Opinion ID: 389950
Heading Depth: 2
Heading Rank: 2

Heading: The Local Guild

Text: 33 As in the case of the International Guild, the district court assumed it had subject matter jurisdiction because it is undisputed that the Local Guild is a party to the collective bargaining agreement enforcement of which is sought. The court dismissed the contract claim on the ground that the Employer had failed to exhaust remedies before the arbitrator. We noted above that the Employer actually grieved the dispute over violation of the agreement not to work for a competitor, and sought arbitration. This suit was commenced only when the union reserved the right to challenge arbitrability in a post arbitration enforcement proceeding. The preservation of jurisdictional objections before an arbitrator is permissible. International Brotherhood of Teamsters, Local 249 v. Western Pennsylvania Motor Carriers Ass'n, 574 F.2d 783, 786 n.2 (3d Cir.), cert. denied, 439 U.S. 828, 99 S.Ct. 102, 58 L.Ed.2d 122 (1978); Bakery and Confectionary Workers v. National Biscuit Co., 378 F.2d 918, 921 (3d Cir. 1967). When the defendants called to the court's attention the language of the arbitration clause and the pendency of the arbitration proceeding, their motion could fairly be construed as an application for a stay of the pending action, insofar as subject matter jurisdiction over the contract claim was not disputed. 34 The court concluded that the arbitration clause is ambiguous, that the parties contracted for an arbitral determination of its meaning, and that this is what they should receive. We agree. The parties agreed that the arbitrator was to decide any matter arising from the application of this Agreement (except renewal of this Agreement). The ambiguity arises because of the contention that under Article XXV, the contract continued, rather than being renewed. In these circumstances the language may well be broad enough to encompass arbitrability of the dispute over bargaining unit members' working for a competitor. See Chauffeurs, Teamsters and Helpers, Local Union No. 765 v. Stroehmann Bros. Co., 625 F.2d 1092 (3d Cir. 1980). However in dismissing the complaint, the court decided the issue of arbitrability, leaving to the arbitral forum only the question whether there was a breach. The court's decision that the dispute is arbitrable could be construed as deciding that the contract had not terminated, a question which the Local Guild raised before the arbitrator. We think the court went too far. It certainly should not have gone forward with the contract claim against the Local Guild either. Rather than deciding any part of the contract dispute on the merits, and dismissing, it should have stayed the action against the Local Guild.