Supplemental Benefit Comm. v. Navistar, Inc.

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Under a consent decree in a lawsuit relating to employee retirement benefits, Navistar contributes to a Supplemental Benefit Trust managed by SBC. The size of its contributions is determined by a formula based on Navistar’s economic performance. Navistar must regularly provide data to the SBC to permit it to evaluate whether Navistar is applying the formula correctly. The agreement provides for arbitration before an accounting firm if SBC disputes the “information or calculations” Navistar provides. SBC claimed that Navistar was improperly classifying aspects of its business activities and structuring its business to evade its profit-sharing obligations under the agreement. Navistar claimed that under the accountant arbitration mechanism, which applies to disputes over the “information or calculations” provided by Navistar, SBC’s claims were subject to arbitration. The district court held that the claims were subject to arbitration, but that Navistar’s conduct before and during litigation waived its right to arbitrate the claims. The Sixth Circuit held that the claims were subject to arbitration and that Navistar had not waived its right. While Navistar may bear some responsibility for the long duration of its dispute with the SBC, its behavior with regard to arbitration does not satisfy the particular elements of waiver. View "Supplemental Benefit Comm. v. Navistar, Inc." on Justia Law