Inlandboatmens Union of the Pacific v. Dutra Group, Dba Dutra Construction Co. Inc.

The Inlandboatmens’ Union of the Pacific (“IBU”) brought this action against the Dutra Group, alleging that Dutra violated the terms of a settlement agreement between the two parties. Dutra contends that because the IBU failed to seek arbitration of this dispute as required by the collective bargaining agreement between the parties, the federal courts lack jurisdiction over the case. The district court granted Dutra’s motion to dismiss, and the IBU appeals.

I. BACKGROUND

Dutra is a marine construction, towing, and dredging company based in Northern California. The IBU represents deckhands employed by Dutra on its barges and tugboats that operate in the San Francisco Bay and its tributaries. In November, 1997, the IBU filed a grievance with Dutra regarding a subcontracting arrangement which, according to the IBU, violated the parties’ collective bargaining agreement (“CBA”). The IBU contended that Dutra leased one of its barges, the “Harry B,” to another company, Master’s Tug & Tow, and subcontracted with Master’s to complete work for Dutra. The CBA provides that Dutra will use only IBU-represented personnel to perform Dutra’s work; however, Master’s did not employ IBU…