In a proceeding pursuant to CPLR Article 75 in which the employer [Village] sought an order vacating an arbitration award, Village appealed Supreme Court's decision denying the Village's petition. The Appellate Division affirmed the Supreme Court's ruling.
Village employs court attendants to work in the Village's Justice Court. Work assignments for court attendants were historically determined through a seniority bidding process. The Village changed the process by which that work was assigned and began assigning shifts to court attendants without regard to seniority.
The employee organization [CSEA] representing the court attendants filed a grievance, alleging that the new process by which the Village determined work assignments for court attendants violated, among other things, the "Maintenance of Standards" provision of the relevant collective bargaining agreement [CBA]. The Maintenance of Standards clause of the relevant CBA provided "Any benefits heretofore enjoyed by an employee shall not be deemed to have been altered, modified or changed unless expressly so modified, altered or changed by this agreement."
Ultimately an arbitrator determined that the Village's new process for assigning work to court attendants violated the CBA's "Maintenance of Standards" provision. Village commenced the instant proceeding pursuant to CPLR Article 75 seeking a court order vacating the arbitration award, contending that the arbitration award was contrary to public policy.
Supreme Court denied the Village's petition and the Village appealed. Citing Matter of New York State Correctional Officers and Police Benevolent Assn. v State of New York, 94 NY2d 321, and other decisions. the Appellate Division affirm the lower court's ruling. The court explained "Collective bargaining agreements commonly provide for binding arbitration to settle contractual disputes between employees and management [, and] [i]n circumstances when the parties agree to submit their dispute to an arbitrator, courts generally play a limited role".
Further, said the Appellate Division, "An application to vacate an arbitration award may be granted only in narrow circumstances, such as where "an arbitrator . . . exceeded his [or her] power or so imperfectly executed it that a final and definite award upon the subject matter submitted was not made." Further, opined the court, an arbitrator "exceed[s] [his or her] power within the meaning of the CPLR only when [he or she] issue[s] an award that violates a strong public policy, is irrational or clearly exceeds a specifically enumerated limitation on the arbitrator's power."
Noting that a party seeking to overturn an arbitration award bears a heavy burden and must establish a ground for vacatur by clear and convincing evidence, the Appellate Division's decision pointed out that "Courts are bound by an arbitrator's factual findings, interpretation of the contract and judgment concerning remedies" and courts may not examine the merits of an arbitration award and substitute its judgment for that of the arbitrator simply because a court believes its interpretation would be the better one.
Indeed, observed the Appellate Division, even where an arbitrator "makes errors of law or fact, courts will not assume the role of overseers to conform the award to their sense of justice", citing Matter of New York State Correctional Officers and Police Benevolent Assn. v State of New York, 94 NY2d at 326; and Wien & Malkin LLP v Helmsley-Spear, Inc., 6 NY3d at 479-480).
Concluding that the Supreme Court properly determined that the arbitrator's award was neither irrational nor violated a strong public policy, and that the arbitrator did not exceed a specifically enumerated limitation on his authority, the Appellate Division ruled that Supreme Court properly denied the Village's petition to vacate the arbitration award.
Click HERE to access the Appellate Division's decision posted on the Internet.