Steward Holy Family Hosp., Inc. v. Mass. Nurses Ass'n
Steward Holy Family Hosp., Inc. v. Mass. Nurses Ass'n
Opinion of the Court
This case arises out of a disputed arbitration between Steward Holy Family Hospital, Inc. ("the Hospital" or "plaintiff") and the Massachusetts Nurses Association ("the MNA" or "defendant") after the Hospital discharged one of its employees (a member of the MNA) for alleged misconduct. Plaintiff asserts that the arbitrator exceeded the scope of his authority under the Collective Bargaining Agreement ("the CBA") when he reinstated the employee and ordered that she receive back-pay. The Hospital now seeks an order vacating the arbitration award which the MNA urges the Court to confirm.
Before the Court are plaintiff's motion for summary judgment and defendant's motion for judgment on the pleadings or, in the alternative, for summary judgment. For the reasons that follow, plaintiff's motion for summary judgment will be allowed and defendant's motion for summary judgment will be denied.
I. Background
A. The CBA
Plaintiff operates an acute care hospital in Methuen, Massachusetts. Defendant is the authorized collective bargaining representative of the registered nurses employed at the Hospital. The Hospital and the MNA entered into a CBA which was effective from December 2013 through October 2016.
Article XXXIII of the CBA, entitled "Discipline and Discharge", provides that a nurse who has completed a probationary period and acquired seniority may not be suspended, demoted, discharged or otherwise disciplined except for "just cause". That section also provides that discipline may include counseling, verbal warnings, written warnings, suspension and/or termination and that
[t]he Hospital may utilize whatever level of discipline it believes is appropriate *9depending on the circumstances, but it will make reasonable efforts to utilize progressive discipline. (emphasis added)
Article V of the CBA, however, expressly retains the exclusive right of the Hospital
to discipline and discharge Employees for just cause ... [and] to issue, amend and enforce reasonable work rules and policies not inconsistent with the provisions of this Agreement.
Appendix G to the CBA explains that all existing employment policies applicable to hospital employees are incorporated into the agreement so long as they do not contradict an express term of the CBA.
One such incorporated policy is the Hospital's Disciplinary Action Policy. That policy provides that employees who engage in certain behavior, such as "threatening, intimidating, or coercing fellow employees", known as "Group III" offenses, are subject to immediate termination from employment on the first offense. Group III incorporates by reference the Hospital's Zero Tolerance for Disrespect Policy which states that the Hospital
will not tolerate verbal, written or physical conduct by anyone who works or practices at [the Hospital] which ... [c]reates an intimidating, offensive or hostile environment ..., [d]isrupts the operation of the hospital or individuals working therein ... [or] [d]amages the hospital's reputation in the community it serves.
The policy defines "disruptive conduct" as, among other things,
[v]erbal or physical intimidation ... [or] [a]ttacks, threats or other conduct (physical or verbal) directed at members of the medical staff [or] hospital employees ... which are personal, inappropriate, or exceed the bounds of fair and decent behavior.
Article X of the CBA, entitled "Grievance and Arbitration", sets forth a grievance procedure that may be used to resolve disputes between the Hospital and its employees and also provides for arbitration if a grievance remains unresolved. The parties agreed that the arbitrator's authority
shall be limited to the interpretation and application of the parties' Agreement. No arbitrator shall have the authority to add to, subtract from, or modify the agreement in any respect, or to substitute his/her discretion or judgment for that of the Hospital. The Arbitrator's decision on any duly submitted grievance shall be final and binding upon the parties and any aggrieved Nurse or Nurses. (emphasis added)
B. The Discharge
Maureen Bean was a registered nurse at the Hospital and a member of the bargaining unit represented by the MNA. During the course of her employment, Bean received verbal warnings several times for inappropriate behavior at work that violated hospital policy, including pulling a colleague's hair and profanely defying an order of her supervisor.
Between January 28 and February 1, 2016, Bean called the home telephone of her colleague Nancy Waterhouse five times to pressure her to withdraw a request for vacation that conflicted with Bean's request for vacation time. On February 2, 2016, as Bean entered the hospital breakroom, she grabbed Waterhouse by the face and shook her head while laughing and saying "Did you get your vacation all straightened out?" After an investigation, the Hospital determined that, in light of Bean's history and the severity of the physical confrontation, termination was the appropriate disciplinary action.
*10C. The Grievance and Arbitration
The MNA filed a grievance challenging the Hospital's decision to discharge Bean. Defendant alleged that the discharge was not for "just cause" because some lesser form of discipline should have been employed rather than termination. The grievance was not resolved and was submitted to arbitration.
The parties selected an arbitrator to hear and decide the grievance and an evidentiary hearing was convened. The parties, by joint submission, stipulated to the following issues for the arbitrator to decide:
Was the termination of Maureen Bean for just cause? If not, what shall be the remedy? (emphasis added)
During the course of the hearing, the Hospital argued that the CBA prohibited the arbitrator from substituting his judgment for that of the Hospital. Plaintiff also submitted a post-hearing brief arguing that "the arbitrator is not tasked with determining whether he would reach the same conclusion" as the Hospital and that it was entitled under the CBA to "utilize whatever level of discipline it believes is appropriate".
In June 2017, the arbitrator ruled that, despite the Hospital's arguments and the language of the CBA, there was no "just cause" for Bean's termination and he ordered the Hospital to reinstate her with back-pay. In his decision, the arbitrator found that Waterhouse had testified truthfully about the encounter with Bean and that Bean's denials were "unbelievable and untruthful". The arbitrator determined that Bean's conduct was an inappropriate and unconsented touching and that Waterhouse felt "bullied and harassed". Nevertheless, while the arbitrator found that Bean's conduct constituted "a civil battery", he determined it was "not a violent act that justifies termination in the first instance, without progressive discipline". The arbitrator concluded that while Bean "was guilty of misconduct for which there was just cause to impose discipline", that discipline should have been the next level in the Hospital's self-imposed progressive discipline policy, i.e. a written warning.
In explaining his decision to reduce Bean's sanction, the arbitrator explained that
[o]nly the most serious misconduct, so-called "capital" offenses in the workplace, justifies termination without resort to progressive discipline. These capital offenses include violence, theft, dishonesty and gross insubordination.
He stated that an employee must receive discipline at each step of the progressive discipline policy before he or she may be terminated.
The Hospital argues that the arbitrator's decision 1) violates the provisions of the CBA that a) permit the Hospital to utilize whatever level of discipline it determines to be appropriate and b) prohibit the arbitrator from substituting his own judgment for that of the Hospital and 2) directly contradicts its written disciplinary policy. The Hospital thus seeks an order vacating the arbitrator's award while the MNA petitions for its confirmation. Before the Court are the parties' cross-motions for summary judgment.
II. Motions for Summary Judgment
A. Legal Standard
The role of summary judgment is "to pierce the pleadings and to assess the proof in order to see whether there is a genuine need for trial." Mesnick v. Gen. Elec. Co.,
A fact is material if it "might affect the outcome of the suit under the governing law ...." Anderson v. Liberty Lobby, Inc.,
If the moving party satisfies its burden, the burden shifts to the non-moving party to set forth specific facts showing that there is a genuine, triable issue. Celotex Corp. v. Catrett,
B. Overview of the Parties' Arguments
There is no dispute as to any material fact. Each party thus asserts that it is entitled to summary judgment as a matter of law.
The Hospital contends that the arbitrator exceeded the scope of his authority under the CBA by substituting a lesser form of discipline for that imposed by the Hospital. It asserts that the arbitrator ignored the plain language in the CBA which 1) permits the Hospital to utilize whatever form of discipline it deems appropriate and 2) restrains the arbitrator from substituting his own discretion or judgment for that of the Hospital. Plaintiff submits that under the terms of the CBA, the arbitrator is limited to determining whether a) the employee in fact engaged in the conduct for which she was disciplined and b) that conduct constituted a violation of the Hospital's disciplinary policy. The Hospital submits that once the arbitrator made those determinations, he was not permitted to go further and determine the appropriate remedy for that violation. Furthermore, the Hospital maintains that the arbitrator's reliance on a strict progressive disciplinary policy effectively rewrites the established hospital policy in violation of the unambiguous terms of the CBA.
The MNA rejoins that the arbitrator's interpretation of the scope of his authority under the CBA was a plausible interpretation of the contract and thus the Court cannot vacate his award. Defendant maintains that: 1) plaintiff waived the argument that the CBA deprived the arbitrator of the authority to reduce Bean's penalty by failing to raise that argument during the arbitration hearing, 2) the CBA does not contain a so-called "automatic discharge provision" with a list of specific conduct constituting per se"just cause" for termination and 3) in the absence of such a provision, the contract does not foreclose the arbitrator's normal authority to review an employer's termination decision for "just cause" and to substitute his or her own form of discipline.
Finally, even assuming that the CBA forecloses the arbitrator's authority to substitute his own judgment for that of the Hospital, the MNA suggests that the Hospital effectively waived that restriction when it agreed to submit to the arbitrator the issues of "just cause" and the appropriate remedy for Bean's misconduct. The Hospital responds that the stipulated issues *12were a standard submission that did not otherwise alter the express terms of the CBA limiting the arbitrator's authority.
C. District Court Review of Arbitration Awards
1. Legal Standard
District court review of an arbitration award is exceedingly deferential and "among the narrowest known in the law". Salem Hosp. v. Mass. Nurses Ass'n,
the power and authority of an arbitrator is totally derived from the collective bargaining agreement and [the arbitrator] violates his obligation to the parties if he substitutes his own brand of industrial justice for what has been agreed to by the parties in that contract.
Ga.-Pac. Corp. v. Local 27, United Paperworkers Int'l Union,
Essentially two lines of First Circuit Court of Appeals decisions have emerged with respect to judicial review of arbitration awards. The first line of cases holds that where the CBA clearly and unambiguously lists the offenses for which immediate discharge is appropriate, the arbitrator is precluded from substituting his own form of discipline for that of the employer. See, e.g., Poland Spring Corp. v. United Food & Commercial Workers Local 1445,
The second line of cases holds that where the terms of the CBA do not unambiguously provide that certain conduct is always "just cause" for discharge, i.e. the language is not an "automatic discharge provision", then the contract does not foreclose the arbitrator's authority to reduce the penalty. See *13Crafts Precision Indus. Inc. v. Lodge No. 1836, Int'l Ass'n of Machinists & Aerospace Workers,
In addition to the terms of the CBA, the arbitrator also derives his or her authority from the parties' submission. Dorado Beach Hotel Corp. v. Union de Trabajadores de la Industria Gastronomica de P.R. Local 610,
While the First Circuit has not directly decided whether the parties' submission can supersede the express limitations on the arbitrator's authority provided in the CBA, other Circuit Courts of Appeals have concluded that the submission cannot expand the arbitrator's authority in violation of any provision of the CBA. See Butler Mfg. Co. v. United Steelworkers of Am., AFL-CIO-CLC,
The First Circuit has stated, however, that where the party maintains its objections to the scope of the arbitrator's authority, it cannot be said that the party waived those objections through its submission. See Coady v. Ashcraft & Gerel,
2. Application
There are two issues presented here: 1) whether the terms of the CBA unambiguously foreclose the arbitrator's authority to reduce the termination to a written warning and 2) even if so, whether the arbitrator *14was nevertheless authorized to impose a lesser sanction for Bean's misconduct based on the parties' joint submission.
i. Scope of the Arbitrator's Authority Under the CBA
As an initial matter, the Hospital did not waive the argument that the CBA restricted the arbitrator's authority to review its termination decision and substitute a lesser form of discipline. The arbitrator acknowledged in his arbitration award that the Hospital contested his authority to substitute his judgment for that of the Hospital. As a consequence, the Court finds that plaintiff did not waive that argument.
The terms of the CBA in this case are more analogous to those at issue in Georgia-Pacific and S.D. Warren than in Crafts Precision. As in the first two cited cases, the incorporated disciplinary policy expressly provides that certain threatening or physical conduct will subject the employee to termination on the first offense. See Poland Spring,
The language of the disciplinary policy in this case differs from the provision at issue in Crafts Precision. There, the CBA provided that "[e]mployees shall comply with all reasonable shop rules" and that certain conduct "may result in suspension, or immediate discharge, for the first offense" but did not specifically provide that a violation of any particular shop rule automatically constituted "just cause" for termination. See Crafts Precision, 889 F.2d at 1184-85. Here, the incorporated disciplinary policy expressly provides that threatening conduct or physical contact is "just cause" for immediate termination. Indeed, the Hospital's disciplinary policy provides that "[d]ischarge may result from ... a Level III offense" and elsewhere suggests that "immediate termination of employment" is the recommended disciplinary action for such an offense.
The arbitrator determined that Bean had engaged in conduct for which there was "just cause" to discipline and found that her conduct constituted a "civil battery". Such a finding is consistent with the Hospital's determination that Bean had engaged in a Group III offense for which immediate termination was justified under its disciplinary policy. Once the arbitrator determined that Bean had engaged in the specific alleged misconduct in violation of the Hospital's policy, his role was fulfilled. See S.D. Warren,
The Court's determination that the arbitrator exceeded the scope of his authority under the CBA is bolstered by two other *15contractual provisions. First, the CBA provides that "[n]o arbitrator shall have the authority to add to, subtract from, or modify the agreement in any respect". By deciding that only so-called "capital offenses" justify termination in the first instance, the arbitrator effectively modified the Hospital's disciplinary policy which provided for termination for certain "first offenses". Second, the CBA anticipates that
[t]he Hospital may utilize whatever level of discipline it believes is appropriate depending on the circumstances [and the arbitrator shall not] substitute his/her discretion or judgment for that of the Hospital.
That provision is an additional limitation on the arbitrator's authority to review plaintiff's disciplinary decisions. By substituting his own judgment for that of the Hospital, the arbitrator violated that express provision and thus exceeded the scope of his authority under that agreement. See Local 217, Int'l Union of Elec., Radio and Mach. Workers v. Holtzer-Cabot Corp.,
ii. Scope of the Arbitrator's Authority Under the Parties' Joint Submission
The Court must still determine whether, despite contractual limitations on the arbitrator's authority, the Hospital nevertheless empowered him by virtue of its submission to decide the appropriate sanction. The Court is compelled to construe the parties' CBA and submission together to determine the scope of the arbitrator's authority. See Dorado Beach,
Here, the submission on its face seems to contradict the provision of the CBA prohibiting the arbitrator from substituting his judgment or discretion for that of the Hospital. The First Circuit has left open the question of what contractual language may be sufficient to foreclose an arbitrator from crafting his or her own remedy. See N. New Eng. Tel. Operations LLC v. Local 2327, Int'l Bhd. of Elec. Workers, AFL-CIO,
The Court concludes that the provision prohibiting the arbitrator from substituting his judgment for that of the Hospital is sufficient to foreclose his conduct here even though the parties purportedly submitted the remedy issue for arbitration. Cf. CITGO Asphalt,
The Court also relies on the First Circuit's decision in Georgia-Pacific. In that case, the First Circuit held that the arbitrator exceeded the scope of his authority under the CBA when he altered the employer's form of discipline. Ga.-Pac.,
ORDER
For the foregoing reasons, plaintiff's motion for summary judgment (Docket No. 22) is ALLOWED and defendant's motion for judgment on the pleadings or, in the alternative, for summary judgment (Docket No. 25) is DENIED . The arbitrator's award is VACATED .
So ordered.
Reference
- Full Case Name
- STEWARD HOLY FAMILY HOSPITAL, INC. v. MASSACHUSETTS NURSES ASSOCIATION, Massachusetts Nurses Association, Counter v. Steward Holy Family Hospital, Inc., Counter
- Cited By
- 4 cases
- Status
- Published