Drake Bakeries Inc. v. Local 50, American Bakery & Confectionery Workers International
Plaintiff Drake Bakeries, Incorporated, initiated a lawsuit to recover damages for an alleged breach of a "no-strike provision" within a collective bargaining agreement, pursuant to Section 301(a) of the Labor-Management Relations Act. The defendant subsequently filed a motion to stay the trial, seeking to compel arbitration as outlined in the collective bargaining agreement and permitted by the United States Arbitration Act. The plaintiff opposed this motion, arguing that the arbitration provision was permissive, that the union waived its arbitration rights by striking, and that the defendants had waived their rights by failing to initiate arbitration. The Court, however, found no merit in the plaintiff's arguments, concluding that the arbitration provisions were mandatory, a breach of contract does not automatically waive arbitration rights, and the defendants did not waive their rights since the plaintiff, as the aggrieved party, had not attempted to initiate arbitration. Consequently, the Court enforced the arbitration agreement and granted the defendant's motion to stay further proceedings in the suit.