Federal Circuits, 7th Cir. (June 13, 1996)
Docket number: 95-3233
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http://vlex.com/vid/arch-apogee-coal-delaware-mine-36119166
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US Code - Title 29: Labor - 29 USC 185 - Sec. 185. Suits by and against labor organizations
U.S. Supreme Court - Celotex Corp. v. Catrett, 477 U.S. 317 (1986)
U.S. Supreme Court - Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593 (1960)
U.S. Court of Appeals for the 7th Cir. - Jerome A. Maher and John R. Gravee, Plaintiffs-Appellants, v. Harris Trust and Savings Bank, Horizon Federal Savings Bank, F.S.B., and Resolution Trust Corporation, as Receiver of Horizon Federal Savings Bank, Defendants-Appellees., 75 F.3d 1182 (7th Cir. 1996) Plaintiffs-Appellants, v. Harris Trust and Savings Bank, Horizon Federal Savings Bank, F.S.B., and Resolution Trust Corporation, as Receiver of Horizon Federal Savings Bank, Defendants-Appellees.
U.S. Court of Appeals for the 7th Cir. - Prostyakov, Peter v. Masco Corp (7th Cir. 2008)
James W. Morris, Barrett, Twomey, Morris, Broom & Hughes, Carbondale, IL, Ronald E. Meisburg (argued), Christopher Slaughter, Washington, DC, for Arch of Illinois.
Patrick J. O'Hara (argued), Cavanagh & O'Hara, Springfield, IL, for United Mine Workers of America, Dist. 12 and Local 1392, United Mine Workers of America.Before POSNER, Chief Judge, and FLAUM and KANNE, Circuit Judges.FLAUM, Circuit Judge.The plaintiff, Arch of Illinois ("AOI"), appeals the district court's grant of summary judgment in favor of the defendants, District 12 and Local Union No. 1392 of the United Mine Workers of America ("the Union"). AOI filed this action under § 301 of the Labor Management Relations Act, 29 U.S.C. 185, seeking to vacate an arbitrator's decision that AOI had violated a collective bargaining agreement between the parties by discharging a unionized employee. The Union moved for summary judgment, seeking to enforce the arbitration award. The district court upheld the arbitration award, finding that the award drew its essence from the collective bargaining agreement. We agree with the district court and therefore affirm its decision.I.The relevant facts in this appeal are essentially undisputed. AOI operates a bituminous coal mine located in Perry County, Illinois and employs mine workers represented by the Union. AOI and the Union are parties to a collective bargaining agreement ("the Agreement") that was in effect at all times relevant to this action. At approximately 6:00 a.m. on January 25, 1995, AOI managers discovered John Pierce, a worker covered by the Agreement, asleep in his bulldozer. At the time of the discovery it was still dark, and the bulldozer was in a busy area of the mine with its lights off and its engine running. Pierce's conduct violated a policy implemented at the mine by AOI, which provided that:So that the occasions for discipline or discharge might be minimized, each employee should avoid conduct which violates reasonable standards of a good working relationship. Violation of any of the following rules may result in discipline or discharge.1. Failure to observe safety rules and regulations (including Federal, State, or Company safety rules).2. Sleeping, gambling, or playing cards on Company premises.As a result of his conduct, AOI suspended Pierce with the intent to discharge him.The Agreement contains various provisions regarding the termination of mine employees. Article IA broadly provides that "[t]he management of the mine, the direction of the working force and the right to hire and discharge are vested exclusively in the Employer." Article XXIV, entitled "Discharge Procedure," grants mine employees specific procedural and substantive rights relating to disciplinary measures taken by AOI. Section (a) of this Article states that "[n]o Employee covered by this Agreement may be disciplined or discharged except for just cause. The burden shall be on the Employer to establish grounds for discharge in all proceedings under this Agreement." Section (d) of this Article provides for the immediate arbitration of disputed discharges, with the following limitations on the arbitrator's discretion:If the arbitrator determines that the Employer has failed to establish just cause for the Employee's discharge, the Employee shall be immediately reinstated to his job. If the arbitrator determines that there was just cause for the discharge, the discharge shall become effective upon the date of the arbitrator's decision.After AOI gave Pierce notice of its decision to discharge him, Pierce filed a grievance with AOI, demanding to be reinstated and claiming that AOI lacked just cause for the discharge. AOI denied Pierce's grievance, and the Union then arranged for the immediate arbitration of the discharge pursuant to Article XXIV, Section (d) of the Agreement.A full hearing was held before arbitrator Marvin J. Feldman on February 3, 1995. Five days later the arbitrator issued an award reinstating Pierce effective March 15, 1995. In its opinion, the arbitrator first examined the evidence in favor of AOI's position:It might be noted that the contract demands just cause for termination. It is apparent that sleeping is sufficient just cause to trigger a discharge. That is true especially in this case because the engine was running, the grievant was described as being in a busy area, and all of the grievant's lights were not operative in the night season. Thus, it appears that the grievant not only was sleeping but he did it in such a manner so as to provide an unsafe shroud around his behavior. For all of those reasons therefore the grievant should be terminated.The arbitrator then immediately turned to what it viewed as the crucial flaw in AOI's case:[T]he grievant in this case was an employee with some twenty years of service.... [I]t is apparent that the company did not take into account the grievant's seniority of some twenty years.. . . . .The company must give some credence to seniority .... seniority is an extremely important facet of the makeup of an employee. It shows loyalty, it shows recognized ability, it shows efficiency.... The company however failed to take that into account when it terminated this particular grievant.. . . . .I am giving due understanding to the word seniority as uttered in the contract. While a senior person has no greater rights that [sic] the junior person, the senior person's length of service must be recognized when that individual is dealt with by way of termination. It is further noted in that regard that even the rules do not mandate discharge for sleeping.As a result of all of this discussion, it is imperative to understand that the grievant should be given a last chance at this mine because of his seniority involved in this particular matter and I am willing to accomplish something in that regard.The arbitrator therefore concluded that Pierce was entitled to relief.On March 22, 1995, AOI filed this action in district court to vacate the arbitration award, claiming that the arbitrator contravened the plain language of the Agreement by finding that there was just cause to discharge Pierce and yet refusing to direct his termination. Both AOI and the Union moved for summary judgment, and the district court granted the Union's motion, thereby upholding the arbitration award. The court found that the award reflected a determination by the arbitrator that, while sleeping on the job could be just cause for discharge, AOI lacked just cause to discharge Pierce because it failed to examine his work record and length of employment. On appeal, AOI once again argues that the arbitrator, in rendering the award, ignored the plain language of the Agreement.II.We review the district court's grant of summary judgment de novo and apply the same standard as that employed by the district court. Jasper Cabinet Co. v. United Steelworkers of America, 77 F.3d 1025, 1026 (7th Cir.1996). Summary judgment should be granted if the pleadings and supporting documents "show that there is no genuine issue as to any material fact and the moving party is entitled to a judgment as a matter of law." Fed.R.Civ.P. 56(c). If the party opposing a motion for summary judgment bears the burden of proof on an issue, he must go beyond the pleadings and affirmatively demonstrate a genuine issue of material fact for trial. Celotex Corp. v. Catrett, 477 U.S. 317, 324, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986).It has long been established that judicial review of arbitration awards under collective bargaining agreements is extremely narrow. See, e.g., Jasper Cabinet Co., 77 F.3d at 1028; United Steelworkers of America v. Enterprise Wheel & Car Corp., 363 U.S. 593, 596, 80 S.Ct. 1358, 1360, 4 L.Ed.2d 1424 (1960). The Supreme Court has stated that federal courts must enforce an arbitration award unless it fails to "draw its essence from the collective bargaining agreement" and instead represents the arbitrator's "own brand of industrial justice." Enterprise Wheel & Car Corp., 363 U.S. at 597, 80 S.Ct. at 1361. So long as the award is even arguably based on the arbitrator's interpretation of the agreement, it draws its essence from the agreement, even if the reviewing court is convinced that the arbitrator's interpretation is plainly wrong. United Paperworkers Int'l Union v. Misco, Inc., 484 U.S. 29, 37-38, 108 S.Ct. 364, 370-71, 98 L.Ed.2d 286 (1987); Chicago Typographical Union No. 16 v. Chicago Sun-Times, Inc., 935 F.2d 1501, 1505 (7th Cir.1991). Because the parties bargained for the arbitration of disputes regarding the meaning of the collective bargaining agreement, they implicitly committed to abide by the arbitrator's interpretation of the agreement. Chicago Typographical Union, 935 F.2d at 1505. Our role is therefore limited to determining whether the arbitrator "exceeded the powers delegated to him by the parties," i.e., whether he failed to arbitrate the dispute in accord with the agreement. Ethyl Corp. v. United Steelworkers of America, 768 F.2d 180, 184 (7th Cir.1985), cert. denied,Try vLex for FREE for 3 days
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