Adams Cty./Ohio Valley Local School v. OAPSE/AFSCME, Local 572 , 94 N.E.3d 937 ( 2017 )

[Cite as Adams Cty./Ohio Valley Local School v. OAPSE/AFSCME, Local 572, 2017-Ohio-6929.]
IN THE COURT OF APPEALS OF OHIO
FOURTH APPELLATE DISTRICT
ADAMS COUNTY
ADAMS COUNTY/OHIO VALLEY :
LOCAL SCHOOL, : Case No. 16CA1034
Plaintiff-Appellee, :
v. :
DECISION AND
OAPSE/AFSCME, LOCAL 572, : JUDGMENT ENTRY
Defendant-Appellant. : RELEASED: 07/13/2017
APPEARANCES:
C. Bronston McCord, III, Ennis Britton, Cincinnati, Ohio for Appellant.
Kristen E. McKinley, Ohio Association of Public School Employees, Columbus, Ohio for
Appellee.
Hoover, J.
{¶1} Defendant-Appellant, Ohio Association of Public School Employees, AFSCME,
Local 572 (“the Union”) appeals the judgment of the Adams County Court of Common Pleas
granting a motion to vacate an arbitration award filed by Plaintiff-Appellee, Adams County/Ohio
Valley Local School (“the Board”) and denying the Union’s application to confirm an arbitration
award. On appeal, the Union argues that the trial court erred in substituting its judgment and
findings for that of the arbitrator.
{¶2} Here, the Union had applied to the trial court for an order confirming the award.
Under R.C. 2711.09, a trial court shall grant such an order and enter judgment thereon, unless the
award is vacated, modified, or corrected as prescribed in sections 2711.10 and 2711.11 of the
Revised Code.
Adams App. No. 16CA1034 2
{¶3} An award can be vacated only if (1) the award was procured by corruption, fraud, or
undue means; (2) there was evident partiality or corruption on the part of the arbitrators, or any
of them; (3) the arbitrators were guilty of misconduct in refusing to postpone the hearing, upon
sufficient cause shown, or in refusing to hear evidence pertinent and material to the controversy
or of any other misbehavior by which the rights of any party have been prejudiced; or (4) the
arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and
definite award upon the subject matter submitted was not made. R.C. 2711.10.
{¶4} In the case sub judice, the record does not demonstrate that the trial court
considered R.C. 2711.10 in vacating the arbitration award. Instead, the trial court independently
reviewed the merits of the dispute as presented to the arbitrator and concluded that it had not
been established by a preponderance of the evidence that the Board violated the parties’
underlying agreement. “Such a review exceeds the scope of the trial court’s authority.” Jackson
City, Ohio Sheriff v. The Fraternal Order of Police Ohio Labor Council, Inc., 4th Dist. Jackson
No. 02CA15, 2004-Ohio-3535, ¶ 17, citing Southwest Ohio Regional Transit Auth. v.
Amalgamated Transit Union, Local 627, 91 Ohio St. 3d 108, 110, 742 N.E.2d 630 (2001).
{¶5} The trial court performed its own independent analysis of the issues involved in the
case; and it decided that the award should be vacated. However, the trial court failed to apply
R.C. 2711.10 when considering whether the arbitration award should be vacated. This exceeds
the scope of the trial court’s authority. Consequently, we sustain the Union’s assignment of error.
{¶6} Accordingly, we reverse the judgment of the trial court and remand the matter for
the trial court to review the arbitration award applying the provisions set forth in Chapter 2711 of
the Revised Code.
I. Facts and Procedural History
Adams App. No. 16CA1034 3
{¶7} The Union and the Board were parties to a collective bargaining agreement (“the
CBA”) effective from October 1, 2013 through September 30, 2016. The CBA outlined the terms
and conditions of employment for school employees who were part of the bargaining unit.
{¶8} In January 2015, the Union filed a grievance with the Board alleging that the Board
violated the CBA when it subcontracted the job of salting and plowing its parking lots to an
outside contractor and removed this work from the bargaining unit employees who usually
performed it. The grievance was eventually submitted to arbitration pursuant to the CBA.
{¶9} On June 23, 2015, an evidentiary hearing was held. The Union argued that the
Board violated the CBA by contracting out bargaining unit work, relying on the Board’s job
description for custodians and testimony regarding the work that was customarily performed by
custodians. The Board argued that it could subcontract out bargaining unit work under Article
30A of the CBA and that a similar issue had already been decided in a prior arbitration in the
Board’s favor.
{¶10} On October 13, 2015, the arbitrator sustained the Union’s grievance. The arbitrator
found that Article 30A of the CBA did not authorize the Board to subcontract out bargaining unit
work to the extent that it did during the 2014-2015 school year. It explained,
This dispute involves the contracting out of work for the 2014-2015 winter
months of the school year which falls within the Custodians’ “Performance
Responsibilities”, set forth in the Board’s job description. Such “performance
Responsibilities” include the following: “19. Shovels, plows, and/or treats icy
walkways, driveways, parking areas, and steps, as needed.”
***
Adams App. No. 16CA1034 4
Pursuant to Article 30A, the parties expressly agreed to a prohibition on
performing bargaining unit work by a supervisor or administrative employee,
except in an emergency. No emergency existed in this case. However, such an
express prohibition does not mean that the Board is free to contract out work to an
outside contractor to the extent that it did so.
***
In other words, if the Board’s position is upheld, the Board may contract
out work with impunity so long as the work is not performed by a supervisor or
administrative employee. If the Board’s position is upheld, not only would the
seniority clause be undermined, it would also undercut the clauses providing for
wages and recognition in the CBA. The Board’s position cannot be sustained.
(Docket No. 1, Ex. C, p. 7-9).
{¶11} It further concluded that this issue had not been decided in a prior arbitration in the
Board’s favor. It explained,
It is well established that prior labor arbitration awards which interpret
existing terms of an Agreement between the same parties are not binding in
exactly the same sense that authoritative legal decisions are; yet they may have a
force that can be fairly characterized as authoritative. How Arbitration Works, at
page 11-7. In this connection, the Board claims that a decision issued by
Arbitrator Phyllis E. Florman on February 28, 2012 is binding upon the
Arbitrator.
I disagree with the Board’s position on this aspect of the dispute between
the parties. The issue which Arbitrator Florman resolved is “Whether the Board
Adams App. No. 16CA1034 5
violated the Agreement when it created the position of EMIS Coordinator as a
non-bargaining unit position? If so, what is the appropriate remedy?”
***
The Union grieved the creation of the EMIS Coordinator as a non-
bargaining unit position. The Union claimed various violations of the Agreement,
but not the violation of Article 30A which is at issue in this case.
In How Arbitration Works, the following is stated:
“Any well-reasoned and well-written prior arbitration opinion has persuasive
qualities where it is ‘on point with the subject matter of a current grievance’;
however, to be given preclusive effect it must be between the same parties, must
invoke the same fact situation, must pertain to the same contractual provisions,
must be supported by the same evidence, and must concern an interpretation of
the specific agreement before the arbitrator.” At page 11-9.
In light of the aforementioned factors, it is sufficient to state that the
Florman decision has no preclusive effect in this case; clearly, it is not entitled to
any weight.
(Id. at p. 15-17).
{¶12} On January 8, 2016, the Board moved to vacate the award under R.C. 2711.10(D),
arguing that the arbitrator exceeded his powers, or so imperfectly executed them that a mutual,
final, and definite award upon the subject matter submitted was not made. Specifically, the
Board argued that the arbitrator’s decision (1) ignored clear precedent from a prior arbitration
decision that authorizes the Board’s actions; (2) could not rationally be derived from the CBA
because it was based on implication and inference; and (3) added requirements to the CBA that
Adams App. No. 16CA1034 6
did not exist in the language of the CBA. The Union responded by filing a memorandum in
opposition, as well as an application to confirm the award.
{¶13} On October 11, 2016, the trial court denied the Union’s application to confirm the
award and granted the Board’s motion to vacate the award. It explained, in part:
Arbitrator Cohen found that a previous Arbitration Award and decision by
Arbitrator Phyllis E. Florman on February 28, 2012 involving the same parties
(i.e., the Board and the Union) had no preclusive effect in this case, that her
decision was not binding, and that it was not entitled to any weight. The Florman
decision involved the Board’s creation of an EMIS Coordinator position as a non-
bargaining unit position. In the Florman decision, the Union did not grieve Article
30A as a specific Agreement violation ground. In our case, Arbitrator Cohen
relied in significant part upon “How Arbitration Works”, page 11-9, in
distinguishing our case from the Florman case. Upon this Court’s review of both
the Florman case and our case, the Court finds that the Florman decision is both
authoritative and persuasive, although not given preclusive or binding effect.
While Article 30 A is involved in our case, its failure to be asserted in the
Florman case does not render Florman’s decision to be without some weight.
However, this Court is performing its own independent analysis of the
issues involved in our case. The Court finds that Article 30 A has not been
violated by the Board, in that the third party contractor * * * to whom the contract
was awarded, is not a supervisory or administrative employee.
***
Adams App. No. 16CA1034 7
It has not been established by the requisite preponderance of the evidence
that the Board violated the [CBA]. Accordingly pursuant to O.R.C. 2117.10,
Arbitrator Cohen’s October 13, 2015 Arbitrator’s Opinion and Award is hereby
vacated in its entirety. * * *
(Docket No. 15, p. 2).
{¶14} The Union timely appealed.
II. Assignment of Error
{¶15} The Union assigns the following sole assignment of error for our review:
Assignment of Error:
THE TRIAL COURT ERRED WHEN IT SUBSTITUTED ITS OWN
ANALYSIS AND JUDGMENT FOR THAT OF THE
ARBITRATOR IN GRANTING PLAINTIFF-APPELLEE, ADAMS
COUNTY/OHIO VALLEY LOCAL SCHOOL DISTRICT BOARD OF
EDUCATION’S MOTION TO VACATE ARBITRATION AWARD.
III. Analysis
A. Standard of Review
{¶16} There is some disagreement between Ohio appellate courts as to the appropriate
standard of review for a decision affirming, modifying, correcting or vacating an arbitration
award. Some districts apply an abuse-of-discretion standard. Cleveland State Univ. v. Fraternal
Order of Police, Ohio Labor Council, Inc., 2015-Ohio-4772, 50 N.E.3d 285, ¶ 12 (8th Dist.)
(“Appellate review of a trial court’s decision confirming an arbitration award is conducted under
an abuse of discretion standard.”); Buchholz v. W. Chester Dental Group, 12th Dist. Butler No.
CA2007-11-292, 2008-Ohio-5299, ¶ 22 (“An appellate court will review the common pleas
court’s decision to confirm, modify, vacate or enforce the arbitration award based on abuse of
discretion.”); see also State, Dept. of Adm. Services, Office of Collective Bargaining v. Fraternal
Adams App. No. 16CA1034 8
Order of Police of Ohio, Ohio Labor Council, Inc., 2017-Ohio-1382, 8252, __N.E.3d __, ¶ 12
(10th Dist.) (“Generally, an appellate court reviews a trial court’s decision denying a motion to
vacate an arbitration award under an abuse of discretion standard. * * * However, when the
appeal presents a question of law, the de novo standard of review is proper.)
{¶17} Other districts apply a de novo standard, reviewing a confirmation decision only to
see if the trial court erred as a matter of law. See, e.g., Portage City Bd. of Dev. Disabilities v.
Portage City Educators’ Assn. for Dev. Disabilities, 2017-Ohio-888, __N.E.3d __, ¶ 13 (11th
Dist.) (“[W]e review the trial court’s decision de novo to determine whether any of the limited
grounds contained in R.C. 2711.10 regarding a motion to vacate exist.”); Kettering Health
Network v. CareSource, 2d Dist. Montgomery No. 27233, 2017-Ohio-1193, ¶ 10 (“This court * *
* reviews a decision confirming an arbitration award de novo, asking “whether the trial court
erred as a matter of law.” ”); Northwest State Community College v. Northwest State Community
College Edn. Assn. OEA/NEA, 2016-Ohio-8393, __ N.E.3d __, ¶ 33 (3d. Dist.) (“Although there
are strict measures in place to review the award of arbitration by the trial court, and great
deference is given to the arbitration process, we review the trial court’s decision to affirm or
vacate an arbitrator’s award de novo.”); Lauro v. Twinsburg, 9th Dist. Summit No. 23711, 2007–
Ohio–6613, ¶ 7 (“[A]n appellate court may only review the lower court’s order to discern
whether an error occurred as a matter of law.”); Bowden v. Weickert, 6th Dist. Sandusky No. S–
05–009, 2006–Ohio–471, ¶ 51 (“The standard of review to be employed on appeal is whether the
lower court erred as a matter of law in confirming the arbitration award.”).
{¶18} We too apply a de novo standard of review. Ohio Sheriff v. The Fraternal Order of
Police, Ohio Labor Council, Inc., 4th Dist. Jackson No. 02CA15, 2004-Ohio-3535, ¶¶ 19-20
(reviewing trial court’s order vacating arbitration award to see whether circumstances in R.C.
Adams App. No. 16CA1034 9
2711.10 existed). We emphasize, however, that our review is not a de novo review of the merits
of the dispute as presented to the arbitrator. Id. We review the trial court’s order vacating an
arbitration award de novo to see whether any of the statutory grounds for vacating an award
exist.
B. Vacating an Arbitration Award
{¶19} A reviewing court cannot easily overturn an arbitrator’s award. Bd. Of Trustees of
Miami Twp. v. Fraternal Order of Police, Ohio Labor Council, 81 Ohio St. 3d 269, 273, 690
N.E.2d 1262 (1998). By statute, a trial court must confirm an arbitrator’s award if does not
modify, correct, or vacate it. R.C. 2711.09. “Because Ohio law favors and encourages
arbitration, courts only have limited authority to vacate an arbitrator’s award.” Fraternal Order
of Police Capital City Lodge No. 9 v. Reynoldsburg, 10th Dist. Franklin No. 12AP–451, 2013–
Ohio–1057, ¶ 22, citing Assn. of Cleveland Fire Fighters, Local 93 of the Internatl. Assn. of Fire
Fighters v. Cleveland, 99 Ohio St. 3d 476, 2003–Ohio–4278, ¶ 13. An award can be vacated only
if
(A) The award was procured by corruption, fraud, or undue means.
(B) There was evident partiality or corruption on the part of the arbitrators, or any
of them.
(C) The arbitrators were guilty of misconduct in refusing to postpone the hearing,
upon sufficient cause shown, or in refusing to hear evidence pertinent and
material to the controversy; or of any other misbehavior by which the rights of
any party have been prejudiced.
(D) The arbitrators exceeded their powers, or so imperfectly executed them that a
mutual, final, and definite award upon the subject matter submitted was not made.
Adams App. No. 16CA1034 10
(Emphasis added.) R.C. 2711.10.
{¶20} “An arbitrator exceeds his or her authority in rendering an award if the award does
not draw its essence from the collective bargaining agreement.” Reynoldsburg at ¶ 23,
citing Queen City Lodge No. 69, Fraternal Order of Police, Hamilton City, Ohio, Inc. v.
Cincinnati, 63 Ohio St. 3d 403, 406, 588 N.E.2d 802 (1992). An arbitrator’s award draws its
essence from a collective bargaining agreement “when there is a rational nexus between the
agreement and the award, and where the award is not arbitrary, capricious, or unlawful.” Id.,
citing Mahoning City Bd. of Mental Retardation & Dev. Disabilities v. Mahoning City TMR Edn.
Assn., 22 Ohio St. 3d 80, 488 N.E.2d 872 (1986), paragraph one of the syllabus. “Once it is
determined that the arbitrator’s award draws its essence from the [agreement] and is not
unlawful, arbitrary, or capricious, a reviewing court’s inquiry for purposes
of vacating an arbitrator’s award pursuant to R.C. 2711.10(D) is at an end.” Bd. of Edn. of the
Findlay City School Dist. v. Findlay Education Assn. et al., 49 Ohio St. 3d 129, 551 N.E.2d 186
(1990), paragraph two of the syllabus.
{¶21} In contrast, an arbitrator’s award departs from the essence of the collective
bargaining agreement when “(1) the award conflicts with the express terms of the agreement,
and/or (2) the award is without rational support or cannot be rationally derived from the terms of
the agreement.” Ohio Office of Collective Bargaining v. Ohio Civil Serv. Employees Assn., Local
11, AFSCME, AFL–CIO, 59 Ohio St. 3d 177, 572 N.E.2d 71, paragraph one of the syllabus.
{¶22} “ ‘[A]s long as the arbitrator is even arguably construing or applying the contract
and acting within the scope of his authority, that a court is convinced he committed serious error
does not suffice to overturn his decision.’ ” Summit City Bd. of Mental Retardation & Dev.
Disabilities v. Am. Fedn. of State, City & Mun. Employees, 39 Ohio App. 3d 175, 176, 530
Adams App. No. 16CA1034 11
N.E.2d 962 (9th Dist.1988), quoting United Paperworkers Internatl. Union, AFL–CIO v. Misco,
Inc., 484 U.S. 29, 38, 108 S. Ct. 364, 98 L. Ed. 2d 286 (1987).
{¶23} “The limited scope of judicial review [derives] from the fact that arbitration is a
creature of contract. Contracting parties who agree to submit disputes to [arbitration] for final
decision have chosen to bypass the normal litigation process.” City of Portsmouth v. Ohio
Council 8, Am. Fedn. of State, City & Mun. Employees, 141 Ohio App. 3d 423, 429, 751 N.E.2d
536 (4th Dist.2001), quoting Motor Wheel Corp. v. Goodyear Tire & Rubber Co., 98 Ohio
App.3d 45, 52, 647 N.E.2d 844 (8th Dist.1994). Thus, “[a]n arbitrator’s award is not subject to
reversal simply because the reviewing court disagrees with the arbitrator’s findings of fact or
with his interpretation of the contract.” Jackson City, Ohio Sherriff, 2004-Ohio-3535, at ¶ 17,
citing Goodyear Tire & Rubber Co. v. Local Union, No. 200, 42 Ohio St. 2d 516, 520, 330
N.E.2d 703 (1975). Otherwise, “[a]rbitration, which is intended to avoid litigation, would instead
merely become a system of ‘junior varsity trial courts’ offering the losing party complete and
rigorous de novo review.” City of Piqua v. Fraternal Order of Police, Ohio Labor Council, Inc.,
185 Ohio App. 3d 496, 2009-Ohio-6591, 924 N.E.2d 876, ¶ 16, quoting City of Dayton v.
Internatl. Assn. of Firefighters, Local No. 136, 2007-Ohio-1337, ¶ 13 (2nd Dist. Montgomery),
quoting Motor Wheel Corp. at 52.
C. The Trial Court Erred in Failing to Review the Arbitration Award Under R.C.
2711.10(D)
{¶24} In reviewing the arbitration award, the trial court stated that it was “performing its
own independent analysis of the issues in our case.” (Emphasis added.) (Docket No. 15, p. 2).
After considering the evidence, it found that the CBA did not prohibit the Board from
subcontracting out bargaining unit work to an outside contractor because outside contractors fell
Adams App. No. 16CA1034 12
outside the scope of Article 30A. It therefore concluded that it had not been established by a
preponderance of the evidence that the Board violated the CBA.
{¶25} The Union argues that the trial court erred in substituting its judgment and opinion
for that of the arbitrator. Specifically, it argues that the trial court overstepped its bounds when it
performed an independent analysis of the issues that were already raised during the arbitration
hearing instead of considering the limited issue whether the arbitration award drew its essence
from the CBA.
{¶26} The Board argues that the trial court implied that the arbitration award did not
draw its essence from the CBA when it found that outside contractors fell outside the scope of
Article 30A. Thus, it contends that the trial court properly vacated the arbitrator’s award under
R.C. 2711.10(D).
{¶27} Under R.C. 2711.10(D), the trial court was limited to considering whether the
arbitrator exceeded his powers, or so imperfectly executed them that a mutual, final, and definite
award upon the subject matter submitted was not made (i.e., whether the arbitration award drew
its essence from the CBA). Rather than considering this issue, the trial court conducted its own
analysis of the issues presented to the arbitrator and concluded that it had not been established by
a preponderance of the evidence that the Board violated the CBA. This type of review is
improper under R.C. 2711.09 and R.C. 2711.10. Jackson City, Ohio Sheriff, 4th Dist. Jackson
No. 02CA15, 2004-Ohio-3535, ¶ 17, citing Southwest Ohio Regional Transit Auth. v.
Amalgamated Transit Union, Local 627, 91 Ohio St. 3d 108, 110, 742 N.E.2d 630 (2001).
{¶28} While the Board argues that the trial court implied that the arbitration award did
not draw its essence from the CBA, our review of an arbitration award is confined to an
evaluation of the trial court’s order confirming, modifying or vacating the arbitration award. City
Adams App. No. 16CA1034 13
of Cleveland v. Cleveland Police Patrolmen's Assn., 2016-Ohio-702, 47 N.E.3d 904, ¶ 22 (8th
Dist.), citing Miller v. Mgt. Recruiters Internatl., Inc., 180 Ohio App. 3d 645, 2009-Ohio-236,
906 N.E.2d 1162, ¶ 9 (8th Dist.), citing Lynch v. Halcomb, 16 Ohio App. 3d 223, 475 N.E.2d 181
(12th Dist.1984), paragraph two of the syllabus. Here, the trial court stated that it was vacating
the arbitration award because it believed that it had not been established by a preponderance of
the evidence that the Board violated the CBA. It neither contemplated R.C. 2711.10(D) nor
concluded that the arbitration award did not draw its essence from the CBA.
{¶29} Therefore, since the record demonstrates that the trial court conducted an
independent analysis of the issues presented to the arbitrator, rather than engaging in a review
under R.C. 2711.10(D), the trial court erred as a matter of law. Compare Jackson City, Ohio
Sherriff at ¶¶ 17-23 (considering whether arbitrator exceeded his powers where the trial court’s
order contemplated R.C. 2711.10(D)).
{¶30} We sustain the Union’s assignment of error.
IV. Conclusion
{¶31} Accordingly, we reverse the judgment of the trial court and remand the matter so
that the trial court can review the arbitration award under R.C. 2711.10.
JUDGMENT REVERSED AND REMANDED.
Adams App. No. 16CA1034 14
JUDGMENT ENTRY
It is ordered that the JUDGMENT IS REVERSED AND REMANDED. Appellee shall
pay the costs.
The Court finds that reasonable grounds existed for this appeal.
It is ordered that a special mandate issue out of this Court directing the Adams County
Court of Common Pleas to carry this judgment into execution.
IF A STAY OF EXECUTION OF SENTENCE AND RELEASE UPON BAIL HAS
BEEN PREVIOUSLY GRANTED BY THE TRIAL COURT OR THIS COURT, it is
temporarily continued for a period not to exceed sixty days upon the bail previously posted. The
purpose of a continued stay is to allow Appellant to file with the Supreme Court of Ohio an
application for a stay during the pendency of proceedings in that court. If a stay is continued by
this entry, it will terminate at the earlier of the expiration of the sixty day period, or the failure of
the Appellant to file a notice of appeal with the Supreme Court of Ohio in the forty-five day
appeal period pursuant to Rule II, Sec. 2 of the Rules of Practice of the Supreme Court of Ohio.
Additionally, if the Supreme Court of Ohio dismisses the appeal prior to expiration of sixty days,
the stay will terminate as of the date of such dismissal.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of the
Rules of Appellate Procedure.
Harsha, J.: Concurs in Judgment and Opinion.
Abele, J.: Concurs in Judgment Only.
For the Court
BY: ____________________________
Marie Hoover, Judge
NOTICE TO COUNSEL
Pursuant to Local Rule No. 14, this document constitutes a final judgment entry and
the time period for further appeal commences from the date of filing with the clerk.