REFINERY EMPLOYEES'UNION v. Continental Oil Company

160 F. Supp. 723, 42 L.R.R.M. (BNA) 2586, 1958 U.S. Dist. LEXIS 2547
CourtDistrict Court, W.D. Louisiana
DecidedApril 2, 1958
DocketCiv. A. 6419
StatusPublished
Cited by12 cases

This text of 160 F. Supp. 723 (REFINERY EMPLOYEES'UNION v. Continental Oil Company) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
REFINERY EMPLOYEES'UNION v. Continental Oil Company, 160 F. Supp. 723, 42 L.R.R.M. (BNA) 2586, 1958 U.S. Dist. LEXIS 2547 (W.D. La. 1958).

Opinion

HUNTER, District Judge.

Petitioner (union) entered into a collective bargaining agreement in 1956 with employer (Continental Oil Company), the agreement to run two years and from year to year thereafter, unless terminated on specific notices. The agreement provided that there would be no strikes, work stoppages, or lock-outs, and that grievances would be handled pursuant to a specified procedure. The last step in the grievance procedure- — a step that could be taken by either party —was a request for arbitration in certain instances. The arbitration clause constitutes Section 21-1 of the contract; it reads as follows:

“21-1 Only differences relating to the interpretation or performance of this agreement which cannot be adjusted by mutual agreement, after processing through the grievance procedure may, upon written notice by one party to the other, not later than sixty (60) days after the date of the decision of the regional manager of manufacturing be submitted to arbitration.”
*726 “21-2 The party desiring arbitration shall notify the other party of the matter to be arbitrated, and the name of the arbitrator selected by it, within five (5) days after giving such notice. The other party shall appoint an arbitrator and shall within five (5) days notify the first party of such appointment. The two (2) arbitrators so named shall confer within ten (10) days and attempt to reach an agreement. Should they be unable to agree within five (5) days of their first conference a third member shall' be selected by these employer and employee representatives. The majority decision of such board of arbitrators so selected shall be rendered within ten (10) days of appointment and shall be binding upon both parties signatory hereto and retroactive to the date upon which the matter for arbitration was first presented in writing to the superintendent of the refinery as outlined under 19-2.”

This controversy involves only one grievance and that concerns one specific work assignment on one specific occasion. The grievance was processed through the various steps in the grievance procedure and the union gave the proper notice requesting arbitration. The union requested that the following issue be submitted to the arbitrator:

“Did the company’s use of employer LeSueur in connection with overtime on the platforming unit of March 3, 1957, violate Section 8 of the collective bargaining agreement between the company and the union? 1

The company concedes that the Court may properly order it to proceed forthwith under the provisions of Section 21 of its collective bargaining agreement to hear and determine that question, “Provided, However, That The Arbitrator’s Authority Shall Be Limited To A Determination Of Whether Such Violation Occurred And Shall Not Extend To The Formulation Of Any Penalty Or Other Remedy In The Event Said Question Is Decided In The Affirmative.” 2

The action is primarily under the provisions of Section 301 of the Labor Management Relations Act of 1947, 29 U.S.C.A. § 185. Relief sought by plaintiff as shown by the prayer is for: a declaration of its rights under Section 21 of the contract; a mandatory injunction to compel defendant to arbitrate certain issues; and relief in the form of what is termed “incidental” damages for failure to arbitrate.

It is now clear that Section 301 of the Act confers power upon the Federal District Courts to compel arbitration in accordance with the terms of a collective bargaining agreement. Textile Workers Union of America v. Lincoln Mills, 1957, 353 U.S. 448, 77 S.Ct. 912, 918, 1 L.Ed.2d 972.

Defendant asserts that j’ust because the dispute is “grievable”, it does *727 not necessarily follow that it was also arbitrable and insists that this Court must determine as a matter of law whether there has been any agreement to submit the particular issue in question, to arbitration. We agree that this is so. Engineers Ass’n v. Sperry Gyroscope Co., etc., 2 Cir., 1957, 251 F.2d 133, and Local No. 149, etc. v. General Electric Company, 1 Cir., 1957, 250 F.2d 922.

The Lincoln Mills Case

When the Supreme Court of the United States in Lincoln Mills interpreted Section 301 as authority for federal courts to fashion a body of federal law for the enforcement of collective bargaining agreements, including the specific performance of arbitration provisions of such agreements, it wisely provided guidance for the lower courts as to the sources from which they might garner some of the more important viscera for the body they were charged with molding. There, the Court set out what might be described as sources of creative inspiration for the lower courts:

First, it noted, “* * * the policy of our national labor laws.” Because of the pluralization, we assume this means the principal moving purpose underlying all national laws on the subject.

Secondly, it noted specifically that, “The Labor Management Relations Act expressly furnishes some substantive law.”

Thirdly, it noted, “ * * * the penumbra of express statutory mandates”, which we take to mean the shadow cast by statutes not specifically intended to apply to this particular field but having sufficient elasticity to permit extension by analogy, if not by direct application, to cover some facets of the problem at hand.

Fourthly, it noted, “ * * * state law, if compatible with the purpose of § 301.”

Before leaving Lincoln Mills, supra, to explore these sources, it should be' observed that, while the Lincoln Mills case does provide a requisite basis of substantive law for the granting of relief by courts in actions of this Type, it does not follow that the case itself is sufficient authority for granting the relief sought under the facts of this case, notwithstanding a superficial similarity between the two. The Supreme Court’s holding is simply to the effect that Section 301 of the Act affords a substantive basis for the courts to order the parties to a collective bargaining agreement to submit to arbitration Such Issues As They May Have Agreed To Arbitrate in said agreement, and subject to such conditions and rules as may be developed from the sources of law previously mentioned. It does Not hold that there is any basis for requiring arbitration in the absence of such an agreement, Nor Does It Afford Any Basis For Extending Such Agreements To Encompass Any Issue Not Contemplated By The Parties As Within The Scope Of The Arbitration Agreement. Neither the Supreme Court nor the Fifth Circuit, 230 F.2d 81, passed upon the question of whether or not the dispute itself in Lincoln Mills was arbi-trable under terms of the contract, and although the District Court (the decision of which is unreported) apparently considered it so, the issue does not appear to have been raised.

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Bluebook (online)
160 F. Supp. 723, 42 L.R.R.M. (BNA) 2586, 1958 U.S. Dist. LEXIS 2547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/refinery-employeesunion-v-continental-oil-company-lawd-1958.