Calumet River Fleeting, Inc. v. International Union of Operating Engineers, Local 150, AFL-CIO
824 F.3d 645
7th Cir.2016Background
- Calumet River Fleeting, Inc. (Calumet) performed marine towing; it signed a 2006 memorandum adopting the Great Lakes Floating Agreement but terminated participation in September 2008.
- John Selvick formed Selvick Marine Construction, LLC (Selvick Marine) in 2010; Selvick Marine signed a memorandum adopting the Floating Agreement and a towing addendum (both contain evergreen clauses).
- In 2012 an arbitrator concluded Selvick Marine and Calumet were alter egos and sustained Union grievances about work performed (by Calumet) under Selvick Marine’s signatory status; the arbitrator awarded only retrospective relief (back pay/benefits) and expressly declined to order prospective relief.
- Selvick Marine paid the award and later dissolved; neither company sought to vacate or modify the arbitration award.
- In July 2013 Calumet fired an employee; the Union demanded arbitration. Calumet sued to enjoin arbitration and for a declaration it was not bound by any collective bargaining agreement; the district court granted summary judgment for Calumet, dismissed the Union’s counterclaims, and the Union appealed.
Issues
| Issue | Plaintiff's Argument (Union) | Defendant's Argument (Calumet) | Held |
|---|---|---|---|
| Appellate jurisdiction despite no separate Rule 58 judgment | Appeal is from a final decision; district court disposed of case so appellate jurisdiction exists | District court failed to enter separate Rule 58 judgment so appeal might be premature | Court found jurisdiction: Rule 58 defect cured by rules and practical finality; appeal proceeds |
| Whether the 2012 arbitration alter-ego finding binds Calumet to the Floating Agreement now | The unchallenged 2012 award finding Calumet an alter ego of Selvick Marine renders the award final and thus Calumet is bound to the agreement | The 2012 award provided only retrospective relief and explicitly declined prospective effect; it did not establish a continuing contractual relationship | Court held the arbitration award did not bind Calumet prospectively; no genuine dispute Calumet agreed to arbitrate Zuccolo’s termination; summary judgment for Calumet |
| Whether an injunction/declaratory relief was properly entered or barred by Norris-LaGuardia | Union argued injunctive relief issues and Norris-LaGuardia implications | Calumet sought declaratory and injunctive relief to stop arbitration; parties later resolved injunctive aspects | Court dismissed injunctive portion of appeal and did not decide Norris-LaGuardia issue because parties resolved injunctive need |
| Waiver or timing (did Union waive right to court review by pausing arbitration) | Union sought to compel arbitration and argued arbitrator’s past finding controls | Calumet sought pre-arbitration judicial determination; Union had agreed to postpone arbitration pending litigation | Court noted Union waived argument that arbitration must run first by postponing arbitration; court reached merits |
Key Cases Cited
- International Union of Operating Engineers, Local 150 v. Rabine, 161 F.3d 427 (7th Cir.) (finality and 90-day limitations to challenge labor arbitration awards)
- Prate Installations, Inc. v. Chicago Regional Council of Carpenters, 607 F.3d 467 (7th Cir. 2010) (deference standard to arbitrators’ interpretations of CBA)
- AT&T Technologies, Inc. v. Communications Workers of America, 475 U.S. 643 (U.S. 1986) (arbitrability is a matter of contract; parties cannot be compelled to arbitrate disputes they did not agree to submit)
- United Steelworkers of America v. Warrior & Gulf Navigation Co., 363 U.S. 574 (U.S. 1960) (foundational statement that arbitration is a matter of contract)
- Perry v. Sheet Metal Workers’ Local No. 73 Pension Fund, 585 F.3d 358 (7th Cir. 2009) (Rule 58 separate-document requirement for judgments after summary judgment)
- Alpine State Bank v. Ohio Casualty Insurance Co., 941 F.2d 554 (7th Cir. 1991) (declaratory judgment actions require specific, separate declarations rather than memorandum opinions)