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Manifest disregard for the law
August 06, 2005 by Ross Runkel at LawMemo

"Manifest disregard for the law" is an issue that rarely comes up when courts review arbitration awards, especially in the context of a collective bargaining agreement.

The company fired an employee for excessive absences. The union grieved arguing that the last absence should have been excused because it qualified as FMLA leave. The collective agreement expressly incorporated the requirements of the FMLA.

The arbitrator reinstated the employee, finding that the absence was FMLA-qualified.

The company tried to overturn the arbitrator's award, claiming the arbitrator exhibited a manifest disregard for the requirements of the FMLA. Specifically, the argument was that the employee's illness did not render her unable to work.

The court affirmed the award, Electrolux v. UAW (8th Cir 08/05/2005), saying:

• The evidence "shows at most that the arbitrator committed an error in judgment, and mere error by the arbitrator is not a basis for reversal."
• The decision, "while possibly erroneous, drew its essence from the collective bargaining agreement, and we must enforce his award."

My view:

• Correct decision.
• Technically, analysis of "disregard of the law" should be used only when an arbitrator is directly interpreting the law, such as in an individual arbitration where an employee claims that the employer violated the FMLA. Here, the FMLA was incorporated into (and became part of) the contract, so the question is whether the award drew its essence from the contract. Same result either way.

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