Wackenhut Corp. v. Amalgamated Local 515

126 F.3d 29, 156 L.R.R.M. (BNA) 2312, 1997 U.S. App. LEXIS 23819
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 11, 1997
DocketNos. 1440, 1606, Dockets 96-9320, 96-9370
StatusPublished
Cited by43 cases

This text of 126 F.3d 29 (Wackenhut Corp. v. Amalgamated Local 515) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wackenhut Corp. v. Amalgamated Local 515, 126 F.3d 29, 156 L.R.R.M. (BNA) 2312, 1997 U.S. App. LEXIS 23819 (2d Cir. 1997).

Opinion

OAKES, Senior Circuit Judge:

Plaintiff-Appellee-Cross-Appellant, The Wackenhut Corporation (“Wackenhut” or the “employer”), provides, pursuant to a long-term contract, security services for the Consolidated Edison (“ConEd”) nuclear facility at Indian Point, New York. Amalgamated Local 515 of the United Plant Guard Workers of America (the “Union”) is the certified bargaining representative of Wackenhut’s security officers at the Indian Point facility under a collective bargaining agreement (“CBA”) between the Union and Wackenhut.

The present dispute arises from the termination of a Wackenhut employee, Fernando [31]*31T. Coelho, who was a security guard at the Indian Point facility. On August 21, 1992, Coelho was questioned by a ConEd official about the vandalism of some shotguns kept at Indian Point. Coelho, who was not suspected of the tampering, was asked what he would do if he knew who was responsible for the incident. Though there is some dispute over exactly what Coelho said in response, all parties agree that he indicated he might first consult with the Union before reporting his suspicions to ConEd. This response precipitated a loss of confidence in Coelho on the part of ConEd, which promptly revoked Coelho’s access clearance to the Indian Point facility. Since a security guard who is unable to enter the site without an escort is of little value, Coelho could no longer perform his job with Wackenhut.

The CBA governing Coelho’s employment covers only the Indian Point facility, and Wackenhut did not place him at another site. On August 22, Wackenhut suspended Coelho and nine days later discontinued his health insurance coverage. On September 10, Wackenhut discharged Coelho. The Union then filed a grievance claiming that Coelho’s discharge violated the CBA.

When the grievance reached arbitration, the parties selected Arbitrator Robert Light to hear the dispute. On September 17,1993, after a hearing and with the benefit of post-hearing briefs, Arbitrator Light issued his decision and award finding that Wackenhut violated the CBA by discharging Coelho without just cause. The award granted the following relief: (a) Wackenhut was to pay Coelho compensation and benefits up to the date of the award less any earnings from the period; (b) Wackenhut was to renew its efforts to have ConEd restore Coelho’s site clearance; (e) failing (b), Wackenhut was “to attempt to make an accommodation to the grievant with an offer of comparable employment within a reasonable geographic area”; and (d) the arbitrator .retained jurisdiction for a period of nine months on the issue of compliance with the award.

Wackenhut moved, pursuant to § 301 of the Labor-Management Relations Act, 29 U.S.C. § 185(c) and 9 U.S.C. § 10, to vacate the award. The Union counter-claimed to enforce the award in full. On cross-motions for summary judgment, the district court vacated parts (a) and (c) of the award: the back pay up until the date of the award, and the requirement that the employer “attempt to make an accommodation to [Coelho] with an offer of employment at another site.” Wackenhut Corp. v. United Plant Guard Workers of America, 939 F.Supp. 267, 272-73 (S.D.N.Y.1996). The district court, however, rejected Wackenhut’s main argument — one it continues to advance on appeal — that there was no violation of the CBA, because the employer, at client request, may relieve an employee from duty without any cause at all. Id. at 271. We have jurisdiction under 28 U.S.C. § 1291.

Discussion

We review a district court decision upholding or vacating an arbitration award de novo on questions of law and for clearly erroneous findings of fact. First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 948, 115 S.Ct. 1920, 1926, 131 L.Ed.2d 985 (1995). We first address Wackenhut’s cross-appeal to vacate the entire award, before turning to the Union’s objections to the district court’s vacatur of portions of the award.

A. Wackenhut’s cross-appeal to vacate the entire award.

This court recently reiterated the high degree of deference afforded to arbitrators. See Saint Mary Home, Inc. v. Service Employees Int'l Union, Dist. 1199, 116 F.3d 41 (2d Cir.1997). Saint Mary Home explained, “[t]he principal question for the reviewing court is whether the arbitrator’s award draws its essence from the collective bargaining agreement, since the arbitrator is not free merely to dispense his own brand of industrial justice.” Id. at 44 (citations and internal quotations omitted). See also Barrentine v. Arkansas-Best Freight Sys., Inc., 450 U.S. 728, 745, 101 S.Ct. 1437, 1447, 67 L.Ed.2d 641 (1981); DiRussa v. Dean Witter Reynolds, Inc., 121 F.3d 818 (2d Cir.1997). Under this standard, we have said that an arbitration award must be upheld when the arbitrator “offer[s] even a barely colorable justification for the outcome reached.” And[32]*32ros Compania Maritima, S.A. v. Marc Rich & Co., 579 F.2d 691, 704 (2d Cir.1978); see Stotter Div. of Graduate Plastics Co. v. District 65, 991 F.2d 997, 1000 (2d Cir.1993). The contractual theory of arbitration, which is reflected in these decisions, requires a reviewing court to affirm an award it views as incorrect — even very incorrect — so long as the decision is plausibly grounded in the parties’ agreement.

Waekenhut argues that the finding of a violation of the CBA conflicts with the employer’s express rights under the agreement. The CBA, at article III (.Management Rights), section 1, gives management the right to “discipline!,] suspend or discharge employees for just cause” and to “relieve employees from duty ... at client request.” The relationship between these two powers is, however, not clearly defined in the CBA. In the employer’s view, the power to reheve employees from duty at the client’s request permits the employer to terminate an employee who loses site clearance without just cause.

Waekenhut also emphasizes article VII (Grievance and Arbitration Procedure), section 10: “[tjhe arbitrator’s authority shall be limited to finding a direct violation of the express purpose of the [CBA] provision or provisions in question rather than an implied or indirect purpose.

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Bluebook (online)
126 F.3d 29, 156 L.R.R.M. (BNA) 2312, 1997 U.S. App. LEXIS 23819, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wackenhut-corp-v-amalgamated-local-515-ca2-1997.