City of Omaha v. Professional Firefighters Assn.
309 Neb. 918
| Neb. | 2021Background
- Steve LeClair, an Omaha firefighter and union president, was accused of making sexually suggestive comments, saying "white power," and pushing an African‑American woman at a bar on Nov. 9, 2018; he pleaded no contest to misdemeanor charges and received probation.
- The City discharged LeClair after an internal investigation; LeClair invoked the collective bargaining agreement’s arbitration provision to challenge the discharge.
- A three‑day arbitration hearing produced extensive testimony and exhibits; the arbitrator applied the seven‑factor Enterprise Wire test and concluded the City lacked just cause to discharge LeClair, ordering reinstatement with backpay minus five shifts.
- The City filed in district court to vacate the award, asserting evident partiality, prejudicial misconduct, that the arbitrator exceeded her powers, manifest disregard of Nebraska law, and violation of public policy; the union moved to confirm and sought attorney fees as sanction 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; the Nebraska Supreme Court affirmed confirmation but reversed the fee award, holding the City’s positions were not frivolous though they lacked merit.
Issues
| Issue | Plaintiff's Argument (City) | Defendant's Argument (Union) | Held |
|---|---|---|---|
| Evident partiality / prejudicial misconduct | Arbitrator’s factual findings and rulings show bias favoring LeClair | Rulings reflect credibility and inference choices, not bias | No vacatur; reasonable person would not have to conclude arbitrator was partial |
| Arbitrator exceeded powers | Arbitrator misread CBA, should have found article 6 conduct automatically justified discharge; wrong to apply Enterprise Wire; exceeded authority by fashioning discipline | Arbitrator arguably interpreted the CBA and permissibly used Enterprise Wire to define “just cause”; remedy (limited payroll offset) permitted | No vacatur; arbitrator arguably was interpreting the contract (Oxford Health standard) |
| Manifest disregard of law | Arbitrator failed to apply Nebraska definition of good/just cause (Stejskal) and thus manifestly disregarded law | NUAA contains exclusive statutory vacatur grounds; manifest‑disregard is not an authorized ground here | No vacatur; Nebraska courts lack authority under NUAA to vacate for manifest disregard of law |
| Public policy | Reinstatement violates Nebraska public policy prohibiting race/gender discrimination and undermines public confidence | Arbitrator made no explicit finding of discriminatory intent; public‑policy exception is narrow and requires an explicit legal precedent or statute | No vacatur; City failed to show award contravenes an explicit, well‑defined, dominant public policy |
| Frivolousness / attorney fees | City’s vacatur motion was meritless and sanctionable under Neb. Rev. Stat. § 25‑824(2) | City’s legal theories were nonfrivolous though unlikely to prevail | Vacatur denied but fee award reversed; City’s positions were not frivolous |
Key Cases Cited
- Oxford Health Plans LLC v. Sutter, 569 U.S. 564 (arbitral decision stands if it at least arguably draws its essence from the contract)
- Hall Street Associates v. Mattel, 552 U.S. 576 (limits judicial enlargement of vacatur grounds under FAA)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (review focuses on misconduct rather than mere mistake)
- Eastern Associated Coal Corp. v. Mine Workers, 531 U.S. 57 (public‑policy vacatur exception is narrow)
- Dowd v. First Omaha Sec. Corp., 242 Neb. 347 (evident partiality standard adopted in Nebraska)
- State v. Henderson, 277 Neb. 240 (recognized narrow public‑policy ground to refuse enforcement of arbitration awards)
- Hartman v. City of Grand Island, 265 Neb. 433 (NUAA limits preexisting common‑law vacatur grounds)
- Seldin v. Estate of Silverman, 305 Neb. 185 (statutory grounds for vacatur are exclusive under related analysis)