Labor & Employment Law

Arbitration award can being vacated only if shown to be irrational, violative of strong public policy or exceeds the arbitrator?s powers

By Harvey Randall, Esq.

Arbitration award can being vacated only if shown to be irrational, violative of strong public policy or exceeds the arbitrator?s powers
Matter of City of Peekskill v Local 456, Intl. Bhd. of Teamsters, 2008 NY Slip Op 02585, Decided on March 18, 2008, Appellate Division, Second Department

The decision concerns a disciplinary arbitration in which the arbitrator determined that an employee terminated after testing positive for alcohol should be reinstated to a different position with the City. Although Supreme Court granted the City?s Article 75 petition seeking to vacate the award, the Appellate Division reinstated the award.

Observing that ?An arbitration award may not be vacated unless it violates a strong public policy, is irrational, or clearly exceeds a specifically enumerated limitation on the arbitrator's power," the Appellate Division an award is irrational if there is no proof to justify it or its construction of the provisions in dispute, in effect, creates a new contract for the parties. Here the arbitrator recited evidence to support his finding that the City ?did not have cause to terminate? the employee and the fact that a different interpretation could have been given to the contract provisions relied upon ?does not mean that the arbitrators so misread those provisions as to empower a court to set aside the award." In this instance, said the court, ?the arbitrator did not exceed his powers in fashioning a remedy, since he did not add to, subtract from, or modify the collective bargaining agreement? and reinstated the arbitration award.

Full post as published by New York Public Personnel Law on April 16, 2008 (boomark / email).