Government of the Virgin Islands, Department of Justice v. United Industrial, Service Transportation, Professional & Government Workers of North America Seafarers International Union
Opinion of the Court
MEMORANDUM OPINION
(December 12, 2011)
These consolidated cases are before the Court for final disposition. The first matter, Case No. ST-ll-CV-308 (“Case No. 308”), was filed by the Government of the Virgin Islands (“Government”) against the United Industrial, Service, Transportation, Professional, and Government Workers of North America Seafarers International Union (“Union”), seeking to vacate an arbitrator’s award issued in favor of grievant Ernest F. Bason, Esquire. The second case, Case No. ST-ll-CV-364 (“Case No. 364”), is an action brought by the Union against the Government to confirm the same arbitrator’s award. After reviewing the
I. FACTUAL AND PROCEDURAL BACKGROUND.
On February 24, 1997, Ernest F. Bason, Esquire (“Attorney Bason”) commenced his service with the Virgin Islands Department of Justice, Office of the Attorney General, as an assistant attorney general.
On July 1, 2010, Vincent F. Frazer, Esquire, Attorney General of the Virgin Islands, issued a letter addressed to Attorney Bason, which was copied to Dr. Valdemar Hill, the Chief Negotiator within the Office of Collective Bargaining, and Mr. Eugene Irish, Vice President of the Union.
It is not clear when the recommendation of termination was transmitted to the Governor, or the contents of said recommendation. However, by letter dated July 23, 2010, to Attorney Bason Governor John P. de Jongh, Jr. terminated him based on the recommendation of the Attorney
On August 25, 2010, the Union also notified the Government of its filing of Grievance No. 033-10, disputing the termination of Attorney Bason.
The Government moved to dismiss the arbitration proceeding, contending that the grievance filed by the Union was untimely.
On May 9, 2011, the Government commenced Case No. 308 by filing a five-count complaint requesting that the Superior Court vacate the arbitrator’s award. The Union has moved to dismiss that action. On June 7, 2011, the Union filed Case No. 364 to confirm the same arbitration award. The Government filed a multi-count counterclaim to the Union’s action. On June 30, 2011, the Union filed a motion to consolidate the two cases. The Court orally granted said motion at a hearing held on July 28, 2011, and reduced the decision to writing by Order dated August 1, 2011. On July 28, 2011, the Court also heard arguments on the Union’s two motions for partial summary judgment and its motion for expedited hearing. By Memorandum Opinion and Order dated August 1, 2011, the Court treated all three of the Union’s motions as one request for preliminary injunction and denied the same.
At this time, presently before the Court are the Union’s motion to dismiss and motion for summary judgment in Case No. 308, and motion to confirm the arbitration award in both cases. Also, before the Court are the Government’s and Union’s motions for summary judgment in both cases seeking a complete vacatur of Arbitrator Shea’s award.
II. LEGAL ANALYSIS.
a. Jurisdiction of the Superior Court over actions to vacate or confirm an arbitration award.
The Superior Court of the Virgin Islands has jurisdiction to hear requests to confirm or vacate an arbitrator’s award under the provisions of
A party has one year within which it must move an appropriate court to enforce an arbitration agreement.
b. Standard of review on the Government’s request to vacate the arbitrator’s award and the Union’s motion to confirm the same.
The Government seeks to vacate the arbitrator’s award and a declaratory judgment that the Government is not bound by the decision of the arbitrator to reinstate Attorney Bason. The provisions of Section 10(a) of the FAA constitute the exclusive bases on which an arbitration award may be vacated
The Third Circuit succinctly stated the standard under which courts must review an arbitrator’s decision.
The United States Supreme Court has consistently held that courts exercise a narrow and deferential role in reviewing arbitration awards arising from labor disputes. The rationale for this limited role is to encourage the arbitration of labor disputes and not undermine them by excessive court intervention on the merits of an award. In light of this policy of encouraging arbitration awards, there is a strong presumption in their favor. The court must uphold an award that “draws its*449 essence from the collective bargaining agreement.” An award draws its essence from a collective bargaining agreement if “its interpretation can in any rational way be derived from the agreement, viewed in light of its language, its context, and any other indicia of the parties’ intention.” Thus, we should not vacate an award simply because we would have reached the opposite conclusion had we been the original arbitrator. Rather, an award should only be vacated if there is no support in the record for the arbitrator’s determination or if the arbitrator demonstrates a manifest disregard for the agreement entirely unsupported by principles of contract construction.28
Applying this standard to the Government’s and Union’s motions for summary judgment, the arbitrator’s factual decisions must be upheld “... unless they are rebutted by a clear preponderance of the evidence.”
Notwithstanding the deference to be accorded to an arbitration award, a trial court is not to simply “rubber stamp” an arbitrator’s decisions.
c. The arbitrator did not err in concluding that the Union’s termination grievance was timely filed, but erred in awarding Attorney Bason relief prior to July 23, 2010.
In its first assignment of error, the Government contends that the arbitrator wrongly concluded that the Union’s grievance was filed within the limitations period of the CBA. In its argument that the grievance was untimely, the Government posits that the arbitrator’s decision does not draw its essence from the CBA, and, consequently, he exceeded his authority.
The Union counters that the grievance regarding the Governor’s termination letter was timely filed. The Governor’s termination letter was received by the Union, according to it, on August 16, 2010, and the grievance was filed on August 25, 2010. If this is correct, then the grievance was filed within the time limits set in the CBA.
In his decision, the arbitrator noted that the CBA clearly provided that a grievance contesting an employer’s action must be filed within ten (10) working days of the occurrence of the grieved action or when the grievant first knew of the alleged contractual violation. The arbitrator further noted that the agreement provided that, if the grievant or the Union failed to
The arbitrator determined that, in the contractual environment created by Article XIX of the Agreement, the termination of the grievant’s employment was a continuum of events. He found that this continuum commenced with the Attorney General’s July 1, 2010, notification to Attorney Bason of his intent to recommend to the Governor the termination of the grievant’s employment, and ended with the Governor’s July 23, 2010 approval of that recommendation. The arbitrator further determined that while the CBA provided the grievant with the opportunity to contractually challenge the Attorney General’s recommendation by filing a grievance, such opportunity did not usurp the grievant or the Union’s right to file a grievance pursuant to Article X on the final element of the continuum effectuating the recommended termination of the grievant’s employment. The arbitrator noted that the tolling of the period for filing a grievance on either of these actions commenced upon the grievant’s receipt of the related notifications of those events. He reasoned that to find otherwise would reduce the Governor’s review of the Attorney General’s recommendation to a mere formality.
However, of concern to the Court is that neither the parties nor the arbitrator properly addressed the fact that the July 1, 2010 letter of the Attorney General and the July 23, 2011 letter of the Governor were the subject of two separate grievances and constituted two separate “occurrences” under the CBA. In the Grievance No. 029-10, the Union sought to grieve the recommendation of termination, Attorney Bason’s suspension, and the concomitant fifty percent (50%) pay cut effective July 26, 2010. However, this grievance was withdrawn by the Union, and could not have been before the arbitrator.
However, as to the remainder of the award, taking the record as a whole, the Court finds the Government’s arguments on the timeliness of the Grievance No. 033-10 to be unpersuasive. The facts found by the arbitrator to sustain his conclusion that the grievance was timely filed are: 1) the Attorney General issued a letter on July 1, 2010 advising Attorney Bason of the intention to recommend termination to the Governor; 2) the Governor issued a letter dated July 23, 2010 to Attorney Bason advising of his termination • based on said recommendation; 3) that the Union received notice of the termination letter on August 16, 2010; and 4) the grievance was filed on August 25, 2010. Importantly, the arbitrator found that there was no evidence of when the Attorney General actually submitted his recommendation to the Governor, and, if so, the contents, or the evidence in support, of that recommendation.
The Court also cannot conclude as a matter of law that the arbitrator exceeded his authority in this regard. His conclusion that the July 23, 2010 Governor’s letter of termination could be grieved is a rational interpretation of the terms of the CBA.
Additionally, the arbitrator’s conclusion that the Governor was the officer who actually had the authority to terminate Attorney Bason is supported by Virgin Islands case law.
d. The arbitrator’s decision to reinstate Attorney Bason is not contrary to Virgin Islands public policy.
As its second basis for vacatur of the arbitration award, the Government contends that the decision of the arbitrator to reinstate Attorney Bason is contrary to established Virgin Islands public policy. As noted above, the Supreme Court has held that Section 10(a) of the FAA contains the exclusive bases for vacating an arbitration award under the Act.
Herein, the Government posits that the arbitrator’s reinstatement decision interferes with the authority of the Governor to terminate assistant attorneys general at will because they are exempt employees. The Government points to portions of the Virgin Islands Code and other acts which: 1) declare that exempt employees are not employees which may be represented by a collective bargaining unit,
The Court determines the legal authority cited by the Union to be inapposite. Section 66 of Title 24, Virgin Islands Code, establishes the right of private sector employees to engage in collective bargaining, and
While the Government cites to applicable authority, the Court cannot agree with the conclusion that all assistant attorneys general are exempt employees. Under the Revised Organic Act of the Virgin Islands, a federal law which provides the framework for the Government, the Governor of the Virgin Islands has the authority to “. . . appoint, and shall remove, all officers and employees of the executive branch of the government of the Virgin Islands, except as otherwise provided in this or any other Act of Congress, or under the laws of the Virgin Islands. . . .”
But, in 1968 the Government promulgated its employee classification system. In 1969, via Act No. 2443, the Government listed a number of employment positions which are designated as exempt under this system. Contrary to the assertion of the Government in its brief, not all assistant attorneys general were exempted from the classified service. Rather, the exact language designates “Assistant Attorney General (First and Second)” as exempt employees. Based on the record, the Government never presented to the arbitrator any evidence .that Attorney Bason was a First or Second Assistant Attorney General. The Government also failed to make that argument in its briefs to this Court, or to present a definition of those positions. The CBA itself declares that it covers “All Assistant Attomeys-General” and then lists several positions which it does not
Because only First and Second Assistant Attorney General are expressly exempted under Title 3, Chapter 25, Virgin Islands Code, the remaining assistant attorneys general within the Department of Justice are employees within the meaning of 24 V.I.C. § 362(g), and may, and did, participate in the collective bargaining process. Because assistant attorneys general are public employees within the meaning of this section, the applicable policy is that which “. . . declares that the Government of the United States Virgin Islands shall fully accept the principle and procedure of collective bargaining and shall bargain in good faith with valid public employee organizations. . . ,”
e. The effect of pending Supreme Court proceedings on the reinstatement of Attorney Bason.
The Government also contends that reinstatement of Attorney Bason to the position of assistant attorney general is against public policy because his special admission to practice law was suspended by the Supreme Court.
. Second, the Government need not move for Attorney Bason’s reinstatement of his special admittance in the Supreme Court. This Court takes judicial notice
III. CONCLUSION
The Court determines that the arbitrator exceeded his authority to the extent that he awarded relief to Attorney Bason which covers any period prior to July 23, 2010. However, the Government has not demonstrated that the arbitrator exceeded his authority with respect to the remainder of the award. Moreover, there is no reason in the record on which the Court may properly decline to enforce the award, except for that portion detailed above. Therefore, the Court will confirm the immediate reinstatement of Ernest Bason, Esquire as an assistant attorney general with the Virgin Islands Department of Justice, Office of the Attorney General, with all benefits, seniority, and back pay retroactive to July 23, 2010. The Court also will direct the Government to advise the Supreme Court of Attorney Bason’s reinstatement by a date certain. A judgment which disposes of the parties’ respective motions consistent with this opinion will be entered herewith.
See, Notice of Personnel Action attached to the Union’s Informative Motion dated August 11,2011, and Exhibit No. 1 attached to the Government’s Notice of Filing dated August 22, 2011 a^l.
Testimony of Attorney Bason at the hearing of July 28, 2011.
Testimony of Attorney Bason at the hearing of July 28, 2011.
Joint Record of Arbitration Proceedings (“JR”) at 47-48.
Although the letter does not so expressly state, it appears that the effective date was set at July 26, 2010 because Attorney Bason already was serving a suspension which was set to expire on July 25, 2010. See, JR at 46.
JR at 1-41 and 179-219.
JR at 49.
JR at 54-55.
JR at 56.
JR at 57.
JR at 50-51.
JR at 52.
JR at 53.
JR at 174.
JR at 363-366.
JR at 367-384.
Government v. United Indus., Serv., Transp., Prof'l and Gov’t Workers of N. Am. Seafarers Int’l Union, No. ST-11-CV-308, 2011 V.I. LEXIS 44 (V.I. Super. Ct. Aug. 1, 2011).
Also before the Court are motions to strike filed by both panics, as well as the Union’s motion for expedited decision. The Court will dispose of these motions via a separate order of even date.
Government v. United Indus. Workers, N.A., 169 F.3d 172, 175-178, 40 V.I. 489 (3d Cir. 1999).
Id. (citing V.I. Code Ann. tit. 1, §4 and Restatement (Second) of Contracts § 345(f)).
U.S.C. §§ 9,10.
Government v. United Indus. Workers, N.A., 169 F.3d at 178 n. 9.
In re People, 51 V.I. 374, 389 n. 9 (V.I. 2009).
U.S.C. § 9.
U.S.C. § 12.
U.S.C. § 9.
Hall Street Assocs., LLC v. Mattel, Inc., 552 U.S. 576, 582-584, 128 S. Ct. 1396, 170 L. Ed. 2d 254 (2008).
Accuride Erie, L.P. v. Int’l Union, Auto., Aerospace & Agric. Implement Workers of Am., Local Union 1186, 257 Fed. Appx. 574, 578 (3rd Cir. 2007) (all citations omitted).
Roofers Local No. 30 Combined Pension Fund v. D.A. Nolt, Inc., 444 Fed. Appx. 571, 573-74 (3d Cir. 2011) (quoting Crown Cork & Seal Co., Inc. v. Cent. States Se. and Sw. Areas Pension Fund, 982 F.2d 857, 860 (3d Cir. 1992)).
Int’l Ass’n of Machinists and Aerospace Workers, Dist. 776 v. Texas Steel Co., 538 F.2d 1116, 1119 (5th Cir. 1976).
Roofers Local No. 30 Combined Pension Fund v. D.A. Nolt, Inc., 444 Fed. Appx. at 573-74.
Metromedia Energy, Inc. v. Enserch Energy Servs., Inc., 409 F.3d 574, 579 (3d Cir. 2005) (quoting Matteson v. Ryder Sys. Inc., 99 F. 3d 108, 113 (3d Cir. 1996)).
See, 9 U.S.C. § 10(a)(4).
JR at 57.
JR at 375.
JR at 378.
See, Roofers Local No. 30 Combined Pension Fund v. D.A. Nolt, Inc., 444 Fed. Appx. at 573-74.
CBA at Art. X, Section 6. A. The Court notes that nothing in the record indicates that the July 1,2010 and September 2, 2010 letters of the Attorney General or the July 23, 2010 letter of the Governor were transmitted to the Shop Steward. Indeed, neither side identifies who was the Shop Steward for this Unit. However, the Court will not address the impact of this potential failure as it was not raised by the parties at the arbitration or in their written submissions to this Court.
CBA at Preamble, Art. X, § 6. A (JR at 3,18).
See, Accuride Erie, L.P. v. Int’l Union, Auto., Aerospace & Agric., Implement Workers of Am., Local Union 1186, 257 Fed. Appx. at 578.
Finch-Sheen v. United Indus., Serv., Transp., Prof'l and Gov’t Workers of N. Am. Seafarers Int’l Union, 20 V.I. 125 (D.V.I. 1983) (holding that the Governor, not the Attorney General, has the authority to terminate assistant attorneys general).
24 V.I.C. § 374(h).
Hall Street Assocs., LLC v. Mattel, Inc., 552 U.S. 576, 582-584, 128 S. Ct. 1396, 170 L. Ed. 2d 254 (2008).
See, Rite Aid New Jersey, Inc. v. United Food Commercial Workers Union, Local 1360, 449 Fed. Appx. 126, 129 n.3 (3rd Cir. 2011).
W.R. Grace and Co. v. Local Union 759, 461 U.S. 757, 766, 103 S. Ct. 2177, 76 L. Ed. 2d 298 (1983).
See, Johnson v. Gruma Corp., 614 F.3d 1062, 1069 (9th Cir. 2010) (“. . . an arbitrator exceeds his powers when he . . . issues an award that violates a well-defined policy . . .”) (applying California law); Med. Mktg. Int’l, Inc. v. Internazionale Medico Scientifica, S.R.L., No. CIV. A. 99-0380, 1999 U.S. Dist. LEXIS 7380, at *4 (E.D. La. May 17, 1999) (“Instances in which the arbitrators ‘exceed their powers’ may include violations of public policy...”) (citations omitted).
Stroehmann Bakeries, Inc. v. Local 776, Int’l Bhd. of Teamsters, 969 F.2d 1436, 1441 (3d Cir. 1992) (citation omitted).
Local 97, Int’l Bhd. of Elec. Workers v. Niagara Mohawk Power Corp., 196 F.3d 117, 125 (2d Cir. 1999) (citation omitted).
24 V.I.C. § 362(g)(2).
Act No. 2443, 1969 V.L Sess. Laws 97.
See, 24 V.I.C. § 62 (excluding “public employees” as defined in Title 24, Ch. 14, Virgin Islands Code, from definition of “employee” in Title 24, Ch. 3, Virgin Islands Code.).
24 V.I.C. § 2.
Revised Organic Act of the Virgin Islands 1954, as amended, § 11, 48 U.S.C. § 1591, reprinted in V.I. Code Ann., Historical Documents, Organic Acts, and U.S. Constitution at 134 (1995) (preceding V.I. CODE Ann. tit. 1) (“Revised Organic Act”).
3 V.I.C. § 113(a).
CBA Article 1, Section 1.
24 V.I.C. §361.
Brentwood Med. Assocs. v. United Mine Workers of Am., 396 F.3d 237, 241 (3d Cir. 2005).
See, In re Application of Bason, S. Ct. BA. No. 2010-0143, Order (V.I. Sept. 20, 2010).
The Court’s concern grows out of the possibility that the failure to provide the Supreme Court with this information may have run afoul of the ethical rules applicable to the practice of law in the Virgin Islands. See, MODEL Rules Of Prof’L Conduct 3.3 Comment [3] (“There are circumstances where failure to make a disclosure is the equivalent of an affirmative misrepresentation.”). Because the motion seeking Attorney Bason’s suspension was filed in the Supreme Court, this Court is without jurisdiction to make any final determination in this regard.
Fed. R. Evid. 201.
See, In re Application of Bason, S. Ct. BA. No. 2010-0143, Order (V.I. Nov. 9, 2011).
B ecause this opinion and accompanying judgment and order adequately set forth the status of the parties, the Court exercises its discretion to deny the Government’s request for declaratory judgment. See, Flavo-Rich v. Quinn, 18 V.I. 530, 532 (D.V.I. 1981) (“The decision to entertain a declaratory action is within the discretion of the Court.”) (citation omitted). Such relief is not necessary under the circumstances, and would not further the interests of justice.
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