Employer Trustees of Western Pennsylvania Teamsters v. Union Trustees of Western Pennsylvania Teamsters, No. 16-1699 (3d Cir. 2017)Annotate this Case
The Fund, a multi-employer benefit plan established under Labor Management Relations Act, 29 U.S.C. 186(c)(5). The Act broadly prohibits employers from providing payments of money or other items of value to employee representatives, with an exception for employee benefit trust funds that comply with statutory requirements, including mandatory administration by a board of trustees composed of an equal number of employee and employer representatives. The Fund is overseen by five union-designated trustees and five employer-designated trustees. The Act requires such funds to install a mechanism allowing a federal district court to appoint a neutral party to resolve any impasse; the Fund’s Agreement specifies that “[i]n the event of a deadlock,” the Trustees “may agree upon an impartial umpire to break such deadlock.” If they cannot agree with a reasonable time, they may petition the District Court for the Western District of Pennsylvania to appoint an impartial umpire. The Trustees deadlocked on a motion seeking to approve payment of compensation to eligible Trustees for attendance at Fund meetings and another seeking to clarify and confirm the eligibility requirements for Employer Trustees. In each case, one-half of the board petitioned the court to appoint an arbitrator to settle the dispute, and the opposing half sought to prevent the requested appointment. The court declined to send either conflict to arbitration. The Third Circuit remanded, finding that both disputes were within the purview of the parties’ agreement to arbitrate.