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

CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 7, 2008
Docket05-16833
StatusPublished

This text of United Steelworkers v. Retirement Income Plan for Hourly-Rated Employees of Asarco, Inc. (United Steelworkers 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 v. Retirement Income Plan for Hourly-Rated Employees of Asarco, Inc., (9th Cir. 2008).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

UNITED STEELWORKERS OF AMERICA;  ALBERTO AGUILAR, JR.; ANGEL L. ARELLANO; JESUS M. CANABA; FRANCISCO CARREON; FRANKLIN DAVILA; JAIME O. FRAUSTO; ARMANDO B. HIDALGO; SANTIAGO MARTINEZ; HECTOR OCHOA; ISMAEL ORTEGA; MAURICIO ORTEGA; LORENZO RAMIREZ; SERGIO RAMIREZ; ERNESTO ROBLES; CARLOS No. 05-16833 RODRIGUEZ; ROBERTO ROMO; RAMON SANCHEZ; ARTURO R.  D.C. No. CV-04-00010- SAUCEDO; UNITED STEELWORKERS OF DCB/JJM AMERICA, AFL-CIO, CLC; JESUS M. URANGA; RUBEN R. VILLARREAL, Plaintiffs-Appellees, v. RETIREMENT INCOME PLAN FOR HOURLY-RATED EMPLOYEES OF ASARCO, INC.; ASARCO, INC., Defendants-Appellants. 

121 122 UNITED STEELWORKERS v. RETIREMENT INCOME PLAN

ALBERTO AGUILAR, JR.; ANGEL L.  ARELLANO; JESUS M. CANABA; FRANCISCO CARREON; FRANKLIN DAVILA; JAIME O. FRAUSTO; ARMANDO B. HIDALGO; SANTIAGO MARTINEZ; HECTOR OCHOA; ISMAEL ORTEGA; MAURICIO ORTEGA; LORENZO RAMIREZ; SERGIO RAMIREZ; ERNESTO ROBLES; CARLOS RODRIGUEZ; ROBERTO ROMO; RAMON SANCHEZ; ARTURO R. No. 06-15862

 SAUCEDO; UNITED STEELWORKERS OF D.C. No. AMERICA, AFL-CIO, CLC; JESUS CV-04-00010-DCB M. URANGA; RUBEN R. VILLARREAL, Plaintiffs-Appellees, OPINION v. RETIREMENT INCOME PLAN FOR HOURLY-RATED EMPLOYEES OF ASARCO, INC., Defendant-Appellant, and ASARCO, INC., Defendant.  Appeal from the United States District Court for the District of Arizona David C. Bury, District Judge, Presiding

Argued and Submitted October 15, 2007—San Francisco, California

Filed January 7, 2008 UNITED STEELWORKERS v. RETIREMENT INCOME PLAN 123 Before: J. Clifford Wallace and Johnnie B. Rawlinson, Circuit Judges, and Jane A. Restani,* Judge.

Opinion by Judge Wallace

*The Honorable Jane A. Restani, Chief Judge, United States Court of International Trade, sitting by designation. UNITED STEELWORKERS v. RETIREMENT INCOME PLAN 125

COUNSEL

John Alan Doran and Leigh Anne Ciccarelli, Greenberg Traurig, LLP, Phoenix, Arizona, for the appellants.

Robert J. Stock and Jay Smith, Gilbert & Sackman, Los Angeles, California, for the appellees.

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 Amer- ica, 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 126 UNITED STEELWORKERS v. RETIREMENT INCOME PLAN 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. (ASARCO) 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 substan- tially 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 demon- strate 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 com- bined 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 pen- sion benefits. Although the combined age and years of Con- tinuous Service of the named appellees did not total more than UNITED STEELWORKERS v. RETIREMENT INCOME PLAN 127 80 at the commencement of layoff, at least some of the indi- viduals 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 appellees, arguing that ASARCO had violated the collective bargaining agreement by failing to pay 70/80 benefits to the named appellees. ASARCO denied the griev- ance on September 26, 2002. A year later, the Union submit- ted 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 ASARCO and the Plan as defendants.

The district court entered summary judgment in favor of the Union. With respect to the Union’s ERISA claims, how- ever, 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 judg- ment expressly contingent on this substitution.

The Union then filed an amended complaint adding the named appellees. Four days later, ASARCO filed for bank- ruptcy, 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 sum- mary judgment and from the order denying its motion to stay and awarding attorney’s fees. Both appeals were consolidated. 128 UNITED STEELWORKERS v. RETIREMENT INCOME PLAN 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 deter- mine whether the named appellees were entitled to 70/80 ben- efits, 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 (1986). Both parties have presented a plausible interpretation of the relevant plan documents, and the out- come of this case ultimately turns on whether we apply a pre- sumption of arbitrability.

A.

[1] 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 (1960); United Steelworkers of America v.

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