City of Tulsa v. Fraternal Order of Police, Lodge 93
2016 OK CIV APP 4
| Okla. Civ. App. | 2015Background
- Miller, hired by Tulsa Police Department in 2004, was under FBI scrutiny beginning 2006 for personal associations with Lujan, a bar manager linked to criminal activity.
- In 2009 Miller was notified of an internal investigation and terminated on December 11, 2009 for seven alleged violations of TPD Rules and Regulations.
- Miller and FOP grieved the termination; arbitration occurred September 12–15, 2011, resulting in an 85-page opinion and award issued July 30, 2012, reducing discharge to a 30-day suspension with reinstatement but no back pay.
- The City petitioned to vacate the arbitration award; the trial court granted partial summary judgment for the City and vacated the award, finding the arbitrator exceeded authority by crafting a remedy after finding just cause.
- FOP and Miller appealed; the Oklahoma Court of Civil Appeals affirmed vacatur, holding the arbitrator exceeded authority and the award did not draw its essence from the CBA; a concurrence noted the arbitrator lacked power to fashion a remedy not submitted.
- The dispute centers on whether the arbitrator could fashion a remedy when the issue was whether Miller’s termination was for just cause.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the arbitrator draw essence from the CBA? | FOP argued the arbitrator interpreted just cause within the contract. | City contends the award does not draw essence from the CBA because it altered penalties without contractual authorization. | No; the award did not draw its essence from the CBA. |
| Did the arbitrator exceed authority by fashioning a remedy after finding just cause? | Miller/FOP argued the arbitrator could craft an appropriate remedy under the contract. | City argued the arbitrator exceeded authority by reducing discharge to a 30-day suspension based on factors outside the terms of the CBA. | Yes; the arbitrator exceeded authority by fashioning a remedy after finding just cause. |
| Whether vacatur was proper under the Oklahoma Uniform Arbitration Act grounds? | FOP/Miller urged deference to the arbitrator when within the submission. | City asserted grounds to vacate based on exceeding powers and not drawing essence from the CBA. | Vacatur proper; the award was set aside. |
Key Cases Cited
- Sooner Builders & Invs., Inc. v. Nolan Hatcher Constr. Sews., L.L.C., 164 P.3d 1063 (Okla. 2007) (arbitrator must draw essence from CBA; exceeds authority if not)
- Perkins v. Enterprise Wheel & Car Corp., 363 U.S. 593 (1960) (awards must draw essence from contract; non-drawing warrants reversal)
- City of Yukon v. International Ass’n of Firefighters, Local 2055, 792 P.2d 1176 (Okla. 1990) (arbitrator’s award must draw essence from the CBA)
- United Steelworkers of America v. Enterprises Wheel & Car Corp., 363 U.S. 593 (1960) (textual authority on essence of arbitration awards)
- Northern States Power Co. v. IBEW Local 160, 711 F.3d 900 (8th Cir. 2018) (arbitrator cannot order remedy after finding just cause)
- Louis Theatrical Co. v. St. Louis Theatrical Brotherhood Local 6, 715 F.2d 405 (8th Cir. 1983) (arbitrator exceeded authority by tailoring remedy after just cause)
- City Owasso v. Fraternal Order of Police, 2014 OK CIV APP 75 (Okla. Civ. App. 2014) (concurrence notes limitations on arbitrator’s power when not submitted)