Donald J. Peterson and Harvey R. Boller are both on the faculty at Loyola University in Chicago; Mr. Petersen is a professor of management and Mr. Boller is an associate professor of business law. Mr. Petersen is also an arbitrator and serves on the panels of the American Arbitration Association and the Federal Mediation and Conciliation Service. He is a member of the National Academy of Arbitrators. Mr. Boller has practiced law in both New York and Chicago.
CHAPTER 10: APPLYING THE PUBLIC POLICY-EXCEPTION TO LABOR ARBITRATION AWARDS
I. Introduction The use of “public policy” as a ground to seek to vacate labor arbitration awards ordering reinstatement of a grievant is a relatively new development. The public-policy exception to enforcement of awards, although explicitly recognized by the U.S. Supreme Court, raises the issue of uniform application, as well as the question of whether it is being misunderstood or misused by courts, allowing them to substitute their judgment for those of arbitrators. This chapter examines the pertinent Supreme Court cases and how other courts have applied the public-policy exception, particularly in awards reinstating grievants, but in other situations as well.