Norlite Corp. v. Local 106-106B of International Union of Operating Engineers
Norlite Corporation brought suit against Local 106-106B of the International Union of Operating Engineers and Wayne Horvitz to enjoin arbitration of a labor dispute concerning the discharge of two employees and to recover monetary damages for a wildcat strike. The Union counterclaimed, asserting that the discharges were subject to arbitration and seeking an order to compel it. The court addressed cross-motions for summary judgment regarding arbitrability, while the complaint against Horvitz was dismissed by consent. The central issue was whether employee discharges fell under the collective bargaining agreement's arbitration clause. The court, citing national policy favoring arbitration and the agreement's broad language, concluded that the discharges were arbitrable, denying Norlite's motion and granting the Union's. Additionally, Norlite's second cause of action for damages related to the wildcat strike was dismissed as premature, pending the outcome of arbitration regarding employee reinstatement and back pay.