Melling Forging Co. v. International Union, United Automobile, Aerospace & Agricultural Implement Workers

685 F. Supp. 1391, 127 L.R.R.M. (BNA) 2308, 1986 U.S. Dist. LEXIS 23748, 1986 WL 20751
CourtDistrict Court, W.D. Michigan
DecidedJune 24, 1986
DocketNo. G85-243 CA5
StatusPublished

This text of 685 F. Supp. 1391 (Melling Forging Co. v. International Union, United Automobile, Aerospace & Agricultural Implement Workers) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melling Forging Co. v. International Union, United Automobile, Aerospace & Agricultural Implement Workers, 685 F. Supp. 1391, 127 L.R.R.M. (BNA) 2308, 1986 U.S. Dist. LEXIS 23748, 1986 WL 20751 (W.D. Mich. 1986).

Opinion

OPINION REGARDING CROSS-MOTIONS FOR SUMMARY JUDGMENT

HILLMAN, Chief Judge.

This matter is before the court on the parties’ cross-motions for summary judgment under Fed.R.Civ.P. 56. On March 27, 1985, plaintiff, Melling Forging Company (“MFC” or the “Company”), filed this action under section 301 of the Labor Management Relations Act, 29 U.S.C. § 185, to vacate an arbitration award. Defendants are the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, UAW, and its Local 724 (“UAW” or “Unions”).

FACTUAL and PROCEDURAL BACKGROUND

During the fall of 1981 the parties engaged in labor negotiations, which resulted in a collective bargaining agreement. As part of those negotiations, the parties modified and extended the 1976 Melling Forging Company — UAW Retirement Income Plan (“1976 Pension Plan”). The parties finally executed those modifications in the Second Amendment to the 1976 Pension Plan on July 1, 1982. Specifically, the Second Amendment to the 1976 Pension Plan added section 3.12 to the 1976 Pension Plan. Section 3.12 provides for the deduction of workers’ compensation payments from the benefits payable under the pension plan. Application of section 3.12 is the subject of this lawsuit.

Under the terms of the 1976 Pension Plan, a Pension Committee comprised of three Company representatives and three union representatives administers the pension plan. 1976 Pension Plan, § 9.01. In July, 1982, a dispute arose between the Company and union representatives on the Pension Committee concerning the application of section 3.12. The Pension Committee deadlocked three to three regarding whether the Pension Committee should reduce the pension benefits of employees who retired before January 1, 1982, by the amount of workers’ compensation received. The parties then appointed Elliot Beitner as arbitrator and “impartial chairman” of the Pension Committee in order to resolve their deadlock. The parties “agreed that the decision of ... [Arbitrator [Beitner] shall be the final decision of the [Pension] Committee and that there is no need for a formal meeting of the [Pension] Committee to break the deadlock. Therefore, the decision of Arbitrator Beitner shall become the decision of the [Pension] Committee.”

An evidentiary hearing was held before Arbitrator Beitner on January 8, 1985. The parties, represented by counsel, presented oral testimony and exhibits. The parties also filed post-hearing briefs with the arbitrator. On February 21, 1985, Arbitrator Beitner issued a detailed and lengthy written opinion. In brief, the arbitrator found that “[s]ection 3.12 of the Pension Plan (the workers’ compensation deduction provision) applies only to employees who retired on or after January 1, 1982, the effective date of that provision, and not to those who retired prior to that date. Therefore, the two affected individuals, Dewitt White and Wayne Shields, cannot have their pensions reduced and are entitled to be paid their full pension benefits and to be reimbursed for the amounts deducted for a workers’ compensation offset.” In re Melling Forging Pension Arbitration, at 26 (February 21, 1985).

On March 27, 1985, plaintiff filed this action to vacate the arbitrator’s award and to allow plaintiff to offset the pension benefits received by any individual who retired on or after January 1, 1976 by any workers’ compensation received. In addition to their answer, defendants have filed a counter-claim against plaintiff. Defendants allege that plaintiff has breached its fiduciary duties under the Employee Retirement Income Security Act (“ERISA”).

[1393]*1393Pursuant to Fed.R.Civ.P. 56(a), plaintiff moves for summary judgment on its claim against defendant Unions. Defendant Unions, pursuant to Fed.R.Civ.P. 56(b), move for summary judgment in their favor on plaintiffs claim. Furthermore, defendant Unions move for summary judgment on their counterclaim against plaintiff under Fed.R.Civ.P. 56(a). I shall consider the parties’ cross-motions for summary judgment on plaintiff's claim separately from defendants’ motion for summary judgment on their counterclaim.

DISCUSSION

On a motion for summary judgment, movant bears the burden of showing conclusively that no genuine issue of material fact exists. Smith v. Hudson, 600 F.2d 60, 63 (6th Cir.1979); Tee-Pak, Inc. v. St. Regis Paper Co., 491 F.2d 1193 (6th Cir.1974). In determining whether issues of fact exist, “the inferences to be drawn from the underlying facts contained in [the affidavits, attached exhibits and depositions] must be viewed in the light most favorable to the party opposing the motion.” United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962). A court may not resolve disputed questions of fact in a summary judgment decision, and if a disputed question of fact remains, the district court should deny the motion, and proceed to trial. United States v. Articles of Device, 527 F.2d 1008, 1011 (6th Cir. 1976). These principles guide the following discussion.

A. The Parties’ Cross-Motions for Summary Judgment on Plaintiff’s Action to Vacate the Arbitrator’s Award.

Federal courts have long possessed authority to enforce, modify, or vacate arbitration awards. 9 U.S.C. §§ 9-11. The United States Supreme Court in the Steelworkers Trilogy cases “clarified the judiciary’s role in the specific context of labor arbitration pursuant to collective bargaining agreements.” National Post Office v. U.S. Postal Service, 751 F.2d 834, 840 (6th Cir.1985). In Steelworkers v. Enterprise Corp., 363 U.S. 593, 599, 80 S.Ct. 1358, 1362, 4 L.Ed.2d 1424 (1960), the Court admonished lower federal courts that:

“the question of interpretation of the collective bargaining agreement is a question for the arbitrator. It is the arbitrator’s construction which was bargained for; and so far as the arbitrator’s decision concerns construction of the contract, the courts have no business overruling him because their interpretation of the contract is different from his.”

The Court in Steelworkers v. Enterprise Corp., however, imposed limitations upon the deference owed an arbitrator’s decision. The Court held that an arbitrator’s “award is legitimate only so long as it draws its essence from the collective bargaining agreement. When the arbitrator’s words manifest an infidelity to this obligation, courts have no choice but to refuse enforcement of the award.” Steelworkers v.

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685 F. Supp. 1391, 127 L.R.R.M. (BNA) 2308, 1986 U.S. Dist. LEXIS 23748, 1986 WL 20751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melling-forging-co-v-international-union-united-automobile-aerospace-miwd-1986.