M.R.S. Enterprises, Inc. v. Sheet Metal Workers' International Ass'n, Local 40

429 F. Supp. 2d 72, 179 L.R.R.M. (BNA) 2558, 2006 U.S. Dist. LEXIS 21373, 2006 WL 931572
District Court, District of Columbia·Decided April 11, 2006·No. CIV.A. 05-1823(CKK)·Published·Cited by 7 cases

Opinion

MEMORANDUM OPINION

KOLLAR-KOTELLY, District Judge.

Plaintiff/Counter-Defendant M.R.S. Enterprises, Inc. (hereinafter M.R.S. 1 ) filed a Complaint on September 14, 2005, asking *75 this Court to vacate a decision of the National Joint Adjustment Board ordering it to execute a collective bargaining agreement with Defendant/Counter-Claimant Sheet Metal Workers’ International Association, Local 40 (hereinafter Local 40). Presently before the Court is Local 40’s [10] Motion to Confirm Arbitration Award, in regards to which an Opposition and Reply have been filed. Upon considering the aforementioned filings, the operative pleadings, and the relevant case law, the Court shall GRANT Local 40’s Motion to Confirm Arbitration Award.

I: BACKGROUND

M.R.S. is a siding contractor with a principal place of business in Plainville, Connecticut. 1st Am. Compl. ¶¶ 1, 8. Local 40 is a labor organization for sheet metal workers with a principal place of business in Rocky Hill, Connecticut. Id. ¶ 5. In 1998, M.R.S. executed a pre-hire agreement (hereinafter “the Agreement”) pursuant to Section 8(f) of the National Labor Relations Act, 29 U.S.C. § 158(f), 2 with Local 40 for successive contract terms. 3 1st Am. Compl. ¶ 6; Countercl., Roche Decl. ¶ 5; M.R.S. Opp’n at 1. M.R.S. was required to execute such an agreement with the sheet metal workers local union in its home state as a condition of its being a signatory to the National Siding and Decking Agreement. 1st Am. Compl. ¶ 6.

On December 22, 2004, M.R.S. sent a letter to Mr. David Roche, Business Manager of Local 40, notifying the Union that it wished to terminate the Agreement, effective on its expiration date of June 30, 2005. 1st Am. Compl. ¶ 13. Article X, Section 8 of the Agreement states the following:

[A]ny controversy or dispute arising out of this Agreement as set forth in the preceding sections of this Article, any controversy or dispute arising out of the failure of the parties to negotiate a renewal of this Agreement shall be settled as hereinafter provided:
(a). Should the negotiations for a renewal of this Agreement or negotiations regarding a wage/fringe reopener become deadlocked in the opinion of the Union representative(s) or of the Employer(’s) representatives(s), or both, notice to that effect shall be given to the National Joint Adjustment Board.

Countercl. at Exh. A at 10 (Agreement). Upon notice, any dispute that cannot be resolved by a NJAB Panel representative will be decided by the NJAB as a whole. Id. A unanimous decision by the Board is final and binding on the parties. Id. Article XV, Section 4 of the Agreement states that a party may not repudiate the Agreement during its term or prior to negotiations for one additional successor term. Id. at 14.

*76 On May, 17, 2005, Local 40 sent a letter to M.R.S. requesting a meeting to negotiate the upcoming contract. Countercl. ¶ 8. A meeting was initially scheduled for June 13, 2005, but M.R.S. cancelled it. Id.; Mot. to Confirm at 12. Local 40 and M.R.S. never met to discuss a successor agreement. 1st Am. Compl. ¶ 17. Local 40 filed a Notice of Unresolved Dispute with the NJAB on or about June 3, 2005. 1st Am. Compl. ¶ 19; Countercl. ¶ 9. On June 27, 2005, both M.R.S. and Local 40 participated in a hearing before the NJAB in Washington, D.C. 1st Am. Compl. ¶20; Countercl. ¶ 10. The NJAB issued a ruling the next day which stated that “[t]he parties shall execute a collective bargaining agreement, effective July 1, 2005, identical in terms to the [prior] agreement.” Countercl. at Exh. C (NJAB Decision).

M.R.S. appealed the NJAB decision to this Court in an action filed on September 14, 2005. In its First Amended Complaint, M.R.S. alleges that the NJAB arbitration award was improper for four reasons-because the parties did not reach a deadlock; because M.R.S. terminated the agreement at its expiration; because M.R.S. had no obligation to negotiate with the union after termination; and because the arbitrators were allegedly partial. 1st Am. Compl. ¶¶ 17, 18, 22-23. Local 40 filed an Answer and Counterclaim on November 17, 2005, requesting that the Court confirm and enforce the arbitration award. Countercl. ¶ 1. Local 40 argues that the arbitration award should be confirmed because M.R.S. was bound by the Local 40 Agreement, M.R.S. had no right to repudiate the Agreement and avoid arbitration, a deadlock was reached, and M.R.S. cannot challenge the NJAB’s partiality because it waived its opportunity to do so and agreed to the Board’s composition in the Agreement. Mot. to Confirm at 2-7.

M.R.S. admits that it was bound by the 2001-2005 Agreement and summarily states that the Agreement could be terminated without bargaining but does not respond to the other arguments in Local 40’s Motion to Confirm. M.R.S.’s Answer ¶¶ 1-14; M.R.S.’s Opp.’n at 1-6. Instead, M.R.S. opposes Local 40’s Motion to Confirm by arguing that the arbitration award is now moot because M.R.S repudiated the Agreement on December 23, 2005 when it notified Local 40 that it no longer employs sheet metal workers. M.R.S.’s Opp.’n at 1-2. As a result of the arbitration award being moot, M.R.S. requests that the Court dismiss both the Complaint and Counterclaim. M.R.S.’s Opp.’n at 2. The Court hereby dismisses the First Amended Complaint at M.R.S’s request. M.R.S’s Opp’n. at 6. Local 40’s Counterclaim is henceforth the only action before the Court.

II: LEGAL STANDARDS

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M.R.S. Enterprises, Inc. v. Sheet Metal Workers' International Ass'n, Local 40, 429 F. Supp. 2d 72, 179 L.R.R.M. (BNA) 2558, 2006 U.S. Dist. LEXIS 21373, 2006 WL 931572 (D.D.C. 2006).

429 F. Supp. 2d 72 (M.R.S. Enterprises, Inc. v. Sheet Metal Workers' International Ass'n, Local 40) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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