Stillpass Transit Co. v. Ohio Conference of Teamsters & Local Union 103

382 F.2d 940, 66 L.R.R.M. (BNA) 2152
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 7, 1967
DocketNo. 17051
StatusPublished

This text of 382 F.2d 940 (Stillpass Transit Co. v. Ohio Conference of Teamsters & Local Union 103) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stillpass Transit Co. v. Ohio Conference of Teamsters & Local Union 103, 382 F.2d 940, 66 L.R.R.M. (BNA) 2152 (6th Cir. 1967).

Opinion

PHILLIPS, Circuit Judge.

This is an appeal under 28 U.S.C. § 1292(a) from the order of the District Court refusing to grant a stay of the proceedings pending arbitration. We treat it as an appeal from an interlocutory order refusing to issue an injunction.

The action was brought under § 301(a) of the Labor Management Relations Act, 29 U.S.C. § 185(a), seeking damages for the breach of a no-strike clause of a collective bargaining agreement. The complaint alleges that the defendant-appellant, Local Union 103 affiliated with the International Brotherhood of Teamsters, with the approval and consent of defendant-appellant International Brotherhood of Teamsters and the Ohio Conference of Teamsters, struck the plaintiff-appellee’s place of business from July 21, 1963, to June 5, 1964. The complaint also alleges various facts which, if proven, could be contract violations, i. e., that defendants were unwilling to discuss employee grievances or the reason for the strike; that defendants caused employees to instigate law suits against plaintiff; that representatives of the defendants informed plaintiff that defendants intended to put plaintiff out of business and that defendants would not settle any grievances which might be existing against plaintiff; and that defendants refused the many demands made by plaintiff that the parties meet in an effort to settle and end the strike.

Defendants moved to dismiss the complaint or in the alternative to stay the proceedings in the District Court pending the outcome of the submission of the problems to arbitration.

The District Court refused to grant the stay pending arbitration, holding that the rule is “in this circuit that violation of the no-strike clause in a collective bargaining agreement does not constitute a ‘grievance’ ”, citing Vulcan-Cincinnati, Inc. v. United Steelworkers, 289 F.2d 103 (C.A.6); International Union, United Automobile Aircraft v. Benton Harbor Malleable Industries, 242 F.2d 536 (C.A. 6), cert. denied, 355 U.S. 814, 78 S.Ct. 15, 2 L.Ed.2d 31; and Hoover Motor Express Co. v. Teamsters, Chauffeurs, etc., 217 F. 2d 49 (C.A.6). We do not reach the question of whether, under the contract here involved, a breach of the no-strike clause [942]*942is a grievance, nor do we reach the question as to whether it is the rule in this Circuit that the violation of a no-strike clause in a collective bargaining contract does or does not constitute a grievance. We affirm on other grounds.

Appellants contend that the complaint should be dismissed, Jefferson City Cabinet Co. v. International Union, Electrical Workers, 313 F.2d 231 (C.A.6), cert. denied, 373 U.S. 936, 83 S.Ct. 1539,10 L.Ed. 2d 690, or in the alternative that the subject matter of appellee’s claim for relief is not expressly excluded from the grievance procedure in the contract and must therefore be submitted to the grievance procedure, prior to resorting to the courts. Atkinson v. Sinclair Refining Co., 370 U.S. 238, 82 S.Ct. 1318, 8 L.Ed. 2d 462; Drake Bakeries, Inc. v. Bakery Workers, 370 U.S. 254, 82 S.Ct. 1346, 8 L.Ed.2d 474; United Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424.

Whether a company is bound to arbitrate, as well as what issues it must arbitrate, are matters to be determined by the Court on the basis of the contract entered into by the parties. John Wiley & Sons, Inc. v. Livingston, 376 U.S. 543, 84 S.Ct. 909, 11 L.Ed.2d 898; Atkinson v. Sinclair Refining Co., 370 U.S. 238, 82 S. Ct. 1318, 8 L.Ed.2d 462; United Steelworkers v. Warrior & Gulf Navigation Co., 363 U.S. 574, 80 S.Ct. 1347, 4 L.Ed.2d 1409. “[J]ust as an employer has no obligation to arbitrate issues which it has not agreed to arbitrate, so a fortiori, it cannot be compelled to arbitrate if an arbitration clause does not bind it at all.” John Wiley & Sons, Inc. v. Livingston, supra, 376 U.S. at 547, 84 S.Ct. at 913.

Paragraph 8.1(f) 1 of the collective bargaining agreement provides that:

“(f) In the event of strikes, work-stoppages or other activities which are permitted in case of deadlock, default, or failure to comply with majority decision, or in case of refusal to abide by the umpires’ award, no interpretation of this Agreement by any tribunal shall be binding upon the Union or affect the legality or lawfulness of the strike unless the Union stipulates to be bound by such interpretation, it being the intention of the parties to resolve all questions of interpretation by mutual agreement or by umpire handling. Nothing herein shall prevent legal proceedings by the Employer where the strike is in violation of this Agreement.” (Emphasis supplied.)

The contract provides that the employer can institute legal proceedings when the strike is in violation of the collective bargaining agreement. Paragraph 8(1) (f) provides that those strikes which are “permitted” or not in violation of the agreement are those which are commenced after the grievance procedure has been instituted and has broken down, namely in cases of “deadlock, default, or failure to comply with majority decision, or in case of refusal to abide by the umpires’ award * * * ” Under the facts presented it is apparent that the contract is not susceptible to a construction which would bind the employer to arbitrate his claim for damages for breach of a union’s agreement not to strike. Atkinson v. Sinclair Refining Co., 370 U.S. 238, 82 S.Ct. 1318, 8 L.Ed.2d 462.

Although the record is less than clear, since no answer has been filed, it is apparent that the union has not made out its case for a stay pending arbitration. Atkinson v. Sinclair Refining Co., 370 U. S. 238, 82 S.Ct. 1318, 8 L.Ed.2d 462. Therefore the issue of whether the company is entitled to damages from the union for breach of contract is for the District Court to decide.

We hold that, on the basis of the averments of the complaint, plaintiff-appellee has the right under the terms of the contract here involved to maintain this action without first submitting the issues to arbitration.

Affirmed.

[943]*943APPENDIX

ARTICLE 7

Grievance Machinery Committee

Section 7.1 Joint State Committees

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382 F.2d 940, 66 L.R.R.M. (BNA) 2152, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stillpass-transit-co-v-ohio-conference-of-teamsters-local-union-103-ca6-1967.