Abstract
The purpose of this research was to document recent federal court decisions where one of the parties relied on public policy arguments, in whole or in part, as a basis for courts to consider vacating an arbitration award. These cases carried the potential to weaken the arbitration process by softening the finality of an arbitrator's award. The arguments were categorized as violations in eight principle groups: (1) National Labor Relations Act, (2) Federal Law and Regulations, (3) Local Laws, (4) Safety and Health Regulations, (5) Alcohol and Drug Abuse, (6) Gambling and Violence, (7) Undocumented Workers and Equal Employment Opportunity claims, and (8) Other. The research revealed that each of the groups was experiencing rapid growth rates in the courts. Among these cases, however, the alcohol and drug abuse group proved to contain the most recently active cases in the courts. The premier case, Misco, Inc. v. United Paperworkers International Union, Local 654, concerned a drug-related incident in which the company sought, with federal court support, to extend the public policy exception limit. The district and circuit courts criticized the arbitrator's award reasoning and his application of common industrial justice methods in determining if discharge was for "just cause". The U.S. Supreme Court reversed the lower courts in a unanimous 8-0 ruling with the effect of strengthening the Court's earlier group of fundamental decisions known as the "Trilogy". The decision also bolstered the arbitral methodologies which were subjected to lower court questioning. These included the inadmissability of after-the-fact discovery of evidence and the recognition that the arbitrator is the fact finder of evidence--not the courts. This case was the first public policy case to reach the U.S. Supreme Court, and its impact on similar cases has already begun with one case being remanded and another being granted certiorari (review). The fact that this case involved drugs was only incidental to the larger issue of improper public policy application, but was addressed because worker job impairment continues to be found in these cases as a contemporary problem.
Grainger, John Steven (1988). Impact of public policy on judicial review of arbitral awards involving substance abuse. Texas A&M University. Texas A&M University. Libraries. Available electronically from
https : / /hdl .handle .net /1969 .1 /DISSERTATIONS -770880.