Stockton Metropolitan Transit District v. Amalgamated Transit Union, Local 276

Plaintiff and cross-defendant Stockton Metropolitan Transit District (SMTD) appeals from a judgment of the Superior Court of San Joaquin County compelling it to arbitrate a controversy arising between it and defendant and cross-complainant Local 276 of the Amalgamated Transit Union (Union), over proposed changes in the SMTD retirement plan. The judgment also denied SMTD’s motion for a preliminary injunction to prevent arbitration, and stayed SMTD’s complaint pending the decision in arbitration. SMTD raises a number of issues including: whether state or federal law applies in the interpretation and legality of the arbitration agreement; whether the agreement provides for arbitration of such issues; whether the SMTD had the authority in law to agree to submit the disputed issues to arbitration; if federal law permits SMTD to agree to submit the disputed issues to arbitration does it thereby invade state sovereignty; and whether the trial court committed error in its judgment. We reject SMTD’s contentions and affirm the judgment of the trial court.

I

The relevant facts are not in dispute. SMTD was formed pursuant to the Stockton Metropolitan Transit District Act of 1963.…