## Facts

- Richard A. Daniel, an independent contractor, signed a master labor agreement with a carpenters’ union and later a memorandum agreement that included a grievance-and-arbitration procedure administered through a trust.
- Daniel sent a termination notice purporting to end his contractual relationship with the union before the disputes at issue arose.
- After the termination notice, Daniel continued conduct consistent with the grievance/arbitration arrangement, including making payments to the grievance and arbitration trust fund for almost a year.
- A grievance arbitration proceeded and resulted in an award against Daniel.
- Daniel did not move to vacate the arbitration award within the time allowed under California law.
- The trustee petitioned in federal district court to confirm the award; Daniel opposed confirmation, arguing he was not bound to arbitrate due to termination.

## Issues

1. Whether Daniel’s failure to timely move to vacate the award under the applicable limitations period barred him from raising defenses to confirmation.
2. Whether, despite his claimed termination, Daniel agreed to arbitrate the dispute under the labor agreements or by his conduct.

## Decision

- The Ninth Circuit affirmed the district court’s order confirming the arbitration award.
- State statutes of limitations govern motions to vacate labor arbitration awards; in California, the applicable period is 100 days under California Code of Civil Procedure § 1288.
- Because Daniel did not timely move to vacate, his defenses to confirmation were barred; the court’s inquiry was limited to whether the parties agreed to arbitrate the dispute.
- The court upheld the finding of an agreement to arbitrate based on Daniel’s conduct, including continued payments and participation in the arbitration proceedings.

## Legal Principles

- State limitations periods apply to motions to vacate arbitration awards in labor cases.
- In California, a motion to vacate an arbitration award must be brought within 100 days after entry of the award under Cal. Civ. Proc. Code § 1288.
- When the vacatur limitations period has expired, a confirmation proceeding generally permits only a threshold challenge to the existence of an agreement to arbitrate, not substantive attacks on the award.
- Agreement to arbitrate may be inferred from conduct, including continued performance under an arbitration-related arrangement and participation in arbitration without timely objection.

## Conclusion

The court enforced the labor arbitration award because the contractor failed to timely seek vacatur under the governing state limitations period and, in any event, his post-termination conduct supported a finding that he accepted arbitration as the dispute-resolution forum.


Fortune, Alsweet & Eldridge, Inc. v. Daniel, 724 F.2d 1355 (9th Cir. 1983)