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Arbitration Law Memo September 2004
by Ross Runkel at LawMemo

*** Arbitration - Individual Contracts ***

*** Arbitration - Collective Bargaining Agreements ***

*** Arbitration - Individual Contracts ***

CA - State law claims were subject to arbitration agreement.

Buckhorn v. St Jude Heritage Medical Group (California Ct App 08/31/2004)
http://caselaw.lp.findlaw.com/data2/californiastatecases/g032748.pdf

Buckhorn was discharged from his job as a physician.  He sued the employer, asserting various state law claims.  The employer moved to compel arbitration, but that motion was denied by the trial court.  The court reversed, concluding that "all alleged torts were rooted in [the] employment contract and thus fell within [the] arbitration clause."

CA - Employer's motion to compel arbitration was properly denied under Code of Civil Procedure Section 1281.2, subdivision (c).

Whaley v. Sony Computer Entertainment America (California Ct App 08/05/2004)
http://caselaw.lp.findlaw.com/data2/californiastatecases/d043188.pdf

The employer sued former employees of a company purchased by the employer, claiming they were involved in a scheme to defraud the employer.  One of the employees filed a cross-complaint.  On the same day that the cross complaint was filed, Whaley filed suit against the employer for (among other things) breach of contract, fraud, and unpaid wages. 

The employer moved to compel arbitration of Whaley's claim.  Whaley resisted that motion, and moved to consolidate his claim with that of the other employee (who was not a signatory to any arbitration agreement with the employer).  The trial court denied the motion to compel arbitration, relying on Code of Civil Procedure Section 1281.2, subdivision (c).  That subdivision allows a trial court to deny a motion to compel arbitration when "[a] party to the arbitration agreement is also a party to a pending court action or special proceeding with a third party, arising out of the same transaction or series of related transactions and there is a possibility of conflicting rulings on a common issue of law or fact."  The employer appealed, and the court affirmed.  The court concluded that "the trial court did not misapply the law in denying the motion pursuant to Code of Civil Procedure section 1281.2, subdivision (c)."

*** Arbitration - Collective Bargaining Agreements ***

MI - Arbitrators erred in concluding that issues weren't timely raised by police officers' union under Act 312.

Police Officers Assn of Michigan v. Ottawa County Sheriff (Michigan Ct App 08/19/2004)
http://www.lawmemo.com/emp/docs/mi/poam.pdf

The trial court concluded that a panel of arbitrators hadn't erred when it declined to consider the police officers' union's last best offer concerning the right to retroactively arbitrate grievances.  The arbitrators had refused to consider the issue on the basis that Act 312, which provides for compulsory arbitration of labor disputes in municipal police and fire departments, prohibits consideration of arbitration related issues raised near or at the arbitration hearing.  The court reversed, noting that pursuant to Section 8 of Act 312, "the Legislature intended to grant arbitration panels discretion to determine the economic issues in dispute either at the hearing or before the conclusion of [the] hearing."

8th - Award on union's jurisdiction over work affirmed.

Minneapolis-St. Paul Mailers Union v. Northwest Publications  (8th Cir 08/13/2004)
http://caselaw.lp.findlaw.com/data2/circs/8th/033082p.pdf

The union sought to vacate a grievance arbitration award rendered in the employer's favor.  The arbitrator decided that certain work was not within the union's jurisdiction. The trial court confirmed the award.  The 8th Circuit affirmed.  The court concluded, in part, that the arbitration award drew its essence from the collective bargaining agreement in effect between the union and employer.

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Editor: Ross Runkel, Professor of Law Emeritus. email Ross@LawMemo.Com, Phone 503-399-8028. Copyright LawMemo, Inc.

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