Union Independiente de Trabajadores de la Cerverceria India v. Cerveceria India, Inc.

994 F. Supp. 2d 205, 2014 WL 352931, 198 L.R.R.M. (BNA) 2347, 2014 U.S. Dist. LEXIS 14293
CourtDistrict Court, D. Puerto Rico
DecidedFebruary 3, 2014
DocketCivil No. 13-1019 (SEC)
StatusPublished
Cited by1 cases

This text of 994 F. Supp. 2d 205 (Union Independiente de Trabajadores de la Cerverceria India v. Cerveceria India, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Independiente de Trabajadores de la Cerverceria India v. Cerveceria India, Inc., 994 F. Supp. 2d 205, 2014 WL 352931, 198 L.R.R.M. (BNA) 2347, 2014 U.S. Dist. LEXIS 14293 (prd 2014).

Opinion

OPINION AND ORDER

SALVADOR E. CASELLAS, Senior District Judge.

Before the Court are the defendant’s motion for summary judgment (Docket # 14) requesting enforcement of an arbitration award, the plaintiffs opposition thereto (Docket # 24), and the defendant’s reply. Docket # 30. After reviewing the filings and the applicable law, the defendant’s motion is GRANTED.

Factual and Procedural Background

This federal-question suit concerns the interpretation of a collective-bargaining agreement’s (CBA) arbitration clause. The plaintiff, Unión Independiente de Trabajadores de la Cervecería India (Union), filed this suit in state court seeking to vacate an arbitrator’s determination that a condition precedent to arbitrability — the steps of a grievance procedure — had not been fulfilled. The defendant, Cervecería India, Inc. (Cervecería), a Puerto Rico brewery, removed the case to this court under § 301 of the Labor Management Relations Act (LMRA), 29 U.S.C. § 185(a), maintaining that the controversy involves an assertion of rights under an agreement between an employer and a labor organization, and that resolution of the controversy depends on the meaning of the CBA’s arbitration clause. Docket # 1.

Because the Court is ruling on a motion for summary judgment, the following material facts, which are largely undisputed, are outlined in the light most favorable to the non-movant, the Union. See Pérez-Cordero v. Wal-Mart Puerto Rico, Inc., 656 F.3d 19, 20 (1st Cir.2011). At all times relevant hereto, the CBA — subscribed between the Union and Cervecería — prescribed the procedure for challenging a Union member’s dismissal. Pertinently, Article 9 of the CBA establishes a three-step grievance procedure, which is a precondition to submitting a dispute for arbitration. The grievance procedure is as follows:

The first stage provides that any grievance must be presented to Cervecería “within five ... work days after the occurrence of the facts that motivated the complaint or grievance.” Docket # 17-1, p. 2. The second stage, for its part, provides in pertinent part:

[I]n the event that a satisfactory conclusion is not reached in the first stage of these proceedings or a response is not received within forty-eight ... hours after having discussed the complaint, the Union President ... may file in writing his formal complaint with a project for submission before the Company’s Human Resources Manager, within four ... days from receipt of the response or expiration of the term to response. Within four ... work days following receipt of the complaint, the Human Resources Manager will arrange a meeting with the Complaints and Grievances Committee, which should take place within ten ... work days following citation to discuss the complaint. The Committee will resolve the controversy within five ... days following said meeting. ...

[208]*208Id., p. 3. Of particular importance to this case, the third and final stage reads:

If the Committee does not reach an agreement in the term indicated above or if it did not notify its decision within the same term, the union should file, within a term of ten (10) work days after the expiration for the term to resolve, a request for arbitration at the Bureau of Conciliation and Arbitration of the Labor Department of Puerto Rico [Bureau] .... •

Id.

Article 9 further regulates arbitration generally. It provides that “[a]ll of the arbitrator’s decisions will be in strict accordance with the provisions” of the CBA, “and according to law.” Id., p. 4. It adds, moreover, that “[t]he arbitrator’s determinations ... will be understood as the final solution to the controversy, that is, res judicata, if and when it is according to law.” Id. (emphasis added). Finally, “[i]f one of the parties does not comply with the terms stated in ... [the Arbitration] Article, it will be understood that the other position will prevail, which will be considered as a final solution to the controversy.” Id. (emphasis added).

On July 7, 2008, Cervecería sent a dismissal letter to one of the Union’s members, Billy Crespo. Docket # 17-3. The termination, the letter alleged, resulted from Crespo’s repeated insubordinations, which, according to Cervecería, violated the CBA’s terms and conditions. Crespo’s termination became effective that same day.

The next day the Union’s president— pursuant to step two of the grievance procedure — wrote back to Cervecería’s HR Manager, objecting to the “alleged insubordination[,] which was the basis for the dismissal of the fellow worker.... ” Docket # 17-4. The Union requested that Cervecería “immediately reinstate” Crespo to his job. Id. “[Otherwise,” the Union further wrote, “this matter will have to be submitted for consideration before the Complaints and Grievances Committee.” Id.1 Three days later, Cervecería replied to the Union’s July 8 letter. Docket # 20-1. Reiterating its reasons for dismissal, Cervecería — in accordance with step two of the grievance procedure — “summon[ed] the Committee on Complaints and Grievances” for July 22, 2008. Id. The Committee neither reached nor notified a decision regarding the grievance; nor did it notify a minute or any document regarding the same. Docket # 29, p. 6 ¶ 1.

Then, on December 10, 2008 — over four months from the day the Committee was summoned — the Union filed a request for arbitration with the Bureau, as mandated by step three of the grievance procedure. Docket # 14-10. In October 2012 an arbitration hearing was held, during which Cervecería and the Union agreed that the arbitrator would determine whether or not the complaint was “procedurally arbitrable; if it is not, that the complaint be dismissed. If it is determined to be arbitrable, that the hearing on the merits be scheduled.” Docket # 14-7, pp. 1-2; see Docket # 17-2, p. 4. The resolution of that question turned on a timeliness defense that Cervecería had asserted regarding the Union’s failure to file the arbitration complaint within the time allotted by step three of the grievance procedure.

A month later the arbitrator rendered the award in question. Docket # 14-7. In a nutshell, he agreed with Cervecería’s timeliness defense, ruling that he “lack[ed] [209]*209jurisdiction to resolve the controversy in this case.” Id., p. 5. Based on “the clear and unambiguous language of Article 9,” the arbitrator explained, “the period of ten ... working days to file before the Bureau began to run once the Union received the answer; or having expired the period of five ... working days that, [the Committee] had to resolve the controversy.” Id. He thus reasoned that “the filing of a request for designation or selection of arbitration on December 10, 2008 before this forum was made outside the period agreed upon by the parties.” Id. Ultimately, the arbitrator dismissed the case, holding that it was “not procedurally arbitrable,” id., p. 6.

Unhappy with that determination, the Union filed suit in state court seeking to “revoke” the arbitration award, “and consequently, return the case for its adjudication on the merits.” Docket # 14-6, p. 12.

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994 F. Supp. 2d 205, 2014 WL 352931, 198 L.R.R.M. (BNA) 2347, 2014 U.S. Dist. LEXIS 14293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-independiente-de-trabajadores-de-la-cerverceria-india-v-cerveceria-prd-2014.