Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_06-cv-05441/USCOURTS-cand-4_06-cv-05441-1/pdf.json

Nature of Suit Code: 790
Nature of Suit: Other Labor Litigation
Cause of Action: 09:1 U.S. Arbitration Act

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United States District Court

For the Northern District of California

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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

PAPER, ALLIED-INDUSTRIAL, CHEMICAL

AND ENERGY WORKERS INTERNATIONAL

UNION, A.F.L.-C.I.O., CLC LOCAL

NO. 8-5,

Petitioner,

v.

SHELL OIL PRODUCTS US MARTINEZ

REFINERY,

Respondent.

 /

No. C 06-5441 CW

ORDER GRANTING

MOTION TO COMPEL

ARBITRATION

Petitioner Paper, Allied-Industrial Chemical and Energy

Workers International Union, A.F.L.-C.I.O., CLC Local No. 8-5 moves

to compel arbitration. 

Respondent Equilon Enterprises, LLC, dba Shell Oil Products

US, has withdrawn its objection to arbitration. Although it agrees

to proceed to arbitration, it argues that the Court should not

award attorneys' fee, as Petitioner urges. The Ninth Circuit

instructs that an award of attorneys' "fees is appropriate when a

party frivolously or in bad faith refuses to submit a dispute to

Case 4:06-cv-05441-CW Document 15 Filed 01/17/07 Page 1 of 3
United States District Court

For the Northern District of California

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arbitration." United Food & Commercial Workers Union v. Alpha Beta

Co., 736 F.2d 1371, 1383 (9th Cir. 1984). Here, Respondent did not

frivolously refuse to arbitrate, nor was its prior refusal to

arbitrate made in bad faith. As Respondent explains, it believed

that Petitioner was seeking to arbitrate whether Respondent had

violated State law, not whether it had violated the collective

bargaining agreement and the Disability Benefit Plan. Petitioner's

motion to compel made clear that Petitioner is seeking to arbitrate

an alleged violation of the collective bargain agreement and the

Disability Benefit Plan and, thus, Respondent no longer objects to

arbitration. Therefore, an award of attorneys' fees is not

appropriate.

Although Respondent agrees to arbitrate the grievance, it

objects to how Petitioner describes the grievance at issue. 

According to Petitioner, the grievance is: "Whether Mike Hall and

other affected employees are entitled to non-occupational

disability benefits under the Employee's Disability Benefit Plan

(as incorporated into the Articles of Agreement); if so, what is

the appropriate remedy?" Respondent contends that the grievance at

issue is: "Whether Employer conduct violates Articles 21 and 22 of

the collective bargaining agreement and the Disability Benefit Plan

made part of the collective bargaining agreement. If so, what

remedy?" 

The Court finds that Petitioner's description of the grievance

is accurate. Respondent's language could be interpreted too

narrowly, applying only to Mike Hall and not other affected

employees. The grievance itself makes clear that it is brought on

Case 4:06-cv-05441-CW Document 15 Filed 01/17/07 Page 2 of 3
United States District Court

For the Northern District of California

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behalf of all employees. Therefore, the Court will adopt

Plaintiff's description.

This matter was decided on the papers and, having considered

all of the papers filed by the parties, the Court GRANTS

Petitioner's Motion to Compel Arbitration (Docket No. 7). The

Court will not award attorneys' fees. The parties are ordered to

participate in arbitration of the following issues: Whether Mike

Hall and other affected employees are entitled to non-occupational

disability benefits under the Employer's Disability Benefit Plan

(as incorporated into the Articles of Agreement); and, if so, what

is the appropriate remedy?. 

The Clerk shall enter judgment.

IT IS SO ORDERED.

Dated: 1/17/07 

CLAUDIA WILKEN

United States District Judge

Case 4:06-cv-05441-CW Document 15 Filed 01/17/07 Page 3 of 3