Exelon Generation Co v. Local 15 Electrical ( 2008 )


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  •                             In the
    United States Court of Appeals
    For the Seventh Circuit
    ____________
    No. 07-4065
    E XELON G ENERATION C OMPANY, LLC,
    E XELON B USINESS S ERVICES C OMPANY, AND
    C OMMONWEALTH E DISON C OMPANY,
    Plaintiffs-Appellants,
    v.
    L OCAL 15, INTERNATIONAL B ROTHERHOOD OF
    E LECTRICAL W ORKERS, AFL-CIO,
    Defendant-Appellee.
    ____________
    A ppeal from the United States District Court
    for the Northern District of Illinois, Eastern Division.
    N o. 07 C 968— M atthew F. Kennelly, Judge.
    ____________
    A RGUED M AY 13, 2008—D ECIDED S EPTEMBER 2, 2008
    ____________
    Before E ASTERBROOK, Chief Judge, and K ANNE and
    T INDER, Circuit Judges.
    T INDER, Circuit Judge. Exelon Generation Company, LLC,
    Exelon Business Services Company, and Commonwealth
    Edison Company (“Exelon”) filed a complaint for declara-
    2                                              No. 07-4065
    tory judgment against Local 15, International Brotherhood
    of Electrical Workers, AFL-CIO (“Local 15” or “Union”),
    seeking a determination that disputes over Exelon’s
    changes to medical benefits for retirees are not within the
    scope of the parties’ collective bargaining agreement
    (“CBA”) or arbitrable under the grievance procedure
    and that Local 15 may not represent the retirees. The
    parties filed cross-motions for summary judgment. The
    district court granted the Union’s motion and denied
    Exelon’s motion, concluding that the Union may repre-
    sent the retirees in arbitration and that the matter was
    subject to arbitration. Judgment was entered. Exelon
    appeals.
    I. Background
    Exelon and Local 15 are parties to a CBA. They have
    engaged in collective bargaining for over fifty years and
    have bargained over mandatory bargaining subjects such
    as working conditions and wages as well as permissive
    bargaining subjects such as retiree medical benefits that
    become effective upon a bargaining unit employee’s
    retirement. The terms of the retiree medical benefits have
    been memorialized in Memoranda of Agreement Reached
    in Collective Bargaining (“MOAs”) which supplemented
    and became part of the CBA.
    In January 2004, Exelon made various unilateral changes
    to the retiree medical benefits. These changes immediately
    affected certain retirees and may also affect current em-
    ployees when they retire. This led to a dispute between
    Exelon and the Union over the interpretation and applica-
    No. 07-4065                                              3
    tion of the retiree medical benefit provisions. The Union
    believes that the dispute is within the scope of the CBA’s
    four-step grievance procedure which states in part:
    “Should any dispute or difference arise between the
    Company and the Union or its members as to the inter-
    pretation or application of any of the provisions of this
    Agreement . . . the dispute or difference shall be settled
    through the grievance procedure.” If a dispute is not
    resolved at steps one through three, then at step four, at
    the request of a party to the grievance, the dispute shall
    be referred to arbitration. The grievance procedure
    states: “All decisions rendered by the impartial arbitrator
    shall be final and binding on both parties.”
    On October 4, 2005, the Union filed a grievance under
    step 1 of the grievance procedure, alleging that Exelon
    violated the CBA and MOAs “with respect to retiree
    medical plans, premiums, and prescription drug costs
    for active and retired employees.” In the section entitled
    “Name of Employee(s),” the Union wrote, “For the good of
    the Union.” The grievance proceeded through steps 1, 2
    and 3 of the grievance procedure without resolution. On
    February 19, 2006, the grievance proceeded to step 4, when
    the Union referred the grievance to arbitration. Exelon
    participated in the selection of an arbitrator and hearing
    dates. However, Exelon later argued that “retirees are not
    part of the bargaining unit and Exelon does not have
    an obligation to . . . bargain with Local 15 with respect
    to current retirees.”
    Exelon provides medical benefits to approximately 5,889
    bargaining-unit retirees and their dependents. The Union
    4                                               No. 07-4065
    does not have the consent of all retirees affected by
    Exelon’s changes to retiree medical benefits to represent
    them in arbitration of the dispute. Seven retirees have
    consented to representation by the Union in the
    grievance procedure, though not in writing. No affected
    retiree has filed an individual action against Exelon over
    the changes to the retiree medical benefits.
    On February 20, 2007, Exelon filed a complaint for
    declaratory judgment, seeking a declaration that disputes
    over its decisions to modify retiree medical and prescrip-
    tion drug benefits are not subject to arbitration under
    the CBA. The parties filed cross-motions for summary
    judgment, raising two issues of arbitrability and an issue of
    the Union’s standing. The district court granted the Un-
    ion’s motion for summary judgment and denied Exelon’s
    motion. The court first decided that the dispute between
    the Union and Exelon over retiree medical benefits falls
    within the scope of the grievance procedure in the CBA.
    Second, it concluded that Exelon had consented to
    arbitrate the underlying retiree medical benefit dispute.
    And, finally, the court concluded that the Union could
    represent the retirees who consented to its representa-
    tion; consent of all affected retirees was not necessary
    for the Union to pursue arbitration.
    II. Analysis
    We review de novo the district court’s decisions on the
    cross-motions for summary judgment. Rickher v. Home
    Depot, Inc., No. 07-2850, 
    2008 WL 2877515
    , at *3 (7th Cir.
    July 28, 2008). In this case we address (1) whether Exelon
    No. 07-4065                                                    5
    consented to arbitration of a dispute over retiree medical
    benefits brought by the Union on behalf of retirees, and
    (2) whether the Union may arbitrate a dispute under the
    CBA on behalf of affected retirees when it has the
    consent of a few but not all of the affected retirees.1 Before
    getting to the substantive issues presented on appeal, we
    must first assure ourselves that we have appellate juris-
    diction.
    A. Appellate Jurisdiction
    A question arose at oral argument of whether a final
    judgment had been entered by the district court, and we
    ordered the parties to file supplemental memoranda
    addressing the issue. The parties complied with the order,
    and we are satisfied that we may properly exercise appel-
    late jurisdiction.
    “Unless the plaintiff loses outright, a judgment must
    provide the relief to which the winner is entitled. That
    motions have been granted is beside the point.” Rush Univ.
    Med. Ctr. v. Leavitt, Nos. 07-3648, 08-2227, 
    2008 WL 2941220
    , at *1 (7th Cir. Aug. 1, 2008); see also Perlman v.
    1
    Exelon does not challenge the district court’s conclusion that
    the dispute over retiree medical benefits falls within the scope
    of the CBA’s grievance procedure. The operative provi-
    sion—“any dispute or difference . . . between the Company and
    the Union or its members as to the interpretation or application
    of any of the provisions of this Agreement . . . shall be settled
    through the grievance procedure”—easily encompasses this
    dispute.
    6                                                   No. 07-4065
    Swiss Bank Comprehensive Disability Prot. Plan, 
    195 F.3d 975
    ,
    977 (7th Cir. 1999); Reytblatt v. Denton, 
    812 F.2d 1042
    , 1044
    (7th Cir. 1987). A judgment must “specify what matters:
    the consequence of the judicial ruling.” Rush Univ. Med. Ctr.,
    
    2008 WL 2941220
    , at *1. If, however, the final disposition of
    the case can easily be inferred, then the appeal may go
    forward “despite technical shortcomings.” Id.; see also Metzl
    v. Leininger, 
    57 F.3d 618
    , 620 (7th Cir. 1995) (“If it is plain
    what the judgment declares . . . and it is also plain that the
    district court is finished with the case . . . there is appellate
    jurisdiction.”); Alpine State Bank v. Ohio Cas. Ins. Co., 
    941 F.2d 554
    , 559 (7th Cir. 1991) (concluding appellate jurisdic-
    tion existed even though district court did not technically
    enter a declaration of the parties’ rights but intended to
    enter a final judgment).
    Exelon filed a complaint for declaratory judgment,
    seeking a declaration that disputes over its decisions to
    modify retiree medical and prescription drug benefits
    are not subject to arbitration under the CBA. The Union
    filed an answer, and the parties filed cross-motions for
    summary judgment. On December 3, 2007, the district
    court entered three documents on its docket. It entered
    its Memorandum Opinion and Order in which it deter-
    mined that plaintiffs were not entitled to the declaratory
    relief sought in their complaint and directed the clerk to
    enter judgment in favor of the defendant. The court also
    entered a Minute Order which said:
    For the reasons set forth in the Memorandum
    Opinion and Order, the Court grants defendant’s
    motion for summary judgment (34) and denies
    No. 07-4065                                                7
    plaintiffs’ motion for summary judgment (39).
    Defendant’s motion to compel discovery is termi-
    nated as moot (29). The clerk is directed to enter
    judgment in favor of the defendant.
    And, finally, the clerk entered a document entitled “JUDG-
    MENT IN A CIVIL CASE,” which read:
    Decision by Court. This action came to trial or
    hearing before the Court. The issues have been
    tried or heard and a decision has been rendered.
    IT IS HEREBY ORDERED AND ADJUDGED that
    the Court grants defendant’s motion for sum-
    mary judgment and denies plaintiffs’ motion for
    summary judgment. Judgment is entered in favor
    of the defendant.
    Although it would have been clearer had the judgment
    indicated that the plaintiffs would take nothing and that
    the case was dismissed, the failure to include this language
    does not render the judgment non-final and unappealable.
    See McCaskill v. SCI Mgmt. Corp., 
    298 F.3d 677
    , 679 (7th
    Cir. 2002). Unlike American Interinsurance v. Occidental Fire
    & Casualty Co., 
    835 F.2d 157
    (7th Cir. 1987), in which both
    sides sought declaratory relief and thus the final judg-
    ment had to include a declaration of rights, here, only
    Exelon sought a declaratory judgment. The Union neither
    filed a counterclaim nor sought any declaration of the
    parties’ rights. And although the Union filed its own
    motion for summary judgment, it merely sought a judg-
    ment against Exelon on the complaint for declaratory
    relief. Furthermore, the district court’s Minute Order,
    Memorandum Opinion and Order, and Judgment in a Civil
    Case together indicate that there is nothing left to be
    8                                                No. 07-4065
    decided and that court is done with the case. The judgment
    itself is clear that the plaintiff Exelon loses; judgment is
    for the defendant Local 15. Therefore, the judgment is
    final and we have appellate jurisdiction. We thus move
    on to the merits of the appeal.
    B. Exelon’s Consent to Arbitrate Disputes
    Over Retiree Medical Benefits
    Exelon contends that it did not agree to arbitrate a
    grievance brought by the Union on behalf of retirees. The
    district court concluded otherwise. The court reasoned
    that because the CBA includes provisions that apply
    specifically to retirees,
    when the CBA says that disputes over its interpre-
    tation or application are subject to arbitration, that
    necessarily includes disputes over retiree rights
    that the CBA confers. In short, by entering into a
    CBA that included terms according rights to
    retirees as well as a broad obligation to engage in
    arbitration over disputes about the CBA, [Exelon]
    consented to arbitration of grievances brought on
    behalf of retirees.
    The court also relied on the presumption of arbitrability,
    requiring an express provision or forceful evidence to
    exclude the retiree grievance from arbitration. We have
    said:
    “[W]here the contract contains an arbitration
    clause, there is a presumption of arbitrability in the
    sense that [a]n order to arbitrate the particular
    No. 07-4065                                                   9
    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. Doubts should be
    resolved in favor of coverage.”
    Int’l Bhd. of Elec. Workers, Local 21 v. Ill. Bell Tel. Co., 
    491 F.3d 685
    , 687-88 (7th Cir. 2007) (quoting AT&T Techs., Inc.
    v. Commc’ns Workers of Am., 
    475 U.S. 643
    , 650 (1986) (inter-
    nal quotations omitted)).
    Exelon argues that Rossetto v. Pabst Brewing Co., 
    128 F.3d 538
    (7th Cir. 1997), compels a different conclusion than
    that reached by the district court. The CBA in Rossetto
    provided for health benefits for retired employees and
    their dependents, 
    id. at 538,
    and the CBA’s arbitration
    provision provided for appeal to arbitration of “all griev-
    ances . . . between the Company and its employees” that
    “that cannot be satisfactorily settled” by the grievance
    process. 
    Id. at 539
    (emphasis added). Pabst unilaterally
    eliminated retiree health benefits and the union filed a
    grievance on behalf of the affected retirees, alleging a
    breach of the CBA. The union also filed a civil action on
    behalf of all the retirees, seeking reinstatement of the
    terminated benefits. The union eventually appealed the
    grievance to arbitration, and Pabst refused to arbitrate.
    The district court certified a class consisting of all the
    retirees, their spouses, and dependents, who were repre-
    sented by the union. The plaintiffs sought to compel
    arbitration of the union’s grievance, their motion was
    granted, and Pabst appealed. 
    Id. We held
    that the union
    lacked standing to represent the retirees in arbitration
    10                                              No. 07-4065
    unless the retirees consented to the union’s representa-
    tion and Pabst consented to bargain with the union as the
    agent of the affected retirees. 
    Id. at 541.
      Exelon is correct that the mere fact that a CBA creates
    the retirees’ rights to medical benefits may be insufficient
    to establish that the company agreed to arbitrate disputes
    over retiree medical benefits. We know as much from
    Rossetto. After all, the CBA there provided for retiree
    health benefits, but this was insufficient by itself to sup-
    port the conclusion that Pabst agreed to arbitrate retiree
    claims. But there is a critical distinction between the CBA
    in Rossetto and the one in this case: The CBA in Rossetto
    expressly defined an arbitrable grievance as one between
    Pabst and an “employee.” And retirees are not employees.
    
    Id. at 540.
    The CBA here, however, does not define an
    arbitrable grievance as one between the company and an
    employee. Nor does the CBA in this case expressly restrict
    arbitration to grievances by employees. The arbitration
    agreement is broader than that. The grievance procedure
    applies to “any dispute or difference . . . between the
    Company and the Union or its members as to the inter-
    pretation or application of any of the provisions of this
    Agreement . . . .” Exelon has agreed that a dispute exists
    between it and the Union regarding the interpretation
    and application of the retiree medical benefit provisions
    of the MOAs, which are part of the CBA.
    Exelon contends that the CBA contains specific language
    plainly limiting the grievance procedure to disputes
    brought by the Union on behalf of current employees. For
    example, Exelon points to the following: “It is the intent
    No. 07-4065                                              11
    of the Company, Local Union 15, and the employees that
    timely filed grievances shall be settled promptly” (empha-
    sis added); the deadline for filing a grievance runs from
    the date that the “employee became aware or reasonably
    should have become aware of the incident which is the
    basis for the grievance” (emphasis added); and “[t]he
    dispute or difference shall be presented and first dis-
    cussed by the employee concerned and the immediate
    Supervisor.” (Emphasis added). None of these provisions,
    however, or any other provision in the CBA we might
    add, expressly excludes from arbitration a grievance
    brought by the Union on behalf of retirees. The parties
    could have written the CBA to exclude retiree grievances
    from the arbitration agreement if they had intended to,
    but they did not.
    Exelon also points to the CBA’s representation and
    recognition clause, which it claims demonstrates the
    parties’ intent that the grievance provisions apply only
    to current employees and not retirees. That clause recog-
    nizes the Union as the “exclusive bargaining representative
    for all employees in” the bargaining unit. However, it
    does not follow from the fact that Exelon recognizes the
    Union as the exclusive bargaining representative for
    bargaining unit employees that Exelon could never recog-
    nize the Union as the representative of retirees in arbitra-
    tion. The clause does not clearly limit Exelon’s agreement
    to arbitrate to disputes involving only current employees.
    Any doubt about whether Exelon agreed to arbitrate
    disputes brought on behalf of retirees is resolved by
    application of the presumption of arbitrability. “[A]rbitra-
    12                                                  No. 07-4065
    tion is favored and should be ordered ‘unless it may be
    said with positive assurance that the arbitration clause is
    not susceptible of an interpretation that covers the asserted
    dispute.’ ” Niro v. Fearn Int’l, Inc., 
    827 F.2d 173
    , 175 (7th Cir.
    1987) (quoting United Steelworkers of Am. v. Warrior & Gulf
    Navigation Co., 
    363 U.S. 574
    , 582-83 (1960)). “Doubts
    should be resolved in favor of coverage.” Warrior & Gulf
    Navigation 
    Co., 363 U.S. at 583
    . The presumption of
    arbitrability is particularly applicable where the arbitra-
    tion provision is broad. United Steelworkers v. Cooper Tire &
    Rubber Co., 
    474 F.3d 271
    , 279 (6th Cir. 2007). Where the
    arbitration provision is broad, as it is here, only an “ ‘ex-
    press provision excluding a particular grievance from
    arbitration . . . [or] the most forceful evidence of a
    purpose to exclude the claim from arbitration’ ” can keep
    the claim from arbitration. AT&T 
    Techs., 475 U.S. at 650
    (quoting Warrior & 
    Gulf, 363 U.S. at 584-85
    ). Several of
    our sister circuits have applied the presumption of
    arbitrability to disputes involving retirees. United Steel-
    workers of Am. v. Retirement Income Plan for Hourly-Rated
    Employees of Asarco, Inc., 
    512 F.3d 555
    , 560-61 (9th Cir. 2008)
    (applying presumption of arbitrability where union sought
    arbitration and filed a complaint to compel arbitration);
    Cleveland Elec. Illuminating Co. v. Util. Workers Union, 
    440 F.3d 809
    , 816 (6th Cir. 2005) (“[T]he presumption of
    arbitrability applies to disputes over retirees’ benefits if the
    parties have contracted for such benefits in their
    [CBA]. . . .”); United Steelworkers of Am., AFL-CIO v. Canron,
    Inc., 
    580 F.2d 77
    , 82 (3d Cir. 1978) (applying presumption).
    But see Anderson v. Alpha Portland Indus., Inc., 
    752 F.2d 1293
    , 1295-98 (8th Cir. 1985).
    No. 07-4065                                                  13
    We will apply the presumption of arbitrability here as
    well. First of all, as noted, the arbitration provision is
    quite broad. The grievance and arbitration procedure
    covers “any dispute . . . as to the interpretation or applica-
    tion of any of the provisions of this Agreement” and the
    retiree medical benefits are created by provisions of the
    MOAs, which have supplemented and become part of the
    CBA. And it was the Union rather than the retirees that
    filed the grievance asserting a violation of the CBA and
    MOAs with respect to retiree medical benefits. Further-
    more as Exelon concedes, the dispute is between the
    Union and Exelon. And the Union may resort to its eco-
    nomic weapons—it also represents the bargaining unit’s
    interests in maintaining retiree medical benefits. These
    considerations counsel in favor of applying the presump-
    tion of arbitrability. See 
    Asarco, 512 F.3d at 560-61
    ; Cleveland
    Elec. Illuminating 
    Co., 440 F.3d at 816
    .
    Moreover, the CBA contains no express provision
    excluding retiree grievances from the grievance and
    arbitration procedure. The language cited by 
    Exelon, supra
    ,
    is neither clear nor “forceful evidence” of a purpose to
    exclude a dispute over retiree medical benefits from
    the grievance and arbitration procedure. An interpreta-
    tion of the arbitration language so as to include disputes
    between Exelon and the Union over retiree medical
    benefits is a reasonable one given the breadth of the
    grievance and arbitration procedure. And where both the
    Union’s and Exelon’s competing interpretations are
    reasonable, it cannot be said with “positive assurance”
    that the grievance and arbitration procedure is not suscep-
    14                                               No. 07-4065
    tible to an interpretation that covers the dispute over
    retiree medical benefits. Therefore, we find no error in
    the district court’s conclusion that Exelon consented to
    arbitrate disputes over retiree medical benefits.
    C. Whether the Union May Represent
    a Few Retirees in Arbitration
    The Union has the consent of a few, but not all, of
    the current retirees affected by Exelon’s changes to
    retiree medical benefits. Exelon contends that in Rossetto
    we held that a union may not represent any retiree in
    arbitration unless it obtains consent from all the affected
    retirees to represent them. Exelon again misunderstands
    Rossetto. In Rossetto we recognized that the union was not
    the exclusive bargaining representative of the retirees.
    Thus the retirees’ claims “for benefits [] belong to the
    retirees individually, and the retirees may deal directly
    with Pabst in pursuing such claims.” 
    Rossetto, 128 F.3d at 540
    . But we did not foreclose the possibility of union
    representation of retirees in arbitration. We said:
    This is not to say that a union can never take
    retirees’ claims to arbitration. Although a union
    has no duty to represent retirees, and retirees need
    not submit to union representation, retirees are
    free to make a union their agent if they so choose.
    And, of course, retiree benefits are a permissive
    subject of bargaining—a union may bargain for
    retirees if the employer agrees. What we are saying
    is that any right District 10 has to pursue arbitra-
    No. 07-4065                                                        15
    tion of the retirees’ grievance must come from the
    retirees.
    
    Id. (internal citations
    omitted). We concluded that the
    union did “not have any right to represent the retirees
    making up the class in this case unless each of the retirees
    assents to its representation.” 
    Id. at 541.
    The record
    lacked any evidence that each of them had consented;
    thus, we held that the union lacked standing to arbitrate
    the retirees’ grievance. 
    Id. However, in
    Rossetto the retirees’ litigation seeking
    reinstatement of their terminated retiree benefits and the
    union’s appeal to arbitration of its grievance over the
    elimination of those benefits were proceeding simulta-
    neously. The district court certified a class consisting of
    all retirees, and the union and four retirees were named
    as class representatives. 
    Id. at 539
    . The union argued that
    the litigation and the arbitration could proceed on parallel
    paths. 
    Id. at 540.
    This argument was rejected:
    The implication of allowing District 10 to take the
    retirees’ grievance to arbitration is that none of the
    forty-one retirees making up the class can pursue
    separate litigation of their statutory claims. If
    District 10 loses in arbitration, the retirees lose,
    period.
    . . . The retirees[’] . . . ERISA claims . . . are not free-
    standing—for practical purposes, arbitration
    would dispose of all of the retirees’ claims. District
    10 cannot hijack the retirees’ right to pursue their
    statutory claims by forcing arbitration.
    16                                              No. 07-4065
    
    Id. at 540-41.
    Importantly, the litigation and arbitration
    involved the same parties and the same claims asserted
    by the retiree class in litigation and by the union purport-
    edly on the retirees’ behalf in arbitration. It was in this
    context of parallel proceedings that we said that the
    union could not force the retirees to arbitrate their claims.
    Here, in contrast, the Union is not seeking to arbitrate
    claims regarding retiree medical benefits on behalf of
    retirees while those same retirees are simultaneously
    litigating claims over those benefits in court. The district
    court was correct in declining to read Rossetto as requiring
    the consent of each and every affected retiree in this
    context in order to give effect to a single retiree’s agree-
    ment to arbitrate his or her claim. To require the consent
    of all in effect would allow those retirees who choose not to
    consent to the Union’s representation in arbitration to
    “hijack” the rights of the retirees who do consent to
    such representation and arbitration. See 
    id. at 540
    (ex-
    plaining “retirees are free to make a union their agent if
    they so choose”).
    Any doubt about the reach of Rossetto can be resolved
    by consideration of Pryner v. Tractor Supply Co., 
    109 F.3d 354
    (7th Cir. 1997), upon which Rossetto relied. In Pryner
    we considered whether a CBA can compel an employee
    to arbitrate a claim that he may have under a federal statute
    such as a Title VII claim. 
    Id. at 355.
    We held that
    the union could not agree on the employees’ behalf to
    arbitrate their Title VII claims. 
    Id. at 363.
    But we did not
    hold that the employees’ statutory claims were never
    arbitrable: they were if the employee consented to arbitra-
    No. 07-4065                                                 17
    tion. We said: “If the worker brings suit, the employer
    suggests that their dispute be arbitrated, the worker
    agrees, and the collective bargaining agreement does not
    preclude such side agreements” the employee’s claims
    are arbitrable. 
    Id. Thus, neither
    Pryner nor Rossetto re-
    quires that all employees/retirees consent to arbitration
    before the consent of one employee/retiree can be given
    effect. These cases allow for each employee or retiree
    individually to decide whether to consent to arbitration of his
    or her own claims. Pryner further indicates that where the
    employee/retiree and employer/former employer agree to
    arbitration, “there is nothing to prevent a binding arbitra-
    tion.” Id.; see also Cooper Tire & Rubber 
    Co., 474 F.3d at 283
    (finding “there is no real danger that Cooper would have to
    relitigate the same issues with individual retirees that will
    have already been arbitrated with the Union”); IDS Life Ins.
    Co. v. Royal Alliance Assocs., 
    266 F.3d 645
    , 651 (7th Cir. 2001)
    (stating that dispute resolved by arbitrators was closed to
    further litigation by res judicata and collateral estoppel); cf.
    Meza v. Gen. Battery Corp., 
    908 F.2d 1262
    , 1280 (5th Cir. 1990)
    (holding that former employee’s lawsuit was not barred by
    res judicata by union’s prior suit where employee was not a
    party to the prior suit, as a former union member was not in
    privity with the union, and never authorized the union to
    represent his interest in prior suit).
    In this case, the arbitrator’s decision would be final
    and binding as to the parties to the arbitration, which is
    all that the CBA contemplates. Exelon’s assertion that
    arbitration of the claims of a few retirees would not result
    in a final resolution of the dispute as required by the CBA
    is incorrect. The arbitrator’s decision would be final and
    binding on the parties to the arbitration. The CBA does not
    18                                               No. 07-4065
    purport to bind non-parties to the arbitration, and for
    good reason. As a general rule, one is not bound by a
    judgment in an action in which he is not a party. Hansberry
    v. Lee, 
    311 U.S. 32
    , 40 (1940). That is not to say, though, that
    the arbitrator’s interpretation of the CBA might not be given
    weight in a subsequent proceeding, if any, brought by
    retirees who have not consented to the Union’s representa-
    tion in arbitration. But this alone is not enough to negate the
    retirees’ consent to the Union’s representation and arbitra-
    tion. The potential for weight to be given the arbitrator’s
    interpretation would also exist if the arbitration were to
    proceed in the absence of the interests of the retirees. The
    Union’s grievance is brought on behalf of both retired and
    active employees and seeks to enforce rights not only of the
    retirees but also of the active employees’ interest in retiree
    benefits. And the Union’s right to arbitrate the active employ-
    ees’ grievance over retiree medical benefits has not been
    challenged. We find no error in the district court’s conclu-
    sion that the Union may arbitrate on behalf of the seven
    affected retirees who have consented to the Union’s repre-
    sentation.
    III. Conclusion
    For the foregoing reasons, we A FFIRM the district court’s
    judgment.
    9-2-08
    

Document Info

Docket Number: 07-4065

Judges: Tinder

Filed Date: 9/2/2008

Precedential Status: Precedential

Modified Date: 9/24/2015

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alpine-state-bank-an-illinois-banking-corporation , 941 F.2d 554 ( 1991 )

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United Steelworkers v. Warrior & Gulf Navigation Co. , 80 S. Ct. 1347 ( 1960 )

At&T Technologies, Inc. v. Communications Workers , 106 S. Ct. 1415 ( 1986 )

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