920 F.3d 794
Fed. Cir.2019Background
- David Hamilton, a 20-year EEOC employee promoted to mediator in 2014, was removed in 2017 for bizarre conduct during a November 29, 2016 mediation session; the EEOC alleged use of racial epithets, physical aggression, and insubordination.
- The union filed a grievance and, under the parties’ collective bargaining agreement, elected arbitration instead of an MSPB appeal.
- An arbitrator held a two-day hearing, credited several EEOC witnesses that Hamilton had a major breakdown, but concluded the removal lacked just cause (one-time event; long unblemished record; agency failed to consider medical condition).
- The arbitrator ordered reinstatement with back pay and benefits but denied the union’s request for arbitration costs and attorney fees; reconsideration requests by both parties left the denial of fees unchanged.
- The union petitioned this court to review only the denial of attorney fees; the EEOC did not seek review of the reinstatement.
- The arbitrator gave no explanation for denying fees; EEOC had argued (improperly) the contract required equal sharing of arbitrator fees and expenses, which the court viewed as an invalid basis if relied on.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitrator abused discretion by denying attorney fees | Union: record compels fee award under 5 U.S.C. § 7701(g) and Allen factors | EEOC: fees not warranted in interest of justice; contract provision splits arbitrator fees and expenses | Court: Cannot say record compels fees; arbitrator’s unexplained denial requires vacatur and remand for reasons |
| Whether arbitrator must limit fee analysis to findings in merits opinion | Union: arbitrator had to apply merits findings directly to fee issue | EEOC: arbitrator may consider other evidence and reasons | Court: Arbitrator may consider matters beyond the merits opinion but may not contradict the merits decision; Morrison does not forbid additional analysis |
| Whether failure to explain denial of fees requires reversal/remand | Union: arbitrator gave no reasons; reversal required | EEOC: denial stands despite lack of explanation | Held: Remand required—adjudicator must articulate reasons to permit meaningful appellate review |
| Whether EEOC’s contract argument justified denial of fees | Union: contract does not bar fee award | EEOC: arbitration clause requires equal sharing so fees improper | Court: EEOC’s contract argument is invalid; because arbitrator gave no reasons, unclear if he relied on that invalid ground—remand needed |
Key Cases Cited
- Dunn v. Dep’t of Veterans Affairs, 98 F.3d 1308 (Fed. Cir.) (standard of review for arbitrator decisions mirroring MSPB)
- Allen v. U.S. Postal Serv., 2 M.S.P.R. 420 (1980) (articulated nonexclusive factors for awarding fees under § 7701(g))
- Morrison v. Nat’l Science Found., 423 F.3d 1366 (Fed. Cir. 2005) (arbitrator may not revise merits decision to deny fees)
- Price v. Soc. Sec. Admin., 398 F.3d 1322 (Fed. Cir. 2005) (adjudicator must articulate rational explanation when exercising § 7701(g) discretion)
- Motor Vehicle Mfrs. Ass’n v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29 (1983) (agency must connect facts to choice; arbitrary and capricious review)
- Hensley v. Eckerhart, 461 U.S. 424 (1983) (trial courts must provide clear, concise explanation of fee awards)