Wiregrass Metal Trades Council v. Shaw Environmental & Infrastructure, Inc.

100 F. Supp. 3d 1243, 203 L.R.R.M. (BNA) 3374, 2015 U.S. Dist. LEXIS 40092, 2015 WL 1458063
CourtDistrict Court, M.D. Alabama
DecidedMarch 30, 2015
DocketCase No. 1:13-CV-084-WKW WO
StatusPublished

This text of 100 F. Supp. 3d 1243 (Wiregrass Metal Trades Council v. Shaw Environmental & Infrastructure, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wiregrass Metal Trades Council v. Shaw Environmental & Infrastructure, Inc., 100 F. Supp. 3d 1243, 203 L.R.R.M. (BNA) 3374, 2015 U.S. Dist. LEXIS 40092, 2015 WL 1458063 (M.D. Ala. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

W. KEITH WATKINS, Chief Judge.

Plaintiff Wiregrass Metal Trades Council AFL-CIO (‘Wiregrass”), a workers’ union within the meaning of the Labor Management Relations Act, filed suit on February 11, 2013, against Defendant Shaw Environmental & Infrastructure, Inc. (“Shaw”) for breach of a collective bargaining agreement (“CBA”). On August 21, 2013, Wiregrass’s motion to compel arbitration (Doc. #2) was granted (Doc. # 17), and an arbitrator heard the matter on December 5, 2013. On March 14, 2014, the arbitrator submitted her decision to the parties, ruling in favor of Wire-grass, and three days later Wiregrass moved to dismiss the present litigation (Doc. #24). Shaw opposed Wiregrass’s motion to dismiss and moved to vacate the arbitrator’s award. (Doc. #26.) Upon referral (Doc. # 35), the Magistrate Judge recommended that Shaw’s motion be granted and the arbitrator’s award vacated (Doc. # 39). Both parties timely filed Objections to the Recommendation. (Docs. # 40, 41.) After careful consideration of the record, the parties’ briefs, the applicable case law, and the Recommendation, the court finds that the Recommendation is due to be adopted, Shaw’s motion (Doc. #26) is due to be granted, and the arbitrator’s award is due to be vacated.

I. STANDARD OF REVIEW

The court reviews de novo “those portions of the ... [R]ecommendation[ ] to which objection is made.” 28 U.S.C. § 636(b)(1).

II. DISCUSSION

A. Background

Wiregrass alleges that Shaw breached the parties’ CBA when it suspended and ultimately terminated Jack Endicott, a Shaw employee covered by the CBA. With its complaint, Wiregrass filed a motion for a preliminary injunction, which was construed as a motion to compel arbitration. Shaw opposed the motion, arguing that it had no contractual obligation to arbitrate' Wiregrass’s claims because Wiregrass failed to perform the preconditions necessary to bring the grievance into arbitration. After reviewing the arguments of counsel and relevant case law, the court granted Wiregrass’s motion, and the arbitration process began.

[1246]*1246The parties jointly selected an arbitrator, and an arbitration hearing was conducted on December 5, 2013. During the hearing, the arbitrator narrowed the dispute to two central inquiries: (1) Was the grievance procedure properly followed? and if so (2) Did Shaw have just cause to terminate Mr. Endicott? After a day of testimony, an examination of the controlling CBA, and a review of various exhibits, the arbitrator determined that Wiregrass had properly brought the grievance into arbitration and that Shaw did not have just cause to terminate Mr. Endicott.

While the arbitrator recognized that Wiregrass did not adhere strictly to the time lines provided in the detailed three-step procedure through which a grievance would trigger arbitration review, she highlighted that the CBA contained a modification provision. Specifically, the arbitrator cited Article 8, Section 3 of the CBA, which provides that the right to “change, alter, amend, modify, add to, or delete from [the CBA] is the sole prerogative of the contracting parties.” (Doc. # 26, Ex. B, at 15.) Reviewing the communications that occurred between Wiregrass’s president and Shaw’s labor relations manager from the time of Mr. Endicott’s suspension to the filing of the present lawsuit, the arbitrator determined that the parties chose to invoke Article 8, Section 3’s modification procedure and suspended the ordinary grievance-procedure time lines in light of Mr. Endicott’s government investigations, military police charges, and magistrate hearings. The arbitrator then determined that once Wiregrass discovered that all inquiries and investigations into Mr. Endicott’s actions were complete, “it acted in good faith in requesting that the tabled grievance” be reopened and timely and appropriately moved the grievance through Step Two and Step Three and into arbitration. (Doc. #26, Ex. B, at 16.)

Because the arbitrator determined that Wiregrass had properly invoked the modified procedures of the CBA to bring its grievance into arbitration, she turned to the second inquiry — whether Shaw had just cause to terminate Mr. Endicott. The arbitrator concluded that just cause required “that [Shaw] investigate before administering discipline and that the investigation be fair and reasonable.” (Doc. #26, Ex. B, at 17.) Applying this standard to the events leading to Mr. Endi-cott’s termination, the arbitrator highlighted several perceived inadequacies in Shaw’s conduct. -

First, she noted that Shaw did not conduct its own investigation into Mr. Endi-cott’s actions and, instead, relied entirely on the investigation of the military police. Second, the arbitrator found it significant that Shaw never gave Mr. Endicott the opportunity to tell his side of the story and ultimately terminated him based on charges that were ultimately thrown out by a magistrate judge. Finally, the arbitrator credited Mr. Endicott’s testimony that he did not know the property in question was stolen and determined that Mr. Endicott could not “be said to have violated a policy prohibiting possession of government property when he did not know the property belonged to the government or that it had been stolen.” (Doc. #26, Ex. B, at 17.)

When considered cumulatively, these facts led the arbitrator to determine that Shaw did not prove by a preponderance of the evidence that it had just cause to terminate Mr. Endicott. Because the grievance was sustained, the arbitrator then turned to the crafting of a remedy. While all parties agreed that reinstatement would not be possible in light of the conclusion of Shaw’s contract with the government and Mr. Endicott’s present medical condition, the arbitrator concluded that [1247]*1247Mr. Endicott was entitled to be treated as though he were reinstated. Accordingly, the arbitrator awarded Mr. Endicott “back pay from the date of his termination to the date the successor company replaced Shaw as the service provider” on the government contract, “and all benefits including reimbursement for medical expenses not covered by other sources and COBRA coverage as though he were employed when Shaw lost its contract or was bought out.” (Doc. # 26, Ex. B, at 17.)

Three days after the arbitrator issued her judgment in favor of Wiregrass and Mr. Endicott, Wiregrass moved to have the present case dismissed in light of the arbitrator’s final and binding decision. (Doc. #24.) Shaw opposed Wiregrass’s motion and countered with a motion to vacate the arbitrator’s award pursuant to the Federal Arbitration Act (“FAA”), 9 U.S.C. § 10. (Doc. # 26.) Both motions were referred to a magistrate judge for recommendation pursuant to 28 U.S.C. § 636. (Doc. # 35.)

B. The Recommendation

On December 8, 2014, the Magistrate Judge entered his Recommendation. Turning first to Shaw’s motion to vacate, the Magistrate Judge delineated the motion into three primary inquiries: “(1) should the court or the arbitrator render a decision on whether [Wiregrass] satisfied the procedural prerequisites of the [CBA] ...

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Bluebook (online)
100 F. Supp. 3d 1243, 203 L.R.R.M. (BNA) 3374, 2015 U.S. Dist. LEXIS 40092, 2015 WL 1458063, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wiregrass-metal-trades-council-v-shaw-environmental-infrastructure-inc-almd-2015.