*3 WAGNER, Before NEBEKER and STEADMAN, Judges.** Senior
WAGNER, Judgе: Senior Appellant, Fairman, John A. appeals from an of the granting order trial court application appellee, District of Co- (District), lumbia to vacate denying award and Fairman’s motion to dismiss ar- application. bitrator had determined that Fairman was entitled to severance pay accordance with the em- terms of amendments to his ployment agreement with the District Hospitals Columbia Health and Public (PBC).1 Corporation Benefit Consistent argument, with the District’s court concluded that enforcement agreement amended would violate a well- public poliсy defined dominant in that agreement amended had not been proved by Responsibility the Financial (Con- Management Authority Assistance Board). appeal, trol On Fairman chal- lenges that determination. The District now concedes that the contract amend- subject ment was not to Control Board * 26, 2004, May Corpora- On the Office of 1. The District Columbia Council created tion Counsel of the District of was Columbia public the PBC to oversee the District’s health Attorney renamed the Office General hospitals. care facilities and Mayor’s the District of Columbia. See Order 32-261.1, (1997). §§ etseq. 2004-92, (2004). D.C.Reg. ** argument, Judgе Wagner the time of At was court, Judge Judge Chief Steadman Judge. was an Associate his increased policy upon from October review and that $175,000 per year. salary base vacating the trial court relied enti- amended to severance nature.” “is not of the clearest award salary “all upon termination to tle Fairman urges this court to owing under the re- due and and benefits grounds other herein- affirm on discussed .... maining [the] terms grounds after. conclude on alternate We year’s ... to less than one no case [i]n that Fairman is not entitled to severance .... level salary and all benefits еmploy- his pay under amendments to of severance.” effect the time contract, but that is entitled to ment he Fair- terminated In June PBC original under his contract. *4 sought Fairman employment, man’s and the to we remand case the terms of the termination under proceedings court for further consistent rejected The PBC agreement. modified opinion. with this demand, request- and Fairman Fairman’s arbitration to which the District submit- ed I. objection. the During arbitra- ted without Background Factual the as proceedings, District raised an tion Association.” to ry and finally provided man under rules of service was the time of severance.” The contract also agreement which cannot terms of which Fairman ficer a severance contract on October cably agree General shall be Fairman September upon termination to (CEO) approved all benefits at Manager “[t]hat any dispute arising and resolved to be from by the PBC the PBC and Fairman and Chief Executive Of- PBC. 1999. American Arbitration which entitled Fair- 1, through “six months sala- His The level 1997 under October entered resolved ami- appointed original contract, in Board, under this effect into a term had as at policy void modifications ment,” month severance issue whether the 1999 amendments $662,925 July trol Board. After extensive unmodified cations [had] ever been ed.2 Control award to Fairman arbitration contending that “the 27, 2001, “by purporting to enforce in that the Board.” based on the contract presented payment award [1997] not authorized filed a the arbitrator entered an provision contained [been] “proposed in to the [1997] for review award violated petition employment [Fairman] in District contended expenditure submitted the amount of Superior [1999] to vacate the hearings, on to the Con- as illegal and is the six- amend- modifi- Agree- Court, agree- public for a had his April the PBC ment,” it in one of its represented original amendments executed prepared that it was filings with the court any term agreement, payment which set Fairman’s a amount owed “to make employment at five years commencing under this [1997] agreement.” per- Vice Chair of Board findings, The Chair and 2. In her the arbitrator stated part: Amendments on tinent Directors executed such increase, Salary Respondent. Employment behalf of The Amendments allowance, (“John Agreement, A. allow- housing between Claimant and automobile (“District Fairman”) Respondеnt of Co- provisions, forth in such Amend- ance set Hospitals Benefit lumbia Health and Public ments, implemented offi- were in fact April, are Corporation”), executed in Respondent. cials binding parties are enforceable. on the Fairman filed motion to dismiss the M.D. & Trammell Crow Real Assocs. petition, contending (D.C. District’s that the Dis- Servs., Estate 738 A.2d alleged statutory trict had basis for 1999) Skahill, (citing 617 A.2d Shaff vacating the arbitration award. The trial (D.C.1992)). Our review of confir court denied Fairman’s motion stated mation or the vacation of an arbitration as its if reason that the arbitrator exceed- de award is novo. See id. at 1216. “Arbi powers alleged, ed her as there would be tration in the gov District of Columbia is statutory valid reason for vacating erned the District of Columbia Uniform award. On the merits - Act, §§ Arbitration 16-4301 to petition, the trial court noted that an arbi- Shaff, [ ].” tration award that violates 962. Section 16-4311 of that Act limits the cannot stand. The court concluded that permissible grounds an vacating arbi policy exception is applicable Tauber, tration award. See this case because': a party sought “Where ... has not It is clear that the Control Board was to vacate award arbitrator’s on stаtuto required approve respondent’s rily-recognized grounds pursuant *5 employment amended contract in order § D.C.Code 16^4311 ... courts cannot set enforceable, for it to be pursuant aside for law awards errors of or fact such 47-392.03(b) (2001). § made Shaff, arbitrator.” 617 A.2d employment agreement 1999 amended statutory grounds at 963. One was never submitted award, vacating an arbitration that is Any Board. award requiring gov- arbitrator has exceeded his or her authori unapproved
ernment on the 16-4311(a)(3) (1997). § ty. See D.C.Code amended employment agreement con- reviewing “In whether an arbitrator has travenеs District of Columbia statuto- Indéed, § his ry provision. powers pursuant exceeded 16- any person at- tempting 4311(a)(3), to enforce the award would we not review [the] do arbitra committing illegal an act ... Tauber, tion award on the merits.” 738 is a there well defined and dominant (quoting Kaplan, A.2d at 1217 v. Poire 491 agree- that is violated if the (D.C.1985) (further 529, 534 A.2d citations ment is enforced. omitted)). omitted and quotations internal that, The trial court giv- further concluded “If an only arbitrator ‘rules on matters strong public policy, en this it was not scope within governing arbitra necessary consider whether the arbitra- clauses, tion [will] he not еxceed his au- tor had based award on es- equitable her Poire, thority_’” 491 (citing Id. A.2d toppel reasons, grounds.3 For these (footnote 533-34) omitted). granted
trial petition, court appeal and this followed. exception recog An has been requirement nized to the that an arbitra II. can tion award be vacated on statuto Generally Legal Applicable Principles ry grounds. “It well settled “[Jjudicial if arbitration award not stand it con review of arbitration Tauber, paramount pub- awards is limited.” Laszlo N. travenes considerations of portion arguments already 3. One of District’s was that had the contract been by deciding powers arbitrator exceeded her performed. equitable estoppel grounds the case on in that
443
the District
931,
response
in
argues
man
Lopata Coyne,
lie
v.
735 A.2d
policy.”
(D.C.1999)
court
challenged
DeKalb v.
in
trial
(quoting City
never
938
Fighters,
agree-
employment
Ass’n
Fire
Local validity
International
of the 1997
236,
367, 131 Ill.Dec.
Ill.App.3d
ment,
1
contained the
(1989)).
867,
“The
538 N.E.2d
arbitrability
dispute.
clause,
or the
the arbitrator’s decision
refusal
enforce
on
position
that the District’s
He contends
requires
policy grounds
on
‘some
position
with the
appeal
is inconsistent
public policy’ that is ‘well defined
explicit
court,
and there-
took in
trial
that it
dominant,
is to be ascertained
judicial and
fore,
by principles of
barred
precedents
and legal
to the laws
reference
argues that
estoppel. He also
equitable
general
from
considerations
by not
arguments
such
the District waived
” Id. (quoting
interests.’
supposed public
trial
asserting them the
court.
Union, AFL-
Int’l
Paperworkers
United
Misco, Inc.,
CIO
U.S.
estoppel
judicial
doctrine of
(1987)) (further
S.Ct.
We
with Fairman’s ar
that
agreement
there is no
guments that application of
party may
either doctrine
“[A]
not submit a claim to arbi
precludes
taking
po
challenge
District from
tration and
authority
then
appeal, contrary
position
sition on
to its
in the arbitrator
receiving
act after
an
court,
the trial
agreement
the 1997
Lopata, supra,
unfavorable result.”
provision
and the
Nghiem
arbitration are void. A.2d at
(quoting
v. NEC Elec
only
tronic, Inc.,
(9th
Not
did the District
challenge
Cir.),
25 F.3d
denied,
validity
agreement
the 1997
or
its arbi
cert.
513 U.S.
115 S.Ct.
provision,
(1994) (other
tration
but
affirmatively
also it
proval. See D.C.Code Section (B) currently available appropriations part in 1973 1-1130 was first enacted as type acquisi- procurement for the District of Columbia Self-Government contract, tion covered Act Reorganization and Governmental оbligated; otherwise or Act). (Home § See D.C.Code 1-1130 Rule (C) pay- for those appropriated funds (1992) ver- (unchanged from 1973 ments. sions). Subsequently, amendments (3)No under contract entered into those Only pertinent enacted to this law. unless this shall be valid subsection present issue to be forth need set contract to the Mayor submits the 1995, Congress In enacted the Dis- here. approval and for its the Coun- Council Responsibility trict of Columbia Financial (in the contract accor- approves cil Management Act of 1995 Assistance by act dance with criteria established (FMRAA). 104-8, 109 See Pub.L. No. Council). be The Cоuncil shall (1995). That act amended section Stat. required to take affirmative action by adding required 1-1130 which section days. approve the contract within 45 for contracts in- approval Council which approve If no action taken million expenditures volved of over one days, calendar contract within 45 period. in a dollars twelve month be disapproved. contract shall deemed 1130(b). 1996, Congress § In D.C.Code 1— 1-1130(c) (1997). § D.C.Code passed Appropriations Act of Omnibus 7, 1996, August after the 1995 On 1996, which included the District Co- FMRAA, in the but before Amendments appropriations lumbia for 1996. See Act, the 1996 Amendments in the Omnibus (1996). 104-134, Pub.L. No. 110 Stat. 1321 passed the the D.C. Council Act, provisions of this which became Hospitals Public Columbia Health and 9, 1996, September effective on amended which created Corporation Benefit Act following adding section 1-1130 (Sept. D.C.Reg. PBC. See 43 reads, as pertinent part, 1996). Significantly, in section 301 of follows: act, the D.C. asked Con- proposed Council (c) Multiyear contracts. con- exempt the PBC from the gress may The District enter into multi- of section 1-1130 approval provisions tract year goods contracts to obtain was they existed at the time bill as for which funds other- services would D.C.Reg. (Sept. passed. See 43 obligation only wise be available for 1996). However, accept did not Congress year within the fiscal Although the PBC recommendation. propriated. statutory exempted from other was several governing PBC’s requirements, funds avail- neither the If the are not made history statutory indicate such a statute nor the able for continuation of exempt year, the PBC to be subsequent contract into a fiscal requirements in effect approval ter- shall be cancelled or contract contract fact, minated, created. the time the PBC was and the cost сancellation history oppo- statutory indicates the paid from— the or termination (2001). § 1-204.51 is now in D.C.Code 11.
448 statutory In pronouncement,
site. section of D.C. Law 11-212 that “[n]o (the eventually law which became the contract entered into under this subsection statute), governing PBC’s rec- Council Mayor shall be valid unless the submits Congress ommended that amend section approv- the contract to the for Council its exempt 1-1130 the Home Act to Rule al,” expresses legislative a clear intent that statutory requirement the PBC from the any approved contract not so would be approval over for contracts one million doubt, policy, invalid. This no seeks to However, Congress dollars. to declined promote accountability financial of execu- history, do light so.12 this it is clear agencies tive branch and entities. This subject that the PBC was to the Council approval lack of renders the Amendments approval requirement in section 1-1130. invalid, question calls and therefore into subject
Since the PBC was
the validity of the arbitration award to the
1-1130,
approval requirements in section
extent that it relied
upon them.
lan-
the question is whether the 1999 amend
(c)
guage of subsection
indicates that its
required
apprоval.
ments
such
Subsection
prevent
intent was to
the District from
(c)
may
states that the
into
enter
entering
long
into
term contracts where
spanning
years although
contracts
several
funding
yet
had not
appropriated
been
un-
are only appropriated
funds
from
cur
less the Council first
this
approved
action.
year;
rent fiscal
such
however
contracts The
required
1999 Amendments
the Dis-
§
require
approval.
Council
1-
D.C.Code
years
pay
up
trict to
Fairman
to five
1130(c)(3). Fairman
that there is
contends
pay
and benefits. The arbitra-
no evidence in the
indicating
record
upon
predicated
tion award
these Amend-
the 1999 Amendments constituted a multi
appears
give
roughly
ments
year
argument
per
contract. This
is not
years
pay
three
of severance
and benefits.
amendments,
suasive. Under the
Fair-
required
If the District were
this
man’s contract
term
October
award, the award
would stand
clear
September
appropria-
2003. The
explicit statutory poli-
contravention of the
for
tions bills
effect
fiscal 1998 and fiscal
cy against entering
long-term
into such
1999 indicate
no appropriations
would
agreements in the
absence of Council
beyond
available
each of those current
proval.
approval,
In the
absence
such
years.
105-100,
fiscal
Pub.L. No.
See
public
Amendments violate the
(1997) (“No
§
part
Stat.
law,
policy, expressly
by
provided for
any
appropriation contained
Act
against entering
multi-year
into
contracts
obligation
shall remain available for
be-
without
legislative approval. An award
yond the
year
current
fiscal
ex-
unless
based thereon would violate a clear and
herein.”);
pressly
provided
so
No.
Pub.L.
support
that would
dominant
105-277,
(same
108,112
§
Stat. 2681
vacating
Lopa-
an arbitrator’s award. See
1999).
for fiscal
Sinсe funds for the PBC
ta, supra,
(recognizing
opinion.
So ordered.
STEADMAN, Judge, concurring: Senior judicial
Principles equitable es-
toppel do not applicable private parties readily the government
translate where
