3:17-cv-02117
D.P.R.Jun 18, 2018Background
- ULEES (the union) challenged a five-day unpaid suspension imposed by Metro Mayagüez, Inc. (Hospital Perea) on employee Eduardo Cruz, an operating room technician, for leaving his work area for 24 minutes without supervisor authorization and discussing union matters with a nurse.
- The CBA prohibited discussing labor matters near patients and prohibited conduct in work areas that affects hospital services; it also authorized discipline for abandonment of work and provided that arbitration awards must be issued "pursuant to law."
- Hospital found Cruz violated the disciplinary rule for abandonment (Fault 44) and suspended him; the union grieved and submitted the case to arbitration to determine whether the suspension was justified.
- The arbitrator concluded the suspension was justified because Cruz’s unauthorized absence and interruption of a nurse affected hospital services and patient safety, and upheld the five-day suspension (though the arbitrator noted Cruz did not technically abandon his post).
- ULEES petitioned to revoke the arbitration award in Puerto Rico state court; the hospital removed the case to federal court. The district court reviewed the award under the highly deferential federal labor arbitration standard.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award should be revoked | Arbitrator erred: record does not establish abandonment or just cause; award contrary to law and CBA | Arbitrator properly considered CBA, law, and evidence; award draws its essence from the CBA and is binding | Denied revocation; award affirmed |
| Arbitrability of the dispute | (implicit) arbitration improper if merits unsupported | CBA provides for arbitration; parties submitted dispute | Court found threshold arbitrability satisfied |
| Proper scope of judicial review of arbitration | Court should vacate award because arbitrator misconstrued facts/law | Court must apply narrow, deferential review and may not overturn even for serious error unless award is irrational or disregards law | Court applied deferential standard and declined to vacate award |
| Use of Puerto Rico law/industry standards by arbitrator | Award contravenes law if arbitrator misapplied legal standards | Arbitrator may rely on state law and industry standards consistent with federal labor law; CBA required awards be "pursuant to law" | Court held arbitrator permissibly used Puerto Rico law and standards; decision stands |
Key Cases Cited
- JCI Commc’ns., Inc. v. IBEW, Local 103, 324 F.3d 42 (1st Cir.) (district court confined review to arbitrator’s award and record)
- Posadas de Puerto Rico Assocs., Inc. v. Asociación de Empleados de Casino de Puerto Rico, 821 F.2d 60 (1st Cir.) (parties bound by arbitration outcome absent unusual circumstances)
- Hoteles Condado Beach, La Concha & Convention Center v. Unión de Tronquistas Local 901, 763 F.2d 34 (1st Cir.) (arbitrator must consider evidence and accord weight as believed appropriate)
- United Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593 (arbitral award must draw its essence from the CBA)
- United Paperworkers Int’l Union v. Misco, Inc., 484 U.S. 29 (arbitrator cannot ignore plain contract language)
- McCarthy v. Citigroup Global Mkts., Inc., 463 F.3d 87 (1st Cir.) (to vacate, must show arbitrator knew law and expressly disregarded it)
- Prudential-Bache Sec. v. Tanner, 72 F.3d 234 (1st Cir.) (standards for vacating arbitration awards)
- Keebler Co. v. Truck Drivers, Local 170, 247 F.3d 8 (1st Cir.) (parties are bound by arbitrator’s interpretation where CBA commits disputes to arbitration)
- Challenger Caribbean Corp. v. Unión General de Trabajadores de Puerto Rico, 903 F.2d 857 (1st Cir.) (arbitrator has broad powers to fashion remedies absent constraints)