East Bay Automotive Council v. Q&S Automotive, LLC

MEMORANDUM **

Petitioner East Bay Automotive Council (“the Union”) sued Respondent Q&S Automotive, LLC, to compel arbitration under collective bargaining agreements signed by Broadway Auto Acquisition, LLC, and NAC 2000, LLC. The district court denied the Union’s motion and, on de novo review, Carpenters Health & Welfare Trust Fund v. Bla-Delco Constr., Inc. 8 F.3d 1365 , 1367 (9th Cir.1993), we affirm.

Q&S purchased the assets of predecessor companies Broadway Auto and NAC 2000 and continued to employ a majority of their employees. As a successor employer, Q&S was required to recognize and bargain with the Union, Fall River Dyeing & Finishing Corp. v. NLRB, 482 U.S. 27, *106 40-41 , 107 S.Ct. 2225 , 96 L.Ed.2d 22 (1987), which it did. But a successor employer generally is not bound by predecessors’ collective bargaining agreements. Howard Johnson Co. v. Detroit Local Joint Exec. Bd., 417 U.S. 249, 261-62 , 94 S.Ct. 2236 , 41 L.Ed.2d 46 (1974); New England Mech., Inc. v. Laborers Local Union 294, 909 F.2d 1339 , 1342 (9th Cir.1990).

The Union argues that Q&S is bound by the agreements as a signatory because one of its shareholders also was a shareholder of the predecessor…