Super Fresh Food Markets, Inc. v. UNITED FOOD AND COMMERCIAL WORKERS LOCAL UNION 1776

249 F. Supp. 2d 546, 171 L.R.R.M. (BNA) 3153, 2003 U.S. Dist. LEXIS 3023, 2003 WL 751189
CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 7, 2003
Docket2:01-cv-06075
StatusPublished
Cited by1 cases

This text of 249 F. Supp. 2d 546 (Super Fresh Food Markets, Inc. v. UNITED FOOD AND COMMERCIAL WORKERS LOCAL UNION 1776) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Super Fresh Food Markets, Inc. v. UNITED FOOD AND COMMERCIAL WORKERS LOCAL UNION 1776, 249 F. Supp. 2d 546, 171 L.R.R.M. (BNA) 3153, 2003 U.S. Dist. LEXIS 3023, 2003 WL 751189 (E.D. Pa. 2003).

Opinion

MEMORANDUM AND ORDER

HUTTON, District Judge.

In this case, Plaintiff Super Fresh Markets, Inc. (“Super Fresh” or “the Company”) is suing Defendant United Food and Commercial Workers (“UFCW”) Local Union 1776 (“Union”), asking this Court to vacate an arbitration award issued by labor arbitrator Margaret R. Brogan on November 16, 2001. In response, the Union counterclaimed, seeking confirmation of the Brogan Award and an order directing Super Fresh to comply with it. In her opinion, the arbitrator found that Super Fresh violated the Collective Bargaining Agreement by entering into the sale of a Super Fresh store without first offering the store to the employees. Presently before the Court are the parties’ cross-motions for summary judgment (Docket Nos. 6 & 7). As discussed below, Defendant’s Motion for Summary Judgment (Docket No. 6) is granted and Plaintiffs motion (Docket No. 7) is denied. The arbitration award is enforced.

I. BACKGROUND

This case arises out of the arbitration of a grievance filed by the Union on July 18, 2001, challenging the sale of a Super Fresh grocery store in Lansdowne, Pennsylvania to a real estate development company, Long View Development LP (“Long *549 View”). At all relevant times, the Company and the Union have been parties to a collective bargaining agreement (“CBA”). 1 The CBA provides for a grievance procedure, which culminates in arbitration, pursuant to the Voluntary Arbitration Rules of the American Arbitration Association (“AAA”). In its grievance, the Union challenged the proposed sale of the Lansdowne store under two CBA provisions, Article 27.1 and paragraph 12 of Addendum III (“Addendum III”). 2

Article 27.1 of the CBA provides, in pertinent part:

27.1 This Agreement shall be binding upon the successors and assigns of the Parties hereto. In the event of a bona fide sale, transfer, franchising or joint venture agreement, of the store covered by this Agreement during the term hereof, the Employer shall give advance notice to the new owner of such transferee of obligation of this Agreement and shall as a condition of sale, transfer, franchising or joint venture agreement, require the new party to become a party hereto. The Employer shall be responsible for any and all monetary benefits that associates have accumulated under this Agreement to the date of sale, transfer, franchising or joint venture agreement. Seniority of associates shall not be broken by such sale, transfer, franchise or joint venture agreement.

Arb. Award at 2 (emphasis added). In arbitration, the Union claimed that Super Fresh violated this provision because it did not condition the sale of the Lansdowne store on the successor’s willingness to become a party to the CBA. Id. at 13.

Addendum III provides, inter alia, that if a Super Fresh store is closed or transferred to a third party, “then the employees of the store to be closed (“the Affected Employees”) or the Employee Association (“PACE”) 3 shall have the right to purchase said store at a fair price (“Fair Price”). The mechanism for determination of the Fair Price shall be the subject of farther negotiations between the Parties.” Id. at 4 (emphasis added). In arbitration, the Union argued that Super Fresh violated this provision when it failed to provide the Union or the employees of the Lansdowne store with the opportunity to purchase the store before the proposed sale to Long View. Id. at 13-14. The following history represents the facts as found by the arbitrator. See United Paperworkers Int’l Union v. Misco, Inc., 484 U.S. 29, 36, 108 S.Ct. 364, 98 L.Ed.2d 286 (1987).

In March 1982, the Great Atlantic and Pacific Tea Company (“A & P”) announced that it was closing all its grocery stores in Philadelphia and the surrounding area. This announcement led to negotiations between A & P and two of its unions, UFCW Locals 1776 and 56. These negotiations resulted in an agreement, dated April 1, 1982, providing for the creation of a new entity, now known as Super Fresh, to operate some of A & P’s Philadelphia area stores. This initial agreement has been included in each subsequent CBA at Addendum III.

*550 In August 1993, Donald Dauphin, a Super Fresh executive, informed the Union that the Company was planning to close and sell its store in Llaneroh, Pennsylvania. Arb. Award at 12. Mr. Dauphin enclosed a waiver form with this letter and asked the Union to waive its “right of first refusal” in the event that such a sale took place. Id. The Union agreed to this waiver. Def.’s Mem. at 13.

On August 17, 1998, Super Fresh sent a letter to the Union stating that it planned to close the Progress Plaza Super Fresh store “Tuesday at 8:30 a.m.” Arb. Award at 12. In response; the Union obtained a restraining order and an order to show cause in the Philadelphia Court of the Common Pleas. At the hearing, the Union learned that Super Fresh was planning to sublease the store to the Raspino/Wargo Organization (“Wargo”). Id. The Union negotiated with Wargo about whether it would assume the CBA, pursuant to Article 27.1. Id. The deal, however, fell through.

The two clauses at issue in this case were the subject of recent negotiations between the parties. In March 2000, during CBA negotiations, Super Fresh proposed that both sections be deleted. Id. at 11. The Union responded by rejecting the deletion of Article 27.1 and proposing alternative language to Addendum III. Id. Super Fresh rejected this counterproposal and both provisions, in their original form, remained in the CBA. Id.

The circumstances that gave rise to the current dispute began on June 15, 2001. On that date, Super Fresh informed the Union that the Lansdowne store was closing on July 7, 2001. Id. at 6. Later that month, at a zoning hearing regarding the Lansdowne site, a Long View representative announced that Long View intended to develop the site for lease to Giant Supermarket, a non-union grocery store chain. Id. at 7.

On July 18, 2001, the Union filed a grievance with Super Fresh claiming that the proposed sale violated Article 27.1 and Addendum III of the CBA. Def.’s Mem. at

3. The parties were unable to resolve the grievance and, pursuant to the CBA, the matter was referred to arbitration. Id. at

4. Hearings were held before arbitrator Margaret R. Brogan on September 25, 2001 and October 30, 2001. Arb. Award at 1. At the hearing, the parties granted the arbitrator the authority to frame the issues presented. Id. Arbitrator Brogan found that the grievance presented the following issues:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

T.H. Eifert, Inc. v. United Ass'n of Journeymen
422 F. Supp. 2d 818 (W.D. Michigan, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
249 F. Supp. 2d 546, 171 L.R.R.M. (BNA) 3153, 2003 U.S. Dist. LEXIS 3023, 2003 WL 751189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/super-fresh-food-markets-inc-v-united-food-and-commercial-workers-local-paed-2003.