Pueblo v. Pueblo Ass'n of Government Employees

839 P.2d 503, 16 Brief Times Rptr. 1169, 1992 Colo. App. LEXIS 277, 1992 WL 151084
CourtColorado Court of Appeals
DecidedJuly 2, 1992
DocketNo. 91CA0431
StatusPublished
Cited by2 cases

This text of 839 P.2d 503 (Pueblo v. Pueblo Ass'n of Government Employees) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pueblo v. Pueblo Ass'n of Government Employees, 839 P.2d 503, 16 Brief Times Rptr. 1169, 1992 Colo. App. LEXIS 277, 1992 WL 151084 (Colo. Ct. App. 1992).

Opinions

Opinion by

Judge MARQUEZ.

Plaintiff, Pueblo (City), appeals from the order denying its motion to dismiss for lack of subject matter jurisdiction and the judgment entered in favor of defendant, Pueblo Association of Government Employees (Union), on its counterclaim for breach of contract. We affirm.

This case arises out of the City’s attempt to promote the tenth person on the civil service eligible list by reclassifying her clerk typist position to a senior clerk typist position. The Union appealed that promotion to the Civil Service Commissioner and, on June 2, 1988, also filed a grievance with the City pursuant to a collective bargaining agreement between the parties.

On June 7, 1988, the City responded to the grievance, which alleged contractual violations, by stating that this was not a matter that was “substantively arbitrable” under the agreement.

On June 16, 1988, a hearing was held on the matter before the Pueblo Civil Service Commission. It found that the promotion was designed to circumvent the “Rule of Three” applicable to employee selection for civil service jobs, the collective bargaining agreement, and the civil service rules and regulations. Additionally, the Civil Service Commission found that the promotion was a clearly unwarranted abuse of discretion and ordered it vacated.

On July 21, 1988, and August 19, 1988, the City filed C.R.C.P. 106 complaints in the district court for review of the Civil Service Commission orders. The City did not vacate the promotion of the employee and continued to pay her at the senior clerk typist rate until the end of May 1990.

On September 30, 1988, the Union filed answers, affirmative defenses, and counterclaims to the C.R.C.P. 106 complaints. The Union’s second counterclaim, which is the subject of this appeal, alleged that the [505]*505appointment of the employee constituted a breach of the collective bargaining agreement and an unfair labor practice for which the Union was entitled to damages. The City filed a reply to the second counterclaim on October 18, 1988, generally denying the counterclaim and alleging that it failed to state a claim on which relief could be granted, but without reference to arbitration.

For the first time, on August 3,1990, the City asserted in its pretrial disclosure statement that the Union had failed to exhaust the grievance/arbitration procedure provided for in the Union contract. When the matter came on for trial on August 23, 1990, the City orally moved to dismiss the action for lack of subject matter jurisdiction of the second counterclaim based upon the collective bargaining agreement between the Union and the City. The trial court found that the City had taken actions inconsistent with its contractual arbitration right and that the Union might have been prejudiced by the delay in raising the arbitration issue. It, therefore, concluded that the City had waived its contractual right to arbitrate the matter.

I.

The City contends that the trial court erred in holding that it had jurisdiction over the subject matter of this action after finding that the City had waived the right to assert that the Union’s second counterclaim be submitted to arbitration. The City asserts that, because the Union failed to avail itself of the arbitration remedy contained in its collective bargaining agreement, it has no judicial remedy for its claim of violation of the agreement. We perceive no error in the trial court’s ruling.

A.

The City first argues that the failure of the Union to exhaust the contractual grievance procedure is a jurisdictional defect which required the trial court to dismiss the action for lack of subject matter jurisdiction. We disagree.

The agreement provided that:

If the grievance is not resolved under Section 4 above, the Union may request arbitration by serving written notice of intent to arbitrate on the City within thirty (30) days after receipt of the response of the City Manager under section 4....

As the basis for its argument, the City relies on Albertson’s, Inc. v. Rhoads, 196 Colo. 159, 582 P.2d 1049 (1978), which requires that, absent an extraordinary circumstance, an aggrieved party must exhaust the grievance process before resorting to a judicial remedy. However, in Norton v. School District No. 1, 807 P.2d 1160 (Colo.App.1990), where the employer refused to process the plaintiff’s grievance because it claimed that she was not covered by the collective bargaining agreement, it was held that the employer was barred from claiming that plaintiff had not exhausted her remedies.

Here, after receipt of the grievance, the City responded by sending a letter to the Union stating that it did “not consider the issue to be substantively arbitrable ... [because] Actions pertaining to reclassification are covered by Ordinance rather than by the Collective Bargaining Agreement.” On appeal, the City still maintains this position but, nevertheless, asserts that the Union should be foreclosed from litigating a matter which it should have arbitrated.

First, although the agreement simply states that “the Union may request arbitration,” under Albertson’s, Inc. v. Rhoads, supra, even when a collective bargaining agreement uses the word “may,” the grievance procedure is the exclusive remedy for violation of the agreement. Thus, arbitration was initially mandated here.

However, the City’s position is inconsistent in that it “litigated” the matter in front of the Civil Service Commission pursuant to the City’s charter and appealed the decision to the district court, yet it now asserts that the Union should have requested arbitration. Under such the circumstances, we conclude that the Union was not required to exhaust the grievance process by invoking arbitration. See Norton v. School District No. 1, supra.

[506]*506B.

We find no merit in the City’s claim that it was not given any right to arbitrate under the collective bargaining agreement and, therefore, could not waive a right which it did not possess.

The agreement does not expressly provide the City the right either to request arbitration or to insist that the Union pursue arbitration. However, if the Union does request arbitration, then the City has the right to participate.

The City was a party to the agreement, and thus, even though the Union had the initial right to request arbitration, the City had the right to insist that the Union pursue arbitration. Accordingly, the City’s conduct supports the trial court’s finding of waiver.

“To hold otherwise would give the opportunity to the party objecting to arbitration to defeat the contractual right of the other by his inaction and delay in prosecuting his claims.” Sears Roebuck & Co. v. Herbert H. Johnson Associates, Inc., 325 F.Supp. 1338 (D.Puerto Rico 1971); see also Sauter v. Superior Court, 2 Cal.App.3d 25, 82 Cal.Rptr. 395 (1969) (agreements to arbitrate are not self-executing and party desiring arbitration must take steps to secure it).

C.

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839 P.2d 503, 16 Brief Times Rptr. 1169, 1992 Colo. App. LEXIS 277, 1992 WL 151084, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pueblo-v-pueblo-assn-of-government-employees-coloctapp-1992.