Justia Arbitration & Mediation Opinion Summaries

StoneMor, Inc. operates cemeteries and funeral homes, with maintenance workers at two cemeteries unionized under the International Brotherhood of Teamsters, Local 469. The Union and StoneMor negotiated a collective bargaining agreement (the "Agreement"), which was ratified on October 5, 2020. The Agreement included a grievance procedure requiring the Union to file grievances within ten days of a dispute. After ratification, StoneMor sent drafts of the Agreement with a clarified wage provision, which the Union contested. The Union did not file a grievance until January 5, 2021, after the Agreement was executed on December 29, 2020.The United States District Court for the District of New Jersey reviewed the case and vacated the arbitrator's award. The District Court held that the Agreement was enforceable upon ratification on October 5, 2020, and that the grievance provision was triggered by October 30, 2020, when paychecks were issued without the salary increase. The court found that the arbitrator's decision, which allowed the Union to wait until January to file a grievance, was contrary to the Agreement's plain meaning.The United States Court of Appeals for the Third Circuit reviewed the case and affirmed the District Court's judgment. The Third Circuit held that the arbitrator exceeded her powers by disregarding the Agreement's clear terms, which made the Agreement binding upon ratification. The court emphasized that the grievance procedure was mandatory from the ratification date, and the arbitrator's decision to allow a delay in filing the grievance was not supported by the Agreement. The court concluded that the arbitration award reflected a manifest disregard of the Agreement and was correctly vacated. View "Stonemor Inc v. International Brotherhood of Teamsters Local 469" on Justia Law

During the COVID-19 pandemic, Kalitta Air, LLC implemented a vaccine mandate for all its employees. Employees who could not receive a vaccination due to a disability or a sincerely held religious belief could request an accommodation and would be placed on unpaid leave. If they remained unvaccinated after the leave period, they could either voluntarily resign or be terminated. Eleven employees, including five pilots, sued Kalitta under Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act, claiming that the mandate discriminated against them based on their religious beliefs and/or disabled status.The district court found that the Railway Labor Act precluded it from hearing certain claims by the pilots, who were subject to a collective bargaining agreement. These claims had to first go through arbitration as minor disputes. The pilots appealed this decision.The United States Court of Appeals for the Sixth Circuit affirmed the district court's decision. The court found that the pilots' claims under Title VII and the Americans with Disabilities Act required interpretation of the collective bargaining agreement, and thus were minor disputes that had to be resolved through arbitration. The court also held that the pilots' claim of discrimination based on perceived disability would require interpretation of the collective bargaining agreement, and was therefore also precluded by the Railway Labor Act. View "Odell v. Kalitta Air, LLC" on Justia Law

Dominique Keeton, an employee of Tesla, Inc., filed a lawsuit against her employer alleging discrimination, harassment, and retaliation. The parties agreed to resolve the dispute through arbitration as per their employment agreement. However, when Tesla failed to pay its arbitration fees within the stipulated 30-day window, Keeton moved to vacate the order submitting the dispute to arbitration. The trial court granted Keeton's motion, ruling that Tesla had materially breached the arbitration agreement, thereby allowing Keeton to proceed with her claims in court.Tesla appealed the decision, arguing that the trial court erred in granting Keeton's motion to vacate. Tesla's arguments were threefold: the arbitration agreement delegated issues of arbitrability to the arbitrator; the Federal Arbitration Act (FAA) preempts the relevant section of the California Code of Civil Procedure; and the same section of the California Code of Civil Procedure constitutes an unconstitutional impairment of the arbitration agreement.The Court of Appeal of the State of California, First Appellate District, disagreed with Tesla's arguments and affirmed the trial court's decision. The court found that the arbitration agreement did not clearly delegate issues of arbitrability to the arbitrator. It also held that the FAA did not preempt the relevant section of the California Code of Civil Procedure, and that this section did not unconstitutionally impair the arbitration agreement. The court concluded that Tesla had materially breached the arbitration agreement by failing to pay its arbitration fees within the stipulated time, and thus Keeton was entitled to proceed with her claims in court. View "Keeton v. Tesla" on Justia Law

Spencer Mathis and Jaden Fenstermaker, who worked as delivery drivers for Amazon in Tulsa, Oklahoma, were fired by their employer, James Kerr, after Mathis filed a workers' compensation claim. The plaintiffs alleged that Kerr had retaliated against them for pursuing the claim and filed a lawsuit against him. Kerr moved to compel arbitration based on the arbitration provisions in the plaintiffs' employment contracts. The plaintiffs objected, arguing that federal and state law exempted them from arbitration.The trial court granted Kerr's motion to compel arbitration and stayed the lawsuit until the completion of arbitration. The plaintiffs appealed this decision, but the Court of Civil Appeals affirmed the trial court's ruling.The Supreme Court of the State of Oklahoma granted certiorari to review the case. The court held that employees who deliver Amazon packages are exempt from arbitration under federal law. The court also found that the district court's exclusive jurisdiction over retaliatory discharge claims precluded arbitration of those claims under Oklahoma law. The court reversed the trial court's decision, vacated the Court of Civil Appeals' opinion, and remanded the case for further proceedings. View "MATHIS v. KERR" on Justia Law

The case revolves around an employment dispute between Nelida Soltero and Precise Distribution, Inc. Soltero, who was placed at Precise Distribution by a temporary staffing agency, Real Time Staffing Services, filed a class action complaint against Precise Distribution for alleged failure to provide required meal periods and rest breaks to employees, among other claims. Precise Distribution sought to compel arbitration based on an arbitration agreement between Soltero and Real Time. However, Real Time was not a party to the lawsuit.The Superior Court of San Bernardino County denied Precise Distribution's motion to compel arbitration. Precise Distribution argued that it should be able to compel arbitration under the agreement between Soltero and Real Time, despite not being a party to it, based on theories of equitable estoppel, third-party beneficiary, or agency.The Court of Appeal, Fourth Appellate District Division One State of California, affirmed the lower court's decision. The court concluded that Precise Distribution was not a party to the arbitration agreement between Soltero and Real Time and could not compel arbitration based on the theories it proposed. The court found that Soltero's claims against Precise Distribution were not dependent upon or founded in the underlying contractual obligations of the agreement containing the arbitration clause. Furthermore, Precise Distribution was not an intended third-party beneficiary of the arbitration agreement, and there was no evidence of an agency relationship between Precise Distribution and Real Time. Therefore, the court affirmed the order denying Precise Distribution's motion to compel arbitration. View "Soltero v. Precise Distribution" on Justia Law

The plaintiff, Mary Rodgers-Rouzier, worked as a bartender on steamboats operated by American Queen. She alleged that she and her coworkers were wrongly denied overtime wages. Rodgers-Rouzier filed a suit as a collective action, and over one hundred of her coworkers joined her proposed collective action. Meanwhile, American Queen moved to dismiss the case, arguing that Rodgers-Rouzier had agreed to arbitration. The district court denied the motion, but American Queen moved again to dismiss based on the arbitration agreement, this time invoking Indiana state law. The district court granted this motion, over Rodgers-Rouzier’s objections.The district court had previously denied American Queen's motion to dismiss the case for improper venue because Rodgers-Rouzier had agreed to arbitration. However, American Queen then moved again to dismiss based on the arbitration agreement, this time invoking Indiana state law. The district court granted this motion, over Rodgers-Rouzier’s objections that American Queen had waived its argument and the court lacked authority to apply Indiana law in this context. The court further determined that all the workers who had filed consent forms were not parties to the action.The United States Court of Appeals for the Seventh Circuit reversed the district court's decision. The court concluded that although American Queen’s arguments were not waived and the court had authority to enforce the arbitration agreement under Indiana law, Indiana law would hold American Queen to its bargain that its arbitration agreement was governed by the Federal Arbitration Act (FAA). Therefore, Rodgers-Rouzier’s case may continue in federal court. The court did not decide whether it may do so as a collective action and left that question for further litigation. View "Rodgers-Rouzier v. American Queen Steamboat Operating Company, LLC" on Justia Law

The case involves Ampler Burgers Ohio LLC, doing business as Burger King, and its employees Lesley McLaughlin, Sheila Spaulding, and Teresa Stephens (collectively, the Petitioners) against Kenna Bishop (the Respondent). The dispute arose from allegations of sexual harassment and other violations of the West Virginia Human Rights Act during Bishop's employment at a Burger King franchise. As part of her hiring process, Bishop signed an arbitration agreement with Ampler Burgers LLC, an affiliated company of her actual employer, Ampler Burgers Ohio LLC. The agreement required all disputes related to her employment to be arbitrated.The Circuit Court of Kanawha County denied the Petitioners' motion to compel arbitration, citing five reasons: Ampler Burgers Ohio LLC was not a party to the arbitration agreement; the agreement lacked mutual consideration; the dispute was not subject to the agreement; the agreement was procedurally and substantively unconscionable; and the Petitioners had waived their right to arbitration.The Supreme Court of Appeals of West Virginia reversed the lower court's decision. The court found that the arbitration agreement could be enforced by Ampler Burgers Ohio LLC as it was an affiliated entity of the signatory, Ampler Burgers LLC. The court also determined that the agreement was supported by mutual consideration and covered the disputes raised in the complaint. The court disagreed with the lower court's finding of unconscionability, stating that the agreement's requirements applied equally to all parties. Finally, the court concluded that the Petitioners did not waive their right to arbitration by engaging in limited litigation activities prior to filing the motion to compel arbitration. The case was remanded for further proceedings consistent with the court's opinion. View "Ampler Burgers Ohio LLC v. Bishop" on Justia Law

Carlos Ramirez, an employee, filed a class action lawsuit against his former employer, Golden Queen Mining Company, alleging various violations of the Labor Code and unfair competition. The employer moved to compel arbitration, but the trial court denied the motion, stating that the employer failed to demonstrate the existence of an executed arbitration agreement. The employer appealed, arguing that it had made a prima facie showing that a written arbitration agreement existed and that Ramirez’s statements that he did not recall being presented with or signing an arbitration agreement were insufficient to rebut its initial showing.The Superior Court of Kern County had initially denied the employer's motion to compel arbitration on the grounds that the employer failed to demonstrate the existence of an executed arbitration agreement. The court found that the employer's evidence, which included an unsigned arbitration agreement and a handbook acknowledgement purportedly signed by Ramirez, was insufficient to establish the existence of an arbitration agreement.The Court of Appeal of the State of California Fifth Appellate District reversed the lower court's decision. The appellate court concluded that Ramirez did not provide sufficient evidence to rebut the employer’s initial showing that an arbitration agreement existed. The court found that Ramirez's failure to recall signing the document did not create a factual dispute about the signature’s authenticity. The court also noted that Ramirez’s declaration did not state whether he had reviewed the arbitration agreement or other documents purportedly signed by him, nor did it address whether he recalled signing the handbook acknowledgement, which included a statement that he agreed to the terms of the arbitration agreement. The court therefore reversed the order denying the motion to compel arbitration and remanded the case for further proceedings to address Ramirez’s unconscionability defense. View "Ramirez v. Golden Queen Mining Co." on Justia Law

The case involves the Federal Education Association Stateside Region (FEA-SR), a teachers' union, and the Federal Labor Relations Authority (FLRA). The parties were negotiating a new collective bargaining agreement (CBA) when they reached an impasse. The Federal Service Impasses Panel (FSIP) was called in to resolve the remaining issues. The FSIP issued an order resolving the impasse, but FEA-SR refused to sign the agreement, arguing that the FSIP lacked jurisdiction to resolve certain issues. FEA-SR filed an arbitral grievance claiming that the Department of Defense's submission of the agreement for agency head review without FEA-SR's signature violated the contractual ground rules and constituted bad faith bargaining.The arbitrator found in favor of FEA-SR, concluding that the Department of Defense had committed unfair labor practices by cutting negotiations short and submitting an unexecuted agreement for agency head review. The FLRA, however, set aside the arbitrator's award, finding that the arbitrator could not review whether the FSIP had jurisdiction over the disputed issues and that the agreement was "executed" when the FSIP issued its order.FEA-SR petitioned the United States Court of Appeals for the District of Columbia Circuit for review of the FLRA's decisions. The court held that it had jurisdiction to review the petition because the FLRA's decisions involved an unfair labor practice. However, on the merits, the court rejected FEA-SR's claims and denied the petition for review. The court agreed with the FLRA that the arbitrator lacked authority to review the FSIP order and that the agreement was executed when the FSIP issued its order. View "Federal Education Association Stateside Region v. FLRA" on Justia Law

The case involves the State of Connecticut and the Connecticut State University Organization of Administrative Faculty, AFSCME, Council 4, Local 2836, AFL-CIO. The plaintiff, the state, sought to vacate an arbitration award reinstating a union member to his employment as the director of student conduct at a state university. The defendant union sought to confirm the award. The grievant’s employment had been terminated in connection with a domestic dispute involving his wife. The university conducted its own investigation and subsequently informed the grievant that his employment was being terminated as a result of his off-duty conduct. The union contested the grievant’s discharge, and an arbitration hearing was held. The arbitrator concluded that the university did not have just cause to terminate the grievant’s employment and ordered his reinstatement.The state contended that the award violated public policy. The trial court rendered judgment granting the state’s application to vacate the award and denying the union’s motion to confirm the award, from which the union appealed. The Supreme Court of Connecticut held that the state failed to demonstrate that enforcement of the arbitration award reinstating the grievant to his position of director of student conduct violated public policy. The court reversed the trial court’s judgment and remanded the case with direction to grant the union’s motion to confirm the award and to deny the state’s application to vacate the award. View "State v. Connecticut State University Organization of Administrative Faculty" on Justia Law