Lead Opinion
GUY, J., delivered the opinion of the court, in which GILMAN, J., joined. CLAY, J. (pp. 1010-15), delivered a separate dissenting opinion.
OPINION
Plaintiff, Warren Pierce, appeals from the district court’s dismissal of this action seeking enforcement of a subpoena duces tecum issued to defendant A & M Specialists, Inc., by the arbitrator in a grievance proceeding between the American Federation of Television and Radio Artists, AFL-CIO (AFTRA or Union), and his former employer, defendant WJBK-TV (New World Communiea-tions of Detroit, Inc.) (WJBK).
I.
Pierce was employed by WJBK as a news anchor, reporter, and talk show host, under an individual contract and a collective bargaining agreement. The collective bargaining agreement provided for “final, binding and conclusive” arbitration of grievances.
A & M, which was not a рarty to the employment contract or the grievance, is in the business of maintaining, storing, and delivering automobiles to third persons, including media personalities, on behalf of various automobile manufacturers. Aside from the arbitrator’s subpoena at issue in this case, Pierce made several other unsuccessful attempts to subpoena records from A & M. The arbitrator issued his subpoena on August 30, 1996, directing A & M to appear at the office of plaintiffs counsel on September 6, 1996, and at the arbitration hearing scheduled for September 13, 1996, and to produce records concerning the use of its vehicles by media personalities. A & M refused to comply and filed a petition to quash the subpoena with the district court. In response, Pierсe
In June 1997, Pierce and the Union filed this action seeking once again to enforce the arbitrator’s subpoena issued August 30,1996. The district court ordered A & M to show cause why it should not be required to comply. Both WJBK and A & M filed motions to dismiss and the district court heard oral argument. In September 1997, the district court granted the defendants’ motions to dismiss and denied the plaintiffs’ request to enforce the subpoena. Finding that it had subject matter jurisdiction and authority to enforce the subpoena under § 301 of the LMRA, the district court nonetheless refused to enforce it on the grounds that the information was “irrelevant to the decision to be made by the arbitrator.” The district court explained:
The parties, through the arbitrator, may seek and obtain knowledge of what WJBK knew about the use and misuse, if any, of A & M-provided automobiles by other WJBK employees. This information will allow the arbitrator to answer the question whether WJBK treated Mr. Pierce any differently from other employees known to [have] been provided automobiles by A & M, if there are any such employees. The “everybody’s doing it” defense is not relevant unless WJBK knew other WJBK employees, covered by the AFTRA contract, were engaged in behavior substantially similar to that for which Mr. Pierce was apparently terminated.
That A & M provided automobiles to employees of media other than WJBK could only be relevant if WJBK knew this at a level of cognition sufficient to prompt a more moderate reaction to Mr. Pierce’s alleged violation of company policy. This, too, is a matter of what WJBK knew and evidence of that must be obtained, at least in the first instance, from WJBK, the employer party to the collective bargaining agreement.
(Emphasis in original). Pierce appeals from this decision.
II.
A. Subject Matter Jurisdiction
The district court found that it had subject matter jurisdiction of this case under § 301 of the LMRA. We agree. Care must be taken in addressing the question of jurisdiction because this is an independent action, rather than a claim “embedded” in another controversy over which the district court already had subject matter jurisdiction. The amended complaint filed by Pierce and the Union specifically alleged that the court had jurisdiction arising under § 301 of the LMRA, § 7 оf the FAA, and 28 U.S.C. §§ 1331 and 1332.
District courts have federal question jurisdiction of cases “arising under the Constitution, laws or treaties of the United States.” 28 U.S.C. § 1331. A ease arises under federal law when an issue of federal law appears on the face of a well-pled complaint. Metropolitan Life Ins. Co. v. Taylor,
Notwithstanding plaintiffs aver-ments, it is well established that the Federal Arbitration Act does not create any independent federal question jurisdiction. See Moses H. Cone Mem’l Hosp. v. Mercury Constr. Corp.,
In contrast with Detroit Pension Fund, Smith Barney, and Collins, the agreement to arbitrate in this case is part of a collective bargaining agreement governed by § 301 of the LMRA and, therefore, the agreement to arbitrate itself arises under federal law. Not only does § 301 of the LMRA confer jurisdiction over all suits “for viоlation of contracts between an employer and a labor organization,” it is also a source of substantive law for the enforcement of collective bargaining agreements, including suits to compel arbitration. See Textile Workers Union v. Lincoln Mills,
A & M argues that the district court lacked subject matter jurisdiction because A & M was not a party to the collective bargaining agreement and did not agree to arbitrate disputes with the Union, Pierce, or WJBK.
B. Enforcement of Subpoena
Pierce contends that the district court had authority to enforce the arbitrator’s subpoe
The Supreme Court, quoting from Lincoln Mills, reiterated that
the substantive law to apply in suits under § 301(a) is federal law, which the courts must fashion from the policy of our national labor laws____ The Labor Management Relations Act expressly furnishes some substantive law. It points out what the parties may or may not do in certain situations. Other problems will lie in the penumbra of express statutory mandates. Some will lack express statutory sanction but will be solved by looking at the policy оf the legislation and fashioning a remedy that will effectuate that policy. The range of judicial inventiveness will be determined by the nature of the problem.
Avco,
Section 7 of the FAA explicitly provides that an arbitrator “may summon in writing any person to attend before them ... as a witness and in a proper case to bring with him or them any book, record, document, or paper which may be deemed material as evidence in the case.” Also, if the person summoned refuses or neglects to obey the summons, he may be compelled to appear, or punished for contempt, upon a petition to a federal district court. See 9 U.S.C. § 7. Just as the subpoena power of an arbitrator under the FAA extends to non-parties, a labor arbitrator conducting an arbitration under a collective bargaining agreement should also have the power to subpoena third parties. See Wilkes-Barre,
This conclusion leads us to the question of whether the district court erred by
Consistent with federal labor pоlicy, however, the relevance of the information and the appropriateness of the subpoena should be determined in the first instance by the arbitrator. In Wilkes-Barre, where the arbitrator expressly noted that he had made no evaluation of the relevance of the subpoenaed information, the district court declined to do so as well stating that “[i]t is not the function of this court to determine what an arbitrator would or should find relevant in resolving a dispute.” Wilkes-Barre,
In this case, Pierce argued that the information concerning the use of vehicles from A & M by media personalities is relevant to the issue of whether his use of vehicles violated industry standards as well as his claim that WJBK did not discharge other employees for similar conduct. There is, however, no indication in the record that the arbitrator ever considered whether the information subpoenaed from A & M was relevant to thе issues raised in the arbitration proceeding. At the same time, it appears that A & M did not raise its objections with the arbitrator. Furthermore, despite contemplating an in camera review of the subpoenaed records, the district court did not review them before declaring the information irrelevant. For these reasons, we find it was error for the district court to decide that the information was irrelevant to the proceeding and refuse to enforce the subpoena on that basis. As one district court aptly observed, “[i]t must be assumed that the presiding arbitrator is an experienced person well versed in evaluating the alleged claims of the employer,” or, in this case the objections of A & M, and is capable of screening the material for what is relevant and ordering proper safeguards for the information. Local Lodge 1716, Int'l Ass’n of Machinists v. Pratt & Whitney,
The judgment is REVERSED and, given that more than two years have already passed since the subpoena issued, the district court is ordered to enter judgment compelling A & M to produce the documents directly to the arbitrator for in camera inspection along with any evidentiary objections A & M may have to the admission of those documents or to their further disclosure.
Notes
. The complaint in this case, filed by AFTRA and Pierce against WJBK, asked not only for enforcement of the subpoena, but also for reinstatement. After WJBK filed a motion to dismiss, AFTRA and Pierce filed an amended complaint against both WJBK and A & M seeking only enforcement of the subpoena. The notice of appeal was filed by Pierce, only, and no cross-appeal was filed.
. The arbitration provision from the collective bargaining agreement states that arbitration is to be conducted under the Voluntary Labor Arbitration Rules of the American Arbitration Association, which permit an arbitrator "authorized by law” to subpoena witnesses and documents independently or at the request of a party.
. Despite the reference to § 1332, there is no basis for diversity jurisdiction as both Pierce and A & M are citizens of Michigan.
. In one case, not cited by the parties, the district court found no jurisdiction in an action seeking to enforce an arbitrator’s subpoena against non-parties to the collective bargaining agreement. While the court noted that the defendants were not parties to the contract, it actually concluded that ”[i]n the absence of any mention of a collective bargaining agreement in the complaint, this Court has no jurisdiction under § 301 of the LMRA.” Local 639, Drivers, Chauffeurs & Helpers v. Seagram Sales Corp.,
. Although not mentioned by A & M, we and other courts have broadly stated that there is no subject matter jurisdiction over non-signatories to a collective bargaining agreement under § 301. See Local 951, United Food and Commercial Workers v. Mulder,
.The dissent characterizes this case as both "an attempt to bind a non-signatory to an arbitration clause to which it did not. agree” and "little more than a suit against a non-signatory, A & M, for tortious interference with the arbitration clause of the contract.” However, plaintiffs did not seek relief from A & M, or to compel A & M to arbitrate any dispute. Rather, this case, which is
. We do not reach the question of whether an arbitrator may subpoena a third party for a discover}' deposition relating to a pending arbitration proceeding. See, e.g., Integrity Ins. Co. v. American Centennial Ins. Co.,
Dissenting Opinion
dissenting.
By concluding that the District Court enjoyed subject matter jurisdiction over this case, the majority not only contravenes the clear precedent of this Court, but also makes this Court only the second federal court ever to issue an opinion finding, under § 301 of the Labor Management Relations Act (“LMRA”), subject matter jurisdiction ovеr an action to enforce a subpoena arising from arbitration and directed at a non-signatory to that agreement.
In their complaint, Pierce and the American Federation of Radio and Television Artists (“AFTRA”) claimed that the District Court could assert subject matter jurisdiction over this enforcement action under § 301 of the LMRA, which gives federal courts jurisdiction over suits involving violations of contracts “between an employer and a labor organization representing employees in an industry affecting commerce.” 29 U.S.C. § 185(a) (1998). Plaintiffs stated that WJBK-TV (‘WJBK”) discharged Pierce in violation of a collective bargaining agreement to which WJBK, AFTRA, and Pierce are parties, and that this collective bargaining agreement contained an agreement to arbitrate. Plaintiffs further stated that Pierce had, in accordance with the agreement to arbitrate, submitted his grievance to an arbitrator, that the arbitrator in turn had issued a subpoena to A & M Specialists, Inc. (“A & M”), and that A & M had refused to comply with the arbitral subpoena. Plaintiffs asked the District Court to order A & M to comply with that subpoena, and also to award costs and attorney fees against A & M. Plaintiffs did not allege that WJBK had played a role in A & M’s failure to comply with the subpoena, and did not seek any form of relief against WJBK.
II.
As the majority recognizes, it is well settled that the Federal Arbitration Act (“FAA”) itself does not give rise to federal question jurisdiction. See Moses H. Cone Mem’l Hosp. v. Mercury Constr. Corp.,
The Supreme Court has long held that § 301 grants federal courts the specific power to enforce promises to arbitrate grievances contained within collective bargaining agreements. See Textile Workers Union v. Lincoln Mills,
Wilkes-Barre II followed a decision by the Third Circuit which interpreted § 301 broadly to reach “not only suits on labor contracts, but suits seeking remedies for violation of such contracts.” Wilkes-Barre Publ’g Co. v. Newspaper Guild,
Although Wilkes-Barre II authorized enforcement of a subpoena directed against a party to the labor agreement, the majority affirms the District Court’s reliance on the case to authorize enforcement of a subpoena directed against a corporation that is not a party to the labor agreement. In doing so, I believe the majority contravenes the clearly established law of this Court. Indeed, some courts, including the Third Circuit in Wilkes-Barre II, have held that § 301 provides jurisdiction over non-signatories to employment agreements in certain limited circumstances. See, e.g., Painting & Decorating Contractors Ass’n v. Painters & Decorators Joint Comm.,
Commercial Property rejected the notion that § 301 provides subject matter jurisdiction over all suits for violation of collective bargaining agreements, and instead adopted a narrower interpretation of the scope of § 301 jurisdiction. See United Food & Commercial Workers v. Mulder,
The majority dismisses this Court’s decisions in Commercial Property and Mulder in a footnote, asserting that those cases “uniformly involve attempts to bind a nomsigna-tory to an arbitration clause it did not agree to, e.g., Mulder, or suits against a non-signatory for tortious interference with the collective bargaining agreement....”
Finally, the majority argues that enforcement of the subpoena in this case “should be controlled by federal labor law” since federal courts enjoy “exclusive federal jurisdiction over § 301 actions ... to help establish a uniform body of federal labor law.” However, federal jurisdiction under § 301 “preempts local law so that a uniform body of federal labor law can be developed to avoid conflicts in the interpretation of collective bargaining agreements.” See Terwilliger v. Greyhound Lines, Inc.,
In my view, Pierce seeks to enforce a subpoena against a party that he could not sue under § 301 in the federal courts of this circuit — a party that was not a signatory to the collective bargaining agreement. Although Pierce’s underlying claim of termination in violation of a collective bargaining agreement is federal in nature and although his complaint recites § 301, this particular dispute does not present a federal question under § 301. Indeed, under the reasoning I have set forth, I may have concluded otherwise if Pierce could properly claim another basis for federal jurisdiction over his action, if his employment contract or arbitration agreement included some reference to the rights and duties of A & M, or if enforcement of the subpoena in this case depended on an interpretation of Pierce’s collective bargaining agreement. However, as presented, Pierce’s action, in my view, falls squarely within this Court’s pronouncements in Commercial Property and City of Detroit Pension Fund
III.
Although I conclude that federal courts lack subject matter jurisdiction over this case, I do not believe that the subpoena issued in this ease is altogether unenforceable. Rather, I believe that Pierce could have sought enforcement of this subpoena in state court.
Moreover, I believe the FAA mandates enforcement of the subpoena at issue in this case. Indeed, § 7 of the FAA provides that arbitrators “may summon in writing any person to attend before them or any of them as a witness and in a proper case to bring ... any book, record, document, or paper which may be deemed material as evidence in the case.” 9 U.S.C. § 7 (1998). The FAA also grants the authority to compel the attendance of such witnesses when they refuse or do not obey the summons of an arbitrator. See 9 U.S.C. § 4 (1998). Although the majority declined to address the application of thе FAA to this ease,
IV.
I believe that the District Court and the majority have improperly exercised subject matter jurisdiction over this action. In so doing, they have contravened the clearly established law of this Court and have unnecessarily expanded the scope of federal jurisdiction under § 301 in deciding a case that should have been resolved by the state courts. For these reasons, I respectfully dissent.
. The only other federal court to expressly find subject matter jurisdiction under § 301 over an action to enforce an arbitral subpoena against a non-party to a collective bargaining agreement is the District Court that decided this case. AI-though a few federal courts have enforced subpoenas arising from arbitration conducted pursuant to сollective bargaining agreements, the subpoenas in those cases were directed at parties to the arbitration. See, e.g., Wilkes-Baire Publ’g
. The majority correctly observes that diversity jurisdiction does not exist in this case even though Pierce and AFTRA cited 28 U.S.C. § 1332 in their complaint. Plaintiffs fail to satisfy the complete diversity requirement of § 1332 because they are not both diverse from Defendants. See Owen Equip. & Erection Co. v. Kroger,
. Commercial Property further distinguished Wilkes-Barre II on the grounds that it involved a non-signatory that had a "close relationship” with the party breaching the collective bargaining agreement. See Commercial Property, 755 F.2d at 507 n. 7. Indeed, we characterized as "tenuous” the relationship between a non-signatory and a party to the collective bargaining agreement, where the non-signatory was "allegedly an alter ego” of the signatory. Id. In the present case, there exists no evidence to suggest that A & M had a contractual or otherwise close relationship with WJBIC
. The majority suggests that the real "issue in this case is not whether A & M can be forced to arbitrate a dispute, but whether, as a non-party, it can be compelled to produce documents in the arbitration between Pierce and WJBIC” I respectfully disagree with the majority's characterization of this issue. Indeed, the question of subject matter jurisdiction does not involve the merits of whether A & M must in fact produce documents. Rather, the issue of subject matter jurisdiction concerns only whether federal courts, as opposed to state courts, may require A & M to comply with the subpoena. Cf. Musson Theatrical Inc. v. Federal Express,
. This characterization of Pierce's case does not necessarily make it federal. We have recognized that a claim of tortious interference with a collective bargaining agreement generally lies in state law. See Dougherty v. Parsec, Inc.,
.Accordingly, I question whether WJBK is a proper party in this lawsuit. In order to establish the "irreducible constitutional minimum” of standing necessary to invoke federal jurisdiction, a plaintiff must show that bis injury is fairly traceable to the conduct of the defendant and that a judicial decision against that defendant will redress the injury. Lujan v. Defenders of Wildlife,
.The majority claims that City of Detroit Pension Fund does not apply to the case at hand because "the agreement to arbitrate in this case is part of a collective bargaining agreement governed by § 301 of the LMRA and, therefore, the agreement itself arises under federal law.” However, this fact does not automatically render Pierce's claim against A & M a federal question. Cf. Allis-Chalmers Corp. v. Lueck,
. Since Pierce and A & M share Michigan citizenship, I see no reason why Michigan state courts could not exercise personal jurisdiction over A & M. Pierce's prior encounters with the state courts apparently did not relate to enforcement of the subpoena at issue in this case and thus did not implicate the FAA. Instead, they involved an attempt to obtain the same materials as pre-suit discovery for a suit against BMW.
. Instead, the majority further broadens § 301 by declaring broadly that "under § 301, a labor аrbitrator is authorized to issue a subpoena duces tecum to compel a third party to produce records he deems material to the case either before or at an arbitration hearing.” The basis for such a holding is unclear, however, where § 301 itself does not even "authorize” arbitration. 29 U.S.C. § 185 (1998). Furthermore, the Supreme Court has unequivocally characterized
. Defendants claim that this Court overruled Asplundh in a footnote less than one year later in Wedding v. University of Toledo,
. Courts faced with similar factual scenarios have declined to exclude employment contracts under § 1 of the FAA. See, e.g., Rojas v. TIC Communications, Inc.,
