Orange Belt District Council of Painters No. 48 v. Maloney Specialties, Inc., a Corporation

639 F.2d 487
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 25, 1981
Docket78-2651
StatusPublished
Cited by28 cases

This text of 639 F.2d 487 (Orange Belt District Council of Painters No. 48 v. Maloney Specialties, Inc., a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Orange Belt District Council of Painters No. 48 v. Maloney Specialties, Inc., a Corporation, 639 F.2d 487 (9th Cir. 1981).

Opinion

CHOY, Circuit Judge:

This appeal is from an order of the district court confirming an arbitration award. We hold that it was proper for the district court to exercise jurisdiction in this matter and to enforce the award. Although the district court should not have addressed the defense of contractual illegality, it made clear that the issue did not affect the result in the current proceeding. We therefore affirm.

I. Facts

Maloney Specialties, Inc. (Maloney) is a drywall contractor in Southern California. Maloney executed a collective bargaining agreement with Orange Belt District Council of Painters No. 48 (Orange Belt), a labor organization of journeymen and apprentice painters and drywall finishers. In addition to provisions relating to wages, hours, working conditions, and required contributions to Orange Belt Painters Trust Funds based upon the number of hours worked, the agreement provided: that Maloney would not subcontract any work covered by the agreement unless the subcontractor was a signatory to the agreement; that Maloney would be liable if the subcontractor failed to pay wages or fringe benefits under the agreement; that a “Joint Judicial Committee” composed of employee and employer representatives or an arbitrator would arbitrate any disputes or grievances, with a provision for appeal from that committee to an “Administrative Office” under the direction of an employees’ organization; and that liquidated damages would be assessed against any party who violated the agreement. 1

*489 McKellar & Associates (McKellar), a general contractor and developer, awarded a drywall contract to Maloney. Without any notice to Orange Belc, Maloney subcontracted the work to M.G. Plaster & Drywall Company (M.G.), a firm which Maloney knew had not signed the collective bargaining agreement. Orange Belt sent journeymen to the jobsite to work for Maloney but the workers instead were assigned to work for M.G. M.G. became indebted to these employees (members of Orange Belt) for approximately $8,000 in wages and approximately $7,600 in benefits payable to the Orange Belt Trust Funds. Upon learning that the employees were working for M.G., and that M.G. was not a signatory to the collective bargaining agreement, Orange Belt directed its members to cease work until the debt was paid.

McKellar, the general contractor, then executed a separate collective bargaining agreement with Orange Belt and paid the back wages due. The work on the project was completed, although the trust fund contributions remain unpaid.

In December 1976 Orange Belt filed a grievance against Maloney. Following a hearing, the Joint Judicial Committee assessed damages against Maloney for the $7,447.02 due the trust funds, plus $2,865.40 in liquidated damages. Maloney did not appeal.

On May 19, 1977 Maloney filed charges against Orange Belt for unfair labor practices in violation of § 8(e) of the National Labor Relations Act (the Act.) 2 While that case was pending before the National Labor Relations Board (the Board or NLRB), Orange Belt initiated a state action under § 301(a) of the Labor Management Relations Act (LMRA) to enforce the arbitration award.

The enforcement suit was removed to federal district court, which granted Orange Belt’s motion for summary judgment. The district court accorded deference to the arbitration award and noted that the charges pending before the NLRB did not preclude relief because the Board and the federal courts had concurrent jurisdiction over the matter. The lower court also concluded that a subsequent NLRB determination that Orange Belt had engaged in unfair labor practices would not change the result in the current proceeding and that Orange Belt had not acted contrary to the principles stated in Connell Construction Co. v. Plumbers Local No. 100, 421 U.S. 616, 95 S.Ct. 1830, 44 L.Ed.2d 418 (1975). The court ordered Maloney to pay the amount due the union trust funds as well as the liquidated damages assessed by the Joint Judicial Committee. Maloney appeals from that decision.

II. Jurisdiction

Maloney argues that the district court should have stayed the arbitration confirmation proceedings pending resolution of the unfair labor practice proceedings before the NLRB. The cases Maloney cites for this proposition, however, uphold the exercise of the district court’s discretion in granting such a stay and note that the district court and the Board have concurrent jurisdiction in some instances. 3

*490 Where Congress has affirmatively granted jurisdiction to the district court, as in § 301 cases, the district court and the NLRB share concurrent jurisdiction. Amalgamated Ass’n of Street, Electric Railway & Motor Coach Employees of America v. Lockridge, 403 U.S. 274, 297-301, 91 S.Ct. 1909, 1923-1925, 29 L.Ed.2d 473 (1971); Smith v. Evening News Ass’n, 371 U.S. 195, 83 S.Ct. 267, 9 L.Ed.2d 246 (1962). The primary jurisdiction of the NLRB over unfair labor practice charges does not preclude the district court from exercising jurisdiction over an action to confirm an arbitrator’s award based upon a collective bargaining agreement, even where such award presents a potential conflict with an NLRB decision. Waggoner v. R. McGray, Inc., 607 F.2d 1229 (9th Cir. 1979).

Here, because the union sought confirmation of the arbitrator’s award by instituting a § 301 action, the district court had concurrent jurisdiction with the NLRB. We cannot say that it was an abuse of discretion for the district court to refuse to stay the proceedings.

III. Arbitration Award

Federal policy generally favors arbitration of labor disputes. See, e. g., Gateway Coal Co. v. United Mine Workers, 414 U.S. 368, 377, 94 S.Ct. 629, 636, 38 L.Ed.2d 583 (1974). This policy would be undermined “if courts had the final say on the merits of the awards.” United Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593, 596, 80 S.Ct. 1358, 1360, 4 L.Ed.2d 1424 (1960). Thus, courts should decline to review the merits of arbitration awards under collective bargaining agreements. Id.; Alyeska Pipeline Service Co. v. International Brotherhood of Teamsters, 557 F.2d 1263, 1267 (9th Cir. 1977).

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639 F.2d 487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orange-belt-district-council-of-painters-no-48-v-maloney-specialties-ca9-1981.