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May 19, 1989


Thomas F. Hogan, United States District Judge.

The opinion of the court was delivered by: HOGAN


 Plaintiff TRT Telecommunications Corp. ("TRT") seeks to enjoin the arbitration of a labor dispute with its employees' union, defendant Local 111, arising out of the sale of a TRT operation located in Fort Lauderdale, Florida, known as the "Phone Room." Local 111 counterclaims that TRT has violated the parties' collective-bargaining agreement by refusing to submit the dispute to arbitration. The Court has jurisdiction under Section 301(a) of the Labor Management Relations Act, 29 U.S.C. ยง 185(a), and has consolidated the hearing on the preliminary injunction with the merits pursuant to Rule 65(a)(2) of the Federal Rules of Civil Procedure. The parties have now filed fully-briefed cross-motions for summary judgment and the Court heard arguments on the motions on May 18, 1989. For the reasons set forth below, the Court shall deny the preliminary injunction and grant, in part, Local 111's motion for summary judgment.


 The material facts are undisputed. TRT is a communications services corporation specializing in the international electronic transmission of written communications. Local 111 is the certified collective bargaining representative of TRT's employees, including the bargaining unit in Fort Lauderdale. TRT and Local 111 are parties to a collective bargaining agreement ("the Agreement") governing their labor relations.

 Article XI of the Agreement provides that

in the event of a merger or sale of [TRT's] operations as a going business . . ., the purchaser acquiring the operations shall recognize the Union as the bargaining representative of the Company employees covered by the terms of this Agreement and shall maintain the terms and conditions of this Agreement.

 That Article also requires TRT "to encourage a meeting between the purchaser and [Local 111] to discuss the purchaser's plans"; and to provide Local 111 with copies of any applications for regulatory agency (i.e., Federal Communications Commission) approval necessitated by the transaction. Upon Local 111's invocation of Article XI, TRT sent another letter on May 20, 1988, that reads in relevant part:

Please be advised that TRT disagrees with your interpretation of Article XI and believes that the Article of the agreement is not applicable to any sale by TRT of its Phone Room Operation. Accordingly, please be further advised that TRT does not intend to give Local 111 the name of any company with whom it may negotiate for the sale of the Phone Room Operation and will not introduce any such possible purchaser to Local 111. Also, TRT does not believe that in connection with any sale of the Phone Room Operation it is required to provide Local 111 with copies of filings it might make with the FCC.

 Local 111 thereupon filed a grievance with TRT pursuant to Article IX of the Agreement, on May 31, 1988. In response, on July 1, 1988, TRT filed a demand for arbitration with the American Arbitration Association ("AAA"), pursuant to Article X of the Agreement, which confers to arbitration "disputes regarding the meaning, application, interpretation or violation of any specific provision of" the Agreement. Jerome H. Ross, Esquire, was selected as the arbitrator and set an initial hearing date for November 2, 1988, which was later rescheduled to December 20, 1988, at Local 111's request. In the interim, Local 111 on November 28, 1988, sent TRT a request for information in 21 categories relating to the Phone Room transaction, stating that such information was "relevant to both the [pending] grievance and an unfair labor practice charge which Local 111 may file." TRT objected to this information request in a December 16, 1988, letter, stating that the information did not appear relevant to the pending arbitration proceeding and asking Local 111 to specify its need for each item of information.

 Local 111 did not respond to this letter, but instead, after securing a further extension of the arbitration hearing, filed two charges of unfair labor practices against TRT with the National Labor Relations Board ("NLRB"). One charge (No. 12-CA-13268-1) alleged that TRT's refusal to provide the information requested on November 28, 1988, violated the National Labor Relations Act ("NRLA"); and the other (No. 12-CA-13268) alleged that TRT's refusal to transfer any of the bargaining unit employees in the Phone Room operation, and Telex Services' failure to assume the TRT-Local 111 Agreement also violated the NRLA. The gravamen of the latter charge, however, was that Telex Services was the alter ego of TRT, as it alleges that "TRT maintains ultimate control over all aspects of the phone room operations and reaps ongoing financial benefits."

 In response to Local 111's charges with the NLRB, TRT on February 28, 1989, sought to withdraw its demand for arbitration on the basis of Article IX of the Agreement, which provides that

disputes that are within the jurisdiction of the Equal Employment Opportunity Commission or the National Labor Relations Board shall not be the subject of ...

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