Local Joint Executive Board of Las Vegas v. Mirage Casino-Hotel, Inc., No. 16-16754 (9th Cir. 2018)
Annotate this CaseThe union petitioned the district court to vacate an arbitration award under section 301(a) of the Labor Management Relations Act, and Mirage filed a cross-petition seeking confirmation of the award. The Ninth Circuit reversed the district court's decision affirming the award, holding that the arbitrator's conclusion that the grievance was not arbitrable simply misunderstood the arbitrability inquiry. In this case, the arbitrator concluded that the union's exclusive remedy to recover the claimed benefits was against BB King's. Whatever the soundness of that conclusion, the panel reasoned that it plainly had nothing to do with substantive arbitrability, which, concerned only whether the dispute falls within the scope of the parties' arbitration agreement. Furthermore, the union's assent could not be inferred from its failure to call a halt to the arbitration proceedings and seek judicial resolution of the arbitrability.
Court Description: Labor Law / Arbitration The panel reversed the district court’s summary judgment confirming, pursuant to the Labor Management Relations Act, an arbitration award entered in favor of Mirage Casino-Hotel, Inc., on a union’s grievance under the parties’ collective bargaining agreement. Mirage subcontracted with another company to operate a venue, and the memorandum of agreement provided that the other company would “directly employ” the union’s food and beverage workers and would be responsible for paying their wages and employee benefits. Mirage, however, would control the terms and conditions of employment. The other company soon declared bankruptcy and failed to pay certain benefits before closing. Mirage declined to step in, and the union filed a grievance. The arbitrator ruled that the union’s grievance, filed pursuant to the CBA, was not arbitrable. The panel explained that the parties’ substantive dispute concerned whether Mirage was obliged under Article 29 of the CBA and the MOA to ensure that the workers received payment for accrued benefits. The dispute was arbitrable if
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