Opinion ID: 6494060
Heading Depth: 3
Heading Rank: 4

Heading: Consolidated ICA Appeal

Text: In its opening briefs 11 to the ICA, UPW argued “[t]he Circuit Court erred on the question of whether the court or the [HLRB] has subject matter jurisdiction to determine a dispute over a selection of the neutral arbitrator to serve in the unit 10 arbitration.” UPW contended that subject matter jurisdiction over the selection of an arbitrator under an arbitration agreement rested with the circuit court under chapter 658A “because the chapter is both the more recent and a more specific statute on the selection process of an arbitrator compared to Chapter 89.” Additionally, UPW insisted that HRS § 658A-11 12 required the circuit court to compel arbitration according to the terms set forth in the MOA. UPW also argued that, “[b]y failing to grant the motion for civil contempt, the circuit court in effect withheld the enforcement of the arbitration award, contrary to the intent and purpose of [chapter 658A] and as such the circuit court erred as a matter of law.” Finally, UPW contended that “[t]he Circuit Court and the [HLRB] erred as a matter of law in finding “willful’ violations by UPW in Case CU-10-278[.]” In its answering briefs, 13 the HLRB argued the circuit court was correct in concluding that the HLRB had jurisdiction over the prohibited practice complaints. The HLRB then insisted that substantial evidence supported its prohibited practice determinations. Regarding Order No. 2640, which directed the AAA to select the neutral arbitrator, the HLRB contended that it properly exercised its broad powers under HRS § 89—5(i) to assist the parties in l’esolving their impasse by ordering the selection of the neutral arbitrator. In the State’s answering briefs, it argued that the HLRB had exclusive original jurisdiction to resolve the arbitration dispute under chapter 89. The State also contended that the ease was mooted by both parties’ acceptance of the interest arbitration decision. In a published opinion, the ICA first concluded that “the issues raised by UPW relating to the selection of the neutral arbitrator are moot because there is no live controversy between UPW and [the State] regarding the terms of the Arbitration Award[.]” The ICA noted that neither party challenged the award, and UPW even moved to have the award confirmed. The ICA also determined that UPW’s challenge to the HLRB’s Order No. 2686 finding both parties had committed prohibited practices was moot. The ICA reasoned that the HLRB was no longer seeking judicial enforcement of the order, so neither party had any continuing obligations arising from the order. The ICA nevertheless held that, under the public interest exception to the mootness doctrine, it would address the following two issues: (1) “whether the HLRB or the Circuit Court had original jurisdiction to resolve the dispute over the selection of the neutral arbitrator”; and (2) “whether the HLRB exceeded its authority in issuing its order for interlocutory relief’ directing the AAA to select a neutral arbitrator. The ICA held that the HLRB, not the circuit court, had jurisdiction over the selection of the neutral arbitrator. In support of this result, the ICA first concluded that the HLRB had exclusive original jurisdiction over the arbitration selection dispute because, under HRS § 89-14, the HLRB had jurisdiction over any “controversy concerning prohibited practices.” The ICA then proceeded to address UPW’s contention that the circuit court had exclusive original jurisdiction over the matter pursuant to chapter 658A Although the ICA appeared to conclude that chapter 658A did not cover statutorily mandated arbitration, the ICA stated: [W]e need not resolve the question of whether HRS Chapter 658A applies to interest arbitrations under HRS Chapter 89. This is because even if the MOA qualifies as an “agreement to arbitrate” that is subject to the provisions of HRS Chapter 668A, the exclusive original jurisdiction granted to the HLRB over controversies concerning prohibited practices by HRS § 89-14 would supersede HRS Chapter 658A. HRS § 89-19 (2012) explicitly states that the provisions of HRS Chapter 89 “shall take precedence over all conflicting statutes concerning this subject matter and shall pre-empt all contrary local ordinances, executive orders, legislation, or rules adopted by the State[.]” To the extent that there may be a conflict between the jurisdictional provisions of HRS Chapters 89 and 658A, Chapter 89 takes precedence over Chapter 658A. (Footnote omitted). Next, the ICA held that the HLRB did not exceed its authority in ordering interlocutory relief that differed from the arbitrator selection procedures set forth in the MOA. The ICA explained that the HLRB is granted broad statutory authority under HRS § 89-5(i) to determine how to resolve prohibited practice disputes. And, given the parties’ inability to timely select the neutral arbitrator, the HLRB did not abuse its discretion in using its authority to direct the AAA to do so. Finally, the ICA held that the circuit court did not err in denying the motion for civil contempt. The ICA explained that the motion involved a controversy concerning prohibited practices, thus, “the Circuit Court lacked jurisdiction to decide the Motion for Civil Contempt.” Accordingly, the ICA affirmed the circuit court's April 1, 2010 Final Judgment in Appeal No. 30444, affirmed the circuit court’s May 18, 2010 Final Judgment but vacated its August 25, 2010 Order Denying Motion for Civil Contempt in Appeal No. 30568, and affirmed the circuit court’s November 10, 2010 Final Judgment in Appeal No. CAAP-10-0000166. The ICA entered its judgment on appeal on April 4, 2014. UPW timely filed its application for certiorari on June 3, 2014. The State filed a response on June 17, 2014.