Sheet Metal Workers' International Ass'n, Local 206 v. West Coast Sheet Metal Co.

954 F.2d 1506
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 28, 1992
DocketNo. 91-55644
StatusPublished
Cited by14 cases

This text of 954 F.2d 1506 (Sheet Metal Workers' International Ass'n, Local 206 v. West Coast Sheet Metal Co.) 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.

Bluebook
Sheet Metal Workers' International Ass'n, Local 206 v. West Coast Sheet Metal Co., 954 F.2d 1506 (9th Cir. 1992).

Opinion

SNEED, Circuit Judge:

West Coast Sheet Metal (West Coast) filed this appeal after a successful motion for partial summary judgment by Sheet Metal Workers International Association Local 206 (“Union”) and employee benefits plans affiliated with Sheet Metal Workers (“Trust Funds”), and the issuance of in-junctive relief against West Coast. The parties’ dispute concerns the scope of West Coast’s obligations to contribute to employee benefit plans administered by the Trust Funds. The district court’s injunction enforced a 1986 arbitration award that imposed a collective bargaining agreement on the Union and West Coast. We vacate that portion of the district court’s injunction requiring West Coast to contribute to the Trust Funds for periods after the April 23, 1987 decertification of the Union.

I.

FACTS AND PROCEEDINGS BELOW

The relevant chronology of this case is as follows. In 1983, West Coast, by reason of its membership in Sheet Metal and Air Conditioning Contractors National Association of San Diego (SMACNA of San Diego), entered a three-year collective bargaining agreement with the Union. West Coast also independently signed this agreement. The agreement provided that West Coast was to make monthly contributions to the Trust Funds on behalf of West Coast employees. It also contained rights arbitration provisions, which provided that grievances arising out of interpretation or enforcement of the agreement and not resolved through negotiation would be submitted to a body known as the National Joint Adjustment Board (NJAB) for arbitration. Finally, the agreement’s interest arbitration clause provided that if West Coast and the Union failed to negotiate a renewal contract upon expiration of the agreement, the contract dispute would be submitted to the NJAB for arbitration. West Coast asserts that the interest arbitration clause was eliminated from the agreement by oral modification in 1984; the Union disputes this.

West Coast withdrew from SMACNA of San Diego effective March 1, 1986. In late May 1986, West Coast independently opened contract renegotiations with the Union. These negotiations continued until June 27, 1986, when the Union notified West Coast of a deadlock. Over West Coast’s objection, the Union invoked the interest arbitration clause and requested that the NJAB impose a new contract. On July 1, 1986, the original agreement expired, and West Coast ceased its monthly contributions to the Trust Funds.

On July 10, 1986, West Coast initiated its own grievance with the NJAB. In its grievance, West Coast stated that the Union’s assertion of the continued existence of the interest arbitration clause violated their now-expired agreement. The Union seeks to characterize West Coast’s grievance as a submission to the NJAB, under the rights arbitration provisions of the expired agreement, of the question whether the parties were still bound by the interest arbitration clause. West Coast, on the other hand, insists that it reserved the right to have a court determine this question.

On August 8, 1986, the NJAB heard the Union’s grievance. In the course of doing so, it resolved the issue raised by West Coast’s grievance as well.1 The NJAB rejected West Coast’s assertion that the interest arbitration clause had been eliminated, and imposed a new three-year contract on the Union and West Coast. The new contract required that West Coast continue to contribute to the Trust Funds.

On August 18, 1986, the Union filed the present action in district court to enforce the NJAB’s award. West Coast cross-petitioned for the court to vacate the award and issue a declaratory judgment against the Trust Funds. The Trust Funds counterclaimed against West Coast for breach of contract, breach of trust agreement, and [1508]*1508violations of ERISA § 515, 29 U.S.C. § 1145. The Trust Funds requested a permanent injunction to compel future trust fund contributions.

Proceedings in the district court were stayed for three years pending the outcome of an NLRB proceeding brought by West Coast, in which West Coast asserted that the Union had committed unfair labor practices by invoking arbitration and by attempting to enforce the NJAB’s award in court. The NLRB proceeding was ultimately resolved in favor of the Union. Sheet Metal Workers Int’l Ass’n Local Union 206, 298 N.L.R.B. No. 107, 134 L.R.R.M. (BNA) 1258 (June 11, 1990), review denied, West Coast Sheet Metal, Inc. v. NLRB, 938 F.2d 1356 (D.C.Cir.1991). Meanwhile, on April 23, 1987, the employees of West Coast voted to decertify the Union as their bargaining representative, and West Coast began thereafter to provide its employees with benefits through an independent, self-funded plan. On June 30, 1989, the renewal contract expired.

In early 1991, the district court confirmed the NJAB arbitration award and granted summary judgment to the Trust Funds. After West Coast moved for reconsideration, the court reaffirmed its findings and issued an injunction against West Coast, with a proviso that the Union not seek to enforce the award with respect to periods after the Union’s decertification. The court denied West Coast’s cross-motion for summary judgment, and retained jurisdiction for the purpose of awarding damages to the Trust Funds. This appeal followed.

II.

JURISDICTION AND STANDARD OF REVIEW

We have jurisdiction under 28 U.S.C. § 1292(a)(1). A grant of summary judgment is reviewed de novo. T.W. Elec. Serv., Inc. v. Pacific Elec. Contractors Ass’n, 809 F.2d 626, 629 (9th Cir.1987).

III.

ANALYSIS

A. Validity of Renewal Contract

Whether the renewal contract imposed by the NJAB in 1986 was binding on the parties at the time it was imposed depends on whether interest arbitration was properly invoked. West Coast asserts that the interest arbitration clause was eliminated by oral modification of the collective bargaining agreement. Alternatively, West Coast asserts that it was entitled to a judicial determination of whether the clause was eliminated. The district court held that as a matter of law, the clause could not be eliminated by oral modification of the agreement.2

We need not decide whether the district court’s holding was correct. If the interest arbitration clause could not legally be eliminated, the NJAB’s award was, of course, valid and binding on the parties. However, even if the clause could legally have been eliminated, and even if West Coast was otherwise entitled to a judicial determination whether the clause was in fact eliminated, West Coast waived its opportunity for such a judicial determination when it invoked arbitration by filing its grievance with the NJAB.

To refute this conclusion, West Coast contends that its grievance was merely an attempt to stop the Union from pursuing interest arbitration, and not a submission of the arbitrability issue to the NJAB. But it could stop the Union only if the interest arbitration clause had been expunged.

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Bluebook (online)
954 F.2d 1506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheet-metal-workers-international-assn-local-206-v-west-coast-sheet-ca9-1992.