Opinion ID: 539929
Heading Depth: 2
Heading Rank: 1

Heading: Jason Had a Duty to Arbitrate

Text: 10 Jason contends it is not bound by the NJAB arbitration award because it was not required to submit the contract-renewal dispute to arbitration. 11 The question of arbitrability is an issue for judicial determination. AT & T Technologies, Inc. v. Communications Workers, 475 U.S. 643, 649, 106 S.Ct. 1415, 1418, 89 L.Ed.2d 648 (1986); Associated Plumbing & Mechanical Contractors v. Local Union No. 447 Utd. Ass'n of Journeymen, 811 F.2d 480, 481 (9th Cir.1987); Hotel & Restaurant Employees v. Williams, 752 F.2d 1476, 1478 (9th Cir.1985). There is a strong presumption of arbitrability in the sense that '[a]n order to arbitrate the particular grievance should not be denied unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute. Doubt should be resolved in favor of coverage.'  AT & T, 475 U.S. at 650, 106 S.Ct. at 1419 (quoting United Steelworkers v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582-83, 80 S.Ct. 1347, 1352-53, 4 L.Ed.2d 1409 (1960)); see also Associated Plumbing, 811 F.2d at 481. This presumption must be balanced with the principle that  'arbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.'  AT & T, 475 U.S. at 648, 106 S.Ct. at 1418 (quoting Warrior & Gulf, 363 U.S. at 582, 80 S.Ct. at 1353); see Alpha Beta Co. v. Retail Store Employees Union, Local 428, 671 F.2d 1247, 1250 (9th Cir.1982). 5 12 The union contends that notwithstanding Jason's notice of termination, the interest arbitration provisions contained in article X, section 8, and article XII, section 1, of the agreement require NJAB arbitration of a new agreement for the next term, in view of the parties' failure to negotiate a new agreement on their own. Jason argues that Addendum 1 changes the consequences of an impasse in negotiations, because the addendum specifically addresses procedures for termination, as opposed to reopening or renewal, of the contract. In granting summary judgment in favor of the union, the district court held that the interest arbitration provisions of article X, section 8, and article XII, section 1, controlled. 13 Absent the addendum, this circuit has repeatedly held that article X, section 8 and article XII, section 1 read together represent the parties' agreement to negotiate a renewal agreement, and, if no agreement is forthcoming, to submit their dispute to the NJAB for interest arbitration. A unanimous NJAB decision is final and binding upon the parties. American Metal, 794 F.2d at 1455. Timely notice of termination does not automatically cancel the interest arbitration clause of a collective bargaining agreement. Id.; International Bhd. of Elec. Workers, Local No. 367 v. Graham County Elec. Coop., Inc., 783 F.2d 897, 899-900 (9th Cir.1986); see also Hotel & Restaurant Employees, 752 F.2d at 1479 (To hold that all rights under [the interest arbitration provision] terminated at the contract's expiration date would effectively invalidate the entire provision and would be inconsistent with the clear and unambiguous language of that article.). We have also stated that there is no indication in the language of the collective bargaining agreement [in a case involving a party who had withdrawn from SMACNA] that timely notice of termination of the contract or termination itself would cancel interest arbitration obligations. American Metal, 794 F.2d at 1445. 14 The facts in Sheet Metal Workers International Association, Local No. 420 v. Huggins Sheet Metal, Inc. (Huggins ), 752 F.2d 1473 (9th Cir.1985), are remarkably similar to the present case. In Huggins, Huggins resigned from a multi-employer association and notified the union of its intent to bargain on its own behalf. The union had previously given notice of its intent to reopen the contract. The multi-employer/union contract contained the same article X, section 8 and article XII, section 1 as the current dispute. Huggins was notified, but did not attend the NJAB arbitration proceedings instituted by the union. The NJAB rendered a unanimous decision directing the parties to enter into a successor agreement without an interest arbitration clause. 15 The district court in Huggins held that Huggins had no duty to arbitrate. On appeal, we reversed. We stated that [w]hen Article XII is read with Article X, Section 8, it becomes apparent that the parties intended the arbitration clause to extend beyond the expiration of the contract. Id. at 1475. This conclusion required Huggins to arbitrate the terms and conditions of an extended contract after the subject contract had expired and after the parties had reached an impasse. Id. at 1476. Huggins was thus bound by the NJAB arbitration decision. Id. 16 In Huggins, we did not consider the effect of an employer's termination of its agreement with the union pursuant to a termination addendum. Such an addendum is present in this case in the form of Addendum 1 to the agreement. This addendum is set forth in full in footnote 1, supra. Pursuant to this addendum, Jason gave notice to the union and terminated the agreement. But this termination, brought about by notice, is no different from termination as a result of expiration of the agreement, which was the situation in Huggins. The addendum under which Jason gave its notice to terminate did not abrogate the obligation incurred in the main agreement to negotiate, and if negotiations failed, to arbitrate. To the contrary, the addendum specifically provides: it is hereby agreed that without terminating or in any manner affecting the provisions of said continuing Agreement said Agreement is ... amended as [set forth in Addendum 1]. 17 We hold, therefore, that notwithstanding Jason's termination of the agreement by notice pursuant to Addendum 1, the provisions of article X, section 8, read with article XII, section 1, require arbitration of new contract terms. Jason's withdrawal from the multi-employer association does not alter this result. See Huggins, 752 F.2d at 1473-74. 6 18