944 F.2d 1047 (3rd Cir. 1991), 90-3637, Eichleay Corp. v. International Ass'n of Bridge, Structural and Ornamental Iron Workers

Docket Nº:90-3637, 90-3692 and 90-3693.
Citation:944 F.2d 1047
Party Name:EICHLEAY CORPORATION, v. INTERNATIONAL ASSOCIATION OF BRIDGE, STRUCTURAL AND ORNAMENTAL IRON WORKERS; United Brotherhood of Carpenters and Joiners of America; Laborers International Union of North America; Operative Plasterers and Cement Masons International Association of the United States and Canada; International Union of Operating Engineers; an
Case Date:July 01, 1991
Court:United States Courts of Appeals, Court of Appeals for the Third Circuit
 
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Page 1047

944 F.2d 1047 (3rd Cir. 1991)

EICHLEAY CORPORATION,

v.

INTERNATIONAL ASSOCIATION OF BRIDGE, STRUCTURAL AND

ORNAMENTAL IRON WORKERS; United Brotherhood of Carpenters

and Joiners of America; Laborers International Union of

North America; Operative Plasterers and Cement Masons

International Association of the United States and Canada;

International Union of Operating Engineers; and

International Brotherhood of Boilermakers, Iron Ship

Builders, Blacksmiths, Forgers and Helpers. (Two Cases)

CARPENTERS HEALTH AND WELFARE TRUST FUND FOR CALIFORNIA;

Carpenters Pension Trust Fund for Northern California;

Carpenters Vacation and Holiday Trust Fund for Northern

California; Carpenters Apprenticeship and Training Trust

Fund for Northern California; and Carpenters Annuity Trust

Fund for Northern California

v.

EICHLEAY CORPORATION, ECI, Inc., d/b/a Eichleay

Constructors, Inc.; Eichleay Holdings, Inc.; AMK

International.

CALIFORNIA IRON WORKERS FIELD WELFARE PLAN; California Iron

Workers Field Pension Trust Fund; California Field Iron

Workers Vacation Trust Fund; California Field Iron Workers

Apprenticeship Training and Journeyman Retraining Trust

Fund; California and Vicinity Field Iron Workers Annuity

Trust Fund; California Field Iron Workers Administrative Trust Fund

v.

EICHLEAY CORPORATION, ECI, Inc., d/b/a Eichleay

Constructors, Inc.; Eichleay Holdings, Inc.; AMK

International.

OPERATING ENGINEERS HEALTH AND WELFARE TRUST FUND; Pension

Trust Fund for Operating Engineers; Pensioned Operating

Engineers Health and Welfare Fund; Operating Engineers &

Participating Employers Pre-Apprenticeship; Apprentice &

Journeyman Affirmative Action Training Fund; Operating

Engineers Vacation & Holiday Plan; Operating Engineers

Contract Administration Trust Fund; Operating Engineers

Market Preservation Trust Fund; Operating Engineers

Industry Stabilization Trust Fund

v.

EICHLEAY CORPORATION, ECI, Inc., d/b/a Eichleay

Constructors, Inc.; Eichleay Holdings, Inc.; AMK

International.

CEMENT MASONS HEALTH AND WELFARE TRUST FUND FOR NORTHERN

CALIFORNIA; Cement Masons Pension Trust Fund for Northern

California; Cement Masons Vacation Trust Fund for Northern

California; Cement Masons Apprenticeship and Training Trust

Fund for Northern California

v.

EICHLEAY CORPORATION, ECI, Inc., d/b/a Eichleay

Constructors, Inc.; Eichleay Holdings, Inc.; AMK

International.

LABORERS HEALTH AND WELFARE TRUST FUND FOR NORTHERN

CALIFORNIA; Laborers Vacation-Holiday Trust Fund for

Northern California; Laborers Pension Trust Fund for

Northern California; Laborers Training and Retraining Trust

Fund for Northern California

v.

EICHLEAY CORPORATION, ECI, Inc., d/b/a Eichleay

Constructors, Inc.; Eichleay Holdings, Inc.; AMK

International.

International Association of Bridge, Structural and

Ornamental Iron Workers; United Brotherhood of Carpenters

and Joiners of America; Laborers' International Union of

North America; Operative Plasters' and Cement Masons'

International Association of the United States and Canada;

International Union of Operating Engineers; International

Brotherhood of Boilermakers, Iron Ship Builders,

Blacksmiths, Forgers and Helpers; Carpenters Health and

Welfare Trust Fund for California; Carpenters Pension Trust

Fund for Northern California; Carpenters Vacation and

Holiday Trust Fund for Northern California; Carpenters

Apprenticeship and Training Trust Fund for Northern

California; Carpenters Annuity Trust Fund for Northern

California; California Iron Workers Field Welfare Plan;

California Iron Workers Field Pension Trust Fund;

California Field Iron Workers Vacation Trust Fund;

California Field Iron Workers Apprenticeship Training and

Journeyman Retraining Trust Fund; California and Vicinity

Field Iron Workers Annuity Trust Fund; California Field

Iron Workers Administrative Trust Fund; Operating Engineers

Health Welfare Trust Fund; Pension Trust for Operating

Engineers; Pensioned Operating Engineers Health and Welfare

Fund; Operating Engineers & Participating Employers

Pre-Apprenticeship, Apprentice & Journeyman Affirmative

Action Training Fund; Operating Engineers Vacation &

Holiday Plan; Operating Engineers Contract Administration

Trust Fund; Operating Engineers Market Preservation Trust

Fund; Operating Engineers Industry Stabilization Trust

Fund; Cement Masons Health and Welfare Trust Fund for

Northern California; Cement Masons Pension Trust Fund for

Northern California; Cement Masons Vacation Trust Fund for

Northern California; Cement Masons Apprenticeship and

Training Trust Fund for Northern California; Laborers

Health and Welfare Trust Fund for Northern California;

Laborers Vacation-Holiday Trust Fund for Northern

California; Laborers Pension Trust Fund for Northern

California; Laborers Training and Retraining Trust Fund for

Northern California, Appellants.

EICHLEAY CORPORATION

v.

SHEET METAL WORKERS INTERNATIONAL ASSOCIATION

Sheet Metal Workers International Association; and Local

104 of the Sheet Metal Workers' International

Association, Appellants.

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS, AFL-CIO;

Local 302 of the International Brotherhood of Electrical

Workers, AFL-CIO; United Association of Journeymen and

Apprentices of the Plumbing and Pipe Fitting Industry of the

United States and Canada, AFL-CIO; Steamfitters Local 342

of the United Association of Journeymen and Apprentices of

the Plumbing and Pipe Fitting Industry of the United States

and Canada, AFL-CIO, Appellants,

v.

EICHLEAY CORPORATION, a/k/a Eichleay Constructors, Inc.,

and/or ECI, and/or AMK International.

Nos. 90-3637, 90-3692 and 90-3693.

United States Court of Appeals, Third Circuit

July 1, 1991

Argued March 8, 1991.

As Amended Sept. 4, 1991.

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[Copyrighted Material Omitted]

Page 1049

[Copyrighted Material Omitted]

Page 1050

[Copyrighted Material Omitted]

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Victor J. Van Bourg, Sandra Rae Benson, (argued), Van Bourg, Weinberg, Roger & Rosenfeld, San Francisco, Cal., for appellants in No. 90-3637.

James Kuhn, III, Kuhn, Engle & Stein, Pittsburgh, Pa., for appellants in No. 90-3637.

Peter D. Nussbaum (argued), Daniel T. Purtell, Altshuler, Berzon, Nussbaum, Berzon & Rubin, San Francisco, Cal., for appellants in Nos. 90-3692 and 90-3693.

Richard Resnick, Sherman, Dunn, Cohen, Leifer & Yellig, P.C., Washington, D.C., for appellants in Nos. 90-3692 and 90-3693.

Stanford Segal, Gatz, Cohen, Segal & Koerner, Pittsburgh, Pa., for appellants in Nos. 90-3692 and 90-3693.

Judith Rivlin, Sheet Metal Workers Intern. Union, Washington, D.C., for appellants in No. 90-3692.

Brian A. Powers, O'Donoghue & O'Donoghue, Washington, D.C., for appellants in No. 90-3693.

Peter G. Nash (argued), Ogletree, Deakins, Nash, Smoak and Stewart, Washington, D.C., for appellee in Nos. 90-3637, 90-3692, 90-3693.

Before BECKER and NYGAARD, Circuit Judges and GREEN, District Judge [*].

OPINION

NYGAARD, Circuit Judge.

In these consolidated appeals, we again address the great deference due arbitrators' decisions in labor disputes. The appellant Unions 1 contest the district court's order vacating a series of arbitration awards favorable to them. We will affirm in part and reverse in part.

I.

This acrimonious dispute between Eichleay Corporation ("Eichleay") and the plaintiff Unions (collectively the "Unions") arose in 1985. Eichleay, a union shop construction company, and the Unions were parties to collective bargaining agreements known as the National Maintenance Agreements ("NMA"). Early in July 1985, Eichleay reorganized its operations. A subsidiary known as Eichleay Constructors, Inc. ("ECI") was formed to engage in open shop construction nationwide. Eichleay Holdings, Inc. was formed in August of 1985 to hold the stock of Eichleay and ECI, as well as the stock of Eichleay Engineers of Pennsylvania and Eichleay Engineers of Illinois, two former subsidiaries of Eichleay.

During the latter part of that year, Geoff Eichleay, President and CEO of Eichleay, a union shop contractor, learned that USS

Page 1052

Posco, a joint venture of US Steel and Pohang Iron and Steel, a Korean company, planned to modernize a steel mill in Pittsburg, California. This Pitcal project involved renovating the finishing plant portion of the mill, installing a pickle line tandem cold mill and a continuous annealing line. Eichleay became interested in bidding on all or part of the construction work connected with the Pitcal Project.

When USS Posco first solicited bids for the Pitcal project, Geoff Eichleay directed an Eichleay sales staff member to learn the specifics of the job and identify potential competitors. Eichleay representatives then met with USS Posco officials to get preapproved for the short bid list, qualifying Eichleay to submit a final bid on the project.

Eichleay did not make the short bid list, apparently because USS Posco feared that Eichleay was not a large enough company to handle the job. USS Posco suggested that Eichleay form a joint venture with one of the six companies on the short bid list and continue bidding on the project. Eichleay then entered into an agreement with Morrison-Knudsen ("Morrison") to bid on the project as a joint venture, on the condition that concessions be obtained from the building trades unions.

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