Sheet Metal Workers International Association, Local No. 162, an Unincorporated Association v. Jason Manufacturing, Inc.

900 F.2d 1392, 134 L.R.R.M. (BNA) 2097, 1990 U.S. App. LEXIS 5354, 1990 WL 41151
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 12, 1990
Docket88-15617
StatusPublished
Cited by42 cases

This text of 900 F.2d 1392 (Sheet Metal Workers International Association, Local No. 162, an Unincorporated Association v. Jason Manufacturing, Inc.) 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 Association, Local No. 162, an Unincorporated Association v. Jason Manufacturing, Inc., 900 F.2d 1392, 134 L.R.R.M. (BNA) 2097, 1990 U.S. App. LEXIS 5354, 1990 WL 41151 (9th Cir. 1990).

Opinion

DAVID R. THOMPSON, Circuit Judge:

Jason Manufacturing, Inc. (“Jason”) appeals from the district court’s judgment eonfirming an arbitration award in favor of Sheet Metal Workers International Association, Local No. 162 (“union”). We have jurisdiction under 28 U.S.C. § 1291, and we affirm.

FACTS

Jason was a member of a multi-employer bargaining organization, the Sheet Metal and Air Conditioning Contractors National Association of Sacramento (“SMACNA” or “multi-employer association”). SMACNA, Jason, and the union were signatories to a contract which was scheduled to expire on June 30, 1983. In addition to being a signatory to the standard form of agreement (“agreement”), 1 Jason was also a signatory to Addendum l. 2

*1395 Jason gave the union timely notice that it withdrew from SMACNA and intended to negotiate a separate agreement. The parties agree this was Jason’s notice of termination of its agreement with the union and was given pursuant to Addendum 1. Jason and the union held ongoing negotiations from the end of April or the beginning of July 1983 until an impasse was reached, in either August or December 1983.

On January 3, 1984, Jason petitioned the National Labor Relations Board (“NLRB”) for decertification of the union. On that same day, the union requested National Joint Adjustment Board (“NJAB”) arbitration. On January 23, 1984, the union submitted a blocking charge to the NLRB, attempting to stall the decertification process.

Jason received notice of the NJAB arbitration proceeding on January 19, 1984. The NJAB arbitration was scheduled for February 7, 1984 in Miami. On February 3, 1984 Jason submitted to the NJAB its protest of the arbitration proceeding. This protest was based upon the short time period for notice of the hearing, the distant location where the hearing was to be held, the lack of representation of Jason’s interests on the NJAB panel, and the fact that Jason had given notice of termination of its agreement with the union. The NJAB denied Jason’s protest on February 8, 1984. It announced its decision on February 9, 1984. The arbitration decision bound Jason and the union to a recent SMACNA agreement from July 1, 1983 through June 30, 1985.

On July 13, 1984 the union petitioned the district court to confirm the NJAB arbitration award. Jason moved for a stay pending a decision in the NLRB decertification proceeding. 3 The stay was denied on May 1, 1985. The district court confirmed the NJAB award by a partial summary judgment entered August 9, 1985. Jason’s motion for an interlocutory appeal of the summary judgment decision was denied on July 29, 1985.

The district court’s partial summary judgment did not decide the issue of damages. For the purpose of trial on the issue of damages, the parties agreed that the terms of the NJAB-imposed agreement would be extended for one additional year through June 30, 1986, because Jason had not given notice of termination of the NJAB-imposed agreement. The court ordered injunctive relief, beginning one year after the final date of judgment in the action, which would require the parties to abide by the agreement for an additional year. The district court accepted the parties’ joint statement and on February 4, 1986 entered an order for damages to be computed on that basis.

The NLRB decertification election was held February 3,1986. Jason won the election. The union was decertified February 6, 1986. 4 Jason moved the district court for reconsideration of the February 4, 1986 summary judgment. This motion was denied June 9, 1987.

On November 25,1987, 694 F.Supp. 1476, the district court filed its order and judgment fixing the amount of damages. Jason once again moved in the district court for reconsideration. By this motion, it sought to vacate, amend or stay the judgment. The district court denied this motion and awarded attorney fees to the union. The district court based this award of fees on the parties’ contract and on its determination that Jason had violated Rule 11 by *1396 bringing -the motion for reconsideration. This appeal followed.

ANALYSIS

A. Jason Had a Duty to Arbitrate

Jason contends it is not bound by the NJAB arbitration award because it was not required to submit the contract-renewal dispute to arbitration.

The question of arbitrability is an issue for judicial determination. AT & T Technologies, Inc. v. Communications Workers, 475 U.S. 643, 649, 106 S.Ct. 1415, 1418, 89 L.Ed.2d 648 (1986); Associated Plumbing & Mechanical Contractors v. Local Union No. 447 Utd. Ass’n of Journeymen, 811 F.2d 480, 481 (9th Cir.1987); Hotel & Restaurant Employees v. Williams, 752 F.2d 1476, 1478 (9th Cir.1985). There is a strong presumption of arbitrability “in the sense that ‘[a]n order to arbitrate the particular grievance should not be denied unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute. Doubt should be resolved in favor of coverage.’ ” AT & T, 475 U.S. at 650, 106 S.Ct. at 1419 (quoting United Steelworkers v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582-83, 80 S.Ct. 1347, 1352-53, 4 L.Ed.2d 1409 (I960)); see also Associated Plumbing, 811 F.2d at 481. This presumption must be balanced with the principle that “ ‘arbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.’ ” AT & T, 475 U.S. at 648, 106 S.Ct. at 1418 (quoting Warrior & Gulf, 363 U.S. at 582, 80 S.Ct. at 1353); see Alpha Beta Co. v. Retail Store Employees Union, Local 4-28, 671 F.2d 1247, 1250 (9th Cir.1982). 5

The union contends that notwithstanding Jason’s notice of termination, the interest arbitration provisions contained in article X, section 8, and article XII, section 1, of the agreement require NJAB arbitration of a new agreement for the next term, in view of the parties’ failure to negotiate a new agreement on their own. Jason argues that Addendum 1 changes the consequences of an impasse in negotiations, because the addendum specifically addresses procedures for termination, as opposed to reopening or renewal, of the contract. In granting summary judgment in favor of the union, the district court held that the interest arbitration provisions of article X, section 8, and article XII, section 1, controlled.

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900 F.2d 1392, 134 L.R.R.M. (BNA) 2097, 1990 U.S. App. LEXIS 5354, 1990 WL 41151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheet-metal-workers-international-association-local-no-162-an-ca9-1990.