United Steelworkers of America v. Retirement Income Plan for Hourly-Rated Employees of ASARCO, Inc.

512 F.3d 555, 2008 D.A.R. 180, 42 Employee Benefits Cas. (BNA) 2057, 183 L.R.R.M. (BNA) 2413, 2008 U.S. App. LEXIS 194
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 7, 2008
Docket05-16833, 06-15862
StatusPublished
Cited by66 cases

This text of 512 F.3d 555 (United Steelworkers of America v. Retirement Income Plan for Hourly-Rated Employees of ASARCO, Inc.) 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 Steelworkers of America v. Retirement Income Plan for Hourly-Rated Employees of ASARCO, Inc., 512 F.3d 555, 2008 D.A.R. 180, 42 Employee Benefits Cas. (BNA) 2057, 183 L.R.R.M. (BNA) 2413, 2008 U.S. App. LEXIS 194 (9th Cir. 2008).

Opinion

WALLACE, Senior Circuit Judge:

The Retirement Income Plan for Hourly-Rated Employees of ASARCO, Inc. (the Plan) appeals from the district court’s summary judgment in favor of United Steelworkers of America, AFL-CIO (the Union), and twenty individually named retirees (the named appellees). The Plan also appeals from the district court’s order granting attorney’s fees and denying its motion to stay. We have jurisdiction pursuant to 28 U.S.C. § 1291. We affirm the district court’s summary judgment and its denial of the Plan’s motion to stay. Although we agree with the district court’s award of attorney’s fees, we remand to determine what effect, if any, the automatic stay in place for ASARCO, Inc. (ASAR-CO) should have on payment of the award.

I.

ASARCO owns and operates a copper smelter plant in El Paso, Texas. Beginning in early 1999, the company substantially reduced operations at the plant, and began laying off employees. Among those laid off were the twenty named appellees. Under the relevant pension plan documents, these employees were entitled to collect immediate, unreduced retirement benefits if they qualified for “70/80” benefits. These benefits accrued to any claimant who could demonstrate that (1) he was laid off due to a permanent shutdown, (2) he was younger than 55 years, and (3) his age plus years of “Continuous Service” equaled at least 80. All of the named appellees were under the age of 55 at the time they applied for benefits. Applicants over the age of 55 were only required to demonstrate an age plus years of Continuous Service equal to 70, hence the term “70/80 benefits.”

In 2001, after intense negotiations, the Union and ASARCO agreed that the staff reductions at ASARCO’s El Paso plant would be treated as a “permanent shutdown” for purposes of calculating pension benefits. When the named appellees subsequently applied for 70/80 benefits, however, ASARCO denied their claims on the ground that their combined age and years of Continuous Service totaled less than 80.

The plan documents provide that employees may continue to accrue years of Continuous Service for up to two years after they are laid off. This concept is known as “creep,” as it allows otherwise ineligible employees to “creep” into pension benefits. Although the combined age and years of Continuous Service of the named appellees did not total more than 80 at the commencement of layoff, at least some of the individuals would be entitled to 70/80 benefits if an additional two years of “creep” were added to the calculation.

On August 21, 2002, the Union filed a grievance on behalf of the named appel- *559 lees, arguing that ASARCO had violated the collective bargaining agreement by failing to pay 70/80 benefits to the named appellees. ASARCO denied the grievance on September 26, 2002. A year later, the Union submitted a request for a panel of arbitrators to the Federal Mediation and Conciliation Service. When ASARCO refused to arbitrate, the Union filed a complaint in the district court to compel arbitration of the benefits claims under section 301(a) of the Labor Management Relations Act (LMRA) and section 502 of the Employee Retirement Income Security Act (ERISA). The complaint named both AS-ARCO and the Plan as defendants.

The district court entered summary judgment in favor of the Union. With respect to the Union’s ERISA claims, however, the court held that the Union was not a proper party, and gave the Union ten days to substitute the named appellees in an amended complaint. The court made its summary judgment expressly contingent on this substitution.

The Union then filed an amended complaint adding the named appellees. Pour days later, ASARCO filed for bankruptcy, resulting in an automatic stay of proceedings with respect to ASARCO pursuant to 11 U.S.C. § 362(a). The Plan then filed a motion in the district court to stay all proceedings. Meanwhile, the Union filed a motion for attorney’s fees and costs, seeking $143,156.25. In an order dated March 13, 2006, the district court awarded $140,556.25 in attorney’s fees and denied the Plan’s motion to stay.

The Plan has timely appealed from the district court’s summary judgment and from the order denying its motion to stay and awarding attorney’s fees. Both appeals were consolidated.

II.

We review the district court’s summary judgment de novo. See Buono v. Norton, 371 F.3d 543, 545 (9th Cir.2004). Our review in this case is limited. We are not required to determine whether the named appellees were entitled to 70/80 benefits, only whether they had the right to arbitrate their claims. See AT & T Techs., Inc. v. Commc’ns Workers of Am., 475 U.S. 643, 649-50, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986). Both parties have presented a plausible interpretation of the relevant plan documents, and the outcome of this case ultimately turns on whether we apply a presumption of arbitrability.

A.

In 1960, the Supreme Court decided a series of cases known as the Steelworkers Trilogy: United Steelworkers of America v. American Manufacturing Co., 363 U.S. 564, 80 S.Ct. 1343, 4 L.Ed.2d 1403 (1960); United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 80 S.Ct. 1347, 4 L.Ed.2d 1409 (1960); and United Steelworkers of America v. Enterprise Wheel & Car Corp., 363 U.S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424 (1960). The Court held that national labor policy favored arbitration, and courts should therefore apply a presumption in favor of arbitration to disputes arising from collective bargaining agreements. The Court instructed:

An order to arbitrate the particular grievance should not be denied unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute. Doubts should be resolved in favor of coverage.

Warrior & Gulf Navigation Co., 363 U.S. at 582-83, 80 S.Ct. 1347 (footnote omitted). The Court reaffirmed this principle more recently in AT & T Technologies, 475 U.S. at 650, 106 S.Ct. 1415. The Court held *560 that the presumption of arbitrability “recognizes the greater institutional competence of arbitrators in interpreting collective bargaining agreements, furthers the national labor policy of peaceful resolution of labor disputes and thus best accords with the parties’ presumed objectives in pursuing collective, bargaining.” Id. at 650, 106 S.Ct. 1415 (internal citation and quotations omitted).

The Plan argues that the presumption of arbitrability is inapplicable here because the named appellees are retired.

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512 F.3d 555, 2008 D.A.R. 180, 42 Employee Benefits Cas. (BNA) 2057, 183 L.R.R.M. (BNA) 2413, 2008 U.S. App. LEXIS 194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-steelworkers-of-america-v-retirement-income-plan-for-hourly-rated-ca9-2008.