Roughneck Concrete Drilling & Sawing Co. v. Plumbers Pension Fund, No. 09-3670 (7th Cir. 2011)
Annotate this CaseThe union claimed that the company owed $2.2 million to benefits funds, based on what would have been contributed had the company used plumbers' union workers for certain work, as required by contract. The union submitted a grievance to the Joint Arbitration Board (JAB); the company submitted its own grievance, claiming that some work was performed by members of other unions. The company contacted the Plan for Settlement of Jurisdictional Disputes in the Construction Industry, which determined that the JAB did not have authority over the dispute. The plumbers union is not a participant in the Plan. The JAB was not notified of the order, held a hearing that the company did not attend, found violation of the contract, and ordered payment of $3.3 million. The district court declined to invalidate the order. The Seventh Circuit reversed and remanded. The Union was not required to file suit challenging the Plan order, but was entitled to challenge it when raised as a defense to the JAB order. Two parties can agree to settle a dispute in any way that does not violate the rights of third parties, but the company withdrew its consent to arbitrate with JAB by seeking relief with the Plan. Of the inconsistent arbitration orders, Plan's order takes precedence.
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