2019 Ohio 2797
Ohio Ct. App.2019Background
- Local 44 (union) and Kalkreuth (employer) were bound by a CBA providing for grievance resolution by a Joint Conference Board (JCB) whose decisions required concurrence of a majority of each side and could fashion remedies.
- A dispute arose over Kalkreuth’s use of a non-signatory subcontractor; the JCB unanimously found a CBA violation and ordered Kalkreuth to pay $87,000 restitution.
- Kalkreuth did not pay and did not file a timely motion to vacate, modify, or correct the award under R.C. Chapter 2711.
- Local 44 filed to confirm the arbitration award in Lake County Common Pleas under R.C. 2711.09; Kalkreuth opposed, arguing (1) the JCB award violated R.C. 2711.08 because only two JCB members signed the award and (2) Lake County was improper venue under R.C. 2711.16.
- The trial court denied confirmation, finding the award invalid for lack of a majority of arbitrator signatures; it did not address venue.
- The appellate majority reversed and remanded for the trial court to decide venue before confirming or transferring; a concurring/dissent would have ordered confirmation because Kalkreuth waived challenges by failing to file timely R.C. 2711.10/11 motions.
Issues
| Issue | Plaintiff's Argument (Local 44) | Defendant's Argument (Kalkreuth) | Held |
|---|---|---|---|
| Whether the trial court must confirm the arbitration award when no timely R.C. 2711.10/11 motion was filed | Because Kalkreuth did not move to vacate/modify/correct within three months, the court was required to confirm under R.C. 2711.09 | Kalkreuth raised statutory infirmity (lack of majority signatures) and venue, so confirmation should be denied | Majority: Kalkreuth waived substantive challenge by not timely moving; award must be enforced, but venue must be resolved first (remand) |
| Whether the JCB award complied with R.C. 2711.08 (signed by a majority of arbitrators) | The award was unanimous and issued by the JCB; Local 44 emphasized the JCB’s authority and unanimity | Kalkreuth argued the award failed R.C. 2711.08 because only two JCB members signed, rendering it invalid | Majority: Substantive challenge was waived (raise under R.C. 2711.10 or 2711.11 within 3 months); court erred in finding award invalid on that ground |
| Whether Lake County was proper venue/jurisdiction under R.C. 2711.16 for confirmation | Local 44 argued Lake County was proper because the dispute arose there and Kalkreuth had contacts making summons foreseeable | Kalkreuth argued its principal office was in WV and its Ohio office was in Delaware County, so Lake County was not a proper venue under the statute | Majority: Venue objection was properly raised and unresolved; trial court must address venue on remand before confirming or transferring; concurring/dissent would treat venue as waived by Kalkreuth's delay |
Key Cases Cited
- Divine Constr. Co. v. Ohio-American Water Co., 75 Ohio App.3d 311 (10th Dist. 1991) (statute titled "jurisdiction" includes venue provisions for arbitration confirmation)
- Galion v. American Fedn. of State, Cty. & Mun. Employees, Local No. 2243, 71 Ohio St.3d 620 (1995) (R.C. Chapter 2711 provides exclusive statutory remedy and three-month limit for motions to vacate/modify/correct is mandatory)
- State ex rel. R.W. Sidley, Inc. v. Crawford, 100 Ohio St.3d 113 (2003) (post-arbitration court authority limited to confirm, vacate, modify, correct, or enforce)
- Warren Education Assn. v. Warren City Bd. of Edn., 18 Ohio St.3d 170 (1985) (court must grant timely confirmation absent timely motion to vacate/modify/correct)
- Russo v. Chittick, 48 Ohio App.3d 101 (8th Dist. 1988) (R.C. 2711.09 one-year guidance and court discretion to confirm after one year for good cause)
- Fraternal Order of Police, Ohio Labor Council, Inc. v. Halleck, 143 Ohio App.3d 171 (7th Dist. 2001) (three-month period for challenging arbitration awards is mandatory)