The Eight Circuit recently issued its decision on the NFL's appeal of the District Court's decision vacating the Adrian Peterson arbitration award. The earlier proceedings are discussed at Adrian Peterson, arbitration and the law of the shop. As noted there, the District Court vacated the award of the arbitrator upholding the six game suspension of Peterson. The court found that the award ignored the "law of the shop" because the arbitrator allegedly ignored an earlier award involving Ray Rice which it believed limited the allowable suspension to two games. The court also found that the arbitrator had exceeded his authority because he "strayed beyond the issues submitted by the NFLPA."
The Circuit overturned both conclusions
Initially it rejected the claim that the arbitrator exceeded his authority when he allegedly retroactively applied a "new" disciplinary policy,contrary to the "law of the shop." The Court observed:
An arbitrator acts within his authority as long as he is arguably construing or applying the contract, even if a court disagrees with the arbitrator's construction or application. Misco, 484 U.S. at 38. The same holds true for the law of the shop: as long as the arbitrator is arguably construing or applying arbitral precedents, a court's disagreement with the arbitrator's application of precedent is not sufficient grounds to vacate an arbitration decision.
The Circuit Court found that the arbitrator analyzed the Union's claims and the prior awards the Union maintained supported its position. While he disagreed with the Union's position, he was acting within his authority in reaching his conclusion.
On the second point the Court noted:
...the Players Association contends that the arbitrator exceeded his authority by altering the issues presented for decision. It argues that the arbitrator was limited to adjudicating "`the pure legal issue' of whether the New Policy could be applied retroactively. The district court agreed, concluding that the arbitrator "strayed beyond the issues submitted by the NLFPA."
...[i]t is true that "[w]hen two parties submit an issue to arbitration, it confers authority upon the arbitrator to decide that issue." Local 238 Int'l Bhd. of Teamsters v. Cargill, Inc., 66 F.3d 988, 990-91 (8th Cir. 1995) (per curiam) (first emphasis added). But the parties here did not stipulate to the issues for arbitration. The scope of the arbitrator's authority, therefore, was itself a question delegated to the arbitrator. W.R. Grace & Co. v. Local Union 759, Int'l Union of United Rubber, Cork, Linoleum & Plastic Workers, 461 U.S. 757, 765 (1983). "It is appropriate for the arbitrator to decide just what the issue was that was submitted to it and argued by the parties."
The Court determined that "it is not the exclusive prerogative of the party seeking arbitration to define the issue for arbitration." It found that the NFL was free to challenge the premise contained within the Union's proposed issue, i.e. that the policy was a new one authorizing discipline previously unavailable.
An arbitrator acts within his authority as long as he is arguably construing or applying the contract, even if a court disagrees with the arbitrator's construction or application. Misco, 484 U.S. at 38. The same holds true for the law of the shop: as long as the arbitrator is arguably construing or applying arbitral precedents, a court's disagreement with the arbitrator's application of precedent is not sufficient grounds to vacate an arbitration decision.
The Circuit Court found that the arbitrator analyzed the Union's claims and the prior awards the Union maintained supported its position. While he disagreed with the Union's position, he was acting within his authority in reaching his conclusion.
On the second point the Court noted:
...the Players Association contends that the arbitrator exceeded his authority by altering the issues presented for decision. It argues that the arbitrator was limited to adjudicating "`the pure legal issue' of whether the New Policy could be applied retroactively. The district court agreed, concluding that the arbitrator "strayed beyond the issues submitted by the NLFPA."
...[i]t is true that "[w]hen two parties submit an issue to arbitration, it confers authority upon the arbitrator to decide that issue." Local 238 Int'l Bhd. of Teamsters v. Cargill, Inc., 66 F.3d 988, 990-91 (8th Cir. 1995) (per curiam) (first emphasis added). But the parties here did not stipulate to the issues for arbitration. The scope of the arbitrator's authority, therefore, was itself a question delegated to the arbitrator. W.R. Grace & Co. v. Local Union 759, Int'l Union of United Rubber, Cork, Linoleum & Plastic Workers, 461 U.S. 757, 765 (1983). "It is appropriate for the arbitrator to decide just what the issue was that was submitted to it and argued by the parties."
The Court determined that "it is not the exclusive prerogative of the party seeking arbitration to define the issue for arbitration." It found that the NFL was free to challenge the premise contained within the Union's proposed issue, i.e. that the policy was a new one authorizing discipline previously unavailable.
Finally, the Court addressed two claims that the District Court found unnecessary to consider. It rejected the claim the Arbitrator Henderson was "evidently partial," and that the arbitration was "fundamentally unfair."
The Court's opinion can be found at National Football League Players Association v. National Football League.
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