Opinion ID: 754562
Heading Depth: 3
Heading Rank: 2

Heading: The Initial Award

Text: 21 The district court entered summary judgment in favor of Kuhlman on the basis that the arbitrator had exceeded his authority in rendering the initial award. Although the district court agreed with the arbitrator's determination that the Beare letter constituted a provision of the Agreement, it held that the arbitrator's ruling that the Beare letter obligated Kuhlman to retain the jobs added to Versailles for the duration of the Agreement failed to draw its essence from the Agreement. In so holding, the district court determined that the award imposed upon Kuhlman an additional requirement not expressly provided for in the Agreement. Furthermore, the district court determined that the initial award conflicted with other terms of the Agreement by infringing upon exclusive management rights which Kuhlman expressly reserved under Sections 3 and 28. 22 On appeal, UAW asserts that because the Beare letter constituted a provision of the Agreement, the arbitrator's determination that Kuhlman was obligated to retain the added jobs for the Agreement's three-year duration (so long as they were needed) drew its essence from the Agreement. In support of its position, UAW argues that the Beare letter, as with any other provision of the Agreement, became part of the three-year contract between the parties. UAW thus contends that the arbitrator did not impose an additional term, as the district court determined, but simply applied the general three-year commitment which the parties had already agreed upon to the new provision. 23 Kuhlman does not challenge on appeal the district court's threshold conclusion that the Beare letter constitutes a provision of the Agreement. Rather, Kuhlman asserts that the initial award fails to draw its essence from the Agreement because the Beare letter, while containing a commitment to add jobs, contains no commitment to maintain such jobs for any particular length of time. Kuhlman therefore contends the arbitrator's determination that Kuhlman committed to retaining a minimum of 30 jobs in Versailles for the entire term of the Agreement imposed an additional requirement not expressly provided for in the Agreement. Furthermore, Kuhlman asserts that the arbitrator's determination conflicts with the Agreement's express terms by infringing upon a prerogative that Kuhlman expressly reserved under Section 3. 24 We are satisfied that the arbitrator's award draws its essence from the Agreement. Again, it is the arbitrator's construction which was bargained for; and so far as the arbitrator's decision concerns construction of the contract, the courts have no business overruling him because their interpretation of the contact is different from his. Enterprise Wheel, 363 U.S. at 599, 80 S.Ct. 1358. In the present matter, the arbitrator construed the Beare letter as requiring that Kuhlman maintain the 30 or more jobs which Kuhlman committed to adding in Versailles for the entire term of the Agreement, subject only to customer demand for the instrument transformers. 25 In light of the events giving rise to the issuance of the Beare letter, such a construction seems perfectly reasonable. UAW had insisted upon the Beare letter's commitment to add at least 30 jobs to Versailles as a condition for recommending ratification of the proposed agreement to the employees. UAW therefore had a reasonable expectation that any jobs added to Versailles under Kuhlman's commitment would remain in Versailles for the duration of the Agreement, at least so long as such work was needed. In fact, it seems unreasonable to assume that Kuhlman would be free to transfer the jobs at its sole discretion any time after the employees ratified the Agreement. Under these circumstances, we are satisfied the arbitrator's award did not impose upon Kuhlman an additional requirement not expressly provided for in the Agreement. See Dallas & Mavis, supra, 972 F.2d at 134. 26 Moreover, we are satisfied that the initial award does not conflict with an express term of the Agreement. Section 3 provides that Kuhlman's retention of certain exclusive management rights is subject to any limitations specifically stated in this Agreement. Because the Beare letter constituted a provision of the Agreement, the commitment contained therein as construed by the arbitrator would constitute a limitation for purposes of Section 3. Accordingly, the district court erroneously determined that the initial award infringed upon Kuhlman's exclusive management rights.