MBJ Victory: First Circuit Finds Side Agreement Bars Suit Over Labor Contract

In a suit by a union against Shaw’s Supermarket alleging breach of a collective bargaining agreement, the United States Court of Appeals for the First Circuit affirmed the District Court’s judgment for Shaw’s.  The district court had found that because of the parties’ agreement to resolve disputes internally, it did not have jurisdiction pursuant to section 301 of the Labor Management Relations Act to decide the union’s claim of breach of the collective bargaining agreement between the parties.   Specifically, the collective bargaining agreement provided for certain disputes to be subject to the agreement’s grievance procedure, but excluded those same disputes from arbitration.  The First Circuit agreed with the district court and dismissed the case against Shaw’s.