Opinion ID: 337743
Heading Depth: 1
Heading Rank: 4

Heading: The Union's Cross-Appeal

Text: 19 The Union contends that the Company's refusal to abide by the arbitration award was without justification and that, therefore, the Union was entitled to an award of attorneys' fees and costs. United Steelworkers v. United States Gypsum Co., supra Part III C. It asserts that this court is as capable as the district court of resolving the question whether a challenge to an arbitration award is without justification because the standards for judicial review in these cases are so restricted. It asserts that since the district court found it clear that the panel based the award on the contract and clear that the Union was entitled to summary judgment, it is apparent that the Company raised no colorable or valid arguments in opposition to the award. Accordingly, the Union asserts that in order to discourage frivolous refusals to abide by arbitration decisions, and to foster the clear federal labor policy favoring arbitration, this court should declare the Company's challenge in this case to be without justification and should order the award of costs and attorneys' fees. 20 We find the Union's analysis rather compelling. Although § 301 of the Labor Management Relations Act 7 does not specifically provide for costs and attorneys' fees, it is clear that when a challenge to an arbitration panel's decision is without justification these costs are awardable. District 50, U.M.W. v. Bowman Transportation, Inc., 421 F.2d 934 (5th Cir. 1970); Local 149, U.A.W. v. American Brake Shoe Co., 298 F.2d 212 (4th Cir.), cert. denied, 369 U.S. 873, 82 S.Ct. 1142, 8 L.Ed.2d 276 (1962); Local 494, I.B.E.W. v. Artkraft, Inc., 375 F.Supp. 129, 132-33 (E.D.Wis.1974); Local 4076, United Steelworkers v. United Steelworkers, 338 F.Supp. 1154, 1164 (W.D.Pa.1972) (Supp.Mem). However, this court's scope of review is limited to determining whether the district court abused its discretion in its decision concerning costs and attorneys' fees. Local 4, I.B.E.W. v. Radio Thirteen-Eights, Inc., 469 F.2d 610, 615 (8th Cir. 1972); District 50, U.M.W. v. Bowman Transportation, Inc., supra at 935. 21 In the present posture of this case, we are unable to find such an abuse of discretion, although we note that any justification for the Company's challenge is not apparent. The only clause that the Company purports to rely on is expressly subject to the grievance procedure, which includes final and binding arbitration. Beyond peradventure the panel's decision was not arbitrary or capricious. 8 Accordingly, the only real contention the Company has made throughout this case goes to the intrinsic merits of the dispute. As previously noted, this challenge appears devoid of merit because it does not go to the jurisdiction of the arbitration panel (arbitrability) or the validity of the award (essence). Cf. Local 179, United Textile Workers v. Western Textile Products Co., 374 F.Supp. 633 (E.D.Mo.1974) (jurisdiction and essence were sincerely questioned ; award of fees would be inappropriate). 22 We refuse to countenance frivolous and wasteful judicial challenges to conscientious and fair arbitration decisions. In the case sub judice the district court ordered each party to bear its own costs and attorneys' fees, but made no finding on whether the Company's challenge was justified. We vacate and remand on the cross-appeal for a specific finding on this question and an award of costs and attorneys' fees by the district court if it determines that the refusal to abide by the arbitration award was without justification. See Sheeder v. Eastern Express, Inc., 375 F.Supp. 655, 661 (W.D.Pa.1974) (rule stated, relevant cases cited); Local 15253, U.M.W. v. James Julian, Inc., 341 F.Supp. 503, 508 (M.D.Pa.1972) (rule stated, relevant cases cited). 23 AFFIRMED on main appeal; VACATED and REMANDED with directions on cross-appeal.