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Applying the public policy exception in a judicial review arbitration awards

Applying the public policy exception in a judicial review arbitration awards
Matter of Amalgamated Transit Union v MTA Bus Co., 2009 NY Slip Op 30877(U), April 16, 2009, Supreme Court, New York County, Docket Number: 115102/08, Judge: O. Peter Sherwood [Not selected for inclusion in the Official Reports]

Amalgamated Transit Union, Local 1179, AFL-CIO filed a petition pursuant to CPLR Article 75 CPLR Article 75 seeking the confirmation of an arbitration award in its favor providing for the reinstatement of one of its members, Adron Grate. In response, MTA asked the court to set aside the arbitration award as irrational and in excess of the arbitrator?s power and order a rehearing before a new arbitrator.

The challenged arbitration award resolved disciplinary charges filed against Grate, an MTA bus operator, for allegedly ?(1) being unavailable for service; (2) sick leave fraud and theft of time; and (3) excess absenteeism.?

The record indicated that Grate held two jobs simultaneously. In addition to his employment by MTA, Grate also worked for the New York City Department of Sanitation. This resulted in some conflicts in his work schedules with the two agencies.

The arbitrator found that Grate?s second job with Sanitation affected his ability to maintain his regular hours at MTA. The arbitrator ruled that although MTA had the right to be concerned about any bus operator ?who works a second job that causes him or her to miss work or arrive late to work,? Grate ?should be entitled to pick a ?steady run? which does not conflict with his hours of work at the Department of Sanitation [and] directed the MTA to reinstate Grate without back pay.?

Noting that ?It is well settled that the scope of judicial review of an arbitration proceeding is extremely limited ? an arbitrator?s award may be vacated if ?it is violative of a strong public policy, or it is totally irrational, or exceeds a specifically enumerated limitation on his power,...?

Judge Sherwood said that ?[a] strict standard for overturning arbitrator?s awards on the basis of the public policy exception has been established in New York case law,? which constitutes ?a narrow exception to the otherwise broad power of parties to agree to arbitrate all of the disputes arising out of their juridical relationships, and the correlative, expansive power of the arbitrators to fashion fair determinations of the parties? rights and remedies.??

Such a restraint upon judicial review under the public policy exception, said Judge Sherwood, has been found to be particularly appropriate in arbitrations held pursuant to public employment collective bargaining agreements since arbitrators are mutually chosen by labor and management presumably because of their particular expertise into the relationship and the needs of the parties and the judiciary will not necessarily possess the same experience and competence.?

As MTA and Local 1179 agreed pursuant to the collective bargaining agreement to arbitrate grievances involving disciplinary actions and to accept as binding the arbitrator?s decision, Judge Sherwood concluded that the arbitrator?s determination resolved the dispute as framed by the parties.

As to the public policy exception advocated by MTA as justification for vacating the arbitration award, the court ruled that Grate?s reinstatement neither violated of any direct statutory requirement or standard for disciplining employees who violate MTA?s safety rules nor Section 1204 (15) of the New York Public Authorities Law which gives the MTA the legislative authority to operate the public transportation system of ?the City of New York for the safety of the public in the context of employee discipline.

Judge Sherwood confirmed the arbitration award that directed MTA to reinstate Grate without back pay.

Full post as published by New York Public Personnel Law on February 02, 2010 (boomark / email).