36th District Court v. Michigan American Federation of State, County & Municipal Employees Council 25, Local 917
295 Mich. App. 502
| Mich. Ct. App. | 2012Background
- 36th District Court and AFSCME Local 917 were parties to a CBA covering court officers for June 30, 2003–June 30, 2006.
- Article 27 allowed auto-renewal for consecutive periods unless 90 days’ notice to modify/terminate was given.
- 35 District Court mailed a 90-day notice on March 1, 2006, arguing the CBA expired and grievances were not arbitrable.
- Weatherly and Holley were not reappointed in 2007; Jones and Carter were not reappointed in 2004.
- Grievances were filed by all four individuals seeking arbitration under the CBA; AFSCME sought to enforce arbitration awards; the Court granted summary disposition to AFSCME, and the Court of Appeals granted relief in part, vacated in part, and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Who decides arbitrability: court or arbitrator? | Weatherly/Weatherly context argues arbitrator. | Court should decide arbitrability. | Arbitrability for termination is a matter for the court to decide. |
| Whether the CBA termination notice affected the contract term; whether the contract had terminated by 2007 | Termination notice terminated the CBA. | Notice was insufficient to terminate; contract continued. | March 1, 2006 letter did not terminate the CBA; it extended automatically for one year. |
| Whether reappointment decisions fall within arbitration under Article 8 | Reappointment decisions are arbitrable as contract interpretation. | Reappointment decisions are governed by MCR 3.106 and not beyond arbitration. | Reappointment issues are arbitrable under contract interpretation. |
| Whether the arbitrator exceeded authority by ordering reinstatement | Awards reinstating four officers complied with CBA terms. | Arbitrator lacked authority to order reappointment under MCR 3.106. | Arbitrator exceeded authority; remedy to reinstate violated the court rule and needed modification. |
| Remedy appropriate under CBA and court rule | Remedy should enforce reinstatement. | Remedy must align with chief judge’s appointment powers under MCR 3.106. | Remand to modify the award so it does not infringe on the chief judge’s appointment authority. |
Key Cases Cited
- Arrow Overall Supply Co v Peloquin Enterprises, 414 Mich 95 (1982) (existence of contract to arbitrate is a judicial question)
- Jaklinski, 423 Mich 1 (1985) (arbitrability is a judicial question; contract existence central to arbitrability)
- Florence Cement, 269 Mich App 458 (2003) (existence/enforceability of arbitration terms judicial questions)
- Highland Park v Mich Law Enforcement Union, Teamsters Local No 129, 148 Mich App 821 (1986) (limited appellate review of arbitration provisions; post-expiration arbitrability)
- Ottawa Co v Jaklinski, 423 Mich 24 (1985) (arbitrability and contract termination issues treated as judicial questions)
- B & T Metals Co, 315 F.2d 432 (6th Cir. 1963) (contract termination questions; court must decide existence of contract before arbitrator)
- First Options of Chicago, Inc v Kaplan, 514 U.S. 938 (1995) (clear and unmistakable evidence needed to empower arbitrators on arbitrability)
- Interstate Distrib Co, 832 F.2d 507 (9th Cir. 1987) (broad arbitration clause often commits termination/contract questions to arbitration)
- Sage Hospitality Resources, 642 F.3d 255 (1st Cir. 2011) (meaning of duration/arbitration clause subject to arbitration when clause broad)
- Office & Professional Employers Int’l Union, Local 42, 524 F.2d 1316 (6th Cir. 1975) (courts decide contract termination versus arbitrator in some contexts)
- AFSCME Council 25 v Wayne Co, 290 Mich App 348 (2010) (context of labor arbitration and arbitrability in Michigan)
