Justia Arbitration & Mediation Opinion Summaries

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

Defendant Roy Miller Freight Lines, LLC (RMFL) appealed a trial court order granting in part and denying in part its motion to compel its former employee, plaintiff William Muller (Muller), to arbitrate his wage and hour claims under the arbitration provision in his employment agreement. The trial court granted RMFL’s motion on all but one cause of action: Muller’s claim for unpaid wages, and stayed the prosecution of that remaining claim pending the completion of the arbitration. The issue this case presented for the Court of Appeal's review centered on whether the Federal Arbitration Act (FAA) applied, and more specifically, whether Muller was a transportation worker engaged in interstate commerce under 9 U.S.C. 1 (section 1) and thus exempt from FAA coverage. If he was exempt from FAA coverage, as the trial court held, Muller did not have to arbitrate his cause of action for unpaid wages because Labor Code section 229 (section 229) authorized lawsuits for unpaid wages notwithstanding an agreement to arbitrate. If the FAA applied, as RMFL contended, the FAA preempted section 229, and Muller had to submit his cause of action for unpaid wages to arbitration, along with his five other causes of action. The Court found the trial court correctly concluded Muller was exempt from FAA coverage under section 1. Even though Muller did not physically transport goods across state lines, his employer was in the transportation industry, and the vast majority of the goods he transported originated outside California. Thus, section 229 required staying the prosecution of his cause of action for unpaid wages while the other five causes of action proceed to arbitration. View "Muller v. Roy Miller Freight Lines, LLC" on Justia Law

The Supreme Court reversed the decision of the circuit court finding a delegation clause in an arbitration agreement unconscionable and refusing to enforce the arbitration agreement, holding that the delegation clause was neither unconscionable nor unenforceable.Respondent, who was terminated from her employment, filed workers' compensation discrimination claims against Petitioners. Petitioner moved to compel arbitration based on the arbitration agreement that Respondent signed at the time she was hired. The circuit court refused to enforce the arbitration agreement on the grounds that the agreement's delegation clause was ambiguous, unconscionable and in violation of W. Va. Code 23-2-7. The Supreme Court reversed, holding (1) the delegation clause clearly and unmistakably showed the parties' intent to send gateway questions of arbitration to an arbitrator; (2) the delegation clause was valid; and (3) the circuit court should have referred the parties' arguments about the enforceability of the arbitration agreement to the arbitrator. View "Rent-A-Center Inc. v. Ellis" 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 Supreme Court reversed the judgment of the court of appeals concluding that this lawsuit brought by security guards at Oracle Park (the former AT&T Park in San Francisco) against San Francisco Baseball Associates LLC (the Giants) alleging a violation of Cal. Lab. Code 201, subd. (a) was preempted under federal law and must be submitted to arbitration, holding that the trial court correctly denied the Giants' motion to compel arbitration.In this action, the guards claimed that they were discharged after every Giants homestead, at the end of the baseball season, and after other events at the park, and that they were entitled under section 201 to receive their unpaid wages immediately after each discharge. The Giants moved to compel arbitration, arguing that this action was preempted by the Labor Management Relations Act because the controversy required interpretation of the collective bargaining agreement (CBA) entered into between the parties. The trial court denied the motion. The court of appeal reversed. The Supreme Court reversed, holding (1) while the CBA may be relevant to this lawsuit, the dispute turned on the meaning of "discharge" under section 201 rather than an interpretation of the CBA itself; and (2) therefore, the lawsuit was not preempted, and state courts may decide it on the merits. View "Melendez v. San Francisco Baseball Associates LLC" on Justia Law

The Eighth Circuit reversed the district court's order vacating an arbitration award originally in favor of the union. The court held that the arbitration award drew its essence from the collective bargaining agreement. In this case, the arbitrator appropriately considered the relevant language of the Recognition Clause, even though it did not quote the Recognition Clause in its entirety. Accordingly, the court remanded for further proceedings. View "National Elevator Bargaining Assoc. v. International Union of Elevator Constructors" 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

When De Melo was hired, he signed SCI’s “Owner/Operator Agreement,” five pages long, typed in small font, with 27 clauses. The arbitration clause provides that if the parties are unable to settle a dispute, disputes “within the jurisdictional maximum for small claims will be settled in the small claims court.” All other disputes shall be settled by arbitration in accordance with the Federal Arbitration Act. The clause prohibits consolidating claims in arbitration or arbitrating any claim as a representative member of a class or in a private attorney general capacity. All parties may examine up to three witnesses per party. Each deposition is limited to two hours. Any objections based on privilege and/or confidential information are reserved for arbitration. The arbitrators have authority to award actual monetary damages only. No punitive or equitable relief is authorized. All parties bear their own costs; no attorney’s fees or other costs may be granted. "The arbitrator’s decision shall be final and legally binding and judgment may be entered thereon.” De Melo’s native language is Portuguese; he cannot fully understand documents written in English. No one asked if he wanted the documents translated nor explained the documents. He was not given time to carefully review the documents; no one told him he could have an attorney review them. De Melo filed a claim with the Labor Commissioner, seeking unpaid overtime, meal, and rest period wages, reimbursement of unlawful wage deductions and business expenses, and statutory penalties. (Lab. Code, 203, 226, 2802.) . The court of appeal affirmed the denial of a petition to compel arbitration, finding that the arbitration clause was procedurally and substantively unconscionable and that severance of the substantively unconscionable provisions was not possible because the clause was permeated with unconscionability. View "Subcontracting Concepts (CT), LLC v. De Melo" on Justia Law

The Court of Appeal reversed the trial court's denial of Sohnen's motion to compel arbitration of workplace discrimination claims brought by plaintiff, an employee of Sohnen. The court held that the record demonstrated consent to arbitration where plaintiff's continued employment was a manifestation of agreement to the arbitration provisions. The court also held that plaintiff failed to demonstrate that the arbitration agreement was unenforceable where the record contained no evidence of surprise, nor of sharp practices demonstrating substantive unconscionability. Accordingly, the court remanded for further proceedings. View "Diaz v. Sohnen Enterprises" on Justia Law

Hamilton had been employed by the EEOC for 20 years, with no disciplinary problems, until one day in 2016, when, while engaged in mediation, he suddenly began using racial epithets, engaging in physical violence, and refusing to follow orders. The EEOC removed him from federal service. The union filed a grievance, which led to arbitration. During a hearing, the EEOC called 11 witnesses; the union called Hamilton. Although the arbitrator found that certain aspects of the EEOC’s case had not been proved, he credited the testimony of EEOC witnesses to conclude that Hamilton “had a major physical and/or mental breakdown.” Because Hamilton denied taking any of the actions he was charged with, the arbitrator concluded that Hamilton “did not remember.” The arbitrator found that the EEOC had not shown that Hamilton’s behavior had any negative effect on its reputation and had failed to consider that Hamilton’s behavior “was caused by his obvious medical condition,” and set aside Hamilton’s removal, awarding back pay. The arbitrator denied the union’s request for arbitration costs and attorney fees. The Federal Circuit vacated the denial of attorneys’ fees; 5 U.S.C. 7701(g) provides that an adjudicator may require an agency to pay the employee’s reasonable attorney fees if the employee is the prevailing party and the adjudicator determines that payment by the agency “is warranted in the interest of justice.” On remand, the arbitrator must reconsider the issue and include a statement of reasons. View "AFGE Local 3599 v. Equal Employment Opportunity Commission" on Justia Law