May 29, 2020

Modifying or vacating an arbitration award after a consensual arbitration

In this action brought pursuant to CPLR Article 75 the employee [Employee] in this appeal sought to have Supreme Court vacate or modify an arbitration award. Employee appealed Supreme Court's denial of his petition and dismissal of the proceeding.

The Appellate Division affirmed Supreme Court ruling, pointing out that the arbitration award was rendered after a consensual arbitration process pursuant to the terms of a collective bargaining agreement. Citing Matter of New York City Tr. Auth. v Transport Workers' Union of Am., Local 100, AFL-CIO, 6 NY3d 332, the court explained that such an award may not be vacated on the ground that the arbitrator exceeded his or her power unless it violates a strong public policy, is irrational, or clearly exceeds a specifically enumerated limitation of the arbitrator's power. 

The court held that Employee failed to demonstrate that the arbitration award violated this standard, "or that any other grounds for vacatur stated in CPLR 7511(b) apply."

Addressing Employee's challenge to the penalty imposed, the Appellate Division opined that award suspending the Employee, a bus driver, for 15 days without pay "as a result of an accident which occurred between a bus he was operating during the course of his employment and a motorized bicycle" was not irrational, and "did not violate any strong public policy or clearly exceed an enumerated limitation on the arbitrator's power."

The decision is posted on the Internet at:
http://www.nycourts.gov/reporter/3dseries/2020/2020_02789.htm
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