COURT OF APPEALS DECISION DATED AND RELEASED February 8, 1996 |
NOTICE |
A party may file with the
Supreme Court a petition to review an adverse decision by the Court of
Appeals. See § 808.10 and
Rule 809.62, Stats. |
This opinion is subject to
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Nos. 94-1308
94-2758
STATE
OF WISCONSIN IN COURT OF
APPEALS
DISTRICT IV
RICHLAND SCHOOL
DISTRICT,
Plaintiff-Respondent,
v.
GERALD CUMMER,
and RICHLAND CENTER
EDUCATION ASSOCIATION,
Defendants-Appellants.
APPEAL from a judgment
and an order of the circuit court for Richland County: JAMES P. FIEDLER and KENT C. HOUCK,
Judges. Reversed and cause remanded
with directions.
Before Dykman, Sundby,
and Vergeront, JJ.
PER
CURIAM. Gerald Cummer and his union, the Richland Center
Education Association (RCEA), appeal from a judgment and an order resolving an
extended dispute over the Richland School District's 1990 decision to fire
Cummer. The order vacates an
arbitrator's award of back pay and reinstatement. The judgment awards the District its actual attorney fees and
costs incurred during part of the proceeding.
We reverse both rulings and remand for entry of an order affirming the
arbitrator's award.
Cummer taught at
Richland Center High School. In May
1990, two female students accused him of touching private parts of their
bodies, and he was suspended with pay.
In August 1990, the state charged him with two counts of sexual contact
with a child. In September, the trial
court bound him over for trial on one count.
The next day, the Richland Center School Board commenced a disciplinary
action against him. Although Cummer
waived his right to a hearing, the board held one anyway and, on the basis of
the evidence presented in his absence, fired him.
Cummer then filed a
grievance under the collective bargaining agreement between the District and
the RCEA, which allows the board to fire teachers only for just cause. The District denied the grievance in late
October. In December, Cummer was tried
on the remaining criminal count. After
less than twenty minutes of deliberation, the jury acquitted him.
In September 1991, the
District commenced a declaratory judgment action for a ruling on the
arbitrability of Cummer's grievance.
(Case No. 91-CV-122). The trial
court ruled that the grievance was subject to arbitration, but limited the
scope of arbitration to whether Cummer received due process at the board's
hearing and, if so, whether the evidence supported the board's finding of just
cause for dismissal. The court's order
also provided that the arbitrator could hold a de novo hearing on the
discharge only if he determined that the board denied Cummer due process.
The matter proceeded to
arbitration pursuant to that order.
However, the arbitrator, Frederick Kessler, concluded that the trial
court lacked the authority to determine the scope of his authority. Kessler determined, instead, that the
collective bargaining agreement afforded Cummer the right to a de novo
hearing on his firing, before the arbitrator, whether or not the board afforded
him due process. Kessler, therefore, scheduled an evidentiary hearing several
weeks later. On a contingent basis, he
also ruled that the board did provide Cummer with due process, and that the
uncontested evidence presented at the board's hearing provided just cause to
fire him.
The District returned to
the trial court with a motion to enjoin the scheduled hearing on the grounds
that it violated the court's order. The
court denied relief, reasoning that it lacked the authority to interfere with
the arbitration proceeding once it commenced.
The hearing was held and Kessler subsequently determined that
"[a]fter weighing all the evidence, I conclude that the District did not
clearly and convincingly show that the indecent touching alleged in the
statement of charges in fact took place."
As a result, Kessler ordered Cummer's immediate reinstatement with back
pay from the time of his firing.
The District then
commenced a new action in the trial court (Case No. 93-CV-30) for an order
vacating the arbitration award. Cummer
filed a motion to confirm the award.
The court ordered the award vacated after holding that Kessler exceeded
his authority under the court's order limiting his scope of review. The court also held that he exceeded his
authority under the collective bargaining agreement by holding a de novo
hearing.
Cummer then appealed
that order in appeal No. 94-1308.
Meanwhile, the District filed a motion in case No. 91-CV-122, its
declaratory judgment action, for an award of attorney fees and actual costs. The court granted the motion and awarded
actual attorney fees and costs that the District incurred as a result of
Kessler's violation of the court's order limiting his scope of review. Cummer and RCEA appeal that decision in
appeal No. 94-2758.
An arbitration award is
presumptively valid and the trial court exercises only a supervisory role in
reviewing one. Fortney v. School
District, 108 Wis.2d 167, 171, 321 N.W.2d 225, 229 (1982). The court may vacate an award only if it was
procured by corruption, fraud or undue means, or the arbitrator was evidently
partial or corrupt, guilty of prejudicial misconduct in the proceeding,
exceeded his or her powers, or so imperfectly executed them that a final and
definite award was not made. Section
788.10(1), Stats.
The trial court erred in
construing the bargaining agreement when it limited the scope of Kessler's
authority. The agreement provided that
"[i]f either party disputes the arbitrability of any grievance under the
terms of this Agreement, the arbitrator shall have no jurisdiction to act until
the matter has been determined by a court of competent jurisdiction." The court interpreted that provision as
allowing it to limit the scope of arbitration.
We disagree. Under its plain
meaning, the "matter" to be determined by the court is
"arbitrability." There is no additional
grant of authority to determine the scope of arbitration. To construe an unambiguous contract, the
court may look no further than its plain meaning. Estate of Logan v. Northwestern Nat'l Casualty Co.,
144 Wis.2d 318, 336, 424 N.W.2d 179, 185 (1988).
Kessler determined that
the agreement gave him authority to determine de novo whether the
District had just cause to fire Cummer.
We will uphold an arbitrator's interpretation of the bargaining
agreement as long as it is within the bounds of the contract language, even if
we would have interpreted that language differently. Fortney, 108 Wis.2d at 179, 321 N.W.2d at 233. Here, the bargaining agreement provided that
the arbitrator
shall
have no power to change any Policy, practice, or rule of the Board nor to
substitute his/her judgment for that of the Board as to the reasonableness of
any such Policy, practice, rule or action taken by the Board except where
he/she finds said Policy, rule, practice, or action to be in violation of this
Agreement.
One
could reasonably interpret this language to limit review of the board's action
to the procedures it used and the evidence it considered when it made its
decision. Or one could reasonably
construe this language, as Kessler did, to allow the arbitrator to review the
board's action based on a new hearing and an independent, de novo review
of the evidence. Because Kessler's is
one of two reasonable interpretations, we must accept it. Id.
In vacating the award,
the trial court made no reference to the manner in which Kessler conducted the
hearing. Nevertheless, on appeal, the
District briefly cites numerous examples of what it identifies as Kessler's
bias and his prejudicial errors in conducting the proceeding. These include giving the District insufficient
time to prepare for the evidentiary hearing, the improper admission of
exhibits, his failure to consider certain inculpatory evidence, his unfounded
speculation about the board's motives, his improper reliance on the jury's
prompt acquittal of Cummer, and his use of the wrong burden of proof. These arguments are only superficially
developed and, for the most part, are presented without reference to the record
or to legal authority. We therefore
choose not to address them. State
v. Pettit, 171 Wis.2d 627, 647, 492 N.W.2d 633, 642 (Ct. App. 1992); State
v. Shaffer, 96 Wis.2d 531, 545-46, 292 N.W.2d 370, 378 (Ct. App. 1980).
Despite our conclusion
that the trial court improperly limited arbitration, the District would have us
affirm the order vacating the award because the arbitrator knowingly conducted
the arbitration in violation of the court's order and that vacating the award
is therefore "essential to preserve the sanctity of court orders and the
orderly adjudication of employment disputes." Even were we to accept that proposition, the result would be the
same. The only alternative remedy would
be to relieve the arbitrator of the court's erroneous limitation on his power,
and order a new proceeding. Because
arbitration has already proceeded to completion in a proper manner under the
terms of the contract, that would be unreasonable.
We also reverse the
order by awarding the District a portion of its attorney fees and costs, under
§ 806.04(8), Stats. The award was predicated on the order vacating
the award, which we have reversed.
By the Court.—Judgment
and order reversed and cause remanded with directions.
This opinion will not be
published. See Rule 809.23(1)(b)5, Stats.