Justia Arbitration & Mediation Opinion Summaries

Epstein, an optometrist, entered into a VSP “Network Doctor Agreement.” VSP audited of Epstein’s claims for reimbursement, concluded he was knowingly purchasing lenses from an unapproved supplier, and terminated the provider agreement. The agreement included a two-step dispute resolution procedure: the “Fair Hearing” step provided for an internal “VSP Peer Review.” If the dispute remained unresolved, the agreement required binding arbitration under the Federal Arbitration Act (FAA), under procedures set forth in the policy. A “Fair Hearing” panel upheld the termination.Instead of invoking the arbitration provision, Epstein filed an administrative mandamus proceeding, alleging the second step of the process was contrary to California law requiring certain network provider contracts to include a procedure for prompt resolution of disputes and expressly stating arbitration “shall not be deemed” such a mechanism. (28 Cal. Code Regs 1300.71.38.) He claimed that state law was not preempted by the FAA, citing the McCarran-Ferguson Act, which generally exempts from federal law, state laws enacted to regulate the business of insurance.The court of appeal affirmed the rejection of those challenges. State regulatory law requiring certain network provider agreements to include a dispute resolution process that is not arbitration pertains only to the first step of the dispute resolution process and does not foreclose the parties from agreeing to arbitration in lieu of subsequent judicial review. While the arbitration provision is procedurally unconscionable in minor respects, Epstein failed to establish that it is substantively unconscionable. View "Epstein v. Vision Service Plan" on Justia Law

The Supreme Court vacated the order of the superior court denying the motion filed by a teachers' union and Jennifer Leyden (collectively, the Union) to vacate an arbitration award and granting the City of Providence's motion to confirm the award, holding that the trial justice erred in holding that the decision of the Employees' Retirement System of Rhode Island (the Retirement Board) granting Leyden's application for an ordinary disability retirement retired Leyden as a matter of law.Leyden, a school teacher, was awarded workers' compensation benefits after she was assaulted by students. The Retirement Board later approved Leyden's application for an ordinary disability retirement. While she was receiving workers' compensation benefits, Leyden sought reinstatement to her former teaching position. However, the School Department considered her to be retired. The Union filed a grievance, and the matter proceeded to arbitration. The arbitrator ruled in favor of the School Department, concluding that the Retirement Board had retired Leyden when it granted her request for an ordinary disability pension, and therefore, the Union had no standing to represent her. The superior court confirmed the award. The Supreme Court vacated the superior court's order, holding that Leyden's grievance that she was denied an appointment for the upcoming academic year was substantively arbitrable. View "Providence Teachers' Union Local 958, AFT, AFL-CIO v. Hemond" on Justia Law

The Pennsylvania Supreme Court granted the Northern Berks Regional Police Commission’s petition for appeal in this Police and Firemen Collective Bargaining Act (Act 1111) grievance arbitration appeal. An arbitrator reinstated Officer Charles Hobart to the Northern Berks Police Department, but the trial court vacated the award based on a finding that the award required the Department to commit an illegal act. The trial court’s ruling was based on factual developments occurring after Hobart’s termination. The Commonwealth Court reversed, finding that Hobart had not yet exhausted administrative remedies that would theoretically remove the purported illegality. After review, the Pennsylvania Supreme Court found the arbitrator's award was not illegal, and therefore reversed the Commonwealth Court. View "N Berks Reg. Police Comm. v. Berks Co. FOP" on Justia Law

The Louisiana Supreme Court granted review in this case to determine whether the Louisiana Commissioner of Insurance was bound by an arbitration clause in an agreement between a health insurance cooperative and a third-party contractor. The Louisiana Health Cooperative, Inc. (“LAHC”), a health insurance cooperative created in 2011 pursuant to the Patient Protection and Affordable Care Act, entered an agreement with Milliman, Inc. for actuarial and other services. By July 2015, the LAHC was out of business and allegedly insolvent. The Insurance Commissioner sought a permanent order of rehabilitation relative to LAHC. The district court entered an order confirming the Commissioner as rehabilitator and vesting him with authority to enforce contract performance by any party who had contracted with the LAHC. The Commissioner then sued multiple defendants in district court, asserting claims against Milliman for professional negligence, breach of contract, and negligent misrepresentation. According to that suit, the acts or omissions of Milliman caused or contributed to the LAHC’s insolvency. Milliman responded by filing a declinatory exception of lack of subject matter jurisdiction, arguing the Commissioner must arbitrate his claims pursuant to an arbitration clause in the agreement between the LAHC and Milliman. The Supreme Court concluded, however, the Commissioner was not bound by the arbitration agreement and accordingly could not be compelled to arbitrate its claims against Millman. The Court reversed the appellate court's judgment holding to the contrary, and remanded the case for further proceedings. View "Donelon v. Shilling" on Justia Law

Defendant California Community College Athletic Association (Athletic Association) administered intercollegiate athletics for the California community college system. The parties agreed that, as a condition of participating in the intercollegiate football league, plaintiff Bakersfield College (the College) agreed to be bound by the Athletic Association’s bylaws and constitution, including a provision requiring the College to resolve any sanctions and penalty disputes by binding arbitration. Instead of proceeding through binding arbitration to challenge the sanctions and penalty decisions issued by the Athletic Association and codefendant the Southern California Football Association (the Football Association) against the College, the College and coplaintiffs Jeffrey Chudy and the Kern Community College District elected to file civil litigation. Plaintiffs argued they were excused from pursuing binding arbitration because the arbitration provision was unconscionable. The trial court said the “issue [wa]s close,” but ultimately, after severing the one-sided attorney fees subsections, found the arbitration provision was not unconscionable. The trial court, therefore, found plaintiffs’ litigation was barred by the failure to exhaust their administrative remedies. The Court of Appeal agreed with the trial court that this was a close case but concluded the arbitration provision was unconscionable. Accordingly, it reversed. View "Bakersfield College v. Cal. Community College Athletic Assn." on Justia Law

When a toxic disaster hits, claimants could seek relief in the form of assistance from the New Jersey Spill Fund by following promulgated claims procedures. In order to resolve disputes over denied Fund monies quickly and fairly, the Fund uses arbitrators and flexible procedures to allow claimants the opportunity to demonstrate that the denial constituted arbitrary and capricious action. Petitioner, US Masters Residential Property (USA) Fund, submitted a claim for Spill Fund monies for its multi-lot property located in Bayonne that was affected by storm floodwaters, which allegedly carried petroleum-based toxins. Neighboring properties also affected by the storm’s toxin-laden floodwaters were afforded Spill Fund relief. Following some back and forth with the Department of Environmental Protection (DEP), petitioner’s claim was denied. After petitioner filed an appeal, two years elapsed between the request for arbitration and the commencement of the arbitration proceeding. The results of the arbitration ended in favor of the Spill Fund, and payment remained denied. The New Jersey Supreme Court expressed "concerns" about the arbitration. "Although we are mindful of the deferential standard of review, flaws in the substantive reasoning of the arbitration decision as well as procedural fairness considerations undermine confidence in the outcome of this arbitration enough to persuade us, in the interest of fairness, to require that a new arbitration be conducted. Accordingly, we reverse and remand this claim for a new proceeding." View "US Masters Residential Property (USA) Fund v. New Jersey Department of Environmental Protection" on Justia Law

The Supreme Court affirmed the judgment of the district court interpreting the 2017 amendments to Iowa Code chapter 20, the Public Employment Relations Act, limiting the mandatory subjects of collective bargaining and the matters an arbitrator may consider if the dispute enters binding arbitration, holding that the Iowa Public Employment Relations Board (PERB) and the district court correctly interpreted the amendments.A union sought a declaratory order from PERB and then judicial review of the declaratory order seeking to clarify certain provisions in the amendments. The Supreme Court affirmed the judgment of the district court affirming PERB's decision, holding (1) "base wages" under Iowa Code 20.9(1) means the floor level of pay for each job before upward adjustments such as for job shift or longevity; and (2) the term "past collective bargaining agreement" in the context of Iowa Code 20.22(10)(b)(1) allows an arbitrator to consider the existing collective bargaining agreement but not ones that came before. View "United Electrical, Radio & Machine Workers of America v. Iowa Public Employment Relations Board" on Justia Law

Appellants, American Federation of State, County and Municipal Employees, Local 2875 (Union), and Robert Green (Green), sought certiorari relief from the Court of Civil Appeals' (COCA) opinion affirming the trial court's grant of summary judgment in favor of the City of Norman and reversing an arbitration award in favor of Green and Union. Green, a member of his local union, was discharged from his job with the City of Norman, Oklahoma (City). Green appealed the decision and the matter was ultimately presented to an arbitrator for a determination. The arbitrator determined there was no "just cause" for discipline and he ordered reinstatement of Green's employment. The union filed a petition in district court to enforce the arbitration award. City filed a cross petition asking the district court to vacate the arbitration award. Both parties sought summary relief from the district court. The district court denied relief to Green and granted summary judgment in favor of City. The district court held the arbitrator exceeded his authority under the collective bargaining agreement and vacated the arbitrator's opinion and award. Green and the union filed a Petition in Error; the Court of Civil Appeals affirmed the district court's grant of summary judgment to City but remanded the matter for the arbitrator to resolve the issue of progressive discipline. Green and the union sought certiorari relief from the Oklahoma Supreme Court. After review, the Supreme Court held the arbitrator acted within the scope of his authority under the terms of the CBA when determining whether the City had "just cause" to discipline Green. It vacated the Court of Civil Appeals' opinion, reversed the district court and remanded this matter for further proceedings. View "American Federation of State, County & Municipal Employees v. City of Norman" on Justia Law

In this dispute between the Board of Education of the Town of New Milford (Board) and the New Milford Education Association (Union) the Supreme Court affirmed the judgment of the trial court denying the Board's application to vacate a grievance arbitration award and granting the Union's application to confirm the grievance arbitration award, holding that the arbitrator did not manifestly disregard the law and properly concluded that the Union's grievance was arbitrable.The Union, which represented the teachers employed by the Board, filed a grievance alleging that the Board had violated an agreement between the parties. The arbitrator decided the grievance in the Union's favor. The trial court denied the Board's application to vacate the grievance arbitration award and granted the Union's application to confirm the award. The Supreme Court affirmed, holding that the trial court (1) correctly denied the Board's application to vacate the grievance arbitration award on the grounds that the arbitrator manifestly disregarded the law by concluding that the doctrines of collateral estoppel and res judicata did not apply to bar the Union's grievance; and (2) the trial court properly concluded that the Union's grievance was arbitrable under the terms of the agreement. View "Board of Education of Town of New Milford v. New Milford Education Ass'n" 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