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Cleveland Wrecking Co. v. Iron Workers Local 40

Citations: 136 F.3d 884; 157 L.R.R.M. (BNA) 2065; 1997 U.S. App. LEXIS 36774; 1997 WL 837183Docket: Nos. 293, Docket 97-7066

Court: Court of Appeals for the Second Circuit; December 21, 1997; Federal Appellate Court

Narrative Opinion Summary

The case involves a dispute between Cleveland Wrecking Co., an employer, and a union with associated employee benefit funds regarding the enforcement of arbitration under their collective bargaining agreement (CBA). Cleveland Wrecking Co. sought to stay arbitration, contending the CBA had been terminated and that the dispute was jurisdictional and not subject to arbitration. The union counterclaimed to compel arbitration for damages due to an alleged breach of the CBA. The district court ruled that both the termination of the CBA and the nature of the dispute were arbitrable, referencing the Ottley v. Sheepshead Nursing Home decision which mandates arbitration if a colorable claim of contract validity exists. The appellate court affirmed the district court's decision, emphasizing that jurisdictional disputes are indeed arbitrable under the CBA's broad arbitration clause, despite specific provisions addressing jurisdictional issues. The court underscored that determining arbitrability is a judicial function unless explicitly stated otherwise by the parties. As a result, the court upheld the decision to compel arbitration, rejecting Cleveland's arguments on the interpretation of the jurisdictional dispute and contract termination.

Legal Issues Addressed

Arbitration under Collective Bargaining Agreements

Application: The court affirmed that arbitration clauses in collective bargaining agreements apply broadly to disputes, including those that may be considered jurisdictional if a colorable claim exists.

Reasoning: The court concluded that the Union's claim for monetary damages did not clearly fit the definition of a jurisdictional dispute, as established in case law and relevant statutes, and thus warranted arbitration.

Judicial Function in Determining Arbitrability

Application: The appellate court reiterated that determining the duty to arbitrate under a collective bargaining agreement is primarily a judicial function, unless the parties have agreed otherwise.

Reasoning: The appeal court reviews the arbitrability of claims de novo, emphasizing that the determination of whether a duty to arbitrate exists under a collective bargaining agreement is primarily a judicial function, unless the parties explicitly agree otherwise.

Jurisdictional Disputes in Labor Arbitration

Application: The court clarified that even if a dispute is jurisdictional, it falls under the general arbitration clause of the collective bargaining agreement, unless explicitly exempted.

Reasoning: Thus, even if a dispute is jurisdictional, it still falls under the general arbitration clause of Section 36(1).

Termination of Collective Bargaining Agreements

Application: The court found that the validity of a termination notice under a collective bargaining agreement requires interpretation of the agreement’s terms, thus making it subject to arbitration.

Reasoning: The court found a colorable claim regarding contract termination because the validity of a mailed but undelivered termination notice required interpretation of the CBA's terms.