Jones v. Tenneco Oil Co.

The panel majority holds that Jones was not obligated to arbitrate the termination of his LTD benefits because Tenneco’s obligation to pay the benefits survived Jones’ discharge and that obligation was not, of itself, subject to the arbitration agreement. I disagree. Not only was Tenneco’s right to discharge Jones subject to the “Arbitration and Grievance Procedure” of the parties’ labor contract, but Tenneco’s obligation to pay Jones’ LTD benefits was also subject to the arbitration agreement.

Jones’ right to the LTD benefits is based upon an oral agreement supplementing a written labor…