Originally from Dispute Resolution Journal

LABOR

Trigger of Statute of Limitations

The 4th Circuit ruled that the statutory period for filing a motion to compel arbitration does not begin to run until a party unequivocally informs the adversary that it is refusing to arbitrate.

In September 1999, the union and employer entered into a collective bargaining agreement (CBA) and a separate agreement covering pension and insurance benefits. The CBA contained a broadly applicable grievance procedure culminating in binding arbitration. That procedure was incorporated by reference into the pension and insurance agreement.

When the CBA expired in 2006, the parties unsuccessfully attempted to negotiate a new agreement. When the employer announced a layoff, the union alleged that the employer failed to pay extended health benefits to the laid-off employees and demanded arbitration.

On Aug. 9, 2006, the employer’s human resource manager orally informed the union that the dispute was not arbitrable but he would submit the union’s request for arbitration to his department’s vice president, who would issue a written response to the request.