United Ass'n of Journeymen & Apprentices of the Plumbing & Pipefitting Industry, Local Union No. 342 v. Bechtel Construction Co.

128 F.3d 1318
CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 3, 1997
DocketNo. 95-16974
StatusPublished
Cited by5 cases

This text of 128 F.3d 1318 (United Ass'n of Journeymen & Apprentices of the Plumbing & Pipefitting Industry, Local Union No. 342 v. Bechtel Construction Co.) 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
United Ass'n of Journeymen & Apprentices of the Plumbing & Pipefitting Industry, Local Union No. 342 v. Bechtel Construction Co., 128 F.3d 1318 (9th Cir. 1997).

Opinion

KLEINFELD, Circuit Judge.

The main issue in this case is whether, when two.unions signed an arbitration agreement for jurisdictional disputes but did not fill in the name of the arbitrator, the court could hold them to the agreement and fill in the name.

FACTS

Two unions, a Pipefitters local and an Ironworkers local, signed project agreements, involving numerous other unions as well, to build oil refineries. The project agreements provided that the unions would not strike or stop work because of jurisdictional disputes among them, and would resolve any such disputes by the participating locals if possible. If the locals could not resolve a dispute, then it would be referred to their internationals. If the international unions were unable to resolve the dispute within 15 days, then either local could refer the dispute “to _, who will act as arbitrator.”

ARTICLE 6
Work Assignments and Jurisdictional Disputes
6.1 All Contractors and Subcontractors shall stipulate to and have the responsibility for making work assignments in accordance with the rules----
6.2 There will be no strikes, work stoppages, or slow downs or other interferences with the work because of jurisdictional disputes.
6.3 Where a jurisdictional dispute exists and cannot be resolved by the Local Unions involved, it shall be referred for resolution to the International Unions. The resolution of the dispute shall be reduced to writing, signed by the authorized representative of the International Unions and the Contractor. The assignments made by [1320]*1320the Contractor shall be followed until such time as the dispute is resolved in accordance with this Article.
6.3.1 In the event that the respective International Unions of the disputing Locals and the Contractor are unable to resolve the dispute within fifteen (15) days from the date of referral, the dispute may be referred by any of the interested parties to _, who will act as Arbitrator under this Article to hear and decide issues arising from the work assignment which is the basis for this dispute. 6.4 There shall be no work stoppage, work interruption, strike, sympathy strikes, picketing, hand billing, or public notices of any kind while any jurisdictional dispute is being resolved. Pending resolution of the dispute, the work shall continue uninterrupted as assigned by the Contractors) ....

Authorized representatives of the many unions working on the project, including the Ironworkers1 and Pipefitters2, signed the two contracts.

A jurisdictional dispute arose between the Pipefitters and the Ironworkers about “first drop” work. That means each union- claimed the right to have its members do unloading, handling, and rigging of pipe equipment such as tanks, pumps, and compressors. At the Chevron refinery, Bechtel, the general contractor, had the Pipefitters unload about three loads, but then made a formal assignment of the work to the Ironworkers. The Pipefitters thought that since the work had started with them, it should stay with them, so they started the process of obtaining a formal decision on this jurisdictional dispute with the Ironworkers.

The unions disagreed vigorously on how the dispute ought to be resolved. Materials in the record indicate that customarily construction industry locals unable to agree refer jurisdictional disputes to their internationals, and the work proceeds as assigned by the employer unless and until the internationals agree on something different. The Ironworkers wanted to follow this customary procedure. The institution used by the unions to-resolve these disputes is an office in Washington, D.C. called the “Plan For Settlement of Jurisdictional Disputes in the Construction Industry.” The “Plan” is a body created by the international unions that resolves jurisdictional disputes between locals.

The barrier to simple adherence to custom was that the unions had signed a contract to submit such disputes to arbitration, not to the Plan. The contract quoted above was signed by the Ironworkers and the Pipefitters and they are bound by it, unless the blank left for the name of the arbitrator implies lack of a meeting of the minds so that no contract was formed. The contract is an express agreement to a method for resolving jurisdictional disputes that differs from the customary approach.

When the Pipefitters and Ironworkers submitted their dispute to their respective internationals, the internationals did not make any written decision. The custom of the industry would therefore leave the employer’s decision in effect, assigning first drop work to the Ironworkers. But the project agreement does not adopt the customary procedure. It says that if the internationals are unable to provide a written decision within fifteen days, “the dispute may be referred by any of the ■ interested parties to _, who will act as Arbitrator.” The Pipefitters were not content to leave first drop work where Bechtel had assigned it, to the Ironworkers, so they demanded arbitration under this clause. The Ironworkers refused, arguing that the internationals should be left to work out a resolution through the Plan office. In the face of the Ironworkers’ refusal to designate an arbitra-' tor or proceed with arbitration, the Pipefitters designated their own preferred arbitrator, Walter L. Kintz.

Arbitrator Kintz ruled that the Pipefitters had the work first, and the earlier assign[1321]*1321ment should be followed, so he awarded the work to the Pipefitters. The Ironworkers objected on the ground that they had never agreed to the designation of Mr. Kintz as arbitrator. When a form had been passed across the table to agree on Mr. Kintz, the Ironworker’s business representative had said “there ain’t going to be no arbitration,” and got up and left the meeting.

The Ironworkers petitioned the district court to vacate the arbitration award. They won. The district court vacated Arbitrator Kintz’s decision on the ground that the Iron-workers had not consented to his designation as the arbitrator. The Pipefitters appealed, but the case settled during the pendency of the appeal, so the appeal was dismissed pursuant to the parties’ stipulation. This left the parties without an arbitration decision, since the district court order vacating Arbitrator Kintz’s decision was final.

Meanwhile the Plan office in Washington, D.C., wrote to the locals that “arbitration would be deemed an impediment to job progress,” that the earlier drops by the Pipefitters did not constitute a formal assignment of the work by Bechtel, and that the original assignment should be treated as having been to the Ironworkers. Thus at this point, the Pipefitters had won an arbitration biit the award had been vacated, Bechtel had awarded the work to the Ironworkers, and the internationals had told both locals, in accord with industry custom, that the work should stay where Bechtel had formally assigned it, with the Ironworkers.

The Pipefitters then sued to compel arbitration. They won, even though they are now the appellant. The district court concluded that the project agreement provided for arbitration, so the customary plan resolution was not controlling. It ordered arbitration, and gave the parties about three weeks to agree on an arbitrator.

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128 F.3d 1318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-assn-of-journeymen-apprentices-of-the-plumbing-pipefitting-ca9-1997.