Chelsea Grand, LLC v. New York Hotel and Motel Trades Council, AFL-CIO ( 2018 )


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  •     17-1711-cv
    Chelsea Grand, LLC v. New York Hotel and Motel Trades Council, AFL-CIO
    UNITED STATES COURT OF APPEALS
    FOR THE SECOND CIRCUIT
    SUMMARY ORDER
    RULINGS  BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER
    FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED BY FEDERAL RULE OF
    APPELLATE PROCEDURE 32.1 AND THIS COURT’S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY
    ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX
    OR AN ELECTRONIC DATABASE (WITH THE NOTATION “SUMMARY ORDER”). A PARTY CITING A SUMMARY
    ORDER MUST SERVE A COPY OF IT ON ANY PARTY NOT REPRESENTED BY COUNSEL.
    At a stated term of the United States Court of Appeals
    for the Second Circuit, held at the Thurgood Marshall
    United States Courthouse, 40 Foley Square, in the City of
    New York, on the 3rd day of April, two thousand eighteen.
    PRESENT: DENNIS JACOBS,
    RICHARD C. WESLEY,
    Circuit Judges,
    RICHARD K. EATON,*
    Judge.
    - - - - - - - - - - - - - - - - - - - -X
    Chelsea Grand, LLC,
    Plaintiff-Counterdefendant-
    Appellant,
    -v.-                                       17-1711-cv
    New York Hotel and Motel Trades
    Council, AFL-CIO,
    Defendant-Counterclaimant-
    Appellee.
    - - - - - - - - - - - - - - - - - - - -X
    FOR APPELLANT:                      Kannon K. Shanmugam, Amy Mason
    Saharia, Williams & Connolly
    LLP, Washington, D.C.
    * Judge Richard K. Eaton, of the United States Court of
    International Trade, sitting by designation.
    1
    FOR APPELLEE:              Barry N. Saltzman, Andrew D.
    Midgen, Pitta LLP, New York, NY.
    Appeal from a judgment of the United States District
    Court for the Southern District of New York (Crotty, J.).
    UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED
    AND DECREED that the judgment of the district court be
    AFFIRMED.
    Chelsea Grand, LLC (“Chelsea Grand”) appeals from the
    judgment of the United States District Court for the
    Southern District of New York confirming a 2016 arbitration
    award (“2016 Award”) that resolves a labor dispute between
    Chelsea Grand and the New York Hotel and Motel Trades
    Council (the “Union”). Chelsea Grand also appeals the
    district court’s dismissal of its declaratory judgment
    action. We assume the parties’ familiarity with the
    underlying facts, the procedural history, and the issues
    presented for review.
    The 2016 Award is the culmination of over a decade of
    strife between Chelsea Grand and the Union over the hotel’s
    collective-bargaining obligations. In 2003, Chelsea Grand
    obtained a franchise for the Four Points Sheraton Hotel.
    Chelsea Grand, LLC v. N.Y. Hotel & Motel Trades Council,
    AFL-CIO, No. 07 Civ. 2614(PAC), 
    2014 WL 4813028
    , at *3
    (S.D.N.Y. Sept. 29, 2014) (“Chelsea Grand I”). As a
    condition of the franchise, Chelsea Grand was required to
    contract with Interstate, a prestige hotel management firm.
    
    Id.
     In January 2004, the Union entered into a Memorandum
    of Agreement (“MOA”) with Interstate. Id. at *6. This
    agreement bound Interstate and any hotels it owned,
    operated, or managed, to the card count and neutrality
    provisions of the 2001 Industry-Wide Agreement (“IWA”).
    Id. at *8.
    As a result of its agency relationship with Interstate,
    Chelsea Grand, too, is bound to the terms, provisions, and
    requirements of the IWA.1 Id. at *12 (“Interstate’s
    1 On appeal, Chelsea Grand continues to overlay its legal
    arguments with the perceived unfairness of the IWA and MOU—
    documents, which (the hotel argues) it never consented to
    2
    appointment as managing agent for Chelsea Grand was
    sufficient to support the Union’s belief that Interstate
    had the authority to bind the hotel to the IWA.”), aff’d,
    Chelsea Grand, LLC v. N.Y. Hotel & Motel Trades Council,
    AFL-CIO, 629 F. App’x 152, 155 (2d Cir. 2015) (“Chelsea
    Grand II”) (summary order). Article 26 of the IWA confers
    upon the parties the right to demand resolution of any
    disputes by the Office of the Impartial Chairperson
    (“OIC”), a labor arbitrator. See J. App’x at 661. The IWA
    includes Addendum IV, which authorizes the OIC to issue
    “such remedial orders as are consistent with applicable
    NLRB standards,” and to award “monetary or punitive
    damages.” Id. at 564.
    The Union invoked arbitration against Chelsea Grand in
    2007, alleging that Chelsea Grand refused to honor labor
    rights and had subjected its employees to intimidation and
    threats to avoid unionization. Id. at 577-85. The OIC
    issued successive awards (“2007 Awards”) requiring Chelsea
    Grand to turn over employee documentation necessary to
    effectuate the bargaining process and imposed a daily
    penalty of $35,550 until Chelsea Grand complied. Id. at
    574, 577, 581, 583-85. Chelsea Grand complied with the
    2007 Awards but also sued to vacate them.
    During that litigation, the parties again convened in a
    second arbitration, in April 2008. The resulting OIC award
    (“2008 Award”) ordered further remedies to redress Chelsea
    Grand’s “egregious” misconduct. Id. at 646-49, 650.
    Chelsea Grand did not move to vacate the 2008 Award, and
    the Union never moved to confirm it. Id. at 656.
    or signed. But Chelsea Grand is perpetuating an inaccurate
    characterization of its contractual relationship with the
    Union. Chelsea Grand received the benefit of its bargain -
    Interstate’s brand recognition and hotel management
    services, which allowed Chelsea Grand to operate in the
    hotel franchise space in the first place — and it cannot
    continue to protest what it surrendered in exchange. See
    Chelsea Grand I, 
    2014 WL 4813028
    , at *11-12 (concluding
    under agency principles that Interstate acted with apparent
    authority in negotiating on Chelsea Grand’s behalf).
    3
    In late 2015, after Chelsea Grand lost its final appeal
    on the 2007 Awards, see Chelsea Grand II, 629 F. App’x 152,
    the Union reengaged Chelsea Grand in negotiation for a
    collective-bargaining agreement and served its Request for
    Information (“RFI”). Chelsea Grand argued that privacy
    concerns prevented it from responding fully to the RFI.
    Once again, Chelsea Grand and the Union proceeded to
    arbitration. After a hearing, the OIC granted the Union
    “all of the relief it has requested,” J. App’x at 666,
    including: an order for Chelsea Grand to comply with the
    RFI; enforcement of the 2008 Award, with relief of $35,500
    for each day Chelsea Grand failed to produce the requested
    employee information; and $2.7 million in punitive damages.
    
    Id.
     The district court rejected Chelsea Grand’s arguments
    seeking vacatur, and confirmed the 2016 Award in all
    respects. S. App’x at 17-18.
    Chelsea Grand argues that the OIC manifestly
    disregarded the law and exceeded its authority under the
    IWA in issuing the 2016 Award. “In reviewing a district
    court’s confirmation of an arbitral award, we review legal
    issues de novo and findings of fact for clear error.” Pike
    v. Freeman, 
    266 F.3d 78
    , 86 (2d Cir. 2001).
    An arbitral decision rendered under the Labor
    Management Relations Act (“LMRA”) may be vacated if the
    arbitrator has exhibited a “manifest disregard of law.”
    Westerbeke Corp. v. Daihatsu Motor Co., 
    304 F.3d 200
    , 208
    (2d Cir. 2002) (internal quotation marks omitted).
    Judicial inquiry under the “manifest disregard” standard is
    “extremely limited.” Merrill Lynch, Pierce, Fenner &
    Smith, Inc. v. Bobker, 
    808 F.2d 930
    , 934 (2d Cir. 1986);
    see also Burns Int’l. Sec. Servs., Inc. v. Int’l Union,
    United Plant Guard Workers of Am., 
    47 F.3d 14
    , 17 (2d Cir.
    1995). To establish manifest disregard, Chelsea Grand must
    show the arbitrator made “something beyond and different
    from a mere error in the law or failure on the part of the
    arbitrators to understand or apply the law.” Saxis S.S.
    Co. v. Multifacs Int’l Traders, Inc., 
    375 F.2d 577
    , 582 (2d
    Cir. 1967) (internal quotation marks omitted).
    An arbitrator commits manifest disregard of the law
    when the “governing law alleged to have been ignored by the
    arbitrators [was] well defined, explicit, and clearly
    4
    applicable,” and the arbitrator “appreciate[d] the
    existence of a clearly governing legal principle but
    decide[d] to ignore or pay no attention to it.” Westerbeke
    Corp., 
    304 F.3d at 209
     (first alteration in original)
    (quoting Merrill Lynch, 
    808 F.2d at 934
    ); see also N.Y.
    Tel. Co. v. Commc’ns Workers of Am. Local 1100, 
    256 F.3d 89
    , 91 (2d Cir. 2001) (per curiam). The rule ignored by
    the arbitrator must be “obvious and capable of being
    readily and instantly perceived by the average person
    qualified to serve as an arbitrator.” Merrill Lynch, 
    808 F.2d at 933
    .
    Chelsea Grand claims that the principles of New York
    law applicable to judicial enforcement of arbitration
    awards clearly governed its labor arbitration with the
    Union, that there is a one year statute of limitations for
    confirming arbitral awards, 
    N.Y. CPLR §§ 7510
    , 7514, and
    that the OIC ignored these principles by enforcing the
    terms of the 2008 Award. Chelsea Grand relies on a series
    of New York state court decisions to show that a clear rule
    exists preventing subsequent arbitrations from reopening
    “stale” awards. In Board of Managers of Diplomat Condo. v.
    Bevona, 
    160 A.D.2d 645
    , 646 (1st Dept. 1990), the court
    held that the union could not resubmit an identical
    grievance to a second arbitration when it had failed to
    confirm the prior award within the one-year statutory
    period. The court in Protocom Devices v. Figueroa, 
    173 A.D.2d 177
     (1st Dept. 1991) stayed a subsequent arbitration
    premised upon the same claim as a prior arbitration award,
    notwithstanding that the award was not confirmed within the
    one year provided by CPLR 7510. And in Snyder-Plax v.
    American Arbitration Association, 
    196 A.D.2d 872
     (2d Dept.
    1993), the court held that an award was “final and definite
    for purposes of CPLR article 75” and could not be reopened
    past the one-year limitations period even though the
    arbitrator had “retain[ed] jurisdiction solely to resolve
    any potential disputes concerning the execution of the
    award.” 
    Id. at 874
    .
    These   cases do not establish clearly governing law. At
    best, they   suggest an “arguable difference regarding the
    meaning or   applicability” of CPLR 7510 between the OIC’s
    ruling and   the approach urged by Chelsea Grand. Merrill
    Lynch, 
    808 F.2d at 934
    . On its face, CPLR 7510 does not
    5
    obviously apply: the statute itself addresses courts, and
    the timeliness of petitions to confirm arbitration awards,
    not arbitrators. 
    N.Y. CPLR § 7510
    . And there appears to
    be genuine disagreement over whether--and to what extent--
    the New York procedural rules apply to the IWA-mandated
    arbitration process. As the court in Hotel Greystone Corp.
    v. New York Hotel and Motel Trades Council, AFL-CIO, 
    902 F. Supp. 482
    , 485 n.3 (S.D.N.Y 1995), explained:
    The cases relied on by petitioner involved questions of
    timeliness of a party's application to the
    federal court for intervention, not questions of
    timeliness of an application to the arbitrator. This
    distinction is significant. Historically, under the
    LMRA, procedural questions fall within the arbitrator's
    domain, to be determined with reference to the
    agreement.
    Further, no case establishes how or whether the OIC may
    retain jurisdiction to determine the scope and amount of
    relief. See J. App’x at 657. Chelsea Grand overstates the
    scope of Snyder-Plax: it does not categorically bar
    retention of jurisdiction by arbitrators in contravention
    of CPLR 7510; the court reached the more modest conclusion
    that jurisdiction over a purely “ministerial” act such as
    the computation of interest may not defeat an award’s
    finality. 
    196 A.D.2d at 874
    ; accord Burns Int’l Sec.
    Servs., 
    47 F.3d at 16
     (“[T]he reservation of jurisdiction
    over a detail like overseeing the precise amount of back
    pay owed does not affect the finality of an arbitrator’s
    award.”); see also Morgan Guar. Trust Co. of N.Y. v. Solow,
    
    114 A.D.2d 818
    , 821-22 (1st Dept. 1985). These cases do
    not neatly decide this one: the tasks delegated to the OIC
    (determining the entitlement to and amounts owed by the
    Union and Chelsea Grand, respectively) are closer to core
    responsibilities than “ministerial” ones.
    These ambiguities in the applicability of the New York
    procedural rules and the significance of the arbitrator’s
    retention of jurisdiction confound Chelsea Grand’s pursuit
    of a clear legal rule. Put another way, they create at
    least a “barely colorable” justification for the
    arbitrator’s decision. Westerbeke Corp., 
    304 F.3d at 218
    (affirming an arbitrator’s decision as “at least slightly
    6
    colorable” in recognition of the “strong presumption that
    the arbitrator has not acted in manifest disregard of the
    law,” even though the arbitrator may have failed to
    properly apply a damages rule) (citing Fahnestock & Co.,
    Inc. v. Waltman, 
    935 F.2d 512
    , 516 (2d Cir. 1991)).
    It is also unclear whether the reasoning of Bevona and
    Protocom Devices apply. Those cases barred the repetition
    of a second arbitration over the exact same issues resolved
    in a previous award. However, the issues brought to the
    attention of the OIC in 2016 were not identical to the
    circumstances of the 2008 Award (although the Awards are
    related). Unlike the one-shot termination disputes in
    Bevona and Protocom Devices, the 2008 and 2016 Awards stem
    from different sets of violations and concern a long-
    standing and evolving series of disputes and
    transgressions. See N.Y. Hotel & Motel Trades Council,
    AFL-CIO v. Hotel St. George, 
    988 F. Supp. 770
    , 774-75
    (S.D.N.Y 1997) (declining to treat the validity of a 1997
    award following an unconfirmed 1993 award as a statute of
    limitations question); id. at 782 (noting that the latter
    award “is the product of a complaint against [the Hotel]
    that is separate and distinct from the one that resulted in
    the [prior] Award,” and that charges “different violations
    of the Agreement”). Moreover, the 2016 Award does not
    threaten to alter the 2008 Award as to issues already
    litigated in a prior arbitration; instead, it enforces the
    prior award as it would a contract in the event of a
    breach. The arbitrator’s power to apply an existing award
    to emerging events is in keeping with the industrial policy
    of labor arbitration. See generally United Steelworkers of
    Am. v. Warrior & Gulf Navigation Co., 
    363 U.S. 574
    , 578
    (1960); Nat’l Football League Mgmt. Coouncil v. Nat’l
    Football League Players Assoc., 
    820 F.3d 527
     (2d Cir.
    2016).
    Chelsea Grand also contends that the OIC exceeded its
    scope of authority under the IWA and instituted its own
    brand of industrial justice by ordering remedies that bind
    Chelsea Grand to the terms of a collective-bargaining
    agreement with the Union, and penalize it for past
    misconduct. See Harry Hoffman Printing, Inc. v. Graphic
    Commc’ns. Int’l Union, Local 261, 
    950 F.2d 95
    , 98 (2d Cir.
    1991).
    7
    Our duty on review of an arbitration award “is simply
    to determine ‘whether the arbitrator acted within the scope
    of his authority as defined by the collective bargaining
    agreement.’” N.Y.C. & Vicinity Dist. Council of United Bhd.
    of Carpenters & Joiners of Am. v. Ass’n of Wall-Ceiling &
    Carpentry Indus. of N.Y., Inc., 
    826 F.3d 611
    , 618 (2d Cir.
    2016) (citation omitted). The award need only “draw[] its
    essence from the collective bargaining agreement,” United
    Steelworkers of Am. v. Enter. Wheel & Car Corp., 
    363 U.S. 593
    , 597 (1960), and “even a barely colorable justification
    for the outcome reached” will suffice. Andros Compania
    Maritima, S.A. v. Marc Rich & Co., 
    579 F.2d 691
    , 704 (2d
    Cir. 1978); see also N.Y.C. & Vicinity Dist. Council, 826
    F.3d at 618 (“[A]s long as the ‘arbitrator was even
    arguably construing or applying the contract and acting
    within the scope of his authority and did not ignore the
    plain language of the contract,’ the award should
    ordinarily be confirmed.”).
    Chelsea Grand argues that the arbitrator exceeded
    authority in setting rates and benefits at the level of the
    Wingate Hotel Collective Bargaining Agreement (“Wingate
    Agreement”) for the pendency of the collective bargaining.
    Citing H.K. Porter Co. v. NLRB, Chelsea Grand submits that
    an arbitrator cannot violate the freedom of contract by
    “compel[ling] a company or a union to agree to any
    substantive contractual provision of a collective-
    bargaining agreement.” 
    397 U.S. 99
    , 102 (1970). In H.K.
    Porter Co., the Supreme Court reversed an arbitral award
    that had compelled a party to submit to certain terms on
    the assumption that such terms would have been reached in
    the course of good-faith negotiation. 
    397 U.S. at 100-01, 108
    . Chelsea Grand claims that the circumstances here are
    analogous because the 2016 Award did not truly afford
    Chelsea Grand any contractual discretion: the Award
    obligates Chelsea Grand to reach an agreement and binds it
    without consent to the results of the Wingate Agreement.
    But in contrast to H.K. Porter Co., the arbitrator did
    not impose upon Chelsea Grand the terms of a finalized
    collective-bargaining agreement. Rather, the OIC
    established an ex ante position, with the intention that
    the parties “re-commence[]” the bargaining process to
    8
    arrive at their own contractual rate. J. App’x at 665-66
    (resetting the “status quo” for employee rates and
    benefits). As such, the Wingate Agreement terms are
    inherently temporary; they shall expire once the parties
    have completed the collective-bargaining process in good
    faith and arrived at their own contractual terms, or until
    they have reached a bona fide impasse.2 See Mead Corp. v.
    NLRB, 
    697 F.2d 1013
    , 1023-24 (11th Cir. 1983)
    (distinguishing H.K. Porter Co. from a remedial order that
    requires a party to “reinstate” an existing status quo and
    ruling that such an order designed to encourage bargaining
    in good faith “fully and fairly effectuates the policies of
    the [National Labor Relations] Act”); see also Franks v.
    Bowman Transp. Co., 
    424 U.S. 747
    , 769 (1976).
    Construed in that light, such terms are within a labor
    arbitrator’s well-established remedial authority.3 See NLRB
    2 Chelsea Grand’s brief contends that it “has been
    bargaining in good faith,” but was “penalized anyway.”
    Appellant’s Br. at 35 (emphasis in original). This claim
    is somewhat at odds with the findings of the OIC, which are
    not subject to our review. J. App’x at 664-65 (decreeing
    that Chelsea Grand “bargain in good faith with the Union”
    and assigning penalties for its failure to do so); see
    Westerbeke Corp., 
    304 F.3d at 213
     (“An arbitrator’s factual
    findings are generally not open to judicial challenge, and
    we accept the facts as the arbitrator found
    them.”)(internal citation omitted); Burns Int’l Sec.
    Servs., 
    47 F.3d at 17
     (“Having contracted with the Union to
    resolve disputes through a mutually-acceptable, neutral
    arbitrator, [a party] is not entitled to have the
    arbitrator’s decision overturned simply because the
    arbitrator did not” find in its favor.).
    3The language of the Awards can be overread to say that
    Chelsea Grand might remain bound to the terms of the
    Wingate Hotel Agreement even if it reaches an impasse with
    the union while engaging in good faith collective
    bargaining. Cf. H.K. Porter Co., 
    397 U.S. at 106
     (making
    unlawful a provision that “compel[s] [Chelsea] to agree to
    a proposal or requires the making of a concession”). To
    date, the parties have not had a serious opportunity to
    bargain in good faith, due in part to the eight-year delay
    9
    v. Staten Island Hotel Ltd. P’ship, 
    101 F.3d 858
    , 862 (2d
    Cir. 1996) (“[T]he requirement that the Company pay former
    employees at the prior rates was plainly intended to be
    remedial ... the Board’s order requires payment at the
    prior rates only until the Company negotiates in good faith
    with the Union....”); NLRB v. Katz’s Delicatessen, 
    80 F.3d 755
    , 769 (2d Cir. 1996) (In drafting remedial orders, a
    labor arbitrator “has broad discretion,” and “its choice of
    remedies is subject to limited review”); see also N.Y.C. &
    Vicinity Dist. Council, 826 F.3d at 618.
    The arbitrator was likewise “arguably construing or
    applying the contract within the scope of his authority”
    when he awarded monetary and punitive damages for Chelsea
    Grand’s non-compliance with the Union’s RFI. N.Y.C. &
    Vicinity Dist. Council, 826 F.3d at 618. Addendum IV to
    the IWA unambiguously authorized “monetary or punitive
    damages,” and the arbitrator was charged with the mandate
    to determine a proper remedy. J. App’x at 124, 127, 657.
    True, such damages were not explicitly requested by the
    Union. But Chelsea Grand points to no direct authority
    limiting arbitrators to requested remedies. Cf. Harper
    Ins. Ltd. v. Century Indem. Co., 
    819 F. Supp. 2d 270
    , 277-
    78 (S.D.N.Y. 2011) (Buchwald, J.) (“[T]here is no ... per
    se rule that it is beyond the authority of the arbitrators
    to issue a remedy directed to an issue squarely before them
    unless it was requested by one of the parties.”).
    Finally, Chelsea Grand seeks a declaratory judgment
    that it “is not bound to any labor agreement with the
    Union, including without limitation that it has no ongoing
    obligation under the 2004 MOA to arbitrate disputes with
    the Union ....” S. App’x at 13. The district court ruled
    that it lacked jurisdiction to issue a declaratory judgment
    because there was no “case or controversy.” 
    Id.
     We review
    de novo the district court’s determination that it lacks
    in concluding litigation over the 2007 Awards. The
    remedial order in the 2016 Award therefore offers a genuine
    incentive to begin bargaining once Chelsea Grand produces
    the requisite employee data per the Union’s RFI, but not
    permanent leverage for the Union in negotiating final
    terms.
    10
    subject matter jurisdiction. See Niagara Mohawk Power
    Corp. v. Towanda Band of Seneca Indians, 
    94 F.3d 747
    , 751
    (2d Cir. 1996).
    To bring an action under the Declaratory Judgment Act,
    
    28 U.S.C. § 2201
    (a), “the facts alleged, under all the
    circumstances, [must] show that there is a substantial
    controversy, between [the] parties having adverse legal
    interests, of sufficient immediacy and reality to warrant
    the issuance of a declaratory judgment.” Olin Corp. v.
    Consol. Aluminum Corp., 
    5 F.3d 10
    , 17 (2d Cir. 1993)
    (emphasis omitted) (quoting Maryland Cas. Co. v. Pac. Coal
    & Oil Co., 
    312 U.S. 270
    , 273 (1941)). Courts do not
    entertain declaratory judgment actions to assuage a party’s
    concerns about potential contractual obligation or
    liability. The dispute “must not be nebulous or contingent
    but must have taken on fixed and final shape so that a
    court can see what legal issues it is deciding, what effect
    its decision will have on the adversaries, and some useful
    purpose to be achieved in deciding them.” Pub. Serv.
    Comm’n of Utah v. Wycoff Co., 
    344 U.S. 237
    , 244 (1952).
    Where “the remedy sought is a mere declaration of law
    without implications for practical enforcement upon the
    parties, the case is properly dismissed.” Browning
    Debenture Holders’ Comm. v. Dasa Corp., 
    524 F.2d 811
    , 817
    (2d Cir. 1975).
    There is little doubt that Chelsea Grand and the Union
    have numerous disagreements, for example concerning the
    rates and benefits owed to hotel employees. They may also
    have different views about each other’s legal
    responsibilities and entitlements under the IWA. Those
    disagreements, however, are the proper subject of the
    collective-bargaining process that the parties may pursue
    in the wake of this Court confirming the 2016 Award.4
    Chelsea Grand’s position depends upon the subsequent
    development of an impasse in collective bargaining, or a
    4We do not read Chelsea Grand’s declaratory judgment
    request as challenging or seeking relief from the terms of
    the 2016 Award itself, which were confirmed by the district
    court, and which we affirm again in this order. To the
    extent Chelsea Grand seeks a declaratory judgment that
    contradicts the 2016 Award, it is denied.
    11
    breach of the 2016 Award. And by its own representations
    to this Court, Chelsea Grand has pursued collective
    bargaining in good faith, and has not indicated that it
    will not abide by the 2016 Award or fall into contempt of
    court. See Appellant’s Br. at 35.
    The emergence of a “live controversy” is therefore
    dependent upon unknown future actions of the parties once
    they reach the end of their negotiation. We do not know
    the precise nature of the “types of claims that might be
    asserted in the future” related to a possible arbitration
    or substantive bargaining terms, and so any dispute is
    “speculative.” Olin Corp., 
    5 F.3d at 17
    ; see In re Joint
    E. and S. Dist. Asbestos Litig., 
    14 F.3d 726
    , 731-32 (2d
    Cir. 1993) (“The fact that [the party seeking declaratory
    relief] may not be liable to asbestos claimants after
    reaching a settlement with them does not support a legal
    claim triggering the court’s adjudicative powers when such
    a settlement has not been reached.”).
    Chelsea Grand may wish to establish certain legal
    relations now as leverage in future negotiations with the
    Union or in aid of its own strategic decisions. But “a
    mere demand for declaratory relief does not by itself
    establish a case or controversy necessary to confer subject
    matter jurisdiction.” S. Jackson & Son, Inc. v. Coffee,
    Sugar & Coco Exch. Inc., 
    24 F.3d 427
    , 431 (2d Cir. 1994).
    Declaratory judgment is not a vehicle to advise or relieve
    the parties of the possible legal consequences of their
    conduct. Olin Corp., 
    5 F.3d at 17
     (quoting Coffman v.
    Breeze Corps., 
    323 U.S. 316
    , 324 (1945)). Chelsea Grand’s
    speculation of future party conduct and the disputes that
    could arise from that conduct falls short of the “case or
    controversy” standard.
    For the foregoing reasons, and finding no merit in
    Chelsea Grand’s remaining arguments, we hereby AFFIRM the
    judgment of the district court.
    FOR THE COURT:
    CATHERINE O’HAGAN WOLFE, CLERK OF COURT
    12
    

Document Info

Docket Number: 17-1711-cv

Filed Date: 4/3/2018

Precedential Status: Non-Precedential

Modified Date: 4/18/2021

Authorities (27)

olin-corporation-plaintiff-counter-claim-defendant-appellee-v , 5 F.3d 10 ( 1993 )

in-re-joint-eastern-and-southern-district-asbestos-litigation-in-re-keene , 14 F.3d 726 ( 1993 )

Harper Insurance v. Century Indemnity Co. , 819 F. Supp. 2d 270 ( 2011 )

Maryland Casualty Co. v. Pacific Coal & Oil Co. , 61 S. Ct. 510 ( 1941 )

Morgan Guaranty Trust Co. v. Solow , 495 N.Y.S.2d 389 ( 1985 )

United Steelworkers v. Enterprise Wheel & Car Corp. , 80 S. Ct. 1358 ( 1960 )

national-labor-relations-board-petitioner-cross-respondent-and-the-new , 101 F.3d 858 ( 1996 )

burns-international-security-services-inc , 47 F.3d 14 ( 1995 )

joseph-d-pike-medapproach-lp-jeffrey-l-rush-md-bio-pharm , 266 F.3d 78 ( 2001 )

harry-hoffman-printing-inc-holling-press-ward-burns-inc-pollack , 950 F.2d 95 ( 1991 )

The Mead Corporation v. National Labor Relations Board , 697 F.2d 1013 ( 1983 )

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

S. Jackson & Son, Incorporated v. Coffee, Sugar & Cocoa ... , 24 F.3d 427 ( 1994 )

niagara-mohawk-power-corporation-plaintiffcounter-defendantappellant-v , 94 F.3d 747 ( 1996 )

H. K. Porter Co. v. National Labor Relations Board , 90 S. Ct. 821 ( 1970 )

national-labor-relations-board-v-katzs-delicatessen-of-houston-street , 80 F.3d 755 ( 1996 )

Snyder-Plax v. American Arbitration Ass'n , 602 N.Y.S.2d 64 ( 1993 )

Board of Managers of Diplomat Condominium v. Bevona , 559 N.Y.S.2d 262 ( 1990 )

Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Jack Bobker , 808 F.2d 930 ( 1986 )

Coffman v. Breeze Corporations, Inc. , 65 S. Ct. 298 ( 1945 )

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