Unite Here Local 25 v. Madison Ownership, LLC
850 F. Supp. 2d 219
D.D.C.2012Background
- Union sues to compel arbitration under the CBA over a claimed breach of the successorship clause in connection with the Madison Hotel sale.
- Defendants are Madison Ownership LLC, Madison Operating LLC, and Loews Madison Hotel Corp.; Jamestown Properties purchased the hotel.
- CBA terms include a Leases and Sales successorship clause and a Grievance/Arbitration provision (art. 1.12(a) and art. 17.1).
- Dispute centers on whether the CBA was in effect and which entities were bound by it during January 2011; the TRO ruling did not resolve these questions.
- Union seeks to have the grievance heard by arbitration rather than enjoin the sale; the case involves mootness questions due to the hotel sale but unsettled arbitrability issues remain.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the dispute moot given the hotel’s sale? | Union argues live issues persist about extension and parties bound. | Defendants contend no live controversy or remedy exists post-sale. | No; the issue remains live because extension and binding parties require determination. |
| Was a CBA in effect during January 2011 to arbitrate the grievance? | Union maintains the CBA extended to March 2011. | Defendants dispute any extension or existence of the CBA at that time. | Unresolved; discovery may determine whether CBA existed and could compel arbitration. |
| Which parties were bound by the CBA during the dispute? | Local 25 asserts Operating, Ownership, and Loews were bound as employer/manager. | Operating contends it was not a party; Loews argues no involvement. | Unresolved; determine who is bound to assess court’s jurisdiction. |
| Does LMRA §301(a) jurisdiction survive if the CBA expired? | If CBA existed, arbitration could be compelled; if not, lack of jurisdiction. | Once expired, no contract to enforce via arbitration. | Jurisdiction depends on whether a CBA existed at the time; discovery may clarify. |
| Should the court order arbitration despite mootness/formation questions? | Arbitration could still be compelled if a CBA covered the grievance. | Mootness/formation issues may foreclose arbitration. | Court declines to dismiss; allows discovery to resolve jurisdiction and formation. |
Key Cases Cited
- Granite Rock Co. v. Int'l Brotherhood of Teamsters, 130 S. Ct. 2847 (2010) (formation issues must be decided by courts; arbitration only if contract formation is in question)
- Litton Fin. Printing Div. v. NLRB, 501 U.S. 190 (1991) (post-expiration grievances arbitrable only if arising under the contract)
- AT&T Techs Inc. v. Commun. Workers of Am., 475 U.S. 648 (1986) (arbitration authority depends on the contract terms and scope)
- Nolde Brothers Inc. v. Bakery Workers, 430 U.S. 243 (1977) (post-expiration rights can be arbitrable if they arise under the contract)
- Washington Post v. M-29, 699 F. Supp. 2d 130 (D.D.C. 2010) (courts consider post-expiration arbitrability of contractual rights)
