Wilmington Typographical Union No. 123 v. News-Journal Co.

513 F. Supp. 987, 108 L.R.R.M. (BNA) 2793, 1981 U.S. Dist. LEXIS 12236
CourtDistrict Court, D. Delaware
DecidedMay 8, 1981
DocketCiv. A. 79-520
StatusPublished
Cited by2 cases

This text of 513 F. Supp. 987 (Wilmington Typographical Union No. 123 v. News-Journal Co.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilmington Typographical Union No. 123 v. News-Journal Co., 513 F. Supp. 987, 108 L.R.R.M. (BNA) 2793, 1981 U.S. Dist. LEXIS 12236 (D. Del. 1981).

Opinion

OPINION

CALEB M. WRIGHT, Senior District Judge.

The Wilmington Typographical Union (“Union”) has sued to enforce the Arbitration Award rendered August 22, 1979 requiring the News-Journal Company (“Company”) to reinstate its former employee George D. McDonnell. The case is before the Court on motions by both parties for summary judgment. For the reasons stated below, defendant’s motion is granted, and plaintiff’s, denied.

I. FACTUAL BACKGROUND

On November 18,1978, the Union and the Company entered into a collective bargaining agreement (“Agreement”) retroactive to May 1, 1978, for a three-year term. The Agreement provided for involuntary retirement of employees once they reached a certain age. Prior to January 1, 1979, the mandatory retirement age was to be 65 years, and thereafter, 70 years. On December 31, 1978, the Company terminated the employment of McDonnell, an employee covered by the Agreement and a member of the Union. McDonnell had attained the age of 65 on December 9, 1978.

The Union then invoked the grievance procedure specified in the Agreement in order to obtain McDonnell’s reinstatement. The grievance was submitted to a committee of employer representatives and union members; when the committee failed to reach an accord, the Union and the Company agreed to refer the matter to an impartial arbitrator selected through the auspices of the American Arbitration Association. After a full hearing and submission of briefs by the parties, the Arbitrator, H. T. Herrick, concluded that the language of the Agreement which would justify McDonnell’s forced retirement was contrary to the terms of the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § 621 et seq. (“ADE Act”), and directed that McDonnell be reinstated. The Company refused to comply with the Award, and the Union brought this action. Jurisdiction of this Court is predicated upon § 301 of the Labor-Management Relations Act, 1947, 29 U.S.C. § 185.

II. ISSUES

A.

There being no genuine issue of material fact, the Court must first decide whether the Company is precluded from contesting the award of the Arbitrator by *989 reason of Section 37-03 of the Agreement. This section delineates the arbitration procedures and provides that “[t]he decision of the Board of Arbitration is legal and binding when signed by a majority and is not subject to appeal.” 1 The Union argues that, by reason of this provision, the Company cannot dispute the authority of the Arbitrator. Although under established federal labor law, courts will not review the merits of an arbitration award, United Steelworkers of America v. Enterprise Wheel & Car Corp., 363 U.S. 593, 80 S.Ct. 1358, 4 L.Ed.2d 1424 (1960), an arbitrator’s power is limited, irrespective of a “no appeal” clause in the collective bargaining agreement. The arbitrator “is confined to interpretation and application of the collective bargaining agreement.. .. When the arbitrator’s words manifest an infidelity to this obligation, courts have no choice but to refuse enforcement of the award.” Id. at 597, 80 S.Ct. at 1361. Because the arbitrator’s authority flows from the collective bargaining agreement, it is not absolute, but conditional, and thus remains open to challenge. See Torrington Co. v. Metal Products Workers Union Local 1645, 362 F.2d 677, 680 n. 6 (2d Cir. 1966).

Nor, since the courts have imposed this condition, can the parties contractually remove this limitation on the arbitrator’s power:

The power of the federal courts to enforce the terms of private agreements is at all times exercised subject to the restrictions and limitations of the public policy of the United States as manifested in the Constitution, treaties, federal statutes, and applicable legal precedents.

Hurd v. Hodge, 334 U.S. 24, 34-35, 68 S.Ct. 847, 852-53, 92 L.Ed. 1187 (1948) (footnote omitted). The substantive principles of labor law which the federal courts are empowered to fashion, see Textile Workers Union of America v. Lincoln Mills, 353 U.S. 448, 77 S.Ct. 912, 1 L.Ed.2d 972 (1957), are a part of this public policy. Electrical, Radio & Machine Workers, Local 453 v. Otis Elevator Co., 314 F.2d 25, 29 (2d Cir.), cert. denied, 373 U.S. 949, 83 S.Ct. 1680, 10 L.Ed.2d 45 (1963). Therefore, the Court will not enforce a private agreement’s absolute denial of review; such a provision would violate the principle that the enforceability of an arbitrator’s decision is conditioned upon its being restricted to interpretation and construction of the contract.

B.

The Company asserts that the Arbitrator exceeded his authority by invalidating a portion of the Agreement as in violation of the ADE Act and argues for summary judgment on this basis alone. The Union relies upon the Arbitrator’s Award and the arbitration decisions cited therein.

In commenting on a case in which the basis of the arbitrator’s award was more ambiguous than here, the Supreme Court gave a clear statement of the Arbitrator’s authority: the arbitrator “may of course look for guidance from many sources, yet his award is legitimate only so long as it draws its essence from the collective bargaining agreement.” United Steelworkers of America v. Enterprise Wheel & Car Corp., supra at 597, 80 S.Ct. at 1361. In Alexander v. Gardner-Denver Co., 415 U.S. 36, 53, 94 S.Ct. 1011, 1022, 39 L.Ed.2d 147 (1974), the Court was even more explicit:

As the proctor of the bargain, the arbitrator’s task is to effectuate the intent of the parties. His source of authority is the collective-bargaining agreement, and he must interpret and apply that agreement in accordance with the “industrial common law of the shop” and the various needs and desires of the parties. The arbitrator, however, has no general authority to invoke public laws that conflict with the bargain between the parties. * * * * * *
If an arbitral decision is based “solely upon the arbitrator’s view of the requirements of enacted legislation,” rather than on an interpretation of the collective-bargaining agreement, the arbitrator has “exceeded the scope of the submission,” and the award will not be enforced.

*990 (quoting United Steelworkers of America v. Enterprise Wheel & Car Corp., supra

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513 F. Supp. 987, 108 L.R.R.M. (BNA) 2793, 1981 U.S. Dist. LEXIS 12236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilmington-typographical-union-no-123-v-news-journal-co-ded-1981.