1262, 1264-65 (5th Cir.1986); Alabama Power Co. v. Local Union No. 391, IBEW, 612 F.2d 960 (5th Cir.1980); General Drivers, Warehousemen & Helpers, Local Union 89 v. Moog Louisville Warehouse, 852 F.2d 871 (6th Cir.1988). The Union attempts to classify the present situation as presenting a timeliness issue that is thus procedural and should have been determined by the arbitrator.

But the cases relied on by the Union are distinguishable because those cases all concern grievances submitted to arbitration pursuant to a valid collective bargaining agreement. In those cases, the courts determined that there was a valid agreement to arbitrate the grievance at issue. The “procedural question” generally within the province of the arbitrator refers to the question of whether the union properly followed the requirements for invoking arbitration under the valid collective bargaining agreement. Here, by contrast, we are faced.

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380 F.3d 868, 175 L.R.R.M. (BNA) 2449, 2004 U.S. App. LEXIS 16476, 2004 WL 1775943, Counsel Stack Legal Research, https://law.counselstack.com/opinion/local-union-no-898-of-the-international-brotherhood-of-electrical-workers-ca5-2004.