Old Dutch Farms, Inc. v. Milk Drivers & Dairy Employees Local Union No. 584

359 F.2d 598, 62 L.R.R.M. (BNA) 2007, 1966 U.S. App. LEXIS 6653
Court of Appeals for the Second Circuit·Decided March 31, 1966·No. No. 246, Docket 30076·Published·Cited by 7 cases

Opinion

MOORE, Circuit Judge.

The appellee, Milk Drivers and Dairy Employees Local Union No. 584 (the union), is the collective bargaining representative for employees working in the New York metropolitan area milk industry. The union and the appellant, Old Dutch Farms, Inc. (the employer), were parties to an industry-wide collective bargaining agreement. In December 1962, a dispute arose between the employer and the union concerning whether the employer, by opening a milk “depot” in Brooklyn for the retail sale of milk and milk products, had violated Section 66A of the collective bargaining agreement.1 This dispute was submitted to arbitration in the spring of 1963 pursuant to arbitration procedures provided for in the collective agreement. Subsequently, in May 1963, the union proceeded to induce employees of a neutral employer (a supplier of Old Dutch Farms, Inc.) to engage in work stoppages, and to threaten such employer, in an effort to cause such employer to [600] cease doing business with Old Dutch Farms, Inc. Thereafter, Old Dutch Farms, Inc. filed a petition with the National Labor Relations Board (the NLRB) alleging that the union was engaged in unlawful secondary activity. On October 9, 1963, the NLRB held that the union had violated Section 8(b) (4) (i) & (ii) (B) of the Labor Management Relations Act (the LMRA), 29 U.S.C.A. § 158(b) (4) (i) & (ii) (B), 146 NLRB 509 (1964), and its decision was enforced by this court in January 1965. NLRB v. Milk Drivers & Dairy Employees Local Union No. 584, 341 F.2d 29 (2d Cir. 1965).

In March 1965 the employer commenced the present action in the United States District Court for the Eastern District of New York, pursuant to Section 3032 to collect damages for business injuries sustained as a result of the union’s allegedly unlawful activity. The union made a motion to stay all proceedings in the action pending arbitration of the damage claim on the ground that the disputes came within the purview of the general arbitration clause contained in the collective agreement. The arbitration clause provided that “any and all disputes and controversies arising under or in connection with the terms and provisions of this agreement, or in connection with or relating to the application or interpretation of any of the terms or provisions hereof, or in respect to anything not herein, expressly provided but germane to the subject matter of this agreement * * * shall be submitted for arbitration to an arbitrator * * *’’ The trial court granted the motion finding that the employer’s statutory action presented a controversy which was “within the inclusive description of the arbitrable disputes,” 243 F.Supp. 246, 247, set forth in the arbitration clause and concluded that “the dispute * * * arises out of the contract relation not only because it centered on the ‘depot’ clause in the contract, but also because Section 17 contained a no-strike clause which forbade the Union to ‘call * * * any sympathetic strike of its members * * * 243 F.Supp. 246, 248. We reverse on the ground that the employer is not precluded by the arbitration clause in the parties’ collective agreement from asserting in the district court a claim for tort damages based on the alleged unlawful secondary activity of the union and forced to rely upon arbitration for relief.

It is well established that whether an employer is required to arbitrate, as well as what issues he must arbitrate, “is a matter to be determined by the Court on the basis of the contract entered into by the parties.” Atkinson v. Sinclair Refining Co., 370 U.S. 238, 241, 82 S.Ct. 1318, 1320, 8 L.Ed.2d 462 (1962). Moreover, an employer “cannot be required to submit to arbitration any dispute which he has not agreed so to submit.” United Steelworkers of America v. Warrior & Gulf Nav. Co., 363 U.S. 574, 582, 80 S.Ct. 1347, 1353, 4 L.Ed.2d 1409 (1960); see John Wiley & Sons v. Livingston, 376 U.S. 543, 547, 84 S.Ct. 909, 11 L.Ed.2d 898 (1964). Thus, the principal issue raised by this appeal is whether the employer’s tort damage daim constitutes an arbitrable issue within the meaning of the broad arbitration clause con [601] tained in the parties’ collective bargaining agreement.3

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Old Dutch Farms, Inc. v. Milk Drivers & Dairy Employees Local Union No. 584, 359 F.2d 598, 62 L.R.R.M. (BNA) 2007, 1966 U.S. App. LEXIS 6653 (2d Cir. 1966).

359 F.2d 598 (Old Dutch Farms, Inc. v. Milk Drivers & Dairy Employees Local Union No. 584) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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