Justia Arbitration & Mediation Opinion Summaries

In 2013, Scheurer applied to work at Richelieu which outsourced its staffing needs to Remedy, a temporary staffing agency. The application form she signed with Remedy for placement with Richelieu contained an arbitration agreement. She was assigned to work for Richelieu, but that assignment ended after some months. About a year later, Remedy placed Scheurer with Fromm. Scheurer alleges that while working at Fromm, her supervisor sexually harassed her and that Fromm took no serious action to address the sexual harassment and instead fired her. Fromm tried to arrange a work situation that would have separated Scheurer from the supervisor, but when that proved “impossible,” Fromm asked Remedy to assign Scheurer to another client. Scheurer filed suit against Fromm, but not Remedy, alleging sexual harassment and retaliation, 42 U.S.C. 2000e‐2(a)(1) & 2000e‐3(a). Fromm argued that arbitration should be compelled under the contract law principle of equitable estoppel and because Fromm was a third‐party beneficiary of the Remedy agreement. The district court denied Fromm’s motion. The Seventh Circuit affirmed. There was no basis for finding that Fromm relied on Scheurer’s arbitration agreement since Fromm did not even know about it and Fromm was not a third‐party beneficiary of Remedy’s agreement with Scheurer. View "Scheurer v. Fromm Family Foods, LLC" on Justia Law

The Unions represents the pilots of merged airlines Flight Options and Flexjet. Flight Options and its pilots have had a collective bargaining agreement since 2010, while Flexjet’s pilots are newly unionized and are not yet party to a CBA. The parties dispute whether the integration of the pilot groups’ seniority lists (ISL) is solely a Union matter, so that the airlines must accept the Union's list or whether the airlines should have been allowed to participate in negotiating the list. The 2010 CBA governs the creation of the ISL when Flight Options acquires another carrier. The district court, acting under the Railway Labor Act (RLA), 45 U.S.C. 152, entered a preliminary injunction ordering the airlines to accept the Union’s ISL. On appeal, the airlines argued that the dispute was “minor” and subject to exclusive arbitral jurisdiction. The Sixth Circuit affirmed in part. The 2010 CBA does not arguably justify the airlines' assertion that they have a right to participate in the ISL process; the dispute is major. The district court properly enjoined the airlines to honor the express terms of the CBA, but those terms provide that if the airlines refuse to accept the Union’s proffered ISL, the Union may invoke an expedited grievance-arbitration process, which uniquely applies to such disputes. The court ordered modification of the injunction accordingly. View "Flight Options v. International Brotherhood of Teamsters" on Justia Law

It was not appropriate to vacate the arbitration award in this case concerning the termination of a police officer.The City of Boston terminated David Williams, a Boston police officer, for using a choke hold in arrested an unarmed suspect for disorderly conduct and making false statements in a departmental investigation. An arbitrator found no underlying misconduct on the part of the officer and ruled that the City of Boston lacked just cause to terminate the officer and ordered his reinstatement. The City filed a complaint seeking to vacate the arbitrator’s award. The superior court dismissed the complaint. The Supreme Judicial Court affirmed, holding that it was not appropriate to vacate the arbitration award where the award neither exceeded the arbitrator’s authority nor violated public policy and where no underlying misconduct was found. View "City of Boston v. Boston Police Patrolmen's Association" on Justia Law

Hyatt and Local 1 are parties to a collective bargaining agreement (CBA) that prohibits the hotel’s managerial employees from performing work normally performed by bargaining-unit employees absent an emergency. The CBA provides for the arbitration of any disputes not resolved by the grievance procedure. In 2013-2014, there were several incidents in which managers performed bargaining-unit work in circumstances that Local 1 did not regard as emergencies. The union took grievances to arbitration; both resulted in awards in Local 1's favor. Ninety days passed without Hyatt filing a petition to vacate; the union filed a petition to confirm the awards (Labor Management Relations Act, 29 U.S.C. 185(a)). The union alleged that Hyatt “has failed and refused and continues to fail and refuse to comply with” the awards. Local 1 cited 41 examples of managers allegedly performing bargaining unit work in 2015. The Seventh Circuit affirmed confirmation of the awards, rejecting Hyatt’s argument that the matter was either moot or did not present an appropriate case for confirmation. The district court’s “modest action” places the court’s contempt power behind the prospective relief ordered by the arbitrators, while reserving the merits of pending or future grievances for arbitration. Local 1 has conceded that any contempt petition would be based solely on the outcome of arbitrations post-dating the confirmation order. Confirming the awards does not undermine the agreement to resolve disputes through arbitration. View "Unite Here Local 1 v. Hyatt Corp." on Justia Law

Genovese v. Gallo Wine Merchants, Inc., 628 A.2d 946 (Conn. 1993), which held that, under Con. Gen. Stat. 31-51bb, a factual determination made in a final and binding arbitration conducted pursuant to a collective bargaining agreement does not have a preclusive effect in a subsequent action claiming a constitutional or statutory violation, is still good law.Plaintiff brought the present action alleging that her termination was in retaliation for bringing a previous action against Defendant alleging sex discrimination and for engaging in protected speech. Defendant filed a motion for summary judgment, arguing that Plaintiff’s claims were barred by the doctrine of collateral estoppel because the factual underpinnings of the claims had been decided against her by the board of mediation in arbitration proceedings. The trial court denied the motion, citing Genovese. Defendant appealed. The Supreme Court affirmed, thus declining Defendant’s invitation to overrule Genovese. View "Spiotti v. Wolcott" on Justia Law

Any limitation on an arbitrator’s authority to modify a disciplinary action pursuant to a collective bargaining agreement (CBA) provision requiring that discipline be imposed only for just cause must be specifically bargained for by the parties and incorporated into the CBA.The common pleas court in this case vacated an arbitration award that changed the disciplinary sanction recommended by the chief of police against Sergeant David Hill of the Findlay Police Department from termination to a length suspension. The court of appeals affirmed, concluding that the arbitration award did not draw its essence from the CBA between the city of Findlay and the Ohio Patrolmen’s Benevolent Association and was arbitrary, capricious, and unlawful. The Supreme Court reversed, holding (1) because the CBA placed no limitation on the arbitrator’s authority to review the disciplinary action imposed and fashion a remedy, the arbitrator acted within his authority; and (2) the arbitrator’s award drew its essence from the CBA and was not arbitrary, capricious, or unlawful. View "Ohio Patrolmen's Benevolent Ass’n v. City of Findlay" on Justia Law

The district court erred in granting a motion to vacate an arbitration award affirming a school district’s termination of a principal. The Supreme Court reversed the district court’s order granting Respondents’ motion to vacate the award, holding (1) the arbitrator did not exceed his authority as an arbitrator because his decision did not contradict the express language of the parties’ collective bargaining agreement; (2) the arbitrator did not manifestly disregard the law because he acknowledged Nev. Rev. Stat. 391.3116 and applied the statute in reaching his decision; and (3) the arbitration award was not arbitrary or capricious because substantial evidence supported the arbitrator’s findings. View "Washoe County School District v. White" on Justia Law

The Eighth Circuit affirmed the district court's order compelling arbitration and dismissing plaintiff's case without prejudice where he alleged violations of minimum wage laws, as well as fraud. In this case, plaintiff signed a Volunteer Release, Waiver and Indemnification Agreement when he volunteered as a concession worker for a fundraiser. The court held that the agreement was not unconscionable under Missouri law because the agreement was easy to understand, with no evidence that it was non-negotiable. Furthermore, the agreement did not lack consideration where the consideration was that plaintiff was giving up his right to sue in return for his opportunity to volunteer and DNCS's contribution to Washington University, something neither was legally bound to do. Finally, the underlying factual allegations were covered by the arbitration provision. View "Leonard v. Delaware North Companies Sport Service, Inc." on Justia Law

The National Labor Relations Board sought enforcement of its Order finding that AEI violated the National Labor Relations Act by barring employees from pursuing class-action litigation or collective arbitration of work-related claims and by forbidding an AEI technician from discussing a proposed compensation change with his coworkers and by firing that technician for discussing the proposed change and complaining to management about it. AEI employees sign an agreement that “Disputes … relating to your employment” must, at the election of the employee or the company, be resolved “exclusively through binding arbitration” and that “you and AEI also agree that a claim may not be arbitrated as a class action, also called ‘representative’ or ‘collective’ actions, and that a claim may not otherwise be consolidated or joined with the claims of others.” AEI’s employee handbook prohibits “[u]nauthorized disclosure of business secrets or confidential business or customer information, including any compensation or employee salary information.” The Sixth Circuit enforced the order. An arbitration provision requiring employees covered by the Act individually to arbitrate all employment-related claims is not enforceable. The evidence was adequate to support the ALJ’s factual findings and conclusion that DeCommer was fired for engaging in protected, concerted activity View "National Labor Relations Board v. Alternative Entertainment, Inc." on Justia Law

In 2012, Jefferies, a securities and investment-banking firm, hired Frawley as its vice chairman and global head of metals and listed products. On the same day, Jeffries hired Webb, a sales executive in the global metals group headed by Frawley at a firm they had previously worked for, and Beversdorf, a director of that group. Webb and Beversdorf signed employment contracts, consenting “that any arbitration proceeding brought with respect to matters related to your employment or this Agreement shall be brought before [Financial Industry Regulatory Authority] … or if the parties are permitted … [or] to the personal jurisdiction of the state and federal courts. “ In 2013 Jefferies decided to get out of the iron ore business and ordered Frawley to tell Webb and Beversdorf to stop trading iron ore. Frawley did not tell them but pushed for more iron ore trades. Months later, Jefferies fired the two, who sued Frawley. Frawley successfully moved to compel arbitration. The Seventh Circuit affirmed in part, concluding that Beversdorf agreed to arbitration. Webb, however, did not sign such an agreement; the document he signed was just an agreement concerning venue. Webb remains free to litigate his dispute with Frawley in federal court. View "Webb v. Frawley" on Justia Law