DocketNumber: 105209
Citation Numbers: 2018 Ohio 1079, 108 N.E.3d 1220
Judges: Keough, Kilbane, McCORMACK, McCormack
Filed Date: 3/22/2018
Status: Precedential
Modified Date: 10/19/2024
{¶ 1} Plaintiff-appellant, Cuyahoga Metropolitan Housing Authority ("CMHA"), appeals from the judgment of the Cuyahoga County Common Pleas Court that affirmed an arbitrator's award reinstating Detective Robert Wohlheter ("Wohlheter") after he was terminated by CMHA for his conduct in an incident involving a suspected drug transaction, and for his conduct during the subsequent investigation of the incident. For the reasons that follow, we affirm the trial court's decision.
I. The December 3, 2013 Incident
{¶ 2} Wohlheter worked in the CMHA police department as a detective. On December 3, 2013, he and two other detectives, Robert Weis ("Weis") and Clinton Ovalle ("Ovalle"), were conducting "quality of life" patrols on Lakeview Estates, a CMHA property. As found by the arbitrator, the events leading to the instant grievance matter unfolded as follows.
{¶ 3} While patrolling the CMHA property, the three officers observed what appeared to be a drug transaction between a man and a woman, later identified as Thomas Moore ("Moore") and Tamblyn Stanley ("Stanley"), respectively. The officers exited their vehicle to investigate the suspected drug transaction. Spotting the officers, Stanley began to walk away. Ovalle approached her while the other two officers approached Moore. While Ovalle searched Stanley, Weis and Wohlheter ordered Moore to the ground, handcuffed him, and conducted a pat-down search. They found a CMHA key in his possession but no drugs. Moore told the detectives the key belonged to his child's mother, who was a tenant in a CMHA apartment. The officers released Stanley, but decided to search the CMHA apartment for drugs. They placed Moore in the police vehicle and had him direct them to the apartment. As soon as they entered the apartment building, the officers detected the odor of marijuana and encountered another man who appeared to have been smoking marijuana. Ovalle stayed behind to investigate that man while Weis and Wohlheter continued to the apartment with Moore, who was still handcuffed.
{¶ 4} Det. Weis used the seized key to open the door of the apartment. While Weis stood by the doorway with Moore, Wohlheter entered the apartment. As Weis testified later, Wohlheter searched the apartment; specifically, he searched the kitchen, refrigerator, freezer, cupboard cabinets above the refrigerator, and two cereal boxes. No drugs were found, however. Ovalle then arrived and also entered the apartment. He talked to Wohlheter and decided that they could not legally search the apartment. The two then exited the apartment. According to Weis's testimony, Wohlheter was in the apartment for about ten minutes.
II. The Internal Investigation of the Incident
{¶ 5} Stanley subsequently filed a complaint alleging that Ovalle used excessive force when searching her. Sergeants Gregory Drew ("Drew") and Paul Styles ("Styles") were assigned to investigate her complaint. As part of that investigation, they interviewed the three officers, Stanley, and Moore. The investigation revealed that the three detectives engaged in conduct that violated CMHA police department's policies and procedures. Drew found Wohlheter not only participated in the unlawful arrest and transportation of Moore from one location to another, but also unlawfully searched the apartment and then provided an untruthful account of the events during the subsequent investigation of the matter.
{¶ 6} According to Drew, Wohlheter was deceptive and tried to cover up his actions during the investigation. Wohlheter initially misled the investigation by claiming Moore was not handcuffed and opened the apartment door himself, although Wohlheter later admitted in the predisciplinary hearing that it was Weis who opened the door. Wohlheter maintained he was in the apartment for only 10 to 12 seconds. He also denied searching the kitchen. These statements were directly inconsistent with both Weis's and Moore's accounts of the events, which indicated Moore was handcuffed the entire time and Wohlheter stayed in the apartment for about ten minutes and searched some items in the kitchen.
{¶ 7} After a predisciplinary review, CMHA terminated Wohlheter on April 24, 2014. CMHA cited Wohlheter's violation of CMHA's rules and regulations, violation of Moore's civil rights, illegal search of the apartment, and dishonest conduct during
the investigation. Ovalle was also terminated and Weis was given a 30-day suspension.
III. The Grievance and Arbitration
{¶ 8} On April 30, 2014, on behalf of Wohlheter, the Fraternal Order of Police, Ohio Labor Council, Inc. ("the union") filed a grievance procedure pursuant to the Collective Bargaining Agreement ("CBA"). The union contended the termination was without just cause. The grievance was denied. The union then pursued arbitration on behalf of Wohlheter pursuant to the CBA.
{¶ 9} The arbitrator conducted a two-day hearing. Before the arbitrator, the union argued that Wohlheter did not engage in any misconduct and he was not dishonest during the internal investigation. The union also argued CMHA engaged in disparate treatment-punishing Wohlheter more severely than Weis, who was a more senior officer and only received a 30-day suspension as opposed to Wohlheter's termination, and that it did not have just cause to terminate Wohlheter.
{¶ 10} CMHA argued that Wohlheter was terminated for just cause-for the illegal arrest of Moore and illegal search of the apartment, and for his dishonesty during the investigation of the incident. CMHA argued that it was not required to impose progressive discipline because of Wohlheter's dishonesty during the investigation.
IV. The Arbitrator's Decision
{¶ 11} On August 4, 2015, the arbitrator issued a decision reinstating Wohlheter, with a substantial suspension (nearly 16 months) and denial of back-pay. The arbitrator found Wohlheter violated CMHA's rules and regulations in the prolonged detainment of Moore and the illegal search of the apartment. The arbitrator also found Wohlheter engaged in acts of dishonesty. But because of the difference in treatment of penalties between Wohlheter and Weis, and because of the mitigating evidence in Wohlheter's favor, the arbitrator ultimately concluded that termination was "too severe" and "not reasonable under the just cause provision of the CBA." The arbitrator reached this decision as follows.
{¶ 12} Here, the arbitrator acknowledged CMHA Police Chief Andres Gonzalez's emphasis on Weis's honesty and recognized that, despite an initial lack of candor during Drew's interview of him, Weis eventually provided a truthful and complete account of the unlawful detention of Moore and search of the apartment. Weis's ultimate truthfulness enabled the CMHA police department in its investigation to ascertain the facts surrounding the incident. The arbitrator also noted Chief Gonzalez's emphasis on Weis's expression of remorse as an indication that he has learned a valuable lesson from the incident and could continue to be an asset to CMHA police department. And the arbitrator acknowledged Weis's contrite attitude both later during the investigation and at the arbitration hearing. But the arbitrator also remarked that, although eventually truthful, Weis initially attempted to hide the illegal detention and search as well, and he only became truthful when pressed further. Ultimately, although finding that Wohlheter's conduct during the incident was more egregious than Weis's conduct, the arbitrator believed the difference in the conduct did not justify the "level of difference in the penalty." The arbitrator acknowledged, however, that because Wohlheter's conduct was more severe, "a more severe penalty is justified." After considering mitigating factors, such as Wohlheter's work record, service time, and the gravity of the offenses, the arbitrator decided Wohlheter's penalty for his conduct should be a substantial suspension without pay instead of termination.
{¶ 13} In reinstating Wohlhether, the arbitrator further acknowledged concern over public policy but stated that "there is no evidence in the record which indicates that there is 'an explicit, well-defined and dominant public policy' against the reinstatement of an officer who has engaged in the misconduct as outlined in the decision." See Arbitrator's Decision, page 29. Accordingly, the arbitrator ordered CMHA to modify the disciplinary action to a suspension from the date of termination to the date of reinstatement, without back pay or benefits.
V. Trial Court's Decision
{¶ 14} CMHA filed a motion to vacate the arbitrator's award with the trial court. The trial court denied CMHA's motion, stating that the arbitrator's decision to reinstate Wohlheter drew its essence from the CBA and did not violate public policy.
{¶ 15} CMHA now appeals, raising as its sole assignment of error that the trial court erred by not vacating the report and award of the arbitrator pursuant to R.C. 2711.10(D) because the arbitration award is unlawful, arbitrary, and capricious and is against public policy.
VI. Standard and Review Under R.C. 2711.10
{¶ 16} "The public policy favoring arbitration requires that courts have only limited authority to vacate an arbitrator's award."
Assn. of Cleveland Fire Fighters, Local 93 of the Internatl. Assn. of Fire Fighters v. Cleveland,
{¶ 17} Pursuant to R.C. 2711.10(D), the court of common pleas shall make an order vacating an arbitration award if "[t]he arbitrators exceeded their powers, or so imperfectly executed them that a mutual, final, and definite award upon the subject matter submitted was not made." "Given the presumed validity of an arbitrator's award, a reviewing court's inquiry into whether the arbitrator exceeded his authority, within the meaning of R.C. 2711.10(D), is limited."
Bd. of Edn. of Findlay City School Dist. v. Findlay Edn. Assn.
,
{¶ 18} This court's review is similarly limited, confined to an evaluation of the trial court's order confirming, modifying, or vacating the arbitration award.
Cleveland v. Mun. Foremen & Laborers' Union, Local 1099
,
{¶ 19} "Judicial review of labor arbitration awards is limited and courts must afford substantial deference to the arbitrator's decision."
Cuyahoga Metro. Hous. Auth. v. SEIU Local 47
, 8th Dist. Cuyahoga No. 88893,
The limited scope of judicial review of arbitration decisions comes from the fact that arbitration is a creature of contract. Contracting parties who agree to submit disputes to an arbitrator for final decision have chosen to bypass the normal litigation process. If parties cannot rely on the arbitrator's decision (if a court may overrule that decision because it perceives factual or legal error in the decision), the parties have lost the benefit of their bargain. Arbitration, which is intended to avoid litigation, would instead merely become a system of "junior varsity trial courts" offering the losing party complete and vigorous de novo review.
(Emphasis sic.)
Motor Wheel Corp. v. Goodyear Tire & Rubber Co.
,
{¶ 20} "An arbitrator derives his authority from the express terms of the collective-bargaining agreement between the parties."
Fostoria v. Ohio Patrolmen's Benevolent Assn.
,
{¶ 21} " 'Where an arbitrator's decision draws its essence from the collective bargaining agreement, and in the absence of language in the agreement that would restrict such review, the arbitrator, after determining that there was just cause to discipline an employee,
has the authority to review the appropriateness of the type of discipline imposed
.' " (Emphasis added)
Ohio Patrolmen's Benevolent Assn. v. Findlay
,
{¶ 22} "Once it is determined that the arbitrator's award draws its essence from the collective bargaining 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."
Findlay Edn. Assn.
, 49 Ohio St.3d at paragraph two of the syllabus,
{¶ 23} In this case, the arbitration award drew its essence from the terms of the CBA because it was based on Wohlheter's contractual right that any disciplinary action taken by CMHA will only be for "just cause." A "just cause" inquiry requires the arbitrator to make two determinations: (1) whether a cause for discipline exists, and (2) whether the amount of discipline was proper under the circumstances.
Bd. of Trustees of Miami Twp.
,
{¶ 24} While recognizing and appreciating CMHA's concern for the trustworthiness of its officers, the arbitrator considered disparate treatment of Weis and Wohlheter, as well as mitigating factors such as Wohlheter's five years of service with acceptable performance, his lack of prior disciplinary action, and an absence of indication that Wohlheter cannot be rehabilitated to perform his duties as an
officer. Where just cause is not defined in the CBA, as here, the arbitrator appropriately considered mitigating circumstances as part of the just cause analysis.
Cleveland v. Cleveland Police Patrolmen's Assn.
,
{¶ 25} As properly noted by the trial court, the arbitrator's consideration of mitigating factors was not in conflict with any express terms of the controlling CBA, and the consideration was part of the just-cause analysis when determining the appropriateness of termination as discipline for Wohlheter's misconduct. The trial court recognized that the arbitrator, after determining there was just cause to discipline Wohlheter, had authority to review the appropriateness of the disciplinary action and to fashion a remedy. Accordingly, the arbitration award drew its essence from the agreement and was not unlawful, arbitrary, or capricious.
VII. The Award Does Not Violate Public Policy
{¶ 26} Although we have determined the arbitration award here drew its essence from the CBA and was not unlawful, arbitrary, or capricious, CMHA contends that the arbitration award is unenforceable because reinstating Wohlheter violates public policy.
{¶ 27} To vacate an award on public policy grounds, it is not Wohlheter's conduct that must be shown to have violated public policy, but rather, CMHA must establish that the arbitrator's award that significantly sanctioned Wohlheter (but reinstated him) violated a well-defined and dominant public policy.
See
S.W. Ohio Regional Transit Auth. v. Amalgamated Transit Union, Local 627
,
{¶ 28} In this case, the arbitrator acknowledged that a claim of dishonesty against a police officer was very stigmatizing and found that Wohlheter was dishonest during the investigation. Nevertheless, the arbitrator stated that there was no well-defined and dominant public policy against reinstating an officer such as Wohlheter for the engaged misconduct.
{¶ 29} The Ohio Supreme Court has recognized if an arbitrator's interpretation of a CBA violates public policy, the resulting award is unenforceable.
S.W. Ohio Regional Transit Auth.
, at 112,
{¶ 30} However, "vacating an arbitration award pursuant to public policy is a narrow exception to the 'hands off' policy that courts employ in reviewing arbitration awards and 'does not otherwise sanction a broad judicial power to set aside arbitration awards as against public policy.' "
S.W. Ohio Regional Transit Auth.
, at
E. Associated Coal Corp. v. United Mine Workers of Am.,
{¶ 31} Accordingly, our analysis begins with an examination of the "laws and legal precedents" to determine whether the reinstatement of Wohlheter under the collective bargaining agreement violates an explicit, well defined, and dominant public policy.
{¶ 32} This court finds no law prohibiting the reinstatement of a police officer for making dishonest statements during an internal investigation. Nor does CMHA or the dissent cite to any. Instead, CMHA cites to dicta and otherwise distinguishable case law to advocate for a bright-line rule that would prevent retention or reinstatement of any police officer found to be "dishonest." As discussed more fully below, the cases CMHA relies upon are distinguishable and do not justify vacating the arbitrator's award in this case.
{¶ 33} Initially, we note that dishonest acts by a police officer that render an arbitration award unenforceable are not well-defined under Ohio law. While the Fourth Appellate District in
Ironton v. Rist
, 4th Dist. Lawrence No. 10CA10,
{¶ 34} Contrary to the dissent's suggestion, Rist does not stand for the proposition that Ohio has a well defined and dominant public policy against a contractual agreement to severely punish yet reinstate a police officer who engages in any acts of dishonesty in his or her official capacity. Such a broad reading of Rist directly contravenes the Ohio Supreme Court and the United States Supreme Court's admonitions. Indeed, we are constrained to uphold the arbitrator's decision unless the arbitrator's interpretation of the collective bargaining agreement violates some explicit, well defined, and dominant public policy. Extending Rist beyond its holding for a blanket proposition ignores our limited review and dangerously transforms a narrow exception into a broad authority for courts to severely undermine the purpose of a collective bargaining agreement.
{¶ 35} As stated previously, in resolving CMHA's arguments, our inquiry is not whether Wohlheter's conduct itself violates public policy, but whether the arbitrator's decision to reinstate him did so.
Dayton v. AFSCME, Ohio Council 8
, 2d Dist. Montgomery No. 21092,
{¶ 36} In
S.W. Ohio Regional Transit Auth.
, the regional transit authority argued that it was against public policy to reinstate a safety-sensitive employee who was terminated for testing positive for a controlled substance. Despite recognizing Ohio and federal laws that require drug testing and prohibit the use of controlled
substances by transportation employees, the Supreme Court held that "Ohio has no dominant and well-defined public policy that renders unlawful an arbitration award reinstating a safety-sensitive employee who was terminated for testing positive for a controlled substance, assuming that the award is otherwise reasonable in its terms for reinstatement."
Id.
at 115,
{¶ 37} Our inquiry therefore requires deciding whether the arbitrator's award ordering Wohlheater's reinstatement with nearly a 17-month suspension without back pay (after finding him to be untruthful during an internal investigation) violates public policy. And, absent an award that clearly violates a well-defined and dominant public policy, our review requires deference to upholding the arbitrator's decision. We find that the cases relied on by CMHA do not evidence a well-defined and dominant public policy that renders unlawful an otherwise reasonable arbitration award reinstating Wohlheater for his dishonest conduct. While these cases may recognize that Wohlheater's conduct violates general principles of public policy, they fail to establish a well-defined and dominant public policy prohibiting his reinstatement under the factual circumstances of this case.
{¶ 38} For example, aside from
Rist
, CMHA relies on the Ohio Supreme Court's decisions in
State v. Mole
,
[N]either Jones nor [ Rist ] supports the proposition that a city must be permitted, as a matter of public policy, to dismiss a police officer, or that an arbitrator must be prohibited from using broad, discretionary authority to modify a disciplinary sanction of dismissal under a collective bargaining agreement, whenever a city concludes that an officer's conduct falls below the "higher standard of conduct" to which police officers are held and "diminishe[s] the esteem" of the police department and its personnel.
Cleveland v. Cleveland Police Patrolmen's Assn.
, 8th Dist. Cuyahoga No. 103010,
{¶ 39} Ohio courts have consistently recognized that " 'public policy does not demand that a city have unbridled authority to terminate its employees for their misconduct.' "
Wright State Univ. v. FOP
, 2d Dist. Greene No. 2016-CA-35,
{¶ 40} Likewise, we find CMHA's reliance on
Cuyahoga Metro. Hous. Auth. v. FOP, Ohio Labor Council, Inc.
, 8th Dist. Cuyahoga No. 104319,
{¶ 41} Notably, the Second Appellate District recently addressed a case nearly analogous to the instant case and rejected the appellant's claim that Ohio has a well-defined and dominant public policy against reinstating police officers for dishonest conduct, despite the claim that police officers are held to a higher standard.
Wright State Univ. v. FOP
, 2d Dist. Greene No. 2016-CA-35,
{¶ 42} In this case, the arbitrator considered Wohlheter's five years of service with acceptable performance, his lack of prior disciplinary action, and an absence of any indication that Wohlheter cannot be rehabilitated to perform his duties as an officer. But the arbitrator did not excuse or turn a blind eye to Wohlheter's dishonesty during the investigation. The arbitrator's award punished Wohlheter by imposing a substantial suspension (from the date of termination to the date of reinstatement) without back pay and benefits. This award is not contrary to any explicit or well-defined public policy, and follows the arbitrator's broad, discretionary authority to modify a disciplinary sanction of dismissal under the CBA.
{¶ 43} Although a police officer's dishonesty during an internal investigation may violate an ethical duty, and is against the public interest of police officers being honest, suspending rather than terminating an officer who is dishonest does not necessarily violate an explicit public policy. This court does not condone Wohlheter's or any officer's dishonesty, and this case does not stand for the proposition that dishonesty will never require termination. As the Ohio Supreme Court stated, "an employee's overall disciplinary record, the egregiousness of the infraction, problems with recidivism, or other issues could constitute sufficient causes for discharge. Of course, these are matters that are contingent upon the terms of the CBA, as well as the arbitrator's interpretation of those terms."
S.W. Ohio Regional Transit Auth.
at 115,
{¶ 44} Accordingly, the arbitration award modifying Wohlheter's termination to a substantial suspension, without back pay and benefits, is not against public policy and is in line with the progressive disciplinary procedures set forth in the CBA and CMHA Personnel Policies and Procedures Manual. The trial court acknowledged as such by concluding:
The arbitrator is not prohibited from using his broad, discretionary authority to modify a disciplinary sanction of dismissal under a collective bargaining agreement even though [the arbitrator] concluded that the conduct fell below the higher standard of conduct to which police officers are held. As such, this court finds that the arbitrator's decision to reinstate did not violate public policy.
VIII. Conclusion
{¶ 45} Accordingly, the arbitration award in this case drew its essence from the CBA, was not unlawful, arbitrary, or capricious, and is not against public policy. The assignment of error is overruled.
{¶ 46} Judgment affirmed.
MARY EILEEN KILBANE, J., CONCURS;
TIM McCORMACK, J., DISSENTS WITH SEPARATE OPINION
Ovalle's termination was modified by an arbitrator to a 30-day suspension with back pay. The trial court confirmed the arbitrator's award, and this court affirmed.
See
Cuyahoga Metro. Hous. Auth. v. FOP, Ohio Labor Council, Inc.
, 8th Dist. Cuyahoga No. 104319,