United Ass'n of Journeymen & Apprentices of the Plumbing & Pipefitting Industry, Local No. 577 v. Ross Bros. Construction Co.

191 F.3d 714
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 17, 1999
DocketNo. 98-3444
StatusPublished
Cited by6 cases

This text of 191 F.3d 714 (United Ass'n of Journeymen & Apprentices of the Plumbing & Pipefitting Industry, Local No. 577 v. Ross Bros. Construction Co.) 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
United Ass'n of Journeymen & Apprentices of the Plumbing & Pipefitting Industry, Local No. 577 v. Ross Bros. Construction Co., 191 F.3d 714 (6th Cir. 1999).

Opinion

OPINION

NATHANIEL R. JONES, Circuit Judge.

Defendant-appellant Ross Brothers Construction Company (“Ross Brothers” or “the Company”) appeals the district court’s judgment dismissing its counterclaim against plaintiff-appellee United Association of Journeyman and Apprentices of the Plumbing and Pipefitting Industry, Local No. 577 (“the Union” or “Local No. 577”). For the reasons that follow, we AFFIRM.

I.

The circumstances surrounding Ross Brothers’ counterclaim arose from a complaint originally filed by Local 577, which alleged that Ross Brothers engaged in unfair labor practices in violation of §§ 8(a)(1) and (a)(5) of the National Labor Relations Act (“NLRA”), 29 U.S.U §§ 158(a)(1) and (a)(5), by refusing to pay contractually agreed upon wages. See NLRB v. Ross Bros. Constr. Co., No. 95-5135, 1997 WL 215513 (6th Cir. Apr.29, 1997)(per curiam). Although the issues regarding the underlying claim have been resolved, a brief recitation of the facts involved will elucidate the issues before this court in the instant appeal.

Local 577 is a labor organization and bargaining agent based in Portsmouth, Ohio, which represents journeymen and plumbing and pipefitting workers. Local 577, Ross Brothers and other contractors were parties to the National Industrial Maintenance Agreement for the United States of America (“NIMA”). Pursuant to the NIMA, Local 577 agreed to refer qualified Union members to Ross Brothers and the other contractors, and the contractors agreed to “pay wages and benefits according to the agreement in effect between local unions and employers working in the local union’s jurisdiction.” Ross Bros., 1997 WL 215513, at *1; see also J.A. at 47 (“Wage rates shall be those as set forth in the current Labor Agreement of the affiliated Local Union where such work is to be performed.... ”). Further, the NIMA prohibits Union members from conducting “work stoppages” and companies from conducting “lockouts.” J.A. at 49.

In August 1992, Local 577 filed a complaint against Ross Brothers seeking to enforce the parties’ collective bargaining agreement.1 Local 577 also alleged that Ross Brothers violated the NIMA by refusing to comply with the wage and benefits provisions of the NIMA and by attempting to withdraw from multi-employer bargaining. Ross Brothers thereafter filed its counterclaim alleging that:

[Union members] have engaged in concerted and deliberate slowdowns, refusals to work, performance of work below acceptable standards and similar acts, and were induced and encouraged to do so by Local 577, through its authorized agents and representatives, as a part of [716]*716which the Local 577 Union Steward physically attacked and assaulted a supervisor of Ross Brothers, all in a deliberate and concerted effort to cause loss, damage, expense, loss of future work and continuing damage to each of [the] Contractor Defendants.

J.A. at 40.2 Ross Brothers further claimed that as a result of the Union’s actions, it “has incurred loss, damage and expense in an amount not presently ascertainable....” Id.

Thereafter, the NLRB intervened in the dispute, and the district court stayed proceedings until the parties resolved the matters brought before the NLRB. The NLRB determined that Ross Brothers violated §§ 8(a)(1) and (a)(5) of the NLRA by refusing to pay wages and benefits required by the NIMA, and ordered Ross Brothers to cease and desist its unfair labor practices. We enforced the NLRB’s order on appeal. See Ross Bros., 1997 WL 215513, at *5. Following our decision, the district court ordered the case to be dismissed unless either party filed a notice to reopen the case. Thereafter, Ross Brothers moved to reopen its counterclaim. Local 577 filed a motion to dismiss Ross Brothers’ counterclaim pursuant to Fed. R.Civ.P. 12(b)(6).

The district court granted Local 577’s motion to dismiss, concluding that the matters set forth in the counterclaim were “matters subject to binding arbitration under the terms of the collective bargaining agreement.” J.A. at 30. Thus, the district court concluded that Ross Brothers’ failure to exhaust the grievance and arbitration procedures set forth in that agreement was fatal to the Company’s counterclaim. This timely appeal followed.

II.

“The district court’s ruling on a Rule 12(b)(6) motion to dismiss is a question of law subject to de novo review.” Spurlock v. Satterfield, 167 F.3d 995, 1000 (6th Cir.1999). We construe defendant’s counterclaim liberally and in the defendant’s favor, and accept all of defendant’s factual allegations as true. Id.; see also G.M. Eng’rs & Assocs., Inc. v. West Bloomfield Township, 922 F.2d 328, 330 (6th Cir.1990). We will grant a Rule 12(b)(6) motion to dismiss “ ‘only if it is clear that no relief could be granted under any set of facts that could be proved consistent with the allegations.’ ” Sistrunk v. City of Strongsville, 99 F.3d 194, 197 (6th Cir.1996) (quoting Hishon v. King & Spalding, 467 U.S. 69, 73, 104 S.Ct. 2229, 81 L.Ed.2d 59 (1984)).

We review the district court’s interpretation of the NIMA de novo, as this issue is also a question of law. See Weimer v. Kurz-Kasch, Inc., 773 F.2d 669, 671 (6th Cir.1985); Jefferson City Cabinet Co. v. International Union of Elec., Radio & Mach. Workers, 313 F.2d 231, 233 (6th Cir.1963)(“[I]t is for the Court to determine, as a matter of law, whether, under the provisions of the bargaining agreement between the parties, the present claim of the Company for damages for breach ... of the Agreement is or is not an arbitrable one.”).

III.

On appeal, Ross Brothers argues that the district court erred in dismissing its counterclaim for failure to exhaust the NIMA grievance procedures because (1) the plain language of the NIMA applied only to lockouts, work stoppages and strikes, not to the types of detrimental employment activities Ross Brothers alleged in its counterclaim; and (2) arbitration would have been futile because “[t]here is no meaningful remedy for Ross Brothers under the Agreement, since [717]*717there is no way of recovering its damages.” Ross Brothers’ Br. at 8. Local 577 responds that the district court properly dismissed Ross Brothers’ complaint because the Company failed to pursue the grievance procedures set forth in the NIMA. We find Local 577’s argument on this point persuasive, and conclude that Ross Brothers’ arguments to the contrary lack factual and legal merit.

A.

It is well-settled that “a party must exhaust contractual grievance remedies before seeking relief in federal court.” Wilson v. International Bhd. of Teamsters, 83 F.3d 747, 752 (6th Cir.1996). Accord Clayton v. International Union, 451 U.S. 679

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