CLAIRE C. CECCHI, District Judge.
This matter comes before the Court on Petitioner's motion to confirm an arbitration award (ECF No. 2) and Respondent's motion to vacate an arbitration award and issue a declaratory judgment (ECF No. 8). The Court decides this matter without oral argument pursuant to Rule 78 of the Federal Rules of Civil Procedure.
This labor dispute arises out of the discharge of Petitioner's union member Kurt Sachno from employment by Respondent. Petitioner seeks to confirm an arbitration award in its favor that found Sachno's discharge was for unjust cause pursuant to the Parties' Collective Bargaining Agreement ("CBA") and Memorandum of Understanding ("MoU") (collectively, the "Agreements").
Respondent's sole challenge is whether the dispute is covered by the arbitration clause of the Agreements. (Def. Br. 3). The Parties agree that the Agreements compel arbitration in certain circumstances. However, Respondent notes that the Agreements state that they only apply to "work perfoiined" in New York and New Jersey.
Petitioner seeks to confirm the arbitration award under 9 U.S.C. § 9, while Respondent seeks to vacate the award under 9 U.S.C. § 10. However, the only dispute between the Parties is whether the award exceeds the arbitrator's authority under 9 U.S.C. § 10 because the underlying matter is not arbitrable. Thus, the only issue before the Court is whether Sachno's discharge grievance was arbitrable under the Agreements.
When determining arbitrability arising out of a collective bargaining agreement, courts are to apply federal law contract principals to interpret the scope of that agreement, subject to any state law defenses.
Under this rubric, the Third Circuit recognizes the strong federal policies that favor arbitration of labor disputes.
In light of these principals, the Third Circuit directs that courts should consider three questions when assessing whether a dispute is arbitrable: "(1) Does the present dispute come within the scope of the arbitration clause?; (2) does any other provision of the contract expressly exclude this kind of dispute from arbitration?; and (3) is there any other `forceful evidence' indicating that the parties intended such an exclusion?"
District courts have wide discretion in determining facts with respect to arbitrability when the underlying documents are ambiguous, but are subject to plenary review when those documents are clear on their face.
Respondent's contention is that the broad
With respect to whether the dispute comes within the scope of the arbitration clause, the Court finds that it does. There is no dispute that Sachno was an employee of Respondent pursuant to the Agreements, and that he performed work in New Jersey, New York, and other states prior to his discharge. (Sachno Decl. ¶ 2). The arbitration procedure in the Agreements plainly applies to discharge.
With respect to whether another provision expressly excludes this dispute from arbitration, Respondent claims that the territorial limitation for "work performed" in the Agreements indicates that the arbitration clause does not apply. However, this is not an express exclusion because Sachno's discharge applies to all future work that Sachno would have later performed for Respondent, including work in New York and New Jersey. It would be incredible to conclude otherwise: that under these Agreements the Parties intended employees utilized outside of New York and New Jersey would be dischargeable at will irrespective of the protections offered under the Agreements.
Finally, although the Court finds that the Agreements are unambiguous that employee discharge proceedings are subject to arbitration, it notes that Respondent points to no `forceful evidence' indicating otherwise. By affidavit, Respondent introduces the testimony of Robert Maggard, who states that when he negotiated the Agreements he and the Petitioner intended it to apply only to work performed within New York and New Jersey. (Maggard Aff. ¶¶ 3-8).
However, despite Maggard's testimony regarding the Parties' intent, the evidence indicates that the parties considered Sachno to he operating under the Agreements at the time he was discharged. First, the contemporaneous proffered reasons for discharge include breach of the Agreements.
Accordingly, the Court finds that the dispute was arbitrable, and will confirm the arbitration award.
For the forgoing reasons, the Court will grant the petition to confirm the arbitration award, deny the petition to vacate the arbitration award, and dismiss Respondent's motion for declaratory judgment without prejudice.
28 U.S.C. § 2201. Here, Respondent has not set forth a proper