DeCoamo v. ILGWU ( 1994 )


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    April 28, 1994 UNITED STATES COURT OF APPEALS
    UNITED STATES COURT OF APPEALS
    FOR THE FIRST CIRCUIT
    FOR THE FIRST CIRCUIT

    __________________
    __________________

    No. 93-1762

    TEJIDOS DE COAMO, INC., ETC.,

    Plaintiff, Appellee,

    v.

    INTERNATIONAL LADIES' GARMENT WORKERS' UNION, ET AL.,

    Defendants, Appellants.

    __________________

    ERRATA SHEET
    ERRATA SHEET

    The opinion of this Court issued on April 25, 1994, is
    amended as follows:

    On page 6, footnote 3, line 4, replace "(7th Cir. 1984).
    See" with "(7th Cir. 1984); see."
    ___ ___

    On page 13, line 14, add a comma after the word "Board."

    On page 13, line 14, add the word "the" after the word
    "and."

    On page 14, line 17, replace "Further, having" with
    "Having."





































    UNITED STATES COURT OF APPEALS
    UNITED STATES COURT OF APPEALS
    FOR THE FIRST CIRCUIT
    FOR THE FIRST CIRCUIT
    ____________________

    No. 93-1762

    TEJIDOS DE COAMO, INC., ETC.,

    Plaintiff, Appellee,

    v.

    INTERNATIONAL LADIES' GARMENT WORKERS' UNION, ET AL.,

    Defendants, Appellants.

    ____________________

    APPEAL FROM THE UNITED STATES DISTRICT COURT

    FOR THE DISTRICT OF PUERTO RICO

    [Hon. Carmen C. Cerezo, U.S. District Judge]
    ___________________

    ____________________

    Before

    Torruella, Circuit Judge,
    _____________

    Coffin, Senior Circuit Judge,
    ____________________

    and Boudin, Circuit Judge.
    _____________

    ____________________

    Ira Jay Katz with whom Rosa Garcia Badillo, Nicolas Delgado,
    ______________ _____________________ ________________
    Reinaldo Perez-Ramirez, and Jose E. Carreras-Rovira were on brief for
    ______________________ _______________________
    appellants.
    Vicente J. Antonetti, Howard Pravda, Goldman, Antonetti, Cordova
    ____________________ _____________ ____________________________
    & Axtmayer, R. Carl Cannon, Frank B. Shuster and Constangy, Brooks &
    ___________ ______________ _________________ ___________________
    Smith were on brief for appellee.
    _____


    ____________________

    April 25, 1994
    ____________________


















    BOUDIN, Circuit Judge. On January 12, 1993, Teijidos de
    _____________

    Coamo, Inc. ("the Company") filed this suit in district court

    against the International Ladies' Garment Workers' Union and

    one of its locals (collectively, "the Unions"). The

    complaint, premised on section 301 of the Taft-Hartley Act,

    29 U.S.C. 185, sought a declaration that no contract

    existed between the Company and the Unions; and the Company

    also requested a stay of pending arbitration proceedings.

    The district court granted a stay pendente lite, and the
    ______________

    Unions appealed. We vacate the stay and remand for further

    proceedings.

    I.

    Well before the current law suit, the Company and the

    Unions were parties to a collective bargaining agreement

    covering the Company's knit, cut, and sew employees at

    Barranquitas, Puerto Rico. That contract expired on February

    29, 1992. Thereafter, on April 17, 1992, the parties entered

    into a "summary of agreement" looking toward a new contract.

    It is enough for present purposes to say that the Company

    believes that no effective contract was adopted at that time

    or thereafter; the Unions, by contrast, take the view that

    (based on past practice and the summary of agreement) a new

    contract did go into effect on or after April 17, 1992,

    retroactive to February 1, 1992, and is currently in force.





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    On November 5, 1992, the Unions requested arbitration,

    before arbitrator David Helfeld, of a dispute concerning

    access for union representatives to the Company's

    Barranquitas mill. The Company agreed; its explanation for

    agreeing is that the contract that expired on February 29,

    1992, had provided for arbitration of disputes arising under

    that agreement and that the access dispute dated back to the

    period before the contract expired. The arbitrator scheduled

    a hearing for December 7, 1992.

    On or about November 30, 1992, the Unions learned that

    some of the Company's employees desired to decertify the

    Unions as the representative of the Barranquitas workers and

    were preparing to petition the National Labor Relations Board

    for a new election. In early December 1992 there was a

    strike and certain employees were disciplined by the Company

    for what it said was strike and picket-line misconduct. The

    Unions then sought arbitration before arbitrator Helfeld of

    these disciplinary disputes. The Company objected that there

    was no contract and thus no basis for arbitration of new

    disputes arising after February 29, 1992.

    The arbitrator held a hearing on December 30, 1992, and

    advised the parties that he would determine whether he had

    authority to proceed. The Company then filed the present

    lawsuit on January 12, 1993; the complaint sought, as already

    noted, a judicial declaration that no contract existed after



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    February 29, 1992, a determination that would strip the

    arbitrator of power at least as to disputes arising after

    that date. The Company also sought a judicial stay of the

    arbitration while the contract issue was being determined by

    the court.

    On January 20, 1993, a magistrate judge denied a stay of

    the arbitration proceedings. On January 27, 1993, the

    arbitrator issued a decision finding that a contract

    currently existed between the Company and the Unions. He

    proposed to schedule additional hearings on the merits of the

    disputes. The Company appealed the magistrate judge's

    decision and also asked the district court to stay further

    arbitration proceedings pending the court's decision as to

    whether the arbitrator had authority to proceed.

    On June 21, 1993, the district court issued a stay

    pendente lite of arbitration as to grievances alleged to have
    _____________

    arisen after February 29, 1992. The Unions then filed the

    present appeal to this court. So far as we have been

    advised, the district court has not yet determined the merits

    of the dispute and we are concerned only with the Unions'

    claim that interim relief--reflected in the stay of

    arbitration--was improperly granted.

    II.

    On this appeal, the first question presented is whether

    we have jurisdiction to review the stay of arbitration



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    granted by the district court as either a final order or an

    appealable interlocutory injunction. The Company has raised

    this issue by motion to dismiss the appeal. Clearly, the

    district court's stay is not a final disposition of the case.

    But we agree with the Unions that it is an appealable

    interlocutory injunction.

    The governing statute, 28 U.S.C. 1292(a)(1), provides

    for immediate appeals of interlocutory orders of district

    courts "granting . . . [or] refusing . . . injunctions." An

    order staying an arbitration proceedings is in substance, and

    often in form, a directive to the parties to cease the

    arbitration. It is thus injunctive in character, A. & E.
    ________

    Plastik Pak Co. v. Monsanto Co., 396 F.2d 710, 713 (9th Cir.
    ________________ ____________

    1968), and one might think that there could be little doubt

    that such an order was immediately appealable.

    The doubts, such as they are, stem from two facts.

    First, several circuits, including this one, have held that

    an order refusing to stay an arbitration proceeding is not

    immediately appealable under 28 U.S.C. 1292(a)(1).1

    Second, in a series of decisions beginning with one by Judge

    Friendly in the Lummus case,2 the Second Circuit has gone
    ______


    ____________________

    1E.g., New England Power Co. v. Asiatic Petroleum Corp.,
    ____ _____________________ _______________________
    456 F.2d 183, 185 (1st Cir. 1972); Stateside Machinery Co. v.
    _______________________
    Alperin, 526 F.2d 480, 482-84 (3d Cir. 1975).
    _______

    2Lummus Co. v. Commonwealth Oil Ref. Co., 297 F.2d 80
    __________ __________________________
    (2d Cir. 1961), cert. denied, 368 U.S. 986 (1962). Later
    ____________
    Second Circuit cases are listed in 16 Wright, Miller, Cooper

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    further and held that an order staying an arbitration

    proceedings also is not immediately appealable under 28

    U.S.C. 1292. The Company argues that the Second Circuit's

    approach is supported by considerations of symmetry and

    policy.

    The Second Circuit appears to stand alone. At least six

    other circuits treat an order staying arbitration as an

    injunction that is immediately appealable.3 Our own

    decision in Societe Generale v. Raytheon European Management
    ________________ _____________________________

    and Systems Co., 643 F.2d 863 (1st Cir. 1981), tenuously
    _________________

    distinguished by the Company, leans in the direction of the

    majority rule. A 1988 amendment to the Federal Arbitration

    Act, now 9 U.S.C. 16(a)(2)--although perhaps formally

    inapplicable to this case--expresses a congressional policy

    in favor of immediate appeal of "an interlocutory order

    granting . . . an injunction against an arbitration that is

    subject to this title."4



    ____________________

    & Gressman, Federal Practice and Procedure 3923, at 60
    ________________________________
    (1977).

    3The circuits are the Fifth, Sixth, Seventh, Eighth,
    Ninth, Tenth, Eleventh, and the District of Columbia. E.g.,
    ____
    Timberlake v. Oppenheimer & Co., Inc., 729 F.2d 515, 518-19
    __________ ________________________
    (7th Cir. 1984); see 16 Wright, supra, 3923 (1977 and 1994
    ___ _____
    Supp.).

    4The arbitration title broadly covers arbitration
    clauses in maritime agreements or agreements evidencing
    transactions involving interstate commerce, 9 U.S.C. 2, but
    it excludes "contracts of employment" from its scope. Id.
    ___
    1; see Paperworkers Co. v. Misco, 484 U.S. 29, 40 n.9 (1987).
    ___ _______________ _____

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    Judge Friendly's views are never lightly to be

    disregarded. However, his main concern in Lummus was with
    ______

    "the baneful effect" of permitting appeals from "order[s]

    refusing a stay of arbitration." 297 F.2d at 86. As he

    explained, immediate appeals from such orders would

    compromise the speedy, informal disposition at which

    arbitration agreements aim. Id. Judge Friendly then
    __

    concluded that, as a matter of symmetry, "if an order

    refusing a stay" is deemed not to be an injunction, then "an

    order granting such a stay" also cannot be so classified.

    Id.
    ___

    Courts since Lummas have been willing to entertain just
    ______

    such a distinction between orders granting stays of

    arbitration and orders denying them. Perhaps the best way to

    explain this outcome is to say that both orders constitute

    injunctions but that the policy favoring arbitration

    precludes an immediate appeal where the district court has

    refused a stay. New England Power Co., supra, 456 F.2d at
    _____________________ _____

    186. After all, treating procedure as a special concern of

    the courts, judges have not hesitated to embroider the

    Judicial Code with other judge-made rules on appealability.

    E.g., Cohen v. Beneficial Industrial Loan Corp., 337 U.S. 541
    ____ _____ ________________________________

    (1949).

    Accordingly we believe that an order declining to stay

    an arbitration is an injunction but for policy reasons is not



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    immediately reviewable by appeal, although of course

    fundamental objections to the arbitration are preserved for

    later judicial review if an award is made. By contrast, an

    order staying arbitration is an injunction that is

    immediately appealable under 28 U.S.C. 1292(a)(1), even

    where section 16 of the Federal Arbitration Act does not

    apply to the particular order. We thus have jurisdiction to

    review the district court's stay order in this case, and turn

    now to the question whether the district court had authority

    to grant such a stay.

    III.

    The Unions claim that the stay granted by the district

    court was an injunction issued in violation of the stringent

    requirements of section 7 of the Norris-LaGuardia Act, 29

    U.S.C. 107. In the alternative, the Union says that the

    stay was unjustified even under the less stringent equitable

    standards that govern ordinary injunctions. For reasons

    already indicated we agree that the stay comprised an

    injunction. The next, and more difficult, question is

    whether section 7 supplies the yardstick.

    Section 7 is one of a set of interlocking provisions of

    the Norris-LaGuardia Act designed to curb the use of federal

    court injunctions in cases "involving or growing out of a







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    labor dispute."5 Under section 7, no injunction may be

    issued in such a case except after an evidentiary hearing,

    specified findings by the court, and certain other steps

    including a bond. The required findings include findings

    that absent an injunction "substantial and irreparable injury

    to complainant's property will follow" and that public

    officers "are unable or unwilling to furnish adequate

    protection." Id.
    ___

    The threshold question, where section 7 is invoked, is

    whether the case derives from a "labor dispute," a critical

    phrase that provides the outer boundary for much of the

    Norris-LaGuardia Act. On the face of the matter, a dispute

    between an employer and its unions involving arbitration,

    plant access, discipline of employees, and the existence vel
    ___

    non of a collective bargaining agreement does comprise a
    ___

    labor dispute, taking that phrase literally. The pertinent

    definitions in the statute are broad, see section 13, 29
    ___








    ____________________

    5Section 1 of the statute says that federal courts have
    no jurisdiction to issue temporary restraining orders or
    injunctions in such cases except in "strict conformity" with
    the statute; section 4 prohibits any temporary restraining
    order or injunction against certain acts (e.g., refusing to
    ____
    work) regardless of circumstances; and section 7 imposes
    severe conditions on the grant of injunctive relief where it
    is not barred outright by section 4. 29 U.S.C. 101, 104,
    107.

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    U.S.C. 113, and have been broadly construed by the courts

    including the Supreme Court.6

    While the Supreme Court has been unwilling to narrow the

    definition of "labor dispute," it has carved out a quite

    important set of exceptions to the Norris-LaGuardia Act in

    relation to arbitration. Following the Taft-Hartley Act's

    creation of contract suits under section 301, the Supreme

    Court upheld an injunction requiring an employer to arbitrate

    a dispute, as the employer and union had agreed. Textile
    _______

    Workers Union v. Lincoln Mills, 353 U.S. 448 (1957). What is
    _____________ _____________

    pertinent here is not the decision's famous holding that

    federal law governs such labor contracts; it is the further

    conclusion that section 7 did not apply to the injunction:

    The congressional policy in favor of the
    enforcement of agreements to arbitrate grievance
    disputes being clear, there is no reason to submit
    them to the requirements of 7 of the Norris-
    LaGuardia Act.

    Id. at 458-59 (footnote omitted).
    ___

    Thereafter, in Boys Markets, Inc. v. Retail Clerks
    ___________________ ______________

    Union, 398 U.S. 235 (1970), the Court took the even more
    _____

    extreme step of approving a federal court injunction to

    enjoin a strike that the union was conducting despite a

    contract promising to arbitrate and to refrain from strikes.



    ____________________

    6Burlington Northern R.R. v. Brotherhood of Maintenance
    _________________________ __________________________
    of Way Employees, 481 U.S. 429, 441-42 (1987); International
    ________________ _____________
    Ass'n of Machinists v. Eastern Air Lines, 826 F.2d 1141, 1145
    ___________________ _________________
    (1st Cir. 1987).

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    Section 7 aside, this injunction required the Court to

    override section 4's flat prohibition on federal injunctions

    against strikes. 29 U.S.C. 104. Nevertheless, Justice

    Brennan declared that "the unavailability of equitable relief

    in the arbitration context" would frustrate Congress' policy

    "favoring the voluntary establishment of a mechanism for the

    peaceful resolution of labor disputes . . . ." 398 U.S. at

    253.

    The twin themes in these cases are the desirability of

    enforcing labor contracts and the desirability of

    arbitration. At least where these objectives coincide, as in

    Lincoln Mills and Boys Markets, we are told that the Norris-
    ______________ ____________

    LaGuardia Act's "seemingly absolute terms" can be made to

    yield to "the subsequently enacted provisions of 301(a) . .

    . and the purposes of arbitration." Boys Markets, supra, 398
    ____________ _____

    U.S. at 249-50. We do not think that in this case injunctive

    relief can be justified on either ground--to enforce a

    contract or support arbitration--let alone both.

    It requires no argument to show that the stay of

    arbitration granted in this case is not a step fostering

    arbitration. Nor can the stay fairly be described as one to

    enforce a collective bargaining agreement. The Company's
    _______

    position, after all, is that there is no such agreement at

    all. The Company is seeking not to enforce a contract but to

    obtain a judicial determination that none exists. This is a



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    permissible aim but it is rather far from the circumstances

    of Lincoln Mills and Boys Market.
    _____________ ___________

    The Company's argument for bypassing section 7 is not

    without some force. It points out that whatever the strength

    of the policy favoring arbitration of labor disputes, the

    obligation to arbitrate remains a creature of contract.

    United Steelworkers of America v. Warrior & Gulf Nav. Co.,
    _______________________________ _________________________

    363 U.S. 574, 582 (1960). Thus, there is no obligation to

    arbitrate if the parties did not agree to do so. Id. A
    ___ _

    fortiori there is no obligation to arbitrate if the parties
    ________

    did not agree to anything, as the Company claims here.

    Indeed, in AT&T Technologies, Inc. v. Communications Workers,
    _______________________ ______________________

    475 U.S. 643 (1986), the Supreme Court held that a court

    cannot order arbitration without a judicial finding that

    there is an agreement providing for it.

    But AT&T Technologies, although heavily stressed by the
    _________________

    Company, does not directly govern our case. Here the

    arbitration clause invoked by the Unions does not require a

    court order: an arbitrator being already designated under

    the alleged contract--that is, the prior contract that the

    Unions claim to have been extended--the Unions could begin

    the process without cooperation from the Company or aid from

    the courts. It is the Company that has taken the offensive

    and sought to preempt the arbitration. Nothing in AT&T
    ____

    Technologies addresses the question whether section 7 applies
    ____________



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    to injunctive relief when an employer seeks to preempt

    arbitration.

    Taking a very broad view, one could argue that the

    Lincoln Mills policy of issuing injunctions to enforce labor
    _____________

    contracts should entail an equal willingness to help parties

    avoid spurious claims that a contract exists. It might also

    be argued that, despite the Norris-LaGuardia Act's sweeping

    language, the primary concerns that it had with labor

    injunctions involved conduct such as lawful strikes, peaceful

    picketing and union organizing which are very remote from the

    conduct--a disputed arbitration proceeding--sought to be

    stayed in this case. These are not frivolous arguments.

    On the other hand, the judicial virtues include

    respecting statutory language, and section 7 seems on its

    face to apply to our case. The Lincoln Mills and Boys
    _____________ ____

    Markets cases are distinguishable because they involved
    _______

    affirmative enforcement of collective bargaining contracts in

    support of arbitration. Also, what law can be found in the

    circuits may lean slightly in favor of the view that section

    7 does apply here: the Ninth Circuit has so held, as did the

    Third (though by a two-to-one vote); and the Second Circuit

    cases that look in the opposite direction do not directly

    discuss our issue.7


    ____________________

    7Compare Camping Constr. Co. v. District Council of Iron
    _______ ___________________ ________________________
    Workers, 915 F.2d 1333 (9th Cir. 1990) (no stay), and Lukens
    _______ ___ ______
    Steel Co. v. United Steelworkers of America, 989 F.2d 668 (3d
    _________ ______________________________

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    On balance, we are disposed to hold that section 7 does

    govern a suit to enjoin a labor arbitration--unless and until

    the Supreme Court says otherwise. Carving out new exceptions

    to the Norris-LaGuardia Act, or markedly extending old ones,

    is primarily a matter for the Supreme Court. We think such a

    step is entirely possible; but we do not think it so certain

    that we should anticipate it. Modern labor law, after all,

    is largely a construct of Congress, the Labor Board, and the

    Supreme Court. The edifice does not need another architect.

    IV.

    To say that section 7 applies is not the end of the

    matter. The central findings and procedures required for an

    injunction under section 7 differ from those required for an

    ordinary injunction,8 but only by degree and in detail. The

    most important findings required by and peculiar to section 7

    are that "unlawful acts" be threatened, that "substantial and

    irreparable injury to complainant's property" will follow

    absent an injunction, and that "public officers" "are unable





    ____________________

    Cir. 1993) (same by a divided court), with Diamond Glass
    ____ _____________
    Corp. v. Glass Warehouse Workers and Paint Handlers Local
    _____ ___________________________________________________
    Union 206, 682 F.2d 301 (2d Cir. 1982) (arbitration enjoined
    _________
    without discussing section 7).

    8The almost universal considerations in granting a
    preliminary injunction are a (1) a likelihood of success on
    the merits, (2) irreparable injury to the moving party, (3)
    outweighing harm to the opponent, and (4) compatibility of
    the injunction with the public interest.

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    or unwilling to furnish adequate protection" to the

    property.9

    Based on these requirements, especially the reference

    to public officers, a decent argument could be made that

    section 7 precludes any injunctive relief in a labor dispute

    except where essential to prevent damage to physical property

    caused by violent acts. That reading, however, goes slightly

    beyond the precise words of the statute. Further, there

    would be some tension between such a view of section 7 and

    the Supreme Court's willingness to uphold injunctions in aid

    of contractually promised arbitration (Lincoln Mills) and
    ______________

    even against peaceful strikes (Boys Markets).
    ____________

    Having given the term "labor disputes" a broad reading,

    we see good reason to preserve at least the potential for

    injunctive relief where unlawful (but non-violent) acts

    threaten to cause "substantial and irreparable injury" to

    some property-like interest (other than physical security).

    There is even legislative history in the Norris-LaGuardia Act

    to the effect that Congress did not mean to preclude

    injunctive relief against "unlawful acts or acts of fraud or
    __ __






    ____________________

    9Section 7 also requires findings that the balance of
    harms as to each element of the injunction be in favor of the
    complainant and that complainant lack an adequate remedy at
    law; but these are requirements that normally apply to any
    injunction.

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    violence."10 If the balance of harms and irreparable

    injury requirements are taken seriously, little danger exists

    of promiscuous injunctions under section 7.

    This danger is further reduced by two other

    considerations. First, no matter what threats or harms are

    presented, section 4--except as limited by the Supreme court-

    -creates an unqualified "no injunction" zone for the core

    conduct of striking, organizing in unions, and picketing.

    Second, where the conduct falls outside that zone, the

    substantive findings required by section 7 are backed by

    procedural requirements that go beyond those of ordinary

    injunctions (e.g., an evidentiary hearing and a bond for
    ____

    costs and attorney's fees).

    In this case, we do not think that either the findings

    or the procedural requirements of section 7 were satisfied.

    The district court may have assimilated a stay of arbitration

    to a stay of a phase of its own proceedings, for which no

    findings of any kind would be required. But despite some

    similarities, the stay of arbitration is a coercive order

    directed not at the court's own proceedings but at the out-

    of-court activities of parties before the court. That, in

    fact, is why the stay is an injunction appealable under 28

    U.S.C. 1292(a).


    ____________________

    10S. Rep. No. 163, 72d Cong., 1st Sess. 11 (1932)
    (emphasis added); see Grace Co. v. Williams, 96 F.2d 478, 481
    ___ _________ _________
    (8th Cir. 1938), recounting the legislative history.

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    Here, starting with procedure, the district court

    apparently omitted the requirement that no injunction be

    granted except "after hearing the testimony of witnesses in

    open court (with the opportunity for cross-examination),"

    section 7; nor were there separate formal findings of fact

    covering the issues for which section 7 requires such

    findings;11 nor does it appear that bond was filed to cover

    damages including attorney's fees, as section 7 also

    requires. There may be cases where one or another of these

    procedural requirements is waived or its omission is

    manifestly harmless; but the lack of substantive findings

    cannot be so easily ignored.

    Turning to substance, we do not think that it is

    apparent how the lack of an injunction threatened the Company

    with substantial and irreparable injury. In this court, the

    only claim made by the Company under this head is that the

    arbitration proceedings would be used by the Unions "as

    campaign propaganda in a decertification election." This

    assertion is not explained in the brief, and it is scarcely




    ____________________

    11Section 7 requires five findings. The first four are
    that unlawful acts are threatened, that substantial and
    irreparable injury will follow, that the balance of harm on
    each element of relief favors the complainant, and that
    complainant has no adequate remedy at law. The fifth
    finding, that public officers are unable or unwilling to
    furnish protection, is (as we read the statute) irrelevant
    where the harm is not of a kind that the police ordinarily
    prevent.

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    self-evident that the arbitration proceedings would or would

    even be likely to alter the election results.

    If the concern is with relief that the arbitrator might

    order, the short answer is that the award is not self-

    executing. A valid objection to jurisdiction would be

    presented to and decided by the court before the award was

    implemented. As for any propaganda benefit accruing to the

    Unions from the existence of the arbitration or even the

    arbitrator's findings, the Company is no less free to

    publicize its own claim that the arbitration is a nullity,

    pointing to its declaratory judgment suit as evidence that

    the challenge is a serious one.

    In its district court papers the Company argued that it

    needed a stay to forestall a hopeless predicament: either

    participate in the arbitration "and risk waiving its right to

    judicial determination of the issue of substantive

    arbitrability" or decline to participate and be bound by the

    award if the arbitrator is later held to have jurisdiction.

    Not surprisingly, no authority was cited for the suggestion

    that the Company would waive an explicitly asserted

    jurisdictional objection by defending on the merits. The

    suggestion is mistaken. E.g., IAM Lodge 1777 v. Garsteel,
    ____ _______________ _________

    Inc., 900 F.2d 1005, 1008-10 (9th Cir.), cert. denied, 111 S.
    ____ ____________

    Ct. 143 (1990).





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    It is true that participating would cause one form of

    loss, namely, the time and expense of litigation before the

    arbitrator. But courts have ordinarily not deemed litigation

    expense to be substantial and irreparable injury warranting

    an injunction, Renegotiation Board v. Bannercraft Clothing
    ____________________ ____________________

    Co., 415 U.S. 1, 24 (1974), USM Corp. v. GKN Fasteners, Ltd.,
    ___ _________ ___________________

    574 F.2d 17, 20 (1st Cir. 1978), and perhaps in deference to

    such decisions the Company does not argue to the contrary in

    this court. If the Bannercraft generalization may have some
    ___________

    exceptions, nothing here makes this case appear exceptional.

    In sum, so far as appears from this record, there is no

    substantial and irreparable injury--or at least injury of a

    kind that courts recognize in injunction cases. Under

    ordinary standards for injunctive relief, irreparable injury

    is nominally required but courts are often generous where the

    complainant's claim on the merits is very strong or

    unanswerable. Under section 7, however, there is no such

    generosity. Absent a supported finding of "substantial and

    irreparable injury," the stay of arbitration cannot stand.

    V.

    This case is not over. The Company's complaint sought a

    declaration that there was no collective bargaining agreement

    in force after February 29, 1992, and so no obligation to

    arbitrate disputes arising after that date. Although section

    301 actions are ordinarily brought to enforce contracts, the



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    Declaratory Judgment Act, 28 U.S.C. 2201-02, permits the

    declaration of rights about which a real controversy exists,

    and the Unions have not disputed the district court's

    authority to grant declaratory relief. Nor does section 7

    pose any barrier to such a declaration; it is directed only

    against injunctions. See, e.g., Wilkes-Barre Publishing Co.
    ___ ____ __________________________

    v. Newspaper Guild of Wilkes-Barr, Local 120, 647 F.2d 372,
    __________________________________________

    379 (3d Cir. 1981), cert. denied, 454 U.S. 1143 (1982).
    ____________

    If this seems an eccentric limitation on a useful remedy

    now customarily available to litigants, the short answer is

    that the Norris-LaGuardia Act reflects a unique historical

    experience. See Frankfurter & Greene, The Labor Injunction
    ___ ____________________

    (1930). Perceived judicial abuses gave rise to severe

    restrictions on federal court authority; and the

    restrictions, being statutory, persist even though the

    climate that led to abuses has altered. Courts have assumed

    a lot of authority in recent years, but the authority to

    repeal statutes still belongs to Congress.

    The stay of arbitration granted by the district court is

    vacated and the case is remanded for further proceedings on
    _______ ________

    the request for declaratory relief.











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Document Info

Docket Number: 93-1762

Filed Date: 4/28/1994

Precedential Status: Precedential

Modified Date: 9/21/2015

Authorities (19)

Societe Generale De Surveillance, S.A. v. Raytheon European ... , 643 F.2d 863 ( 1981 )

Usm Corporation v. Gkn Fasteners, Limited , 574 F.2d 17 ( 1978 )

Diamond Glass Corporation v. Glass Warehouse Workers and ... , 682 F.2d 301 ( 1982 )

New England Power Company v. Asiatic Petroleum Corporation , 456 F.2d 183 ( 1972 )

International Association of MacHinists and Aerospace ... , 826 F.2d 1141 ( 1987 )

wilkes-barre-publishing-co-v-newspaper-guild-of-wilkes-barre-local-120 , 647 F.2d 372 ( 1981 )

Grace Co. v. Williams , 96 F.2d 478 ( 1938 )

A. & E. Plastik Pak Co., Inc. v. Monsanto Company , 396 F.2d 710 ( 1968 )

barbara-j-timberlake-v-oppenheimer-co-inc-glen-r-sondag-john-c , 729 F.2d 515 ( 1984 )

camping-construction-company-v-district-council-of-iron-workers-iron , 915 F.2d 1333 ( 1990 )

lukens-steel-company-appelleecross-appellant-v-united-steelworkers-of , 989 F.2d 668 ( 1993 )

Renegotiation Board v. Bannercraft Clothing Co. , 94 S. Ct. 1028 ( 1974 )

Cohen v. Beneficial Industrial Loan Corp. , 69 S. Ct. 1221 ( 1949 )

Textile Workers v. Lincoln Mills of Ala. , 77 S. Ct. 912 ( 1957 )

United Steelworkers v. Warrior & Gulf Navigation Co. , 80 S. Ct. 1347 ( 1960 )

Boys Markets, Inc. v. Retail Clerks Union, Local 770 , 90 S. Ct. 1583 ( 1970 )

At&T Technologies, Inc. v. Communications Workers , 106 S. Ct. 1415 ( 1986 )

Burlington Northern Railroad v. Brotherhood of Maintenance ... , 107 S. Ct. 1841 ( 1987 )

United Paperworkers International Union v. Misco, Inc. , 108 S. Ct. 364 ( 1987 )

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