276 Conn. 355 | Conn. | 2005
Opinion
This appeal involves the intersection of No. 01-1 of the 2001 Special Acts (S.A. 01-1), which was enacted in order to address the fiscal crisis of the city of Waterbury (city), and the Teacher Negotiation Act (teacher act), General Statutes §§ 10-153a through 10-153o, which governs collective bargaining between local or regional boards of education and teachers and school administrators. The plaintiff, School Administrators of Waterbury, appeals from the judgment of the trial court dismissing, for lack of subject matter jurisdiction,
The oversight board issued the award regarding a wage reopener in a collective bargaining agreement between the plaintiff and the defendant board of education of the city of Waterbury (board of education). The plaintiff brought this action for injunctive relief against the defendants. The defendants moved to dismiss the action for lack of subject matter jurisdiction. The trial court granted the motion and rendered judgment dismissing the action. This appeal followed.
The facts and procedural history are not disputed. The plaintiff is an employee organization designated pursuant to S.A. 01-1 as the exclusive representative of school administrators, principals and supervisors employed by the board of education. The oversight board is a state agency specially created pursuant to § 10 of S.A. 01-1.
As a result of a prior award of the oversight board dated November 27, 2002, the plaintiff and the board of education are parties to a collective bargaining agreement for the period from July 1,2003 through June 30, 2006.
On December 10, 2003, the parties appeared before the oversight board, acting in its continuing capacity as the binding arbitration panel for purposes of the teacher act, in order to resolve the wage reopener for the current collective bargaining agreement between the plaintiff and the board of education “concerning administrator salaries in school years 2004-2005 and 2005-2006.” On December 31, 2003, after a full hearing, the oversight board rejected the last best offers of the parties and issued its award. The oversight board first discussed in great detail the statutory factors that it was required to consider pursuant to both S.A. 01-1 and the teacher act, namely, the public interest and the city’s ability to pay.
The oversight board then addressed the first of the issues that had been left for the reopener, namely, the salary schedule and terms of step advancement for the 2004-2005 school year. With respect to this issue, the oversight board set the salary schedule for the various positions, but eliminated the start step. Thus, the oversight board made its award as follows: “In 2004-2005, the Start Step of the salary schedule shall be eliminated and administrators on former Start Step shall be compensated and placed on Step 1. All other administrators shall remain at their current step. There shall be no step advancement during the 2004-2005 school year.”
The oversight board next addressed the second issue of the reopener, namely, the salary schedule and step advancement for the 2005-2006 school year. The oversight board issued its award as follows. It first decided that “[t]o create the salary schedule for the 2005-2006 school year, each step of the salary schedule for the 2004- 2005 school year shall be increased by 1.5 [percent]. There shall be no step advancement during the 2005- 2006 school year.”
The oversight board also issued the part of its award that has become the subject of this litigation. Specifically, it provided as follows: “In the 2005-2006 school year, administrators will be eligible for a performance
Furthermore, consistent with its obligation under § 10-153f (c) (4) to “[state] in detail the nature of the decision,” the oversight board fully discussed its reasoning and the facts underlying its decision on the entire salary schedule issue. It explained that it had rejected the parties’ last best offers, namely, for the “purpose of imposing financial management controls on the City and the City [board of education].” It also explained that it was instituting the bonus plan to lay the “groundwork for an incentive-based compensation system that would reward administrators whose performance meets established goals with a significant monetary bonus. Such bonus shall not become part of the salary
On April 4,2004, the plaintiff filed this action, seeking to enjoin the defendants from implementing the December 31, 2003 award.
The plaintiff claims that the trial court improperly dismissed the action because the provisions of § 10-153f (c) (8) of the teacher act do not apply to the oversight board’s award because it was not a “final decision” within the meaning of that statutory provision. In particular, the plaintiff contends that the award was not such a “final decision” because (1) it was not rendered pursuant to either subdivision (4) or (7) of § 10-153Í (c), and (2) the bonus plan contemplated by the award was “without any standards, definitions, rules, procedures, criteria, or text of any kind,” and no defined bonus plan has yet been approved by the oversight board. See footnote 7 of this opinion. We disagree.
Whether the provisions of § 10-153f (c) (8) of the teacher act apply to the award, which was made pursuant to S.A. 01-1, presents a question of statutory interpretation, over which our scope of review is plenary. See Teresa T. v. Ragaglia, 272 Conn. 734, 742, 865 A.2d 428 (2005). The process of statutory interpretation involves the determination of the meaning of the statutory language as applied to the facts of the case, including the question of whether the language does so apply. See Lombardo’s Ravioli Kitchen, Inc. v. Ryan, 268 Conn. 222, 230-31, 842 A.2d 1089 (2004). In the present case,
We begin with what we recently have characterized as “the unique legal landscape in which this case arises”; Local 1339, International Assn. of Firefighters v. Waterbury, 274 Conn. 374, 382, 876 A.2d 511 (2005); namely, the enactment of S.A. 01-1. “In 2001, as a result of many years of gross fiscal mismanagement, the city was in a state of financial crisis. See S.A. 01-1, § 1. Specifically, the city had underfunded its pensions for years and was paying its pension liabilities out of the city’s general fund. In addition, the city had been paying health care benefits, the cost of which were rapidly rising, out of the city’s general fund. As a result of these and other liabilities, the city’s bond rating had been downgraded. The crisis threatened not only the city, but also the fiscal reputation of the state, which acts essentially as guarantor of certain of the city’s obligations. [See S.A. 01-1, § 1.]
“To address the crisis, the legislature enacted S.A. 01-1, effective upon its passage on March 9, 2001. . . . In accordance with the special act, the city was required to undertake certain fiscal and management controls. As a further measure, the legislature created the oversight board to ensure that order was restored to the city’s finances. S.A. 01-1, §§ 10 and 11. The special act confers broad authority on the oversight board to take the necessary measures to accomplish this goal. S.A. 01-1, § 11. . . . Special Act 01-1 supersedes all other provisions of the General Statutes enacted prior to the
“The extent of the authority conferred on the [oversight] board is nothing short of extraordinary. Nowhere is that more evident than in the context of collective bargaining agreements for the [board of education’s] employees. See 44 S. Proc., Pt. 2, 2001 Sess., p. 494, remarks of Senator Stephen R. Somma (noting that [t]he labor provisions . . . are extraordinary but the times are extraordinary in Waterbury).” (Citation omitted; internal quotation marks omitted.) Local 1339, International Assn. of Firefighters v. Waterbury, supra, 274 Conn. 382-83. Indeed, the legislative history of S.A. 01-1 reveals that the legislature granted “essentially absolute power ... to the oversight board ... to set the terms of labor contracts, even when those terms were not in dispute between the parties . . . .” Id., 384 n.4.
With this background in mind, we turn to a brief overview of the teacher act, and its significant contrasts with S.A. 01-1. In general terms, under the teacher act, following unsuccessful bargaining and mediation between a teachers or administrators union and a local board of education, the parties are subject to binding interest arbitration before an arbitration panel selected from among those appointed to serve as arbitrators pursuant to § 10-153Í (a). See General Statutes § 10-153Í (a) through (c). The arbitration panel must conclude its hearing within twenty-five days after its commencement. See General Statutes § 10-153f (c) (3). The arbitration panel is required to issue its decision within twenty days of the completion of the hearing, and must “incorporate [in its decision] those items of agreement the parties have reached prior to its issuance.” General Statutes § 10-153f (c) (4). As to each of the other items, the parties are required to submit to the arbitration panel their last best offers, and the panel is required
Although we never have specifically held it to be so, we now conclude that judicial review of the decision of the arbitrators under the teacher act must be by way of a motion to modify or vacate, filed in the Superior Court, “within thirty days following receipt of a final decision pursuant to subdivision (4) or (7), as appropriate . . . .” General Statutes § 10-153Í (c) (8).
This conclusion is also supported by our previous holdings requiring a party to exhaust its administrative remedies. For example, when a statute provides for an adequate remedy, “we have long adhered to the rule that, where a statutory right of appeal from an administrative decision exists, an aggrieved party may not bypass the statutory procedure and instead bring an independent action to test the very issue which the appeal was designed to test.” (Internal quotation marks omitted.) LaCroix v. Board of Education, 199 Conn. 70, 78, 505 A.2d 1233 (1986); see also Laurel Park, Inc. v. Pac, 194 Conn. 677, 685, 485 A.2d 1272 (1984).
In the present case, § 10-153f (c) (8) sets forth a statutory mechanism through which an aggrieved party
Special Act 01-1 differs from the teacher act in several ways, however, that are significant to the present case. First, under § 11 (a) (4) (B)
Finally, § 20 of S.A. 01-1 provides: “This act is intended to authorize the city to fund its accumulated deficits, to establish a board to review the financial affairs of the city in order to maintain access to the public markets and to restore financial stability to the city, and shall be liberally construed to accomplish its intent. The provisions of this act shall supersede any provisions of the general statutes, any public or special act and the charter of the city enacted prior to or subsequent to this act other than a subsequent act of the General Assembly which specifically states that it supersedes this act except that, unless expressly provided in this act, nothing in this act shall affect the provisions of the Municipal Employees Relations Act,
First, the language of § 20 of S.A. 01-1 strongly suggests that the two statutory provisions are to be read so as to coexist. Specifically, § 20 provides that S.A. 01-1 “shall supersede any provisions of the general statutes . . . enacted prior to . . . this act . . . except that, unless expressly provided in this act, nothing in this act shall affect the provisions of . . . the Teacher Negotiation Act . . . .” Thus, unlike other “provisions of the general statutes,” which S.A. 01-1 supersedes, the teacher act is not affected “unless expressly provided” in S.A. 01-1 itself. Furthermore, the express references in § 11 (a) (4) (A) and (B) of S.A. 01-1 to the oversight board’s powers regarding collective bargaining agreements entered into by the city’s “board of education” supports such a coexistence, because such agreements are also necessarily governed by the teacher act.
The question that arises, however, is the meaning of the language of § 20 of S.A. 01-1 that, “unless expressly provided in this act, nothing in this act shall affect the provisions of . . . the Teacher Negotiation Act . . . .” (Emphasis added.) We acknowledge that, as the plaintiff suggests, it can be read to require that, in order for a provision of S.A. 01-1 to prevail over the terms of the teacher act, there must be a provision in S.A. 01-1 that “expressly” refers to the teacher act and provides that it overrides the teacher act; otherwise, the terms of the
Second, the conclusion that, when the two statutes conflict the provisions of S.A. 01-1 prevail over those of the teacher act, is supported by both the language and purpose of S.A. 01-1. Section 1 of S.A. 01-1 declares “that a financial emergency exists” in the city that is
Applying these principles to the facts of the present case, we conclude that the provisions of § 10-153f (c) (8) of the teacher act apply to the award made by the oversight board to the extent that those provisions do not conflict with S.A. 01-1 and that, to the extent that they do conflict, the provisions of S.A. 01-1 prevail over those of § 10-153f (c) (8). Section 10-153Í (c) (8) provides for judicial review of a final decision of an arbitration panel. It is undisputed that the oversight board in the present case was serving as the arbitration panel for purposes of the reopener in question. Although there is no specific provision in S.A. 01-1 for judicial review of actions of the oversight board, the oversight board does not contend that its actions are insulated from any judicial review. Indeed, the oversight board contends that, when it acts as a binding arbitration panel under the teacher act, it is subject to judicial review pursuant to a motion to vacate thereunder. Conse
The respective time limits do, however, present such a conflict. Whereas under § 10-153f (c) (8) of the teacher act the motion to vacate must be filed within thirty days of the final decision, under § 11 (a) (5) of S.A. 01-1 “[t]he time limits . . . governing binding arbitration shall be reduced by one-half.” Thus, the thirty day time limit for filing a motion to vacate under § 10-153Í (c) (8) of the teacher act was reduced to fifteen days, and the plaintiff was required to file such a motion by January 15, 2004.
A further conflict between the two statutory schemes arises from the provision in § 10-153f (c) (8) of the teacher act that, as the plaintiff contends, the final decision of the arbitration panel that triggers a motion to vacate is such a decision “pursuant to subdivision (4) or (7), as appropriate . ...” As we have indicated, under subdivision (4) of § 10-153Í (c), the decision of the arbitration panel is required to be filed with the town clerk of the local school district and with the commissioner. The obvious purpose of these required filings is to notify the local legislative body, in this case the board of aldermen, and the commissioner for the purpose of a potential rej ection of the award by the local legislative body and a consequent second arbitration managed by the commissioner pursuant to subdivision (7). As we have explained, subdivision (7) of § 10-153Í (c) requires the commissioner, upon such a legislative rejection, to set up a second, record-based arbitration
Much the same reasoning applies to the plaintiffs claim that the award of the oversight board was not “final” for purposes of judicial review pursuant to § 10-153f (c) (8) because the bonus plan part of it was too uncertain and because it required the board of education to return with a recommended bonus plan subject to the approval of the oversight board. We reject this claim. We conclude that the indefinite quality of the bonus plan part of the award did not deprive that award of sufficient finality for puiposes of judicial review under § 10-153f (c) (8) and that, therefore, the plaintiff was required to file a motion to vacate in order to challenge it.
In addition, to hold that this part of the award rendered the award less than final for purposes of a motion to vacate would lead to a result that would be inconsistent with the scheme of S.A. 01-1. The bonus plan order was but one aspect of the oversight board’s overall award, the rest of which set definite parameters for salaries and step advancements for both the 2004-2005 and the 2005-2006 school years. When the oversight
The judgment is affirmed.
In this opinion the other justices concurred.
The plaintiff appealed from the judgment of the trial court to the Appellate Court, and we transferred the appeal to this court pursuant to General Statutes § 51-199 (c) and Practice Book § 65-1.
The other defendant is the board of education of the city of Waterbury, which has not filed a brief in this court but which, throughout the litigation, has adopted the position and arguments of the oversight board. References to the oversight board and to the board of education collectively are to the defendants.
Pursuant to § 11 (a) (5) of S.A. 01-1, the oversight board serves as “the binding arbitration panel” with respect “to labor contracts in or subject to binding arbitration . . . .” Presumably, this 2002 collective bargaining agreement was issued by the oversight board pursuant to § 11 (a) (5), and also pursuant to § 11 (a) (4) (A) of S.A. 01-1, which gives it the power, with respect to “collective bargaining agreements for a new term,” to “set forth the terms of the agreement, which shall be binding upon the parties.” The 2002 decision of the oversight board stated that the “dispute concerns the terms for a successor collective bargaining agreement (new Contract) between” the plaintiff and the board of education.
In connection with this point, the oversight board noted that “the two are inextricably linked.” Noting that the city “remains in a distressed and fragile financial condition,” the oversight board discussed the following areas as indications and causes of that distress: cost of deficit bonds; insufficient reserves; high tax burden and increasing costs; unfunded pension liability; lack of access to capital markets; capital needs; the demographics of the city as one of the state’s poorest municipalities; and a very high mill rate compared to other municipalities in the state.
In connection with this conclusion, the oversight board’s award contained an appendix A-2, entitled “Salary Schedule for 2004-2005 School Year,” which listed five categories of employees, each category having an annual salary starting at step 1 and continuing through steps 2,3,4,4a and 5.
In connection with this conclusion, the oversight board’s decision contained an appendix A-3, entitled “Salary Schedule for 2005-2006 School Year,” listing the same five categories of employees, each category having an annual salary starting at step 1 and continuing through steps 2, 3, 4, 4a and 5. The appendix specifically noted that this schedule “has incorporated a general wage increase of 1.5 [percent] to each step of the salary schedule.”
In fact, the oversight board has extended this time limit. On September 1,2004, the board of education submitted a plan for this performance bonus, which the oversight board rejected. Thus far, therefore, no such plan has been approved by the oversight board.
Specifically, the plaintiff alleged that the oversight board, by imposing a merit pay plan in contravention of the terms of the reopener, without an opportunity for the parties to the collective bargaining agreement to negotiate with respect thereto, and by authorizing only the board of education to determine the merit pay criteria subject to the board’s approval, had violated the teacher act and S.A. 01-1 in the following ways: (a) it contravened the duty of the board of education and the right of the plaintiff to negotiate a manifestly mandatory subject of bargaining; (b) it failed to render a final or definite award; (c) it contravened the requirements of the teacher act and S.A. 01-1 by ordering one of the parties unilaterally to submit a proposal binding on the other after the hearing was over and the award rendered some four months earlier; (d) it exceeded the scope of the very reopener it previously had ordered by including matters not raised or negotiated or even permitted to be raised or negotiated by the parties in the reopener; (e) it was based on information obtained from documentary or testimonial evidence in an extraneous hearing process involving another bargaining unit, namely, teachers, in which members ofthe plaintiff wereneitherpermitted to attend nor to participate, thereby violating the plaintiff’s right to be heard and to make a meaningful presentation to the oversight board; and (f)
General Statutes § 10-153f (c) (8) provides: “The decision of the arbitrators or a single arbitrator shall be subject to judicial review upon the filing by a party to the arbitration, within thirty days following receipt of a final decision pursuant to subdivision (4) or (7), as appropriate, of a motion to vacate or modify such decision in the superior court for the judicial district wherein the school district involved is located. The superior court, after hearing, may vacate ormodifythe decision if substantial rights of apartyhave been prejudiced because such decision is: (A) In violation of constitutional or statutory provisions; (B) in excess of the statutory authority of the panel; (C) made upon unlawful procedure; (D) affected by other error of law; (E) clearly erroneous in view of the reliable, probative and substantial evidence on the whole record; or (F) arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion. In any action brought pursuant, to this subdivision to vacate or modify the decision of the arbitrators or single arbitrator, reasonable attorney’s fees, costs and legal interest on salary withheld as the result of an appeal of said decision may be awarded in accordance with the following. Where the board of education moves to vacate or modify the decision and the decision is not vacated or modified, the court may award to the organization which is the exclusive representative reasonable attorney’s fees, costs and legal interest on salary withheld as the result of an appeal; or, where the organization which is the exclusive representative moves to vacate or modify the decision and the decision is not vacated or modified, the court, may award to the board of education reasonable attorney’s fees, costs and legal interest on salary withheld as the result of an appeal.”
Section 11 (a) of S.A. 01-1 provides in relevant part: “In carrying out the purposes of this act, the board shall have the following powers, duties and functions ... (5) With respect to labor contracts in or subject to binding arbitration, serve as the binding arbitration panel. The board shall have the power to impose binding arbitration upon the parties any time after tire seventy-fifth day following the commencement of negotiations. If, upon the effective date of this act, the parties are in binding arbitration, the board shall immediately replace any established binding arbitration panel. The time limits in the applicable provisions of the general statutes or any public or special acts governing binding arbitration shall be reduced by one-half. The board shall not be limited to consideration and inclusion
We are mindful of the fact that General Statutes § 1-2z requires that, before we go beyond the text of a statute to determine its meaning, we first must determine that it is not plain and unambiguous. See Bell Atlantic
The criteria pursuant to which the court reviews the arbitral decision are set forth in § 10-153f (c) (8) of the teacher act, and are identical in phrasing to the scope of judicial review set forth in the Uniform Administrative Procedure Act for review of final decisions of administrative agencies. See General Statutes § 4-183 Q). Specifically, the court may vacate or modify the arbitrators’ decision if “substantial rights of a party have been prejudiced because such decision is: (A) In violation of constitutional or statutory
Section 11 (a) of S.A. 01-1 provides in relevant part: “In carrying out the purposes of this act, the board shall have the following powers, duties and functions ... (4) (B) Approve or reject all modifications, amendments or reopeners to collective bargaining agreements entered into by the city or any of its agencies or administrative units, including the board of education. If the board rejects a proposed amendment to a collective bargaining agreement, the parties to the agreement will have ten days from the date of 1he board’s rejection to consider the board’s concerns. In rejecting an amendment to an agreement, the board shall indicate the specific provisions of the proposed amendment which caused the rejection, as well as its rationale for the rejection. The board may, at its option, indicate the total cost impact or savings it would find acceptable in a new amendment. After the expiration of such ten-day period, the board shall approve or reject any revised amendment. If the parties have been unable to reach a revised amendment or the board rejects such revised amendment, the board shall set forth the terms of the new amendment, which shall be binding upon the parties. In establishing the terms of the new agreement, as well as in making a determination to reject a proposed amendment, the parties shall have an opportunity to make a presentation to the board . . . .”
See footnote 10 of this opinion for the text of S.A. 0-1, § 11 (a) (5).
Indeed, the plaintiff concedes that some provisions of the teacher act are overridden by S.A. 01-1, even in the absence of such specific reference in S.A. 01-1. Thus, the plaintiff’s argument can be construed to be that subdivisions (4) and (7) of § 10-153Í (c) provide for a process of binding arbitration that is not specifically superseded by S.A. 01-1, including the necessity of filing a final decision with the legislative body of the local authority and the commissioner. This reading of the teacher act suggests that arbitration is binding under subdivision (4) of § 10-153Í (c), unless it is rejected under subdivision (7) by a two-thirds vote of the legislative body of the local school district. Section 11 (a) (4) (B) of S.A. 01-1 provides, however, that the oversight board is not bound by the last best offers of the parties and can set forth the terms of the new agreement “which shall be binding upon the parties.” Unlike subdivision (4) of § 10-153Í (c) of the teacher act, there is not an exception within S.A. 01-1 to the binding nature of the oversight board’s decision. Additionally, we note that the relevant terms of both the teacher act and S.A. 01-1 govern the same topic, namely, when the terms of the arbitration award become binding. Therefore, given that the plaintiff has implicitly conceded that S.A. 01-1 does not need specifically to mention the teacher act, while at the same time overriding some of the provisions of the teacher act, as well as the fact that the provisions at issue conflict with each other, the requirements of S.A. 01-1 control and the oversight board’s decision must be deemed final and binding.
General Statutes § 10-153Í (c) (4) provides in relevant part: “After hearing all of the issues, the arbitrators or the single arbitrator shall, within twenty days, render a decision in writing, signed by a majority of the arbitrators or the single arbitrator, which states in detail the nature of the decision and the disposition of the issues by the arbitrators or the single arbitrator. . .
See footnote 10 of this opinion.