City of Omaha v. Professional Firefighters Assn.
963 N.W.2d 1
Neb.2021Background
- Firefighter Steve LeClair (union president) was accused of making racist/sexual comments and physically contacting a patron; he pleaded no contest to criminal charges and was placed on administrative leave.
- The City discharged LeClair; he invoked the collective bargaining agreement and proceeded to a three-day arbitration with extensive evidence and testimony.
- The arbitrator applied the Enterprise Wire seven-factor test, found procedural and investigative defects (including lack of impartial pretermination process and inconsistent discipline by the City), and ordered reinstatement with backpay minus five shifts.
- The City filed in district court to vacate the award, alleging evident partiality, exceeded powers, manifest disregard of law, and public-policy violations; the union moved to confirm and sought attorney fees as a frivolous filing.
- The district court confirmed the award and awarded the union $16,020 in attorney fees and costs, finding the City’s vacatur application frivolous.
- The Nebraska Supreme Court affirmed confirmation of the award but reversed the fee award, holding the City’s vacatur arguments were nonfrivolous though unmeritorious.
Issues
| Issue | City (Plaintiff) Argument | Union (Defendant) Argument | Held |
|---|---|---|---|
| Evident partiality / prejudicial misconduct | Arbitrator’s rulings show bias in favor of LeClair | City points only to adverse rulings; no direct evidence of bias | City failed to show a reasonable person would conclude evident partiality; rulings alone rarely suffice |
| Arbitrator exceeded powers (contract interpretation) | Arbitrator ignored CBA, misapplied law, used Enterprise Wire test improperly, considered matters not submitted, and fashioned discipline | Arbitrator arguably interpreted the CBA and used Enterprise Wire reasonably to define "just cause" | Heavy burden to vacate; arbitrator arguably interpreted contract, so did not exceed powers |
| Manifest disregard of law | Arbitrator failed to apply Nebraska precedent (Stejskal) and thus manifestly disregarded law | NUAA provides exclusive statutory vacatur grounds; manifest-disregard is not a NUAA basis | Court: NUAA does not authorize vacatur for manifest disregard; courts may not add that basis |
| Public policy (reinstatement violates anti-discrimination policy) | Reinstatement undermines public perception that City provides nondiscriminatory services | Arbitrator made no explicit finding of race- or gender-based discrimination; public-policy exception is narrow | No clear arbitrator finding of discrimination and City failed to identify a controlling legal public policy to defeat enforcement |
| Award of attorney fees as frivolous | District court: City’s vacatur petition was frivolous under Neb. Rev. Stat. §25-824 | City: arguments were legally debatable and not frivolous | Supreme Court: City’s arguments were nonfrivolous; fee award reversed |
Key Cases Cited
- Garlock v. 3DS Properties, 303 Neb. 521 (standard of review for arbitration vacatur)
- Oxford Health Plans LLC v. Sutter, 569 U.S. 564 (arbitrator exceeded powers standard; courts must defer to arbitrator's contract interpretation)
- Hall Street Assocs. v. Mattel, Inc., 552 U.S. 576 (limits on judicial review of arbitration awards)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (review focuses on misconduct, not mere mistake)
- Seldin v. Estate of Silverman, 305 Neb. 185 (statutory grounds for vacatur are exclusive under FAA/NUAA analysis)
- State v. Henderson, 277 Neb. 240 (public-policy vacatur is narrow; factual findings by arbitrator cannot be relitigated)
- Hartman v. City of Grand Island, 265 Neb. 433 (NUAA limits preexisting common-law vacatur grounds)
- Dowd v. First Omaha Sec. Corp., 242 Neb. 347 (evident partiality standard via Morelite)
- Morelite Constr. Co. v. N.Y.C. Dist. Council Carpenters, 748 F.2d 79 (defining "evident partiality")