Folger Coffee Company v. International Union, et a ( 2010 )


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  •      Case: 09-30399     Document: 00511045275          Page: 1    Date Filed: 03/08/2010
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE FIFTH CIRCUIT  United States Court of Appeals
    Fifth Circuit
    FILED
    March 8, 2010
    No. 09-30399                    Charles R. Fulbruge III
    Clerk
    FOLGER COFFEE CO.,
    Plaintiff-Appellant,
    v.
    INTERNATIONAL UNION, et al.,
    Defendants-Appellees.
    Appeal from the United States District Court
    for the Eastern District of Louisiana
    U.S.D.C. No. 08-CV-1630
    Before GARWOOD, WIENER, and BENAVIDES, Circuit Judges.
    PER CURIAM:*
    Plaintiff-appellant Folger Coffee Company (“Folger”) appeals the district
    court’s decision to uphold the Arbitration Award entered by Arbitrator Diane
    Massey on January 21, 2008. In a written opinion, Arbitrator Massey sustained
    the defendant-appellees’ (International Union, United Automobile, Aerospace &
    Agricultural Implement Workers of America and its local union, Local No. 1805
    (“Union”)) grievance and determined that Folger did violate the 2002-2005
    Collective Bargaining Agreement (“CBA”) by outsourcing and/or subcontracting
    *
    Pursuant to 5TH CIR . R. 47.5, the court has determined that this opinion should not
    be published and is not precedent except under the limited circumstances set forth in 5TH CIR .
    R. 47.5.4.
    Case: 09-30399       Document: 00511045275           Page: 2     Date Filed: 03/08/2010
    No. 09-30399
    certain cap dumping work and that the continued outsourcing and/or
    subcontracting of said work violates the 2002-2005 CBA or any subsequent CBA.
    The Arbitrator ordered that the contested cap dumping task be assigned back
    to bargaining unit employees.
    On April 14, 2009, the district court upheld Massey’s January 2008
    Arbitration Award and entered judgment in favor of the Union.1 Folger appeals,
    contending that the arbitration decision should be vacated because Arbitrator
    Massey exceeded the scope of her authority pursuant to the CBA when she
    ordered Folger to re-assign the subcontracted work back to bargaining unit
    employees. Folger also argues that the district court erred when it relied on this
    Court’s decision in The Folger Coffee Co. v. Int’l Union, et al., 
    905 F.2d 108
     (5th
    Cir. 1990) (“Folger I”), a decision that– according to the Plaintiff-Appellant– was
    called into question and/or overruled by this Court’s subsequent decision in
    Beaird Indus., Inc., v. Int’l Union, et al., 
    404 F.3d 942
     (5th Cir. 2005).
    We reject Folger’s arguments presented on appeal, and as a result, we
    affirm the district court’s decision to enforce the Arbitration Award. First, our
    decision in Beaird did not overrule this Court’s earlier decision in Folger I.2
    Second, we remain bound by our decision in Folger I, as it is the earlier of the
    two. Rios v. City of Del Rio, Tex., 
    444 F.3d 417
    , 425 n. 8 (5th Cir. 2006) (“Where
    1
    Plaintiff-appellant first brought this action in the district court under Section 301 of
    the Labor Management Relations Act of 1947, as amended, 
    29 U.S.C. §185
     (“LMRA”), asking
    the district court to vacate the Arbitration Award.
    2
    See Resolution Performance Products, LLC v. Paper Allied Indus. Chem. and Energy
    Workers Int’l Union, et al., 
    480 F.3d 760
    , 767 (5th Cir. 2007) (“We distinguished Folger on the
    ground that the CBA in Beaird was explicit in permitting subcontracting and contained no
    limitation on subcontracting[,] . . . [whereas although the CBA in Folger] explicitly gave
    management the right to subcontract, . . . that clause was contradicted by others.”).
    2
    Case: 09-30399    Document: 00511045275     Page: 3   Date Filed: 03/08/2010
    No. 09-30399
    two previous holdings or lines of precedent conflict the earlier opinion controls
    and is the binding precedent in this circuit (absent an intervening holding to the
    contrary by the Supreme Court or this court en banc).”).
    Furthermore and most significantly, we note that the parties presently
    before the Court in the current dispute are the exact same parties that presented
    to the Court in Folger I, and the CBA is essentially the same contractual
    agreement.   Folger has failed to adequately explain why this Court’s prior
    decision regarding Folger’s ability to subcontract out bargaining unit positions
    should no longer apply to evaluate the current dispute. Consequently, we find
    ourselves bound by our decision in Folger I. And as a result, we cannot conclude
    that Arbitrator Massey exceeded her arbitrative authority or violated the
    express terms of the CBA in determining that the CBA prohibits Folger from
    subcontracting out the cap dumping work.
    Accordingly, we AFFIRM the district court’s decision to enforce the
    Arbitration Award.
    3