960 F. Supp. 2d 354
D.P.R.2013Background
- Unión filed a petition to annul a UPS arbitration award under a CBA governing St. Thomas/St. Croix employees.
- The Grievant, Donovan, was terminated June 30, 2009 under Article 18 and 24 of the CBA due to alleged long-term incapacity.
- A mandatory grievance procedure under the CBA led to final arbitration in case A-11-1791, with hearings in 2011 and 2012.
- The arbitrator found Donovan’s dismissal justified based on long-term incapacity and the two-year seniority reservation, beginning from the accident date.
- The Court grants UPS summary judgment; the petition to review the arbitration award is denied, and the award is upheld under narrow FAA review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration award can be vacated for misinterpretation of the CBA | Unión argues the arbitrator modified the CBA by justifying dismissal | UPS contends the arbitrator lawfully construed the CBA and did not exceed powers | No vacatur grounds shown; arbitrator reasonably construed the CBA, within authority |
| Whether the arbitrator exceeded his authority by applying VI law to modify the CBA | Unión claims modification of the CBA | Arbitrator’s interpretation is within the contract and statutory framework | Arbitrator’s interpretation did not exceed powers; within scope of authority |
| Whether the reinstatement obligation under the Virgin Islands Workers’ Compensation Act required Donovan’s reinstatement | Union asserts reinstatement was required after disability ended | No reinstatement because Donovan could not perform essential duties | Arbitrator’s reasoning plausible; no basis to vacate; reinstatement not required due to incapacity |
Key Cases Cited
- Oxford Health Plans, LLC v. Sutter, 133 S. Ct. 2064 (2013) (arbitrator’s contract construction is not corrected on review)
- Misco, Inc. v. United Paperworkers Int’l Union, 484 U.S. 29 (1988) (arbitrator’s construction of contract within scope of authority review)
- Ramos-Santiago v. United Parcel Service, 524 F.3d 120 (1st Cir. 2008) (courts defer to arbitral construction under §10(a)(4))
- Dorado Beach Hotel Corp. v. Union de Trabajadores de la Industria Gastronómica de Puerto Rico, 959 F.2d 2 (1st Cir. 1992) (limits on judicial review of arbitration construction of contracts)
- UMass Memorial Medical Ctr., Inc. v. United Food & Commercial Workers Union, Local 1445, 527 F.3d 1 (1st Cir. 2008) (cannot overturn arbitral construction of contract absent extraordinary reasons)
- Eastern Seaboard Const. Co., Inc. v. Gray Const., Inc., 553 F.3d 1 (1st Cir. 2008) (Supreme Court guidance on deference to arbitrator’s contract interpretation)