Coastal Oil v. Teamsters ( 1998 )


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    UNITED STATES COURT OF APPEALS
    FOR THE FIRST CIRCUIT
    ____________________

    No. 97-1950

    COASTAL OIL OF NEW ENGLAND, INC.,

    Plaintiff, Appellant,

    v.

    TEAMSTERS LOCAL A/W
    INTERNATIONAL BROTHERHOOD OF TEAMSTERS,

    Defendant, Appellee.

    ____________________

    APPEAL FROM THE UNITED STATES DISTRICT COURT

    FOR THE DISTRICT OF MASSACHUSETTS

    [Hon. Reginald C. Lindsay, U.S. District Judge] ___________________

    ____________________

    Before

    Torruella, Chief Judge, ___________

    Campbell, Senior Circuit Judge, ____________________

    and Lynch, Circuit Judge. _____________

    _____________________

    Alan S. Miller, with whom Stoneman, Chandler & Miller LLP _______________ ________________________________
    was on brief for appellant.
    Christine L. Nickerson, with whom Matthew E. Dwyer and Dwyer ______________________ ________________ _____
    & Jenkins, P.C. were on brief for appellee. _______________



    ____________________

    January 23, 1998
    ____________________
















    TORRUELLA, Chief Judge. Although this appeal presents TORRUELLA, Chief Judge. ____________

    a somewhat novel question, the answer is more mundane.

    Appellant employer Coastal Oil of New England, Inc.,

    filed an Application to Vacate an arbitration award in the

    Superior Court of the Commonwealth of Massachusetts on the

    grounds that the arbitrator had exceeded his authority. Appellee

    labor organization Teamsters Local Union No. 25 A/W International

    Brotherhood of Teamsters removed the matter to the United States

    District Court for the District of Massachusetts. See 28 U.S.C. ___

    1441, 1331; 29 U.S.C. 185(a). Both parties filed cross

    motions for summary judgment, whereupon the court ruled against

    appellant and denied vacation of the arbitration award. Instead,

    the district court granted appellee's request that the award be

    enforced. Final judgment was entered thereafter and this appeal

    followed.

    Appellant operates three separate facilities in

    Massachusetts, including one in Revere and one in Chelsea.

    Although they are all represented for collective bargaining

    purposes by appellee, the employees in each of the three

    facilities belong to separate bargaining units and are covered by

    discrete collective bargaining agreements.

    Joseph Abruzzese, a yardman within the Revere

    bargaining unit, was injured in a work-related accident in 1991,

    forcing him to take a leave of absence, during which he received

    benefits under the Massachusetts Worker's Compensation Act.

    Mass. Gen. Laws ch. 152, 1 et seq. In August 1995, when _______


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    Abruzzese sought to return to work, no job openings were

    available in the Revere unit. Nevertheless, appellant and

    appellee reached an agreement that Abruzzese would be reinstated

    to the next available position. Subsequently, Abruzzese learned

    that a yardman position was available in the Chelsea unit, the

    same job that he had previously had in the Revere unit. He

    applied for that slot through his union, appellee. Appellant

    refused the request, contending that Abruzzese only had a right

    to reinstatement in the Revere unit. After appellant hired

    someone else to the Chelsea position, appellee filed a grievance

    pursuant to the Revere contract.

    Eventually, the dispute was heard before an arbitrator.

    After hearing the evidence, the arbitrator concluded that the

    issue to be decided was "whether the Company violated the

    [Revere] Agreement when it refused to place Joseph Abruzzese . .

    . in a position of yardman at the Company's Chelsea terminal . .

    . ." Thereafter, the arbitrator concluded that Article XIV,

    Section 10(a) of the Revere Agreement, which incorporated the

    Massachusetts Worker's Compensation Law, mandated the employment

    of Abruzzese at the open position in Chelsea. Appellant was thus

    ordered to reinstate him to the Chelsea position and to make him

    whole as to back pay and lost benefits.

    Appellant's challenge to the district court's rulings

    stems from its contention that the arbitrator exceeded his

    authority under the Revere collective bargaining agreement by

    ordering the employment of a member of that unit into the Chelsea


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    unit. As a corollary to that issue, appellant claims that the

    arbitrator lacked authority to interpret the Worker's

    Compensation Act.

    Labor arbitration is the product of the private will of

    voluntarily consenting parties. Thus, the starting point, and in

    a real sense the finishing one in this, as in most challenges to

    arbitration awards, is the language of the collective bargaining

    contract. Such language establishes the parameters of the

    arbitrator's authority.

    We commence our quest for the answers to the issues

    raised by this appeal with a reading of Article XVIII of the

    Revere Agreement entitled "Grievance Procedure," which provides

    in Section 2, in effect, that in exchange for labor peace "during

    the life of this Agreement[,] . . . any question of

    interpretation, enforcement, adjustment or grievance . . .

    between the employer and the Union and his employees which cannot

    be adjusted[,] . . . shall be referred . . . to . . .

    arbitration[,] . . . [which] . . . decision . . . shall be final

    and binding upon both parties."

    We next proceed to the specific provision upon which

    the arbitrator relied for his ruling, Article XIV, Section 10(a)

    of the Revere contract. It states that:



    The Company shall either carry worker's
    compensation or, in the event of an injury to an
    employee, shall provide said employee with the
    same benefits and payments and in the same manner
    as provided by the provisions of the Worker's
    Compensation Law (Massachusetts G.L., Chapter

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    152) and Amendments thereto, up to and including
    the date of the signing of this Agreement.

    We thus come to Section 75A of the Massachusetts

    Worker's Compensation statute, which the arbitrator found

    applicable to the submitted grievance under the previously cited

    contractual provision, and which he interpreted to require that

    Abruzzese be reinstated to the Chelsea position notwithstanding

    his previous employment outside that unit. Section 75A reads as

    follows:

    Any person who has lost a job as a result of an
    injury compensable under this chapter shall be
    given preference in hiring by the employer for
    whom he worked at the time of compensable injury
    over any persons not at the time of application
    for re-employment employed by such employer;
    provided, however, that a suitable job is
    available. Actions may be filed under this
    section with the superior court department of the
    trial court for the county in which the alleged
    violation occurred. An employer found to have
    violated this section shall be exclusively liable
    to pay to the employee lost wages, shall grant
    the employee a suitable job, and shall reimburse
    such reasonable attorney fees incurred in the
    protection of rights granted by this section as
    shall be determined by the court.

    In the event that any right set forth in this
    section is inconsistent with an applicable
    collective bargaining agreement or chapter
    thirty- one, the collective bargaining agreement
    or said chapter thirty-one shall prevail.

    Although we have often stated the following principle,

    due to the number of groundless appeals that have come before us

    challenging arbitration awards, it bears repeating that:

    "[j]udicial review of an arbitration award is among the narrowest

    known to the law." Maine Cent. R.R. Co. v. Brotherhood of ______________________ ______________

    Maintenance of Way Employees, 873 F.2d 425, 428 (1st Cir. 1989). ____________________________

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    For courts "do not sit to hear claims of factual or legal error

    by an arbitrator[,] as an appellate court does in reviewing

    decisions of lower courts." United Paperworkers Int'l Union v. _______________________________

    Misco, 484 U.S. 29, 38 (1987). In fact, "[f]ederal court review _____

    of arbitral decisions is extremely narrow and extraordinarily

    deferential." Service Employees Int'l Union v. Local 1199, N.E., _____________________________ ________________

    70 F.3d 647, 651 (1st Cir. 1995).

    "[A] court should uphold an award that depends on the

    arbitrator's interpretation of a collective bargaining agreement

    if it can find, within the four corners of the agreement, any

    plausible basis for that interpretation." El Dorado Technical ____________________

    Servs., Inc. v. Uni n General de Trabajadores de Puerto Rico, 961 ____________ ____________________________________________

    F.2d 317, 319 (1st Cir. 1992). That a court would have decided

    an issue differently is not a basis for overruling an arbitrator

    if the arbitrator "even arguably acted within the scope of his

    authority." Misco, 484 U.S. at 38. _____

    Absent a claim that the award is against an explicit,

    well-defined, and dominant public policy, see Service Employees ___ __________________

    Int'l Union, 70 F.3d at 652, the scope of review is limited to ___________

    claims that the arbitrator's decision is: "(1) unfounded in

    reason and fact; (2) based on reasoning so palpably faulty that

    no judge, or group of judges, ever could conceivably have made

    such a ruling; or (3) mistakenly based on a crucial assumption

    that is concededly a non-fact." Local 1445 United Food and ____________________________

    Commercial Workers Int'l Union v. Stop & Shop Cos., 776 F.2d 19, ______________________________ ________________

    21 (1st Cir. 1985). And, of course, "[a]n arbitrator's view of


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    the scope of the issue . . . is entitled to the same . . .

    deference . . . normally accorded to the arbitrator's

    interpretation of the collective bargaining agreement itself."

    Larocque v. R.W.F., Inc., 8 F.3d 95, 97 (1st Cir. 1993). Based ________ ____________

    on these well-established principles, the outcome of this appeal

    is preordained.

    Although the scope of the reinstatement remedy provided

    through an arbitral award is usually limited to the contractual

    bargaining unit from which the grievance arises, a contrary

    result is not unheard of where the parties have bargained to

    grant the arbitrator such power. See supra. The parties to the ___ _____

    collective bargaining agreement, the same entities presently

    before us, voluntarily contracted to submit to final and binding

    arbitration any question of interpretation of that agreement, or

    any grievance involving employees. It cannot be seriously

    contended that the underlying controversy submitted to, and

    litigated before, the arbitrator does not concern both the

    interpretation of the collective bargaining agreement as well as

    a grievance involving an employee. How can the arbitrator, in

    determining whether appellant lived up to the contractual

    obligations mandated by Section 10(a) of Article XIV of the

    Revere Agreement, fail to address whether the provisions of the

    Massachusetts Worker's Compensation Law, incorporated into that

    agreement by Section 10(a), have been met?

    The response to this question as well as to appellant's

    challenge to the arbitrator's authority to interpret the


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    aforementioned Massachusetts statute is self-evident. Obviously,

    the arbitrator acted properly and within the scope of his

    delegated authority. We can perceive of no valid reason why the

    parties could not also agree to have statutory rights enforced

    before an arbitral forum. See, e.g., Gilmer v. ___ ____ ______

    Interstate/Johnson Lane Corp., 500 U.S. 20, 35 (1991) (holding ______________________________

    ADEA claims to be arbitrable); Bercovitch v. Baldwin Sch., Inc., __________ __________________

    1998 WL 5845, __ F.3d __ (1st Cir. 1998) (ADA claims subject to

    arbitration); (Patterson v. Tenet Healthcare, Inc., 113 F.3d 832 _________ ______________________

    (8th Cir. 1997) (extending Gilmer to Title VII claims); Mago v. ______ ____

    Shearson Lehman Hutton, Inc., 956 F.2d 932, 935 (9th Cir. 1992) _____________________________

    (extending Gilmer to Title VII claims); Utley v. Goldman Sachs & ______ _____ _______________

    Co., 883 F.2d 184, 186 (1st Cir. 1989) (holding inter alia Title ___ __________

    VII claims to be arbitrable); cf. Shearson/American Express, Inc. ___ _______________________________

    v. McMahon, 482 U.S. 220, 238 (1987) (holding Securities Exchange _______

    Act and RICO claims to be arbitrable); Mitsubishi Motors Corp. v. _______________________

    Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 640 (1985) (holding ______________________________

    Sherman Act claims to be arbitrable).

    A cursory reading of that statute leads to the

    inevitable conclusion that the arbitrator's ruling in this case

    was not only clearly within the powers granted to him in the

    collective bargaining agreement, it is substantially the remedy

    that the Massachusetts Superior Court would likely have felt

    required to grant Joseph Abruzzese given that the appellant is a

    single, unitary employer, for workman's compensation purpose. As

    a result, its trinary profile, for labor relations purposes, is


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    presently irrelevant. We note that our views as to the legal

    soundness of the arbitrator's conclusions are largely gratuitous,

    for as previously stated, even an erroneous interpretation of the

    law by an arbitrator is not subject to judicial review if that

    authority has been delegated to the arbitrator, as it was in this

    case.

    The decision of the district court is AFFIRMED. Costs AFFIRMED ________

    are granted to appellee.






































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