Sinai Hospital of Baltimore, Inc. v. 1199 SEIU United Healthcare Workers East
Sinai Hospital of Baltimore, Inc. v. 1199 SEIU United Healthcare Workers East
Opinion of the Court
MEMORANDUM OPINION
Plaintiff Sinai Hospital of Baltimore, Inc. (“Sinai”) has filed this action against Defendant 1199 SEIU United Healthcare Workers East (“the Union”) under Section 301 of the Labor Management Relations Act, 29 U.S.C. § 185, seeking vacatur of an arbitration award in favor of the Union. Currently pending before this Court is the Union’s Motion to Dismiss or, in the Alternative, for Summary Judgment (“Motion for Summary Judgment”) (ECF No. 8). On October 20, 2014, this Court held a hearing on the pending motion (ECF No. 21). For the reasons that follow, Defendant Union’s Motion to Dismiss, or in the Alternative, for Summary Judgment, construed as a Motion for Summary Judgment,
BACKGROUND
In ruling on a motion for summary judgment, this Court reviews the facts and all reasonable inferences in the light most favorable to the nonmoving party. Scott v. Harris, 550 U.S. 372, 378, 127 S.Ct. 1769, 167 L.Ed.2d 686 (2007); see also Hardwick ex rel. Hardwick v. Heyward, 711 F.3d 426, 433 (4th Cir. 2013).
Plaintiff Sinai Hospital of Baltimore, Inc. is a not-for-profit corporation organized under Maryland law and operating in Maryland. Compl. ¶ 3, ECF No. 1. The arbitration award at issue stems from the termination of an employee of Sinai, Dennis Day (“Mr. Day”). Id. at ¶¶ 11-15. Mr. Day, a twenty-four year employee of . Sinai, is represented by Defendant Union. Compl. Ex. 1, 3, ECF No. 1-3. Under
On March 28, 2012, Mr. Day allegedly 'made threatening remarks directed at his supervisor, Paul DiPino (“Mr. DiPino”).
During the course of the investigation, Roger Sheets (“Mr. Sheets”), Sinai’s Corporate Security Director, took written statements from Mr. DiPino and Ms. Ing-vars. Id. Mr. Sheets also interviewed Mr. Day and his lunch companions, but did not ask them to submit written statements. Id. at 7. He then inspected Mr. Day’s locker, to which Mr. Day had affixed a personal lock, in violation of Sinai policy. Id. Mr. Day’s locker was filled with “clutter.” Id. During the course of removing the “clutter” from the locker, Mr. Sheets discovered a knife with a five-inch blade. Id. On the basis of Mr. Day’s possession of this knife and the alleged threats directed toward Mr. DiPino, Sinai found that Mr. Day had violated the Workplace Violence Policy and thus terminated Mr. Day on April 2, 2012.
Plaintiff filed this action against Defendant shortly after the arbitrator rendered his arbitration award. See Pl.’s Mem. in Supp. of Mot. to Vacate Labor Arbitration Award, 1-2 n. 2, ECF No. 1-2. In its Complaint and accompanying Motion, Sinai asks this Court to vacate the arbitration award and remand to the arbitrator to address alleged fundamental flaws. Compl. ¶ 16. Specifically, Plaintiff contends that he ignored critical provisions of the parties’ CBA and Sinai’s Workplace Violence Policy. See Pl.’s Mem. in Supp. of Mot. to Vacate Labor Arbitration Award, at 1. Given these alleged deficiencies, Sinai asserts that the arbitration award “fails to draw its essence” from the operative polices. Compl. ¶ 16.
After answering Plaintiffs Complaint, Def.’s Answer (ECF No. 7), Defendant moved for summary judgment on the grounds that Plaintiffs argument is not supported by the law and is overly formalistic. See Def.’s Mot. for Summ. J., ECF No. 8. In response, Plaintiff reiterated the arguments of its Complaint. Pl.’s Resp. in Opp. to Def.’s Mot. for Summ. J., ECF No. 13. The Union subsequently filed a Reply to Plaintiffs Opposition to Defendant’s Motion for Summary Judgment (ECF No. 14). This Court then granted Sinai’s Motion for Leave to File Sur-Reply (ECF No. 16) and Sinai filed its Sur-Reply to Defendant’s Motion for Summary Judgment (ECF No. 18). Finally, this Court conducted a hearing on October 20, 2014 to address the pending Motion for Summary Judgment (ECF No. 21).
STANDARD OF REVIEW
Rule 56 of the Federal Rules of Civil Procedure provides that a court “shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). A material fact is one that “might affect the outcome of the suit under the governing law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A genuine issue over a material fact exists “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. When considering a motion for summary judgment, a judge’s function is limited to determining whether sufficient evidence exists on a claimed factual dispute to warrant submission of the matter to a jury for resolution at trial. Id. at 249, 106 S.Ct. 2505. In undertaking this inquiry, this Court must consider the facts and all reasonable inferences in the light most favorable to the nonmoving party. Scott v. Harris, 550 U.S. 372, 378, 127 S.Ct. 1769, 167 L.Ed.2d 686 (2007). However, this Court must also abide by its affirmative obligation to prevent factually unsupported claims and defenses from going to trial. Drewitt v. Pratt, 999 F.2d 774, 778-79 (4th Cir. 1993). If the evidence presented by the nonmoving party is merely colorable, or is not significantly probative, summary judgment must be granted. Anderson, 477 U.S. at 249-50,106 S.Ct. 2505.
ANALYSIS
The Union, in moving for summary judgment, argues that Sinai has failed to meet the high burden for vacatur of arbitration awards set forth by the Supreme Court and the Fourth Circuit. Given the factual findings of the arbitrator, Defendant contends that there is no genuine dispute of material fact, and thus it is entitled to judgment as a matter of law. Sinai does not dispute the Union’s assertion that judgment as. a matter of law is appropriate.
Sinai bears a heavy burden in this case. This “heavy burden,” as noted by the United States Court of Appeals for the Fourth Circuit in United States Postal Service v. American Postal Workers Union, AFL-CIO,, is critical to maintain confidence in the arbitration process. See 204 F.3d at 527. As the Fourth Circuit explained, “allowing] [courts] to delve into the merits of an arbitration award” would “seriously undermine[]” the “federal policy of settling labor disputes by arbitration.” Id. If courts were free to pick apart the arbitrator’s decision, then the “binding [arbitration] process” becomes “purely an advisory one, and ultimately impair[s] the value of arbitration for labor , and management alike.” Westvaco Corp. v. United Paperworkers Int’l Union, 171 F.3d 971, 974 (4th Cir. 1999) (internal quotation marks omitted).
Given this rationale, parties that have contracted to submit their disputes to arbitration bear a heavy burden when moving for vacatur. Essentially, the arbi
The arbitrator is “bound to consider and apply the relevant contractual provisions,” as he derives his authority only from the bounds of that contract. Verizon Corporate Services Corp. v. Communications Workers of America, AFL-CIO, 362 Fed.Appx. 352, 355-56 (4th Cir. 2010); see also Champion Int’l Corp. v. United Paperworkers Int’l Union, AFL-CIO, 168 F.3d 725, 729 (4th Cir. 1999) (explaining that the arbitration award must be “grounded in the collective bargaining agreement”). When the arbitrator “has disregarded or modified unambiguous contract provisions or based an award upon his own personal notions of right and wrong,” vacatur is appropriate. Three S Delaware, Inc. v. DataQuick Information Systems, Inc., 492 F.3d 520, 528 (4th Cir. 2007); see also Patten, 441 F.3d at 235 (stating that the arbitrator cannot ignore “unambiguous” provisions in the parties’ agreement). If the language is “unqualified and admits of no exception,” then an arbitrator’s failure to apply those clear provisions will open the door for a court to second-guess the judgment of the arbitrator. Postal Serv., 204 F.3d at 528.
In this case, the arbitrator did not ignore the plain and unambiguous language of the Collective Bargaining Agreement and Workplace Violence Policy when he concluded that Sinai did not have just cause to terminate Mr. Day. Rather, he incorporated his interpretation of the operative provisions into his award such that the result is “rationally inferable.” Mr. Day allegedly violated two provisions of Sinai’s Workplace Violence Policy: (1) “[tjhreatening to injure an individual ...” (the “threats clause”);
Second, he conducted a thorough analysis of the alleged violations of the threats and weapon clauses by considering the context in which the threats were made. Context is crucial to determine the severity of an alleged action, and it is an exercise that is common in any legal analysis. Regarding the threats clause, Mr. Day was “indeed upset with Mr. DiPino” after the two men met to discuss Mr. Day’s paycheck. Id. at 17. Although such a feeling could motivate an individual to make threatening comments, Mr. Day was not so easily triggered. Rather, the record indicates that there was no evidence indicating that Mr. Day intended to go through with the actions described in his alleged threats. Mr. Day did not, after making the comments, proceed to his locker to retrieve his knife; instead, he continued to .perform his ordinary duties that day and the next. Id. at 18. Even further, the arbitrator was unable to substantiate the credibility of each witness due to Sinai’s decision to take written statements only from Mr. DiPino and Ms. Ingvars. Id. at 18-19. Given the discrepancies between the proffered accounts, the arbitrator concluded that he could make no finding as to the content of Mr. Day’s remarks. Id.
The arbitrator’s application of the .weapon clause exhibits similar fidelity. In determining that Mr. Day did violate this clause, the arbitrator understood and never disputed that mere possession of a weapon constitutes a violation of the Workplace Violence Policy. His analysis of each violation does not contradict or ignore the clear language of the relevant provisions. Employing the authority vested in him by the parties, the arbitrator simply applied the operative provisions to his factual findings.
Likewise, the arbitrator hewed to the guidance of the Workplace Violence Policy in reaching the conclusion that termination of Mr. Day was unwarranted. When an employee violates the Workplace Violence Policy, he is “subject to corrective action or discipline, most often resulting in termination of employment” (the “penalty clause”). Compl. Ex. 3, at 2 (emphasis added). Admittedly, the penalty clause does state that termination is the penalty “most often” applied. Yet, this clause does not mandate that result. Instead, the decision-maker may arguably impose any “corrective action or discipline.” In this case, several factors support a lesser penalty than discharge. First, Mr. Day is a twenty-four year employee of the hospital with an unblemished record. Second, on the basis of the arbitrator’s factual findings, there is no evidence that Mr. Day intended to carry out his alleged threats. As noted above, after he made the remarks at issue, he returned to his normal work routine. Third, the arbitrator was unable to substantiate the credibility of the
In support of its plea for vacatur, Plaintiff advances two arguments. First, Sinai contends that the arbitrator ignored essential provisions of the Workplace Violence Policy, thereby rendering the award fatally flawed and ripe for vacatur. Second, Sinai argues that the arbitrator disregarded its rationale for a robust approach to workplace violence, preferring his own conception of justice. Sinai does not quarrel with the arbitrator’s discretion to analyze whether it had just cause in terminating Mr. Day. Rather, Plaintiff argues that the arbitrator’s award is so deficient that it failed to draw its essence from the governing agreement and policy. For the following reasons, each argument is unpersuasive.
In concluding that just cause was not present, Sinai contends that the arbitrator ignored the reasonable fear of injury and penalty clauses both in substance and in form. When, as is alleged, the arbitrator “blatantly ignore[d] the unambiguous language” of the operative provisions, the Fourth Circuit demands vacatur. Mountaineer Gas, 76 F.3d at 610. While Sinai cites to the correct law, its application is misguided. Upon examination of the award, it is clear that the arbitrator understood and applied the relevant provisions of the Workplace Violence Policy. First, Sinai did not include the reasonable fear of injury clause in its Discipline Action Form that described the charges for which Mr. Day was terminated. Plaintiff did raise the reasonable fear of injury violation in its arbitration briefs. See Pl.’s Sur-Reply, 1-2, ECF No. 18. If the arbitrator was tasked with determining whether Sinai terminated Mr. Day for just cause, then the scope of his inquiry should be the violations described by Sinai at the time of the discharge. Mr. Day may have created a reasonable fear of injury in someone, but Sinai did not, according to its Discipline Action Form, terminate him for that alleged violation.
Second, the arbitrator’s failure to quote or cite to the specific language of the Workplace Violence Policy does not mandate vacatur. The Fourth Circuit does not require this level of formalism. Sinai contends that, under the guidance of Champion, 168 F.3d at 731, and Clinchfield Coal Co. v. District 28, United Mine Workers of Am. & Local Union # 1452, 720 F.2d 1365, 1368-69 (4th Cir. 1983), failure to cite or quote the relevant language is, in and of itself, grounds for vacatur. Yet, Champion and Clinchfield Coal did not establish such a broad, formal- rule. In Champion, the arbitrator failed even to apply the collective bargaining agreement, instead substituting an inoperative policy that he
In contrast, the arbitrator for Sinai and the Union applied only the Collective Bargaining- Agreement and Workplace Violence Policy, which both parties agree are the governing documents. Unlike the arbitrator in Champion, this arbitrator clearly understood and applied only the ‘ controlling provisions, as he quotes the CBA directly and discusses the. application of the Workplace Violence Policy throughout the award.
Moreover, the Fourth Circuit mandates vacatur only where the arbitrator contradicts or “blatantly ignorefs] the unambiguous language,” not the overly formalistic rule urged by Plaintiff. Mountaineer Gas, 76 F.3d at 610. Sinai argues that, even under this standard, the arbitrator’s treatment of the penalty clause should still fail. Specifically, Sinai asserts that the arbitrator’s conclusion that a warning letter, rather than termination, was the appropriate punishment, contradicts the clear language of this provision. Yet, Sinai’s argument assumes that the penalty provision unambiguously requires termination. Rather, the provision states that termination is the penalty “most often” applied. The Workplace Violence Policy gives no clues as to how frequently this penalty should be selected, or even the factors a decision-maker should consider in reaching that conclusion. Given that this provision is inherently vague and ambiguous, it can hardly be argued that the arbitrator’s conclusion contradicted the “clear” language. In fact, the arbitrator employed the discretion created by the penalty clause to determine the appropriate penalty for the situation at hand.
Finally, after reviewing the award, this Court can find no indication that the arbitrator ignored Plaintiffs significant interests in a strong workplace violence policy. This conclusion does not undermine the importance of Sinai’s concerns. As persuasively explained in Sinai’s briefs, a strong policy is critical to foster a safe hospital environment and meet the expectations of the governing hospital bodies. See PL’s Mem. in Supp. of Mot. to Vacate Labor Arbitration Award, at 15. The arbitrator did not reject these concerns when determining that a more lenient penalty was appropriate. Rather, he cited to Mr. Day’s long, unblemished record, his re
In sum, the arbitrator drew the essence of his analysis from the CBA arid the Workplace Violence Policy. He carefully considered each alleged violation and exercised the discretion vested in him by the relevant provisions to determine that Sinai did not have just cause to terminate Mr. Day. Even if this Court disagreed with the arbitrator’s conclusions, vacatur is inappropriate unless the arbitrator ignored the governing agreements and implemented his own brand of justice. Plaintiff thus has failed to meet the weighty burden for vacatur.
CONCLUSION
For the reasons stated above, Defendant Union’s Motion to Dismiss, or in the Alternative, for Summary Judgment, construed as a Motion for Summary Judgment (ECF No. 8) is GRANTED.
A séparate Order follows.
ORDER
For the reasons stated in the foregoing Memorandum Opinion, it is this third day of November, 2014, ORDERED that:
1. Defendant 1199 SEIU Healthcare Workers East’s Motion to Dismiss, or in the Alternative, for Summary Judgment, construed as a Motion for Summary Judgment (ECF No. 8) is GRANTED;
2. That judgment BE, and it hereby IS, entered in favor of the Defendant and against the Plaintiff;
3. The Clerk of the Court transmit copies of this Order and accompanying Memorandum Opinion to the parties; and
4. The Clerk of the Court CLOSE this case.
. At the October 20, 2014 hearing, Sinai and the Union agreed that, given the factual findings of the arbitrator, there is no genuine dispute as to any material facts. See ECF No. 21. Defendant’s motion is thus ripe for construing as a motion for summary judgment under Rule 56 of the Federal Rules of Civil Procedure. Id.
. Among other actions, Sinai defines "[w]ork-place violence” as: (1) "[d]eliberately causing physical injury to another person!;]” (2) "[engaging in behavior that creates a reasonable fear of injury in another person!;]” (3) "[possessing, brandishing, or using a weapon while on LifeBridge Health premises or engaged in LifeBridge Health business!;]” and (4) "[threatening to injure an individual or to damage property!.]” Compl. Ex. 3, at 1.
. Immediately prior to this incident, Mr. Day met with Mr. DiPino to discuss an ongoing paycheck dispute. Compl. Ex. 1, at 3. The parties disagree as to the tenor of the meeting — Mr. Day states that Mr. DiPino was confrontational and made "controversial” comments, whereas Mr. DiPino explains that the conversation was not antagonistic. Id. at 4.
. The Arbitrator made no conclusive finding as to the content of the alleged threats because he found that witness accounts varied dramatically. Compl. Ex. 1, at 18. He concluded that it is "difficult to substantiate” the different accounts, as Sinai look contemporaneous written statements only from Mr. DiPi-no and Ms. Ingvars, but not from Mr. Day or his lunch companions. Id. at 19.
.On its official "Disciplinary Action Form,” Sinai listed two justifications for Mr. Day’s termination. Def.’s Mot. for Summ. J. Ex. 3, 1, ECF No. 8-4. First, Sinai reported that Mr. Day "violated the LifeBridge Health Human Resources Workplace Violence policy by making threatening statements about his manager to co-workers that were witnessed by the manager himself and another member of leadership.” Id. Second, Mr. Day’s possession of a knife, in a locker "secured with his own lock, not the Hospital issued one!,]” constituted an additional violation of the Workplace Violence Policy. Id.
. As previously mentioned, the parties'agreed that their dispute is ripe for summary judgment at the Motion Hearing held on October 20, 2014.
. In the memorandum accompanying its Complaint, Sinai asserts that Mr. Symonette merely "pa[id] lip service to [these] grave concerns.” PL's Mem. in Supp. of Mot. to Vacate Labor Arbitration Award, at 15.
. Mr. Day’s Discipline Action Form, when explaining the threat-based violation, did not directly reference the threats clause. See Def.’s Mot. for Summ. J. Ex. 3, at 1. This - Court, however, will infer such a reference because Sinai described this violation as "making threatening statements about his manager,” language that closely mirrors that ' of the threats clause. Id.
. Sinai argues that Mr. Day violated a third provision&emdash;"[ejngaging in behavior that creates a reasonable fear of injury in another person”&emdash;but the Disciplinary Action Form contained no reference to this provision. See Def.'s Mot. for Summ. J. Ex. 3, at 1. This provision is a critical component of Plaintiff's opposition to the arbitration award, thus this Court will address it in turn.
. As previously noted, the arbitrator concluded that he was unable to substantiate the credibility of the witnesses due to Sinai’s failure to take contemporaneous written statements from Mr. Day and his lunch companions. See Comp. Ex. 1, at 18-19. Based on the record before this Court, Sinai took written statements only from Mr. DiPino and Ms. Ingvars. Id.
. In fact, the arbitrator referenced the Workplace Violence Policy eighteen times throughout the award. For example, he acknowledged that the Workplace Violence Policy "clearly slates that the possession [of a weapon] itself is grounds for termination.” Compl. Ex. 1, at 10.
. At the hearing on October 20, 2014, counsel for both parties acknowledged that Sinai is free to adopt such a policy at any time it chooses.
Reference
- Full Case Name
- SINAI HOSPITAL OF BALTIMORE, INC. v. 1199 SEIU UNITED HEALTHCARE WORKERS EAST
- Cited By
- 1 case
- Status
- Published