Kelly

John W. Kelly and 27 other individual plaintiffs (appellants) appeal a summary judgment in favor of respondent Vons Companies, Inc. (Vons). Here we hold that issues adjudicated during a labor arbitration may be given collateral estoppel effect in an employee’s subsequent lawsuit for fraud and negligent misrepresentation. We affirm the judgment.

Facts

In early 1992, respondent Vons purchased several Williams Brothers Markets (Williams Brothers) in the Santa Maria area and acquired a trucking facility as part of the deal. Williams Brothers had a collective bargaining agreement with Teamsters Union Local 381 (Local 381). Teamsters Union Local 63 (Local 63) represented Vons truck drivers in the Los Angeles area.

Vons sent Local 381 a letter agreeing to assume Williams Brothers’ obligations under their collective bargaining agreement. It hired several drivers through advertisements run in the Santa Maria area in addition to drivers who had worked for Williams Brothers. Hirees were required to join Local 381.

The Local 63 Arbitration

Local 63 filed a grievance claiming that Vons was contractually obligated to hire its members for the Santa Maria work. That grievance…