GREGORY K. FRIZZELL, District Judge.
This matter comes before the Court on the Motion for Summary Judgment (Dkt. #27), filed by defendant ConocoPhillips Company ("Conoco" or the "Company").
Plaintiff United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers' International Union, and its Local 13-587 (the "Union") bring this action under § 301 of the Labor Management Relations Act ("LMRA") codified at 29 U.S.C. § 185. The Union seeks to compel arbitration of grievances it had filed with Conoco based on alleged violations of the parties' Collective Bargaining Agreements ("CBAs"). There are six grievances that remain at issue in this case, identified as follows: R03-14, R05-14, R03-01, R04-18, T03-02, and T03-08. Grievances that begin with "T" allege violations of the Technical CBA ("T-CBA") and those that begin with "R" allege violations of the Refining CBA ("R-CBA").
Conoco claims that it is entitled to summary judgment on two independent grounds. First, Conoco argues that all six grievances are barred by the six month statute of limitations contained in § 10(b) of the National Labor Relations Act ("NLRA"), codified at 29 U.S.C. § 160(b). Alternatively, Conoco argues that the six grievances are substantively unarbitrable under the terms of the CBA. Because this Court finds that the grievances are time-barred under the statute of limitations, it need not reach the arbitrability question.
Summary judgment is appropriate "if the pleadings, discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(c). A court must examine the factual record in the light most favorable to the party opposing summary judgment. Wolf v. Prudential Ins. Co. of Am., 50 F.3d 793, 796 (10th Cir.1995). The movant must meet the initial burden of showing the absence of a genuine issue of material fact, then the nonmovant bears the burden of pointing to specific facts in
1. Conoco's Ponca City Refinery processes domestic and international crude oils delivered by pipeline from throughout North America. The Union is the collective-bargaining representative for a majority of the production and maintenance employees at the Refinery. These employees are either laborers or are assigned a number based upon seniority in a particular progression or craft. (Dkt. #27, p. 6-7, undisputed; see Dkt. #37).
2. The CBAs contain nearly identical three-step grievance procedures for settling disputes between Conoco and the Union. At step one the grievance is dealt with by the immediate supervisor of the aggrieved party. (Dkt. #37, p. 2) At step two, the grievance is taken to the "second level of supervision or his designee." (Id.). If the parties cannot resolve the grievance through agreement after the first two steps, either party may submit the grievance to step three, arbitration. (Dkt. #27, p. 7; undisputed, see Dkt. #37).
3. At step three, a party submitting an issue for arbitration must notify the other party. (Dkt. #27, Exh. B, p. 39-40, Exh. C, p. 21-22, uncontested; see Dkt. #37). Under the T-CBA parties must then mutually select an arbiter or jointly refer the matter to the Federal Mediation and Conciliation Service (FMCS). (Dkt. #27, Exh. C, p. 21-22, uncontested; see Dkt. #37). Under the R-CBA the moving party must go directly to the FMCS to request arbitrators be appointed. (Dkt. #27, Exh. B, p. 39-40, uncontested; see Dkt. #37). A step three submission to arbitration does not require a response from the non-moving party under either agreement. (See Dkt. #27, Exh. B, p. 39-40, Exh. C, p. 21-22, uncontested; see Dkt. #37).
4. "Only differences arising between the Union and the Company relating to interpretation or performance of this Agreement which cannot be adjusted by mutual agreement and have gone through the grievance procedure are arbitrable, except as otherwise provided in [the Agreement]" (Dkt. #27, Exh. B, p. 40, Exh. C, p. 22, Dkt. #27, p. 7, undisputed; see Dkt. #37).
5. To be timely, a grievance must be brought to the attention of the employee's immediate supervisor within 10 days of the initial incident. (Dkt. #27, Exh. B, p. 39, undisputed; see Dkt. #37). If the grievance is not timely raised, it does not begin the three step process, and is thus not arbitrable. (See Id.; see also Dkt. #27, p. 7, undisputed).
6. There are "Management's Rights" clauses in Article 10 of the T-CBA and Article 11 of the R-CBA. (Dkt. #27, p. 7-8; Dkt. #37, p. 2). Per the terms of the CBAs, any grievances that arise under these articles are not arbitrable. (Id.).
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Conoco contends that the applicable statute of limitations for a suit between an employer and a labor organization is six months. (Dkt. #27, p. 16). Plaintiff argues that laches, rather than a statute of limitations, is the proper defense for a case of this nature. (Dkt. #37, p. 14). Moreover, plaintiff asserts that any laches defense should properly be raised before the arbitrator, not the federal court. (Id.).
The parties agree that Congress provided no federal statute of limitations for § 301 actions for litigation between an
Every circuit court opinion brought to this Court's attention has unanimously applied the six month statute of limitations found in NLRA § 10(b) to claims to compel arbitration under the LMRA.
Plaintiff's contention that laches is the only permissible timeliness defense for a case that seeks to compel arbitration can be quickly disposed of. The only case law plaintiff cites for this proposition is Int'l
For these reasons, the Court agrees with the weight of concurring authority that a MLRA § 301 suit to compel arbitration is limited by the six month statute of limitations from § 10(b) of the NLRA. The scope of the arbitration agreement is also an issue for decision by this Court, not the arbitrator. This does not end the statute of limitations inquiry, however, as there remains the question of when the claims accrued.
Although the parties did not bring any controlling authority to this Court's attention, they agree that the statute of limitations begins to run when one party "clearly refuses" to arbitrate the grievance. (Dkt. #27, p. 20, citing Western Elec., 860 F.2d at 1144-45; Dkt. # 37, p. 16). Several other circuits have adopted this (or a substantially similar) standard: "the cause of action to compel arbitration under a collective bargaining agreement accrues when one party clearly refuses to arbitrate the dispute." A.P. Green Refractories, Inc., 895 F.2d at 1055 (5th Cir. 1990); Westinghouse, 736 F.2d at 902 (3rd Cir.1984) (question is when employer "finally refused arbitration"); Teamsters Union Local 315, 781 F.2d at 769 (9th Cir. 1986) (time begins to run "when it was made clear by the Employer to the Union that the Employer would not submit the matter to arbitration."). Given the weight of authority, and the parties' agreement, this Court will apply a standard of "clear" denial of arbitrability.
Neither party has presented any controlling authority to determine what constitutes a clear refusal or final denial of arbitration. Defendant argues that a party need not "utter the magic words `we refuse to arbitrate this dispute'" to prove it unequivocally refused to arbitrate, and the court should consider other unambiguous communications and conduct as well. In re Diamond "D" Constr. Corp. v. Int'l Union of Operating Eng'rs, 15 F.Supp.2d 274, 289 (W.D.N.Y.1998); Indep. Coca-Cola Emp. Union of Lake Charles v. Coca-Cola Bottling Co., 114 Fed.Appx. 137, 141-42 (8th Cir.2004) (unpublished). The First Circuit considered this issue in Western Electric, where the employer told the Union at least four separate times that it would not arbitrate the matter. 860 F.2d at 1144. The court found that as soon as the employer had first "unequivocally spurn[ed] arbitration" that the "goal
Defendant urges the Court to adopt the reasoning of Coca-Cola, that "when one party tells another that it has no viable cause of action because any claims that it might have had are now time-barred, that party has unequivocally refused to arbitrate. Although Coca-Cola might have chosen its words more carefully, there is no need for a party refusing to arbitrate to use that term (or any other talismanic words) to express its refusal to arbitrate." 114 Fed.Appx. at 141 (5th Cir.2004); see also Middendorf Meat Co., 991 F.2d 801, *2 (8th Cir.) (holding that the claim accrued after the employer denied a request for arbitration as untimely under the collective bargaining agreement). The Fifth Circuit also relied upon the fact that they "perceive no doubt or equivocation in Coca-Cola's position that it did not intend to arbitrate claims that the Union and Etienne could no longer pursue by virtue of the statute of limitations." Id. at 142. The ultimate question of whether a party has clearly refused to arbitrate, however, "turns on the particular facts of each case." Id.
Plaintiff asserts in its Response to the Motion for Summary Judgment (Dkt. # 37), with no case law in support, that a refusal to arbitrate cannot be "clear" or "final" under the CBAs until a formal request for arbitration is denied at step three. (See Dkt. # 37, p. 16). In a Notice of Supplemental Authority plaintiff provided two cases to argue that arbitration cannot be clearly refused until the grievance process is completed or breaks down to the disadvantage of one party. See Teamsters Local Union 688 v. Unisource Worldwide, 157 F.Supp.2d 1081 (E.D.Mo. 2001); Commc'n Workers of Am. v. Sw. Bell Tel. Co., 2006 WL 3408409 (W.D.Mo. Nov. 27, 2006). The Unisource court concluded that under the facts of that case, the company's rejection of arbitration did not trigger the statute of limitations until the Union submitted a formal demand for arbitration. 157 F.Supp.2d at 1083. The second case, Bell Telephone, involves a grievance which actually went through arbitration and the legal reasoning tracks the language of Unisource almost verbatim. 2006 WL 3408409.
The courts in these two cases faced potentially conflicting directives from the Eighth Circuit regarding the accrual time for actions to compel arbitration. On one hand, "[a] cause of action to compel arbitration `accrues when the grievance procedure is exhausted or otherwise breaks down to the employee's disadvantage[.]'" Id. at 1082-83 (quoting Cook v. Columbian Chem. Co., 997 F.2d 1239, 1241 (8th Cir. 1993)). On the other hand, "[a] cause of action to compel arbitration under a collective bargaining agreement accrues when one party clearly articulates its refusal to arbitrate the dispute." Id. (quoting United Food and Comm. Workers Union Local No. 88, AFL-CIO, CLC v. Middendorf Meat Co., 794 F.Supp. 328, 332 (E.D.Mo. 1992), affd, 991 F.2d 801 (8th Cir.1993)). This Court finds that the two Eighth Circuit rules are not necessarily in tension: a clear refusal of arbitration certainly occurs after a formal rejection of arbitration at the conclusion of the grievance process, but that does not necessarily mean it is impossible for a clear refusal of arbitration to occur during the course of the grievance
This Court finds that the holding of the Diamond court (15 F.Supp.2d at 289 (W.D.N.Y.1998)) is better suited to this case. It held that: "[g]iven the repeatedly stated public interest in a prompt resolution of labor disputes, this court believes that the unequivocal refusal standard does not turn on whether the party resisting arbitration has filed a petition to stay arbitration or has uttered the magic words `we refuse to arbitrate this dispute.'" Diamond, 15 F.Supp.2d at 289. Thus the determination of when a cause of action accrued for each grievance will be a fact-dependant inquiry into whether Conoco communicated a "clear refusal" to arbitrate the grievance and, if so, when that communication occurred.
On May 23, 2003, Conoco denied the Union's grievance at step one. This letter stated, "[m]anagement's right to move work is covered in Article 10 Management's Rights and in the side letters of agreement on job security and successorship. Grievances over management's rights are not subject to arbitration. Therefore, it is our position that this grievance is denied and non-arbitrable on the basis of jurisdiction, timeliness and Article 10, Management's Rights." (Dkt. #27, Exh. D, p. 4, undisputed; see Dkt. # 37). When the union eventually attempted to submit the dispute to arbitration at step three, Conoco responded on July 7, 2003, stating, "[c]onsistent with the Company's Step 1 Response, dated May 23, 2003, this grievance is denied and non-arbitrable on the basis of jurisdiction, timeliness and Article 10, Management's Rights." (Dkt. #27, Exh. D, p. 8, undisputed; see Dkt. # 37). Under either party's interpretation of the clear refusal rule, this explicit step three refusal to arbitrate would start the statute of limitations running. Thus the statute of limitations began to run no later than the Union's receipt of the July 7, 2003 response.
On December 22, 2003, the Union submitted the grievance for arbitration. Conoco
Responding to the Union's step three arbitration demand, Conoco sent a letter on January 25, 2005, stating Conoco refused to arbitrate grievance R04-18 as written on the grounds that it was a Management's Rights issue. (Dkt. #27, p. 11, undisputed; see Dkt. # 37, p. 7-8). Conoco was unequivocal in its refusal to arbitrate Management's Rights issues, and the Union has presented no evidence of any equivocation. After this clear refusal to arbitrate the grievance at stage three, the statute of limitations began to run on the Union's receipt of the January 25, 2005, letter. This action was not filed until July 14, 2006. R04-18 is time barred.
In response to the Union's step one grievance notice, Conoco sent a letter dated January 15, 2003, stating, "Since this grievance is over ... Management's Rights under Article 11 of the CBA and as such it is grievable but not arbitrable." (Dkt. #27, Exh. G, p. 4). At stage two, Conoco reiterated by letter on January 31, 2003 that "[n]othing ... has changed the issues." (Dkt. #27, Exh. G, p. 6). On February 17, 2003, the Union advanced the grievance to step three and Conoco did not respond. (Dkt. # 27, p. 10). Unlike steps one and two, the terms of the CBA do not require a response from the Company at step three. (Dkt. # 27, Exh. B, p. 39-40, Exh. C, p. 21-22, uncontested; see Dkt. # 37). The Union demonstrated its knowledge that a step three response from Conoco was not necessary roughly four and a half months later on June 27, 2003, when it filed a Charge with the NLRB.
Conoco denied the grievance at steps one and two by letters on June 21, 2005, and July 1, 2005. (Dkt. # 27, Exh. L, p. 4, 8). Both letters stated that the grievances were denied as arising under Article 11 without using the word "arbitration."
To refuse arbitration clearly, Conoco need not use any magical or talismanic words. See Diamond, 15 F.Supp.2d at 289; Coca-Cola, 114 Fed.Appx. at 141-42. Again, the parties are in agreement that under the CBA Article 11 Management's Rights issues are not arbitrable. (Dkt. # 27, p. 7-8, Dkt. # 37, p. 2). When the grievance was denied as arising under Article 11, the Union does not dispute that it knew the implication of that denial: Conoco was claiming that the grievance was not arbitrable. Conoco told the Union twice that the grievance was governed by the Article 11 Management's Rights clause. The Union cannot realistically claim that it did not have clear knowledge that Conoco did not intend to arbitrate the dispute even after Conoco did not respond to the step three submission for arbitration. In R3-01, discussed supra, the union waited only approximately four and a half months after receiving no response to its step three arbitration submission to file a complaint with the NLRB that Conoco had refused to arbitrate. Because the terms of the contract do not require a response to a submission to arbitration at step three, and because the Union demonstrated by its actions in R3-01 that it knew Conoco had refused to arbitrate without ever responding at step three, the Union cannot now successfully claim that Conoco had not clearly refused to arbitrate on these grounds. The Union waited exactly one year from submitting this grievance to arbitration before filing the instant lawsuit; it knew and/or had reason to know (as evidenced by its NLRB complaint) that Conoco had refused to arbitrate long before it filed its complaint in this action. Thus, although Conoco did not use the term "arbitrate," under the specific facts of this case, given the language of the CBA and the history of behavior between the parties, Conoco clearly refused to arbitrate when it communicated to the Union that this grievance was governed by Article 11 of the CBA.
Relying on Unisource and Bell Telephone, the Union argues that "[a] cause of action to compel arbitration `accrues when the grievance procedure is exhausted or otherwise breaks down to the employee's disadvantage[.]'" 157 F.Supp.2d at 1082-83 (quoting Cook v. Columbian Chem. Co., 997 F.2d 1239, 1241 (8th Cir.1993)).
Without authority from the Tenth Circuit on this issue, this Court concludes the Fifth Circuit's analysis in Coca-Cola better fits this case. In Coca-Cola, the Fifth Circuit held the employer's position that it would not arbitrate was clear and unequivocal, even though the employer had not used the term "arbitrate," and even though the union had argued to the company that arbitration was not ripe under the parties' grievance and arbitration procedure. Coca-Cola, 114 Fed.Appx. at 139, 141. Given the undisputed material facts surrounding R05-14, including the clear undisputed language of the R-CBA, this Court concludes Conoco was clear and unequivocal in its position that R05-14 would not proceed to arbitration, and that its correspondence with the Union sufficiently articulated its position.
The six-month statute of limitations accrued on the Union's receipt of the July 1, 2005, letter articulating that the grievance arose under Article 11 of the CBA. Even under the Union's proposed rule, the grievance process must be viewed as having been exhausted on July 14, 2005, or having broken down at the latest some time in the four and a half months following July 14, 2005. This action was not filed until July 14, 2006. Thus, R05-14 is time barred under all proposed rules in this case.
On August 5, 2003, Conoco denied the step one grievance request as "untimely," among other reasons. In an August 15, 2003, letter responding to the Union's request to advance to step two of the grievance procedure, Conoco again denied the grievance stating "the grievance is not timely." (Dkt. #27, Exh. N, p. 2, 4). Grievances which were not timely raised at step one cannot begin the three step process, and thus are not arbitrable. (Dkt. # 27, Exh. B, p. 39; Dkt. # 27, p. 7, undisputed; see Dkt. # 37). Neither of Conoco's letters mentioned the term "arbitrate." On September 5, 2003, the union sent a formal request to arbitrate at step three, and Conoco did not respond. (Dkt. # 27, Exh. N). The Union has submitted no evidence genuinely disputing Conoco's arguments and affidavit statements that Conoco never equivocated on its position. (See Dkt. # 37). In letters dated June 7 and June 19, 2006, the Union acknowledged Conoco had denied arbitration on the basis of untimeliness. (Dkt. # 37-3, p. 2, 6).
The Union's attempt to apply Unisource to R03-14 is also unavailing. Even under the proposed Unisource rule, the Union cannot succeed in an argument that the grievance process was not exhausted. If the initial grievance is not timely, the process cannot start. (Dkt. #27, p. 7; see Dkt. # 27, Exh. B, p. 39). Conoco's refusal to participate in the grievance process constituted a break down of the process to the detriment of the Union. See Unisource, 157 F.Supp.2d at 1082-83. Conoco refused the grievance as untimely on August 5, 2003, almost three years before this action was filed. Thus even if this Court accepts the proposed rule from Unisource, this action would be time barred.
The six-month statute of limitations accrued on the Union's receipt of the August 5, 2003, letter. The Union filed its Complaint on July 14, 2006. As such, R03-14 is time barred.
WHEREFORE, Conoco's Motion for Summary Judgment (Dkt. # 27) is granted.