Originally from Dispute Resolution Journal

In an Octoher 1977 decision of the New York Court of Appeals, the court made a major departure from its previous position by asserting the right of the courts to determine the issue of arbitrability in public sector cases. The court indicated that it would impose a two-tier test in evaluating the question, asking (1) whether arbitration of a claim is prohibited by the state's Public Employees Fair Frnployrnent Act (the Taylor Law) and (2) whether the parties intended to submit the dispute to arbitration based on the language of the contract, given the provision that an agreement to arbitrate must be "express, direct and unequivocable," the author foresees problems in determining whether a heretofore broad provision, lacking an express statement about categories of issues to be arbitrated, will meet the court's lest. He also questions whether the courts will act to expand their role; in vacating awards. Discussions are now under way in the New York State Legislature to lessen the impact of the Court of Appeals' decision. It remains to he seen now effective that move will be.