Legal Challenges to Arbitration Awards: Part II

Part II looks at what happens when someone claims that enforcing an arbitration award goes against public policy, and the authority of the arbitrator in cases under the Taft Hartley Act. It also gives advice for lawyers dealing with an unfavorable award. In these cases, the court refused to cancel arbitration awards that ordered employers to give back pay or reinstate employees, even though the employers said doing so would violate public policy. The court said public policy must be based on specific laws and legal precedents, not just general ideas about what’s good for the public. In one case, the court said there was no specific rule against letting an employee operate dangerous machinery after using drugs. In another case, the court said a company’s rule about drug testing for truck drivers didn’t create a public policy against letting a driver return to work after testing positive for marijuana. In labor disputes, agreements to arbitrate are valid and enforceable under the law. This means that both the union and the employer have to follow the decision made by the arbitrator. The courts have limits on their authority to change or cancel these decisions. This is important because it helps prevent strikes and keeps things fair for both sides. If an employer and a labor union have a contract and there’s a dispute, they can take the issue to court. The court won’t change the decision of an arbitration tribunal unless there are very specific reasons to do so. The court will only step in if the arbitrator goes against the terms of the contract. The court’s role is limited in cases involving labor union contracts. The rules for challenging an arbitration decision under federal law may not apply to these cases. In one case, the Second Circuit court said that a company couldn’t appeal a decision to make them go to arbitration because the arbitration law didn’t apply to their situation. In another case, the Eleventh Circuit court said that a company waited too long to challenge an arbitration decision and had to follow the three-month time limit in the Federal Arbitration Act. The Florida Arbitration Act (FAA) is used to decide cases challenging the validity of arbitration awards. If the FAA and the FAC apply, the FAA limits the FAC. In some cases, arbitration agreements may not require arbitration of certain disputes, and this can affect the outcome of arbitration cases. The Florida Supreme Court has ruled that the only reasons for canceling an arbitration award under the FAC are those listed in F.S. §682.13. Courts have a limited role in reviewing arbitration decisions. Florida courts have been careful to make sure that arbitration panels stick to their rules. In one case, the court said the panel made a mistake by requiring the wrong burden of proof, but a higher court disagreed and said that wasn’t a good enough reason to change the decision.

In another case, the court said it was okay for an arbitrator to be married to a doctor who sometimes treated patients insured by one of the companies involved in the arbitration. The arbitrator had checked to make sure there was no conflict of interest, so the court said the decision didn’t need to be changed. Boardwalk and Emerald Clinton disagreed on whether to sell their rental property and went to arbitration to settle it. The court ruled that the arbitration didn’t cover the specific issue of their ownership percentages, so Boardwalk’s motion to challenge the arbitration decision was successful. In other similar cases, courts have ruled that certain disputes, like wrongful death and claims of sexual harassment, may not have to be settled through arbitration. This shows that not all disputes have to be resolved through arbitration, and parties should consider their options carefully before challenging an arbitration decision. This article gives tips for challenging an arbitration decision if you think it’s unfair. It says you should carefully check for conflicts of interest, and show evidence of how you’ll be harmed if a hearing isn’t postponed. It also suggests checking if the decision is based on the right documents and evidence. The author hopes this info helps lawyers argue their case better in disputes. These are citations and references to court cases and legal principles that show how contracts and disputes are handled in the legal system. It talks about public policy, arbitration clauses, and the Federal Arbitration Act. It also mentions specific court cases and their outcomes. In a legal case, a rule called the Hall Street rule has been followed by several other cases, which means that a certain reason for overturning a decision is no longer allowed. The article was written by Donald J. Spero, who has a lot of experience in labor and employment law. He is now retired and works as an arbitrator and mediator. This article is his second since he turned 80, making him possibly the oldest contributor to this publication.

Source: https://www.floridabar.org/the-florida-bar-journal/legal-challenges-to-arbitration-awards-part-ii/