International Brotherhood of Teamsters Local Union No. 50 v. Kienstra Precast, LLC
2012 U.S. App. LEXIS 25441
| 7th Cir. | 2012Background
- Illini Concrete sold assets (including delivery trucks) to Kienstra Precast in Oct 2009; Local Union alleges asset sale violated Illini CBA and deprived union employees.
- Kienstra laid off fourteen employees, subcontracted work, and refused to hear grievances about the asset sale.
- Local sues for breach of Illini CBA; seeks declaration that Kienstra is Illini’s alter ego and bound by the Illini CBA.
- Kienstra and Illini move to compel arbitration; district court denies, holding alteration-of-employer issue not within Illini CBA arbitration clause.
- Interlocutory appeal challenged jurisdiction under FAA and 28 U.S.C. § 1291/1292; court raised sua sponte jurisdiction concerns about § 1 scope.
- Evidence at remand shows Illini truckers occasionally delivered to Missouri; district court indicates interstate deliveries occurred, raising § 1 applicability and FAA exclusion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the appeal lies under FAA §16(a)(1). | Local argues §16(a)(1) provides jurisdiction for arbitration orders. | Kienstra/Illini contend §16(a)(1) lacks jurisdiction due to §1 exclusion as interstate transportation. | Appeal lacks §16(a)(1) jurisdiction. |
| Whether Illini CBA is a contract of employment of interstate transportation workers under §1. | Illini CBA covers interstate transportation workers via truck deliveries crossing state lines. | Illini/Cınclude intrastate focus; only occasional Missouri deliveries, but still interstate workers exist. | Illini CBA qualifies under §1; excluded from FAA. |
| If §1 applies, should the appeal be dismissed for lack of jurisdiction. | Courts should apply §1 exclusion to arbitrate issues via FAA. | Dispute is within arbitration clause; §16 cannot be used to force arbitration. | Dismissed for lack of appellate jurisdiction. |
Key Cases Cited
- Circuit City Stores, Inc. v. Adams, 532 U.S. 105 (2001) (§1 covers only transportation workers moving goods in interstate commerce)
- Central Cartage Co. v. Pension Fund, 84 F.3d 988 (7th Cir. 1996) (Interstate transportation workers exclude NMFA from FAA coverage)
- Sherwood v. Marquette Transp. Co., 587 F.3d 841 (7th Cir. 2009) (Interlocutory arbitration order lacks §1291/1292 jurisdiction; FAA appeal grounds discussed)
- IDS Life Ins. Co. v. SunAmerica, Inc., 103 F.3d 524 (7th Cir. 1996) (Interlocutory review standards under FAA considerations)
- Arthur Andersen LLP v. Carlisle, 556 U.S. 624 (2009) (FAA interlocutory appeal rights clarified)
- Janiga v. Questar Capital Corp., 615 F.3d 735 (7th Cir. 2010) (FAA interlocutory appeal standards in arbitration context)
- French v. Wachovia Bank, 574 F.3d 830 (7th Cir. 2009) (FAA appeal standards in district court rulings on arbitration)