Justia Arbitration & Mediation Opinion Summaries

Epic Systems sent an email to employees, containing an arbitration agreement mandating that wage-and-hour claims could be brought only through individual arbitration and that the employees waived “the right to participate in or receive money or any other relief from any class, collective, or representative proceeding.” The agreement included a clause stating that if the “Waiver of Class and Collective Claims” was unenforceable, “any claim brought on a class, collective, or representative action basis must be filed in a court of competent jurisdiction.” It stated that employees were “deemed to have accepted this Agreement” if they “continue[d] to work at Epic.”.The following day, Lewis, a “technical writer” at Epic, followed instructions for registering his agreement. Later, Lewis had a dispute with Epic, and sued Epic in federal court, under the Fair Labor Standards Act, 29 U.S.C. 201, and Wisconsin law. Lewis responded that the arbitration clause interfered with employees’ right to engage in concerted activities for mutual aid and protection and was unenforceable. The district court agreed. The Seventh Circuit affirmed denial of the motion to compel arbitration, finding that the agreement violated the National Labor Relations Act, 29 U.S.C. 151, and is also unenforceable under the Federal Arbitration Act, 9 U.S.C. 1. View "Lewis v. Epic Sys. Corp." on Justia Law

Drywall entered into a labor agreement with the Union according to which Drywall assigned to a contractors' association authority to bargain on its behalf. After Drywall attempted to terminate the agreement, it discovered that the Union and association had executed a Memorandum of Understanding extending the term of the agreement. An arbitrator held that Drywall was bound by the Memorandum.The district court vacated the arbitration award and held that the arbitrator’s interpretation of the parties’ agreement was not “plausible” and was, moreover, contrary to public policy. The court held that the district court's decision exceeded its narrow authority to determine whether the arbitrator’s award was based on the parties’ contract and whether it violated an “explicit, well-defined, and dominant public policy,” and therefore the court reversed the district court's decision. View "SWRCC v. Drywall Dynamics" on Justia Law

North Memorial and MNA, pursuant to a collective bargaining agreement (CBA), referred a grievance to arbitration. The district court subsequently granted in part MNA's motion to vacate the arbitral award. The arbitrator addressed whether North Memorial violated the CBA when it refused to regularly schedule the Grievant with no weekend work. The district court imposed a prospective remedy on the parties. The court concluded that the district court correctly concluded the arbitrator was without authority to issue a prospective remedy because his decision exceeded the scope of the submission presented to him by the parties. Reading the plain language of the issue as set out in the decision, the court did not believe that the arbitrator was even arguably acting within the scope of his authority. Accordingly, the court affirmed the judgment. View "Minnesota Nurses Association.v. North Memorial Health Care" on Justia Law

Central States is multiemployer pension fund. Bulk Transport is a Fund member and made contributions to the pension account of its employee, Loniewski. Bulk had certified that Loniewski was entitled by a collective bargaining agreement to participate in the Fund although the agreement was limited to Bulk’s drivers. Loniewski was a Bulk mechanic for 40 years. Bulk now denies that he was covered and has demanded that Central States refund $49,000 that Bulk had contributed to Loniewski’s pension account between 2002 and 2012. The Fund denied the request and sought a declaratory judgment. The district judge rejected Bulk’s claim. The Multiemployer Pension Plan Amendments Act of 1980 amends ERISA by imposing liabilty on employers who withdraw, partially or completely, from participation in an underfunded multiemployer pension fund, 29 U.S.C. 1381. Central States also assessed Bulk with withdrawal liability of $740,000 for the years 2010 through 2012, which Bulk challenged as excessive. At Bulk’s request, the court barred the Fund from enforcing its rules, which require arbitration of such a dispute by and conforming to the procedures of the American Arbitration Association. The Seventh Circuit affirmed with respect to the refund, but reversed with respect to the arbitration rules. View "Cent. States, SE & SW Areas Pension Funds v. Bulk Transp. Corp." on Justia Law

Prince George’s County terminated the employment of Marlon Ford, a member of the County Police Civilian Employees Association, after a criminal investigation during which Ford was questioned regarding alleged crimes. The Association filed a grievance on Ford’s behalf. An arbitrator vacated the termination of Ford’s employment, determining that the County had violated a collective bargaining agreement (CBA) between the County and the Association because officers of the county police department failed to advise Ford of his right to have a representative from the Association present during the criminal investigative interview. The Court of Special Appeals vacated the arbitration award. The Court of Appeals affirmed in part and reversed in part, holding (1) under the County’s code, the County lacked the authority to enter into a CBA that requires a Weingarten advisement before a criminal investigative interview of one of the County’s police civilian employees; and (2) therefore, the arbitrator the arbitrator exceeded his authority by basing the arbitration award on the determination that the County violated the CBA because its police officers failed to make a Weingarten advisement. View "Police Civ. Empl. Ass'n. v. Prince George's Co." on Justia Law

Silgan and the Union challenge an arbitration award. The district court granted summary judgment in favor of Silgan and the Union appealed. The court concluded that the question of validity and formation is not within the scope of the arbitration agreement. Because the arbitrator lacked authority to decide this issue, the district court did not err in vacating the award. Furthermore, the district court erred in granting summary judgment to Silgan and rescinding Article 36 where the mistake has resulted solely from the negligence or inattention of the party seeking relief, and the other party is without fault. Accordingly, the court affirmed in part, reversed in part, and remanded. View "Silgan Containers Corp. v. Sheet Metal Workers Int'l" on Justia Law

Silgan and the Union challenge an arbitration award. The district court granted summary judgment in favor of Silgan and the Union appealed. The court concluded that the question of validity and formation is not within the scope of the arbitration agreement. Because the arbitrator lacked authority to decide this issue, the district court did not err in vacating the award. Furthermore, the district court erred in granting summary judgment to Silgan and rescinding Article 36 where the mistake has resulted solely from the negligence or inattention of the party seeking relief, and the other party is without fault. Accordingly, the court affirmed in part, reversed in part, and remanded. View "Silgan Containers Corp. v. Sheet Metal Workers Int'l" on Justia Law

Plaintiff, who was employed by Defendant, signed an employment agreement providing that all disputes with Defendant shall be resolved through arbitration. After Plaintiff’s employment ended, Plaintiff filed a complaint alleging that Defendant did not timely pay him his final wages as required by the West Virginia Wage Payment and Collection Act. After a seven-month delay, Defendant filed a motion to compel arbitration. The circuit court granted the motion, dismissed Plaintiff’s complaint, and compelled the parties to participate in arbitration. The Supreme Court affirmed, holding that Defendant did not waive its right to arbitrate through its acts and language. View "Parsons v. Halliburton Energy Servs., Inc." on Justia Law

Plaintiff, who was employed by Defendant, signed an employment agreement providing that all disputes with Defendant shall be resolved through arbitration. After Plaintiff’s employment ended, Plaintiff filed a complaint alleging that Defendant did not timely pay him his final wages as required by the West Virginia Wage Payment and Collection Act. After a seven-month delay, Defendant filed a motion to compel arbitration. The circuit court granted the motion, dismissed Plaintiff’s complaint, and compelled the parties to participate in arbitration. The Supreme Court affirmed, holding that Defendant did not waive its right to arbitrate through its acts and language. View "Parsons v. Halliburton Energy Servs., Inc." on Justia Law

Hamilton Park, a long-term care facility, belonged to a multi-employer bargaining group, Tuchman. Tuchman and the employees' union agreed to a CBA beginning in 2008 and extending through February 28, 2013, giving the union the option to reopen negotiations in November 2011 to bargain for new terms for the CBA’s last year and to submit any unresolved items to binding interest arbitration, and allowing the arbitrator to “determine his jurisdiction” and grant “all appropriate remedies.” In 2011, the union invoked its right to reopen negotiations. The parties agreed to arbitrate unresolved issues, including the cost to maintain the existing health benefits. The arbitrator, Scheinman, suggested a multi-year award to spread increased contributions over a longer period. Scheinman claims that “[b]oth sides [orally] agreed my jurisdiction permitted a multi-year Award, at my discretion.” In 2012, Scheinman issued an award that extended through June 2016, dealing with wages and health benefits contributions, and allowing the union to reopen negotiations for the contract’s last year. Scheinman did not address why he included a second generation interest arbitration provision, nor did he claim that the parties consented. Hamilton Park petitioned to vacate the award, arguing that Scheinman exceeded his authority. The Third Circuit reversed in part. Hamilton Park agreed to expand Scheinman’s jurisdiction to a multi-year award, but did not agree to inclusion of a second generation interest arbitration provision. View "Hamilton Park Health Care Ctr., Ltd.v. 1199 SEIU United Healthcare Workers E." on Justia Law