Sheet Metal Workers' Intern. v. Law Fabrication

• Decision Date: 05 June 2006
• Docket Number: No. 8:06-cv-76-T-30TBM.,8:06-cv-76-T-30TBM.
• Parties: SHEET METAL WORKERS' INTERNATIONAL ASSOCIATION, LOCAL 15, AFL-CIO, Plaintiff, v. LAW FABRICATION, LLC, Defendant.
• Court: U.S. District Court — Middle District of Florida

459 F.Supp.2d 1236

SHEET METAL WORKERS' INTERNATIONAL ASSOCIATION, LOCAL 15, AFL-CIO, Plaintiff, v. LAW FABRICATION, LLC, Defendant.

No. 8:06-cv-76-T-30TBM.

United States District Court, M.D. Florida, Tampa Division.

June 5, 2006.

COPYRIGHT MATERIAL OMITTED

Arlus J. Stephens, Davis, Cowell & Bowe, LLP, Washington, DC, Joseph

Egan, Jr., Egan, Lev & Siwica, P.A., Orlando, FL, for Plaintiff.

Tony B. Griffin, Vincent B. Lynch, Ruden, McClosky, Smith, Schuster & Russell, P.A., Tampa, FL, for Defendant.

ORDER

MOODY, District Judge.

THIS CAUSE comes before the Court upon Plaintiff's Motion to Enforce An Arbitration Award (Dkt.# 18), Plaintiff's Memorandum in Support of Motion to Enforce An Arbitration Award (Dkt.# 19), Defendant's Objection to Plaintiff's Motion to Enforce An Arbitration Award With incorporated Memorandum of Law (Dkt.# 20), Plaintiffs Reply Memorandum In Support of Motion To Enforce An Arbitration Award (Dkt.# 23), and Defendant's Response In Opposition to Plaintiff's Reply In Support of Motion to Enforce An Arbitration Award With Incorporated Memorandum of Law (Dkt.# 26). The Court, having considered the arguments of the parties, memoranda, affidavits, exhibits, and being otherwise advised in the premises, concludes that Plaintiffs motion should be granted.

Background

Law Fabrication, LLC ("Law Fabrication") is a sheet metal fabrication company located in St. Petersburg, Florida. On May 1, 2001, Law Fabrication entered into a collective bargaining agreement ("CBA") with Local Union # 15 of the Sheet Metal Workers' International Association, AFLCIO ("Local 15"). The relevant portions of the CBA state as follows:

Collective Bargaining Agreement Between Sheet Metal Workers' International Association, Local Union # 15 and LAW Fabrication, Inc.

Effective Date & Duration

Section 1. This Agreement and Addendum attached hereto shall become effective on the first day of May 2001, and remain in full force and effect until the last day of June 30, 2004 and shall continue in force from year to year thereafter unless written notice of termination is given not less than ninety (90) days prior to the expiration date. In the event such notice of termination is served, this Agreement shall continue in force and effect until an impasse in negotiations is reached.

* * *

The 1991 standard form of union agreement and all addenda in place at the commencement of this agreement shall be part of this agreement provided they do not conflict with any of the provisions of this agreement.

STANDARD FORM OF UNION AGREEMENT ARTICLE 10

SECTION 8. In addition to the settlement of grievances arising out of interpretation or enforcement of this Agreement as set forth in the preceding sections of this Article, any controversy or dispute arising out of the failure of the parties to negotiate a renewal of this Agreement shall be settled as hereinafter provided:

(a). Should the negotiations for a renewal of this Agreement of negotiations regarding a wage/fringe reopener become deadlocked in the opinion of the Union representative(s) or of the Employer('s) representative(s), or both, notice to that effect shall be given to the National Joint Adjustment Board.

* * *

The dispute shall be submitted to the National Joint Adjustment Board pursuant to the rules as established and modified from time to time by the National Joint Adjustment Board. The unanimous decision of said Board shall be final and binding upon the parties, reduced to writing, signed and mailed to the parties as soon as possible after the decision has been reached. There shall be no cessation of work by strike or lockout unless and until said Board fails to reach a unanimous decision and the parties have received written notification of its failure.

* * *

(d). Unless a different date is agreed upon mutually between the parties or is directed by unanimous decision of the National Joint Adjustment Board, all effective dates in the new agreement shall be retroactive to the date following the expiration date of the expiring agreement.

The parties attempted to negotiate terms of a new collective bargaining agreement prior to and after the June 30, 2004, expiration date. However, the negotiations were ultimately unsuccessful and Law Fabrication declared an impasse in the negotiations on September 8, 2004. In response, Local 15 notified Law Fabrication that it was submitting the dispute to the National Joint Adjustment Board ("NJAB") in accordance with the procedures of Article 10, Section 8.

On March 31, 2005, Law Fabrication filed a Complaint For Declaratory Judgment and Injunctive Relief seeking a declaratory judgment regarding the termination of the CBA.¹ On June 6, 2005, Local 15 initiated an arbitration action before the NJAB.

On June 21, 2005, Law Fabrication filed an emergency motion for restraining order asking the Court to enjoin the NJAB's hearing scheduled for June 27, 2005. The Court granted Law Fabrication's motion on June 22, 2005. On June 27, 2005, Local 15 filed a motion to quash the temporary restraining order. The Court granted Local 15's motion on June 29, 2005, and vacated the temporary restraining order.

On September 15, 2005, the NJAB conducted a hearing and issued its decision in the matter. Although it received notice of the hearing and was afforded the opportunity to appear and testify in the matter, Law Fabrication did not appear before the NJAB. The NJAB's unanimous decision created a new collective bargaining agreement with the effective dates of July 1, 2004 through June 30, 2010.

On October 6, 2005, this Court entered an Order dismissing Law Fabrication's declaratory judgment action in Case No. 05-cv-638-JSM-EAJ based on this Court's finding that it lacked subject matter jurisdiction at that time over Law Fabrication's claims under Section 301.² As of October 2005, Law Fabrication had not alleged that there had been a violation of the CBA, rather Law Fabrication was simply requesting the Court to rule on the validity of the CBA.³

On December 13, 2005, Law Fabrication filed a state-court action seeking to vacate the arbitration award in case styled Law Fabrication LLC v. Local 15 of the Sheet Metal Workers' International Association, Case No. 05-11023, Div. A, Thirteenth Judicial Circuit Court, Hillsborough County (the "State Court Proceedings"). Local 15 was served on March 22, 2006. On April 4, 2006, Local 15 removed the State Court Proceedings to this Court, Case No. 8:06cv-565-JSM-TGW.

On January 12, 2006, Local 15 filed this action to enforce the NJAB arbitration award against Law Fabrication. Local 15's complaint alleges that Law Fabrication has refused to comply with the award in breach of its contract. Local 15 now seeks equitable relief in the form of a coercive order enforcing the NJAB's arbitration award.

Law Fabrication argues that this Court should vacate the NJAB's arbitration award based on the following arguments: Local 15's demand for arbitration is barred by the statute of limitations; this Court lacks jurisdiction to determine the validity of the CBA; the NJAB exceeded its authority and manifestly disregarded the law by determining the question of arbitrability; and the NJAB arbitrators exceeded their authority in arbitrating a dispute not authorized by the agreement and requiring the purported new contract.

Motion for Summary Judgment Standard

A summary judgment is appropriate only if this court finds that there exists no genuine issue of material fact and that the moving party is entitled to a judgment as a matter of law. Fed.R.Civ. P. 56(c). A party seeking summary judgment bears the initial responsibility of informing the court of the basis for its motion, and identifying those portions of the pleading, depositions, answers to interrogatories, admissions on file, and any affidavits which it believes demonstrate the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Once the moving party has met this burden, the nonmoving party "must produce evidence that shows there exists a genuine issue of material fact." Cottle v. Storer Communication, Inc., 849 F.2d 570, 575 (11th Cir.1988). Rule 56(e) requires the nonmoving party to go beyond the pleadings and by affidavits, or by the depositions, answers to interrogatories, and admissions on file designate specific facts showing there exists a genuine issue for trial. Celotex, 477 U.S. at 324, 106 S.Ct. 2548. The court may consider the offered "pleadings, depositions, answers to interrogatories, and admissions of file, together with the affidavits, if any...." in deciding whether to grant or deny a summary judgment motion. Fed.R.Civ.P. 56(c). If the nonmoving party fails to make a showing sufficient to establish the existence of an element essential to the party's case, then an entry of summary judgment is appropriate. Celotex, 477 U.S. at 322-23, 106 S.Ct. 2548.

Scope of Review

Judicial review of commercial arbitration awards is narrowly limited under the Federal Arbitration Act. See 9 U.S.C. § 10-11. The FAA presumes the confirmation of arbitration awards. See Davis v. Prudential Sec., Inc., 59 F.3d 1186, 1190 (11th Cir.1995); Lifecare Ina, Inc. v. CD Med., Inc., 68 F.3d 429, 433 (11th Cir. 1995). Federal courts should defer to the arbitrator's decision whenever possible. Robbins v. Day, 954 F.2d 679, 682 (11th Cir.1992). Pursuant to 9 U.S.C. § 10; in reviewing an arbitration decision, the court is limited to four narrow questions: Whether (1) the decision is the result of fraud; (2) there is evidence of bias on the part of the arbitrators; (3) the arbitrator was guilty of misconduct; and (4) the arbitrator exceeded his powers. See B.L. Harbert Intern., LLC v. Hercules Steel Co., 441 F.3d 905, 910 (11th Cir.2006); see also J.A. Jones Construction Company v. Flakt, Inc., 731 F.Supp. 1061, 1063 (N.D.Ga.1990). Courts are careful not to exceed this limited scope of review in order to...