Justia Arbitration & Mediation Opinion Summaries

This case involves a dispute between the University of Rhode Island Board of Trustees and the University of Rhode Island (plaintiffs) and the Hellenic Society Paideia – Rhode Island Chapter (defendant). The dispute arose from a breach-of-contract related to the construction of a Center for Hellenic Studies at the University of Rhode Island. The plaintiffs and defendant had entered into a Ground Lease Agreement that established the parameters for this construction project. The defendant failed to construct the Center for Hellenic Studies within the agreed timeframe, leading to litigation.The Superior Court stayed the litigation pending arbitration, as per the mandate. The arbitration proceedings were held, and the arbitrator issued a decision. The arbitrator found that the defendant had breached the lease agreement by failing to construct the Center for Hellenic Studies within the requisite timeframe, among other failures. The arbitrator also determined that a joint venture did not exist between the parties. The arbitrator directed the defendant to reimburse the plaintiffs for the cost and expenses that they will incur in their efforts to restore the construction site to its prior status.The plaintiffs filed a motion in Superior Court to confirm the arbitration award, which the defendant objected to and cross-moved to vacate. The trial justice granted the plaintiffs' motion to confirm the award and denied the defendant's cross-motion to vacate. The trial justice declined to review the arbitrator’s determination that the plaintiffs properly terminated the lease agreement and rejected the defendant’s objection to the arbitral remedy.The Supreme Court of Rhode Island affirmed the judgment of the Superior Court. The court concluded that the arbitrator's award drew its essence from the parties' lease agreement and lacked any indication that the arbitrator manifestly disregarded the law. The court rejected the defendant's arguments that the arbitrator had exceeded his authority. The court affirmed the trial justice's order confirming the arbitration award. View "The University of Rhode Island Board of Trustees v. Hellenic Society Paideia-Rhode Island Chapter" on Justia Law

The Supreme Court of New Jersey examined whether N.J.S.A. 18A:6-16 limits an arbitrator’s authority to penalize conduct under the Tenure Employees Hearing Law (TEHL), N.J.S.A. 18A:6-10 to -18.1. The defendant, the Board of Education for the Town of West New York Public Schools, brought tenure charges against the plaintiff, Amada Sanjuan, for conduct unbecoming. The charges were based on alleged false claims made by Sanjuan about an accident at the school. An arbitrator concluded that Sanjuan's conduct warranted a penalty, but not dismissal. The arbitrator demoted Sanjuan from her tenured administrative position to a tenured teaching role, without backpay. Sanjuan sought to vacate the arbitration award, arguing that the arbitrator exceeded his authority by demoting her. The Appellate Division agreed, interpreting N.J.S.A. 18A:6-16 to allow sustained tenure charges to result only in termination or loss of salary, but not demotion. The Supreme Court of New Jersey reversed, holding that N.J.S.A. 18A:6-16 provides the basis to refer a case to arbitration but does not limit an arbitrator’s authority to impose penalties. Therefore, the Supreme Court reinstated the arbitrator's award demoting Sanjuan. View "Sanjuan v. School District of West New York" on Justia Law

The Los Angeles College Faculty Guild (Guild) represents faculty at the nine community colleges in the Los Angeles Community College District (District). The Guild appeals the trial court’s judgment of dismissal of its petition to compel arbitration of grievances relating to the District’s decision to cancel all remedial for-credit English and mathematics courses two levels below transfer level. The Guild contends the court erred in determining it, rather than an arbitrator, should decide the issue of arbitrability and further erred in finding the grievances non-arbitrable. The Guild maintains the grievances involve violations of several provisions of the collective bargaining agreement (CBA) between the parties and so are subject to the arbitration provision of that agreement.   The Second Appellate District affirmed the trial court’s order denying the motion and petition and its subsequent judgment of dismissal. The court explained that the decision to cancel remedial for-credit English and mathematics courses two levels before transfer level is, in essence, a decision about the content of courses and curriculum. Put differently, it is a decision not to offer courses that contain such content. Thus, it is a matter within the discretion of the district, and so not within the scope of representation. It is therefore not an arbitrable issue.   The Guild makes much of the fact that the courses were canceled after they were placed on the tentative schedule for Fall 2019. The Guild, however, does not assert any schedule-related harm from the timing of the decision. Thus, the trial court’s conclusion that there was no arbitrable claim under Article 17(D)(1)(b) was correct. View "L.A. College Faculty Guild etc. v. L.A. Community College Dist." on Justia Law

In 2017, an arbitrator found that Western Illinois University violated its collective bargaining agreement with respect to layoffs. In 2018, the arbitrator entered a supplemental award, finding that the University failed to comply with the earlier award. The Illinois Educational Labor Relations Board then found that the University committed an unfair labor practice in violation of the Illinois Educational Labor Relations Act, 115 ILCS 5/14(a)(1), (8), by failing to comply with the two arbitration awards. The Act requires that public education employers arbitrate disputes arising under a collective bargaining agreement. Refusal to comply with the provisions of a binding arbitration award is an “unfair labor practice” under the Act. The appellate court vacated the Board’s decision.The Illinois Supreme Court agreed. An arbitrator in the public educational labor relations context exceeds his authority by reviewing a party’s compliance with his own award in contravention of the Act, which vests exclusive primary jurisdiction over arbitration awards with the Board. The Board may not limit the evidence it will consider in an unfair labor practice proceeding under the Act to the evidence before the arbitrator. Under the Act, arbitrators retain limited jurisdiction of the awards for the sole purpose of resolving remedial issues that may arise from the award itself. View "Western Illinois University v. Illinois Educational Labor Relations Board" on Justia Law

MHS, a private, non-denominational school, hired the Darringtons as full-time houseparents for student housing. The Union represents full-time MHS houseparents. The collective bargaining agreement arbitration provision covers “any dispute arising out of [its] terms and conditions,” including the “discipline or discharge” of Union members. A grievance includes “any dispute alleging discrimination against any [Union members].” The Union, on behalf of itself and any allegedly aggrieved Union members, waived any right to a private lawsuit alleging employment discrimination regarding matters encompassed within the grievance procedure. If aggrieved Union members are unsatisfied with the resolution of their disputes after discussions with MHS officials, “the Union [may seek] further consideration” by submitting the grievance to arbitration on their behalf.The Darringtons filed unsuccessful reports with the local state agency for children and youth services, concerning MHS's mandatory religious programming. They then filed charges of discrimination with the EEOC and the Pennsylvania Human Relations Commission alleging discrimination based on religion. Two months later, MHS fired the Darringtons, who filed additional charges. After receiving right-to-sue letters, the Darringtons filed a complaint, alleging discrimination and retaliation, Title VII, 42 U.S.C. 2000e. The district court denied MHS’s motion to compel arbitration. The Third Circuit reversed. The CBA clearly and unmistakably waives a judicial forum for the statutory discrimination claims. View "Darrington v. Milton Hershey School" on Justia Law

The Washington South Education Association was the representative of all licensed teachers within the Northfield schools. The Northfield School Board and the Association negotiated and entered into the CBA, which was in effect from July 1, 2017 to June 30, 2018. Paul Clayton was a middle-school physical-education teacher at the Northfield Middle High School (the School) and was a member of the Association. Therefore, Clayton’s employment was subject to the CBA. In late fall 2017, administrators at the School received complaints about Clayton’s workplace conduct. The complaints alleged that Clayton created a hostile work environment by intimidating his colleagues and advised a student (his daughter) to punch another student in the face. In response to the allegations, Clayton was placed on paid leave while the administrators investigated the complaints and interviewed a number of the School’s staff. Upon the conclusion of their investigation, the administrators wrote a letter to the School’s superintendent describing their findings and noting that while they gave Clayton the opportunity to respond, Clayton declined to respond in a follow-up meeting and then a second meeting scheduled to receive his rebuttal a few days later. After receiving the administrators’ letter, the superintendent wrote a letter to Clayton offering him an opportunity to meet with her to discuss the matter, and attached to the letter a summary of the allegations against Clayton. About a week later, the superintendent met with Clayton and his Association representation. Clayton did not file a notice of appeal of his ultimate suspension. Shortly thereafter, Clayton and the Association, now represented by the Vermont affiliate of the National Education Association (Vermont-NEA), submitted a grievance alleging a violation the CBA. The Board declined to accept the grievance, noting Clayton did not follow the prescribed termination procedures outlined in the CBA. Vermont-NEA thereafter invoked the CBA's arbitration procedures. A trial court agreed with the Board, and Clayton and the Association appealed. The Vermont Supreme Court determined Clayton and the Association failed to exhaust statutory remedies as required by 16 V.S.A. 1752, thus the trial court properly enjoined arbitration. View "Northfield School Board v. Washington South Education Association" on Justia Law

Defendant Glenn Ciripompa was a tenured high school math teacher in the Bound Brook School District. Defendant's behavior came under the scrutiny of the Bound Brook Board of Education (Board) after the Board received copies of student Twitter posts alleging "Mr. C" was electronically transmitting nude photographs. An investigation uncovered defendant's pervasive misuse of his District-issued laptop and iPad, as well as evidence of inappropriate behavior toward female colleagues, often in the presence of students. The results of the investigation spurred the Board to seek defendant's termination from his tenured position and served as the substantive allegations of the two-count tenure complaint against defendant. In this appeal, the issue presented for the Supreme Court's review centered on whether an arbitrator exceeded his authority by applying the standard for proving a hostile-work-environment, sexual-harassment claim in a law against discrimination (LAD) case to a claim of unbecoming conduct in the teacher disciplinary hearing. After review, the Supreme Court found that the arbitrator impermissibly converted the second charge of unbecoming conduct into one of sexual harassment. The arbitrator's review was not consonant with the matter submitted; rather, he imperfectly executed his powers as well as exceeded his authority by failing to decide whether Count II stated a successful claim of unbecoming conduct in support of termination. The arbitrator's award was therefore ruled invalid. View "Bound Brook Bd. of Edu. v. Ciripompa" on Justia Law

The College Network, Inc. (TCN) appealed an order denying its motion to compel arbitration of a consumer fraud and breach of contract action brought by Plaintiffs Bernadette Magno, Rosanna Garcia, and Sheree Rudio. TCN argued the arbitration provision in Plaintiffs' purchase agreements was valid and enforceable and contended the trial court erred when it ruled the provision unconscionable. Alternatively, TCN argued that if the forum selection clause was unconscionable, the court abused its discretion in voiding the arbitration provision altogether rather than severing the objectionable provisions and enforcing the remainder. After review of the provision at issue, the Court of Appeal concluded the trial court correctly determined the arbitration provision to be procedurally and substantively unconscionable and did not abuse its discretion in voiding it in its entirety. View "Magno v. The College Network, Inc." on Justia Law

In May 2013, plaintiffs Annemarie Morgan and Tiffany Dever filed suit against defendants Sanford Brown Institute, its parent company, Career Education Corporation, and Sanford Brown's chief executive officer, admission and financial aid officers, and clinical director. Sanford Brown was a private, for-profit educational institution with a campus in Trevose, Pennsylvania, that offered medical-related training programs. In the complaint, plaintiffs claimed that defendants misrepresented the value of the school's ultrasound technician program and the quality of its instructors, instructed students on outdated equipment and with inadequate teaching materials, provided insufficient career-service counseling, and conveyed inaccurate information about Sanford Brown's accreditation status. The complaint further alleged that Sanford Brown employed high-pressure and deceptive business tactics that resulted in plaintiffs financing their education with high-interest loans, passing up the study of ultrasound at a reputable college, and losing career advancement opportunities. The Sanford Brown enrollment agreement included payment terms for tuition and fees, disclaimers, and an arbitration provision. Without answering the complaint, defendants filed a motion to compel arbitration and to dismiss plaintiffs' claims. The Appellate Division found the parties clearly and unmistakably agreed an arbitrator would determine issues of arbitrability and that plaintiffs failed to specifically attack the delegation clause. The panel therefore determined that arbitrability [was] for the arbitrator to decide. The Supreme Court reversed, finding that the Appellate Division and trial court did not have the benefit of "Atalese v. U.S. Legal Servs. Grp.," (219 N.J. 430, 436 (2014), cert. denied, __ U.S. __, 135 S. Ct. 2804, 192 L. Ed.2d 847 (2015)) at the time they rendered their decisions. The New Jersey Court held in "Atalese" that an arbitration provision in a consumer contract that fails to explain in some minimal way that arbitration is a substitute for a consumer s right to pursue relief in a court of law was unenforceable. This case was therefore remanded for further proceedings in light of Atalese. View "Morgan v. Sanford Brown Institute" on Justia Law

A district elementary school principal interpreted an educational policy to mean that elementary school teachers were expected to be present in their classrooms ten minutes before the start of the instructional day. The Coastal Education Association, an affiliate of a union representing teachers, filed a grievance with Regional School District Unit No. 5 (RSU No. 5) challenging the principal’s interpretation as a violation of the collective bargaining agreement (CBA) between the Association and the Board of Directors of RSU No. 5. An arbitrator concluded that the principal’s directive violated the CBA and directed RSU No. 5 to rescind the educational policy. RSU No. 5 filed an application to vacate the arbitration award. The superior court granted the application, concluding that the dispute was not substantively arbitrable pursuant to the Municipal Public Employees Labor Relations Law, which prevents school boards from bargaining on matters of educational policy or submitting educational policy disputes to interest arbitration. The Supreme Judicial Court affirmed, holding that the trial court did not err in concluding that the educational policy at issue in this case was, as a matter of law, not substantively arbitrable. View "Reg’l Sch. Unit No. 5 v. Coastal Educ. Ass’n" on Justia Law