Cm Comm Inc v. NLRB

                  United States Court of Appeals

               FOR THE DISTRICT OF COLUMBIA CIRCUIT

      Argued November 14, 2002   Decided December 13, 2002 

                           No. 01-1401

               Commonwealth Communications, Inc., 
                            Petitioner

                                v.

                 National Labor Relations Board, 
                            Respondent
                                 

         International Brotherhood of Electrical Workers 
                       Local Union No. 98, 
                            Intervenor

          On Petition for Review and Cross-Application 
               for Enforcement of an Order of the 
                  National Labor Relations Board

     Matthew Lee Wiener argued the cause for petitioner.  With 
him on the briefs was Jerome A. Hoffman.

     Joan E. Hoyte, Attorney, National Labor Relations Board, 
argued the cause for respondent.  With her on the brief were 
Arthur F. Rosenfeld, General Counsel, John H. Ferguson, 
Associate General Counsel, Aileen A. Armstrong, Deputy 
Associate General Counsel, and Robert J. Englehart, Supervi-
sory Attorney.  Charles P. Donnelly, Supervisory Attorney, 
entered an appearance.

     Richard B. Sigmond was on the brief for intervenor in 
support of respondent.

     Before:  Ginsburg, Chief Judge, Edwards, Circuit Judge, 
and Silberman, Senior Circuit Judge.

      Opinion for the Court filed by Circuit Judge Edwards.

     Edwards, Circuit Judge:  Commonwealth Communications, 
Inc. ("CCI") petitions for review of a National Labor Rela-
tions Board ("NLRB" or "Board") decision, and the Board 
cross-applies for enforcement.  The NLRB held that the 
petitioner violated sections 8(a)(5) and (1) of the National 
Labor Relations Act ("NLRA"), 29 U.S.C. s 158(a)(5), (1), by 
failing to comply with a request from Local 98, International 
Brotherhood of Electrical Workers ("Union" or "Local 98") 
for specified information concerning any work performed by 
CCI's employees within the Union's jurisdiction in the area of 
Philadelphia, Pennsylvania.  See Commonwealth Communi-
cations, Inc. and Int'l Bhd. of Elec. Workers Local Union 98, 
AFL-CIO-CLC, 335 N.L.R.B. No. 62, 2001 WL 1039901, at 6 
(2001).  In reaching this conclusion, the Board found that 
CCI and the Union were signatories to a collective bargaining 
agreement covering all CCI jobsites within the jurisdiction of 
the Union.  Id. at 5.  On this basis, the Board held that CCI 
was obliged to furnish the information sought by the Union, 
because it was relevant to unit employees represented by 
Local 98.  Id. at 6.

     The Board rejected CCI's claim that the parties' contract 
was a single-project agreement limited to work done by CCI 
employees at the Philadelphia airport, because, in the Board's 
view, the parties' written agreement unambiguously covers 
multiple sites.  The NLRB therefore refused to consider 

parol evidence indicating that the parties orally agreed to 
limit the scope of the agreement to one specific job.  Id. at 1, 
6.

     We find the parties' collective bargaining agreement ambig-
uous on the question of its scope.  Accordingly, we must look 
to parol evidence to determine the parties' intent.  Upon 
review of the parol evidence, we find that the Board erred in 
concluding that the agreement covers multiple sites.  We 
grant CCI's petition and deny the Board's cross-application 
for enforcement.

                          I. Background

     In May 1995, petitioner CCI, a Pennsylvania company in 
the business of installing and servicing local telephone and 
telecommunications services, was awarded a subcontract by 
Lombardo and Lipe, a Philadelphia electrical contractor, to 
perform telephone cabling work at the Philadelphia airport.  
Lombardo and Lipe was a signatory to the Union's area 
collective bargaining agreement, which required signatory 
employers to subcontract electrical work within Local 98's 
jurisdiction only to other employer signatories.  The petition-
er had no relationship with Local 98, because, since 1981, 
CCI's employees had been represented by the Communica-
tions Workers of America ("CWA").  Lombardo and Lipe 
strongly encouraged the petitioner to work with Local 98 on 
the airport project.  The petitioner received CWA's consent 
to use Local 98 members on the airport subcontract to 
perform the less-skilled work, while CWA members would 
perform the skilled work.

     On July 20, 1995, CCI's vice president and director of 
employee relations met with Local 98's business manager and 
business agent.  At the meeting, the Union presented CCI 
with two copies of Local 98's preprinted "Letter of Assent," a 
form through which employers become signatories to Local 
98's area bargaining agreement ("Commercial Agreement").  
One copy was a one-page document, and the other copy was 
attached to the Commercial Agreement as a signature page.  
In the blank space calling for an indication of the work to be 

covered by the agreement, Local 98 had typed the words 
"Inside Commercial."  The collective bargaining agreement 
contained no recognition clause;  however, Union and CCI 
officials agreed orally that the agreement covered only the 
airport job.  The parties reviewed the Commercial Agree-
ment and signed the Letter of Assent.

     On January 20, 1997, Local 98 sent the petitioner a written 
request for information concerning any and all work per-
formed by CCI's employees in Local 98's jurisdiction after 
July 20, 1995, including the employees assigned to the work.  
Local 98 representatives apparently had seen CCI's trucks at 
Philadelphia area jobsites other than the airport, and had 
heard that CCI was hiring non-union workers.  On February 
5, 1997, CCI responded to Local 98's request by sending only 
information pertaining to the airport job and declining to 
furnish any information pertaining to any other job.

     The Union then filed an unfair labor practice charge, 
alleging violations of s 8(a)(1) and (5) of the NLRA, and a 
complaint was issued.  During the hearings before the Ad-
ministrative Law Judge ("ALJ"), the Board claimed that, 
pursuant to the July 20, 1995 agreement, Local 98 represent-
ed all CCI employees who were working at jobsites within 
Local 98's geographical jurisdiction, and thus had a right to 
information about all of CCI's jobs in the area.  CCI main-
tained that the disputed collective bargaining agreement ap-
plied only to the single airport job.  On July 13, 1999, the 
ALJ dismissed the complaint.  335 N.L.R.B. No. 62, at 21.  
The ALJ first found that the Letter of Assent and the 
Commercial Agreement were ambiguous as to the scope of 
the unit.  Id. at 19.  The ALJ then considered parol evidence, 
which she found to indicate clearly that the parties had 
understood their agreement to be limited to the airport job.  
Id. at 19-20.  Based on that evidence, the ALJ concluded that 
the agreement covers only the airport job, and that Local 98 
had no basis for requesting information about the company's 
other jobs.  Id. at 20-21.

     On August 27, 2001, the NLRB reversed, holding that CCI 
engaged in an unfair labor practice by failing to comply with 

Local 98's request for information.  Id. at 6.  The NLRB 
found the parties' collective bargaining agreement "unambig-
uously multisite in scope," and, consequently, did not consider 
extrinsic evidence.  Id. at 1.  Having found that the agree-
ment covers all jobs within Local 98's jurisdiction, the Board 
ordered CCI to comply with Local 98's request for informa-
tion. Id. at 6.  Chairman Hurtgen dissented.  He found that 
the Commercial Agreement and the Letter of Assent together 
were ambiguous as to the scope of the unit, and that consider-
ation of parol evidence was appropriate.  Id. at 9.  Based on 
the clear and unambiguous parol evidence, Chairman Hurt-
gen found that the contract was limited to the airport site, 
and that the company was justified in not complying with 
Local 98's request for information about other sites.  Id.  
CCI filed a petition for review in this court.

                           II. Analysis

     This court owes no deference to the Board's interpretation 
of a disputed collective bargaining agreement.  BP Amoco 
Corp. v. NLRB, 217 F.3d 869, 873 (D.C. Cir. 2000);  Wilson & 
Sons Heating & Plumbing, Inc. v. NLRB, 971 F.2d 758, 760 
(D.C. Cir. 1992).  Therefore, we construe the language of the 
agreement at issue de novo to determine whether the agree-
ment covers one site or multiple sites.

     The first issue to be resolved in this case is whether the 
agreement between CCI and Local 98 is ambiguous with 
respect to the scope of the unit.  In particular, does the 
agreement cover multiple jobsites or just the single airport 
job?  The parol evidence in this case, confirmed by the clear 
findings of the ALJ, which the NLRB did not disturb, indi-
cates that the parties intended to restrict the agreement to 
the airport site.  Resort to parol evidence is only appropriate 
when the written contract is ambiguous.  Am. Postal Work-
ers Union, AFL-CIO v. U.S. Postal Serv., 940 F.2d 704, 707-
08 (D.C. Cir. 1991);  Appalachian Power Co. v. Fed. Power 
Comm'n, 529 F.2d 342, 347-48 (D.C. Cir. 1976);  News Union 
of Baltimore v. NLRB, 393 F.2d 673, 678 (D.C. Cir. 1968).  
"In the absence of ambiguity in the collective bargaining 

agreement, however, we have no cause to examine extrinsic 
evidence of the parties' intent."  Am. Postal Workers Union, 
AFL-CIO, 940 F.2d at 708.  The petitioner claims that the 
written agreement is "entirely silent" on whether it covers 
multiple sites or only the airport job, because the agreement 
contains no union recognition clause, description of the bar-
gaining unit, or definition of the work it covers.  The Board, 
in turn, contends that, although the agreement lacks a recog-
nition clause, the Letter of Assent and the Commercial 
Agreement contain language that makes clear that the con-
tract is multisite in scope.  The petitioner is right and the 
Board is wrong.

     There are a number of factors that militate in favor of the 
petitioner's position regarding the meaning of the contract.  
First, as both parties acknowledge, the contract contains no 
recognition clause, which would traditionally indicate the 
agreement's scope.  Therefore, nothing in the agreement 
explicitly demarcates a multisite bargaining unit covering the 
petitioner's employees.

     The NLRB points to s 2.03(h) of the Commercial Agree-
ment in support of its contention that the contract is unam-
biguously multisite in scope.  Section 2.03(h) provides:

     [I]n order to protect and preserve, for the Employ-
     ees covered by this Agreement, all work heretofore 
     performed by them, ... it is hereby agreed as 
     follows:  If and when the employer shall perform any 
     work of the type covered by this Agreement, ... the 
     terms and conditions of this Agreement shall be 
     applicable to all such work.
     
Commercial Agreement s 2.03(h), reprinted in Appendix 
("App.") 271.  This provision refers to "any work of the type 
covered by this Agreement," and "all such work."  But this 
section does not actually specify the type of work covered by 
the agreement, which is at issue here.  The NLRB contends 
that this section clearly indicates that the agreement unam-
biguously covers multiple sites, and that any ambiguity that 
may exist in this language is only as to the type of work 
covered (i.e., electrical or other work), not as to the scope of 

the agreement (i.e., one site or multiple sites).  This argu-
ment is hard to fathom.  If, as the NLRB concedes, the 
agreement is ambiguous as to the type of work covered, this 
undisputed ambiguity creates ambiguity as to the scope of the 
unit.  Work at different jobsites does not necessarily involve 
the same type of work at each jobsite.  If it is unclear 
whether one or multiple types of work are covered, it can be 
unclear whether one or multiple sites are covered.  Therefore 
s 2.03(h) does not unambiguously indicate a multisite bar-
gaining unit.

     Likewise, the Board's reliance on s 2.03(c) of the Commer-
cial Agreement, which provides that the "Employer agrees to 
notify ... the Union ... of the receipt of all contracts 
secured within its jurisdiction," is misplaced.  See id. 
s 2.03(c), App. 270.  An employer's agreement to notify a 
union of all contracts received does not answer the question 
whether the agreement covers one site or multiple sites.  For 
example, even in the context of a one-site bargaining unit, the 
Union might want an employer to notify it of all contracts 
received in anticipation of future contracts with respect to the 
same site, namely the airport.

     Furthermore, s 2.09 of the Commercial Agreement pro-
vides that the employer "will recognize the Union as the 
exclusive collective bargaining agent for all employees per-
forming electrical work within the jurisdiction of the Union on 
all present and future job sites, if and when a majority of the 
Employer's employees authorized the Union to represent 
them in collective bargaining."  Id. s 2.09, App. 272-73.  The 
Letter of Assent provides that,

     if a majority of [the Employer's] employees autho-
     rize the Local Union to represent them in collective 
     bargaining, the Employer will recognize the Local 
     Union as the NLRA Section 9(a) collective bargain-
     ing agent for all employees performing electrical 
     construction work within the jurisdiction of the Lo-
     cal Union on all present and future jobsites.
     
Letter of Assent, App. 314.  Chairman Hurtgen's dissent 
convincingly demonstrates the ambiguity arising from s 2.09:

     My colleagues interpret the contract as covering 
     multiple sites, with the proviso that some sites would 
     remain under Section 8(f) and others (where majori-
     ty is shown) would be under Section 9.  I shall 
     assume arguendo that this is a reasonable reading of 
     the contract.  However, another reasonable reading 
     of the contract is that the Respondent recognized 
     the Union as the 8(f) representative for the airport 
     project, but it was unwilling to recognize the Union 
     at all for other sites unless majority status was 
     shown.  That status has not been shown.
     
335 N.L.R.B. No. 62, at 9 (emphasis omitted).  We agree that 
both readings are reasonable.  Because there is more than 
one reasonable reading of the parties' agreement, we find 
that the agreement is ambiguous on the question of the scope 
of the unit.

     We must therefore look beyond the written agreement, and 
consider extrinsic evidence on the question.  The extrinsic 
evidence in this case, confirmed by the clear findings of the 
ALJ, which were not disturbed by the Board, indicates that 
the parties understood the agreement to cover only the 
airport site.  The ALJ credited testimony that the petitioner 
made clear that CWA represented the petitioner's employees, 
and that any agreement with Local 98 would cover only the 
airport subcontract.  Id. at 20.  The ALJ also credited testi-
mony that, absent CWA's consent, the petitioner would not 
have entered into the subcontract for the airport job, and that 
CWA's consent was limited to the airport job.  Id.  Local 98 
assured the petitioner that the agreement was limited to the 
airport project.  Id. at 13.

     We find that this extrinsic evidence makes clear that the 
parties understood the scope of the agreement to be limited 
to the airport job.  Therefore, we hold that the Board erred 
in concluding that the bargaining unit covered by the disput-
ed agreement is multisite in scope.

                         III. Conclusion

     For the foregoing reasons, we grant the petition for review 
and deny the Board's cross-application for enforcement.