Judges: Easterbrook
Filed: Jul. 30, 2014
Latest Update: Mar. 02, 2020
Summary: In the United States Court of Appeals For the Seventh Circuit _ No. 13---1566 CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND and ARTHUR H. BUNTE, JR., Trustee, Plaintiffs---Appellees, v. US FOODS, INC., Defendant---Appellant. _ Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 12 C 5513 — Elaine E. Bucklo, Judge. _ ARGUED MAY 27, 2014 — DECIDED JULY 30, 2014 _ Before POSNER, EASTERBROOK, and HAMILTON, Circuit Judges. EASTERBR
Summary: In the United States Court of Appeals For the Seventh Circuit _ No. 13---1566 CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION FUND and ARTHUR H. BUNTE, JR., Trustee, Plaintiffs---Appellees, v. US FOODS, INC., Defendant---Appellant. _ Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 12 C 5513 — Elaine E. Bucklo, Judge. _ ARGUED MAY 27, 2014 — DECIDED JULY 30, 2014 _ Before POSNER, EASTERBROOK, and HAMILTON, Circuit Judges. EASTERBRO..
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In the
United States Court of Appeals
For the Seventh Circuit
____________________
No. 13-‐‑1566
CENTRAL STATES, SOUTHEAST AND SOUTHWEST AREAS PENSION
FUND and ARTHUR H. BUNTE, JR., Trustee,
Plaintiffs-‐‑Appellees,
v.
US FOODS, INC.,
Defendant-‐‑Appellant.
____________________
Appeal from the United States District Court for the
Northern District of Illinois, Eastern Division.
No. 12 C 5513 — Elaine E. Bucklo, Judge.
____________________
ARGUED MAY 27, 2014 — DECIDED JULY 30, 2014
____________________
Before POSNER, EASTERBROOK, and HAMILTON, Circuit
Judges.
EASTERBROOK, Circuit Judge. Employers that withdraw, in
whole or part, from underfunded multiemployer pension
plans must pay their share of the shortfall. They can dispute
the plans’ assessments by seeking recalculation within 90
days, 29 U.S.C. §1399(b)(2)(A), and they have a further 60
days to invoke a process that the statute calls arbitration,
2 No. 13-‐‑1566
though unlike normal arbitration it is neither contractual nor
consensual. 29 U.S.C. §1401(a). (A joint request for arbitra-‐‑
tion may be made within 180 days, and there are other de-‐‑
tails that we need not relate.) The Central States Pension
Fund concluded that US Foods has withdrawn in part; it as-‐‑
sessed some liability in 2008 and some in 2009. US Foods
made a timely request for arbitration of the 2009 assessment.
That process is under way. But it did not ask for arbitration
of the 2008 assessment within the statutory limit.
In response to the Fund’s suit seeking to collect the 2008
assessment and prevent the arbitrator from considering how
much US Foods owes for that year, US Foods asked the dis-‐‑
trict court to order the arbitrator to calculate the amount due
for 2008 and 2009 jointly. The court ruled that US Foods had
missed the deadline for arbitral resolution of the 2008 as-‐‑
sessment. US Foods appealed, relying on 9 U.S.C.
§16(a)(1)(B), which authorizes an interlocutory appeal from
an order “denying a petition under section 4 of this title to
order arbitration to proceed”. This poses the question how a
request for “arbitration” under a section in Title 29 of the
United States Code could come within §16(a)(1)(B), which is
part of Title 9, the Federal Arbitration Act (FAA or Arbitra-‐‑
tion Act) and is limited to requests to arbitrate under §4 of
that title (9 U.S.C. §4).
Section 4 says that “[a] party aggrieved by the alleged
failure, neglect, or refusal of another to arbitrate under a
written agreement for arbitration may petition any United
States district court … for an order directing that such arbi-‐‑
tration proceed in the manner provided for in such agree-‐‑
ment.” US Foods and the Fund do not have a “written
agreement for arbitration”, and it would be impossible for a
No. 13-‐‑1566 3
court to order “that such arbitration proceed in the manner
provided for in such agreement.” US Foods insists that this
is irrelevant because the Multiemployer Pension Plan
Amendments Act of 1980 (MPPAA or Multiemployer Act)
provides that the procedure it establishes “shall, to the ex-‐‑
tent consistent with this subchapter, be conducted in the
same manner, subject to the same limitations, carried out
with the same powers (including subpena power), and en-‐‑
forced in United States courts as an arbitration proceeding
carried out under title 9.” 29 U.S.C. §1401(b)(3). This refer-‐‑
ence to the “manner” and “powers” of arbitration under the
Arbitration Act does not supply what §4 demands: a “writ-‐‑
ten agreement”.
One could argue to the contrary that, unless the court
overlooks the difference between statutory arbitration (the
Multiemployer Act) and contractual arbitration (the Arbitra-‐‑
tion Act), there would be no authority to mandate arbitra-‐‑
tion at all—for although §4 supplies a judicial power to
compel arbitration, the Multiemployer Act lacks a parallel
provision. Perhaps §1401(b)(3) is best understood as requir-‐‑
ing litigants and the judiciary to proceed as if the extra-‐‑
judicial proceedings contemplated by the Multiemployer Act
are contractual for the purpose of the Arbitration Act. Then
§16(a)(1)(B) would authorize an interlocutory appeal. As far
as we can tell, no court of appeals has addressed this possi-‐‑
bility or otherwise decided whether §16 of the Arbitration
Act authorizes an interlocutory appeal in a proceeding un-‐‑
der the Multiemployer Act. We need not be the first, for
there is another problem with appellate jurisdiction.
Arbitration of the 2009 assessment is under way. US
Foods did not ask the district court to compel the Fund to
4 No. 13-‐‑1566
engage in a second, independent arbitration. Instead, it
maintains that the 2008 and 2009 assessments are inversely
related, so that to change one compels a change to the other.
US Foods therefore wants the 2008 assessment added to the
agenda of the arbitrator who is already serving. Yet the arbi-‐‑
trator can decide for himself, in the first instance, what dis-‐‑
putes require resolution. Whether or not the arbitrator con-‐‑
siders the interaction of the 2008 and 2009 figures, his deci-‐‑
sion could be reviewed (to the extent the Multiemployer Act
allows) on petition to enforce or set aside the final order.
A judge who adds or subtracts issues in a pending arbi-‐‑
tration has neither compelled nor forbidden arbitration; the
judge has instead resolved an issue in the arbitration. That’s
why we held in Blue Cross Blue Shield of Massachusetts, Inc. v.
BCS Insurance Co., 671 F.3d 635 (7th Cir. 2011), that a pro-‐‑
posal to tell an arbitrator what to do is not a request for “an
order directing … arbitration” within the meaning of §4 of
the Arbitration Act, and a judge’s order declining to interfere
in the conduct of an arbitration is not an order “denying a
petition under section 4 of this title to order arbitration to
proceed” for the purpose of §16(a)(1)(B).
We explained in Blue Cross that a party’s request to tell an
arbitrator how to act in a pending proceeding is not a re-‐‑
quest to compel arbitration, no matter what caption the liti-‐‑
gant puts on its motion. And we added that “judges must
not intervene in pending arbitration to direct arbitrators to
resolve an issue one way rather than another. Trustmark In-‐‑
surance Co. v. John Hancock Life Insurance Co., 631 F.3d 869
(7th Cir. 2011). Review comes at the beginning or the end,
but not in the middle.” 671 F.3d at 638. Once the arbitration
is over, the losing side can seek judicial review. 29 U.S.C.
No. 13-‐‑1566 5
§§ 1401(b)(2), 1451. Until then matters are in the hands of the
arbitrator.
The appeal is dismissed for want of jurisdiction.