Milwaukee Police Supervisors' Organization v. City of Milwaukee
815 N.W.2d 391
Wis. Ct. App.2012Background
- Milwaukee enacted an ordinance mandating up to two unpaid furlough days in 2009 due to poor finances, with the Police Chief selecting furlough-eligible employees.
- Furloughs largely exempted fire and police; 82 of 289 MPSO members and 213 of 1679 MPA members were furlough-eligible.
- MPSO sued alleging impairment of base wage and hours provisions in the contract and violation of contract clauses, seeking declaratory relief.
- MPA pursued arbitration under its contract; arbitrator held no contract violation and did not construe Wis. Stat. § 62.50(10).
- Circuit court vacated the arbitration award, holding the furloughs violated the MPA contract and that the arbitrator manifestly disregarded the law; court dismissed MPSO’s complaint.
- The court ultimately held no contract violation by the ordinance, affirmed the circuit court as to MPSO on different grounds, but reversed and remanded to confirm the arbitration award for MPA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the furlough ordinance violate the MPSO contract? | MPSO; contract prohibits reducing hours/pay | City; management rights permit schedules and furloughs | No contract violation by ordinance |
| Did the arbitrator exceed authority by not applying Wis. Stat. § 62.50(10)? | MPA; award misapplied statute | Yaffee confined to contract terms; statute not applicable here | No manifest disregard; vacatur inappropriate; award is valid under contract |
Key Cases Cited
- Baldwin-Woodville Area School District v. West Central Education Association, 317 Wis.2d 691 (2009) (arbitrator’s interpretation must have some reasonable foundation in contract)
- International Flavors & Fragrances, Inc. v. Valley Forge Ins. Co., 304 Wis.2d 732 (Wis. Ct. App. 2007) (may affirm for reasons different from circuit court’s)
- Joint Sch. Dist. No. 10 v. Jefferson Educ. Ass'n, 78 Wis.2d 94 (1977) (arbitrator’s authority limited by contract; strong deference to contract terms)
- Yee v. Giuffre, 176 Wis.2d 189 (Wis. Ct. App. 1993) (contract interpretation principles; avoid surplusage; give effect to all provisions)
- Patrick Fur Farm, Inc. v. United Vaccines, Inc., 286 Wis.2d 774 (Ct. App. 2005) (courts decide contract disputes narrowly; avoid unnecessary issues)