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Engineers and Architects Association v. Community Development Department11/30/1994
COURT OF APPEAL OF CALIFORNIA, SECOND APPELLATE DISTRICT, DIVISION THREE
No. B071955
1994.CA.40803 ; 35 Cal. Rptr. 2d 800; 30 Cal. App. 4th 644
Filed: November 30, 1994.
ENGINEERS AND ARCHITECTS ASSOCIATION, PETITIONER AND APPELLANT,
v.
COMMUNITY DEVELOPMENT DEPARTMENT OF THE CITY OF LOS ANGELES ET AL., DEFENDANTS AND RESPONDENTS.
Appeal from an order of the Superior Court of Los Angeles County. Super. Ct. No. BS017471. Hon. Paul Boland, Judge.
Marr & Marchant, Cecil Marr and Diane Marchant for Petitioner and Appellant.
James K. Hahn, City Attorney, Frederick N. Merkin, Senior Assistant City Attorney and Molly Roff-Sheridan, Deputy City Attorney for Defendants and Respondents.
Kitching, J.; Croskey, Acting P.J., and Parkin, J. , Concurring.
Kitching
KITCHING, J.:
INTRODUCTION
This appeal arises from the denial of a petition to compel arbitration. The petition raised the question whether a collective bargaining agreement excluded from arbitration a managerial decision to lay off an employee because of lack of funding or lack of work. In answering this question, the trial court properly made factual findings in ruling on arbitrability. The contract, and substantial evidence, support the trial court's ruling that this dispute was not arbitrable. We affirm the denial of the petition to compel arbitration.
FACTUAL AND PROCEDURAL BACKGROUND
On June 24, 1992, petitioner Engineers and Architects Association ("the Association") filed a petition to compel arbitration, pursuant to Code of Civil Procedure section 1281.2, naming as respondents the Community Development Department ("the Department") of the City of Los Angeles and its General Manager, Parker Anderson ("Anderson"). The Association acts as an employee organization recognized by the City of Los Angeles ("the City") as bargaining representative for "administrative unit" employees, including those working in the Department. The petition specifically concerned Mark Vella ("Vella"), an Industrial Commercial Finance Officer ("ICFO").
The Association and the Department signed a collective bargaining agreement, the "memorandum of understanding," setting forth terms and conditions of employment in the administrative unit. Pursuant to Articles 1.9 and 3.1 of the memorandum, the parties agreed to submit certain disputes to a grievance procedure that concludes in binding arbitration.
The Industrial, Commercial and Development Division ("the ICD") of the Department employs ICFOs to undertake financial analyses associated with the production of loans. The City's employment materials describe an ICFO as developing and securing financing for small and medium sized businesses and industrial and commercial development projects. An ICFO also plans, designs, prepares, reviews, and processes loans for businesses and industrial and commercial development projects as part of the Department's comprehensive economic development program.
On March 19, 1992, Anderson informed Vella that the Department intended to lay him off due to lack of work and/or lack of funds. Vella filed a grievance on March 24, 1992, which contended that the action was unnecessary and hence unfair, that sufficient work and funds existed to provide for his position, and that no legitimate reason existed to warrant this action.
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