City of Omaha v. Professional Firefighters Assn.
309 Neb. 918
| Neb. | 2021Background
- Steve LeClair, president of the firefighters’ union, was criminally charged (pleaded no contest) and administratively discharged by the City after a November 2018 bar incident involving an African-American woman (R.J.).
- LeClair invoked the collective bargaining agreement (CBA) and a 3-day arbitration was held; the arbitrator heard 20+ witnesses and admitted ~100 exhibits.
- The arbitrator found the City had rule-based grounds to discipline LeClair but concluded the City lacked just cause to discharge him because the investigation was not fair/impartial, discipline was applied inconsistently, and the discharge was disproportionate to his record; she ordered reinstatement with backpay minus five shifts.
- The City asked the district court to vacate the award, alleging evident partiality, prejudicial misconduct, exceeding powers, manifest disregard of law, and violation of public policy; the union moved to confirm and sought attorney fees as for a frivolous challenge.
- The district court confirmed the award and found the City’s vacatur attempt frivolous, awarding the union $16,020 in fees and costs.
- On appeal to the Nebraska Supreme Court, the Court affirmed confirmation of the arbitration award but reversed the fee award, holding the City’s vacatur arguments were not frivolous even though they lacked merit.
Issues
| Issue | Plaintiff's Argument (City) | Defendant's Argument (Union) | Held |
|---|---|---|---|
| Evident partiality / prejudicial misconduct | Arbitrator’s factual findings indicate bias favoring LeClair | City points to rulings only; no objective proof of bias | No vacatur — City failed to show a reasonable person would conclude arbitrator was partial; rulings alone rarely establish bias |
| Arbitrator exceeded powers under NUAA §25-2613(a)(3) | Arbitrator’s decision conflicts with CBA wording, used Enterprise Wire test improperly, and fashioned discipline | Arbitrator arguably interpreted the CBA and applied a permissible just-cause analysis | No vacatur — arbitrator arguably interpreted the contract; errors of law/fact do not establish excess of power |
| Manifest disregard of the law | Arbitrator failed to apply Nebraska definition of good/good-cause (Stejskal) | NUAA provides specified vacatur grounds; manifest-disregard is not an NUAA basis | No vacatur on that ground; Nebraska courts lack authority under NUAA to vacate for manifest disregard of law |
| Public policy (award contrary to public policy) | Reinstating LeClair (after alleged racial/gender intimidation) violates dominant public policy against discrimination and harms public perception | Arbitrator did not find discrimination; City cannot relitigate facts; no clear statutory/legal precedent barring reinstatement | No vacatur — City did not show award violates an explicit, well-defined, dominant public policy as required by Henderson |
| Frivolous challenge / attorney fees | District court erred in awarding fees; City’s vacatur arguments were not frivolous | City’s vacatur motion was frivolous and warranted fees under §25-824 | Reversed fee award — City’s positions were not so wholly without merit as to be frivolous; fees vacated |
Key Cases Cited
- Oxford Health Plans LLC v. Sutter, 569 U.S. 564 (2013) (arbitral award stands if it plausibly draws its essence from the contract; serious legal error alone does not justify vacatur)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011) (judicial review focuses on misconduct rather than mistake; arbitration’s informality preserved)
- State v. Henderson, 277 Neb. 240 (2009) (NUAA awards may be vacated when enforcement would violate an explicit, well-defined, dominant public policy)
- Seldin v. Estate of Silverman, 305 Neb. 185 (2020) (statutory FAA/NUAA grounds for vacatur are exclusive; limited judicial review of arbitration)
- Garlock v. 3DS Properties, 303 Neb. 521 (2019) (appellate review of vacatur is de novo on law; factual findings reviewed for clear error)
- Dowd v. First Omaha Security Corp., 242 Neb. 347 (1993) (evident partiality exists when a reasonable person would have to conclude arbitrator was partial)
- Hartman v. City of Grand Island, 265 Neb. 433 (2003) (NUAA limits courts from applying pre-NUAA common-law vacatur grounds)
- Eastern Associated Coal Corp. v. Mine Workers, 531 U.S. 57 (2000) (public-policy vacatur is narrow; when invoked courts assess whether enforcement of award would violate public policy)