Opinion ID: 672322
Heading Depth: 4
Heading Rank: 1

Heading: The Essence Test

Text: 60 We first turn to the case law to flesh out our standard of review, the rather metaphysical essence test. The test dates back to the Supreme Court's decision in United Steelworkers v. Enterprise Wheel & Car Corp., 363 U.S. 593, 597, 80 S.Ct. 1358, 1361, 4 L.Ed.2d 1424 (1960), in which the Court stated that an arbitrator's award is legitimate only so long as it draws its essence from the collective bargaining agreement. See also United Paperworkers Int'l Union v. Misco, Inc., 484 U.S. 29, 38, 108 S.Ct. 364, 370-71, 98 L.Ed.2d 286 (1987) ([A]s long as the arbitrator is even arguably construing or applying the contract and acting within the scope of his authority, that a court is convinced he committed serious error does not suffice to overturn his decision.). As might be expected, the cases applying Enterprise Wheel have arisen largely in the labor relations context, in which arbitration is prevalent, but we have also applied the essence test in other cases involving the review of arbitration awards. E.g., Anderman/Smith, 918 F.2d at 1216-17; Totem, 607 F.2d at 650. 61 A leading case from this circuit applying the essence test is Brotherhood of R.R. Trainmen v. Central of Ga. Ry., 415 F.2d 403, 412 (5th Cir.1969), cert. denied, 396 U.S. 1008, 90 S.Ct. 564, 24 L.Ed.2d 500 (1970), in which we stated that an arbitration award must have a basis that is at least rationally inferable, if not obviously drawn, from the letter or purpose of the collective bargaining agreement.... [T]he award must, in some logical way, be derived from the wording or purpose of the contract. Phrased another way, the question is whether the arbitrator's award was so unfounded in reason and fact, so unconnected with the wording and purpose of the collective bargaining agreement as to 'manifest an infidelity to the obligation of an arbitrator.'  Id. at 415 (quoting Enterprise Wheel, 363 U.S. at 597, 80 S.Ct. at 1361). We also indicated that the arbitrator's selection of a particular remedy is given even more deference than his reading of the underlying contract, stating that the remedy lies beyond the arbitrator's jurisdiction only if there is no rational way to explain the remedy handed down by the arbitrator as a logical means of furthering the aims of the contract. Id. at 412. In making our essence inquiry, we are not limited to the arbitrator's explanations for his award; as we stated in Anderman/Smith, 62 this Court does not review the language used by, or the reasoning of, the arbitrators in determining whether their award draws its essence from the contract. This Court looks only to the result reached. The single question is whether the award, however arrived at, is rationally inferable from the contract. 63 918 F.2d at 1219 n. 3. 64 Given our expansive reading of the essence test, it is not surprising that we have frequently upheld arbitration awards against challenges on this ground. For instance, we have upheld an arbitrator's award of back pay despite the fact that the underlying collective bargaining agreement neither permitted nor precluded such a remedy. Minute Maid Co. v. Citrus Workers, Local 444, 331 F.2d 280, 281 (5th Cir.1964). In Amalgamated Meat Cutters of N. Am., Dist. Local No. 540 v. Neuhoff Bros. Packers, Inc., 481 F.2d 817, 819 (5th Cir.1973), we enforced an arbitrator's award reinstating employees accused of theft and held that it was permissible for the arbitrator to require the employer to prove the employees guilty beyond a reasonable doubt. In United Steelworkers of Am. v. United States Gypsum Co., 492 F.2d 713, 728-32 (5th Cir.), cert. denied, 419 U.S. 998, 95 S.Ct. 312, 42 L.Ed.2d 271 (1974), we enforced an arbitrator's award, agreeing that it was within the arbitrator's power to find that an employer had breached a promise to negotiate a wage increase and to award the employees what the arbitrator believed would have been gained through negotiations. 65 These cases may be contrasted with those in which we have vacated arbitration awards. We have held that an arbitrator may not invalidate the very agreement from which he derives his power. International Ladies' Garment Workers' Union v. Ashland Indus., Inc., 488 F.2d 641, 643-44 (5th Cir.), cert. denied, 419 U.S. 840, 95 S.Ct. 71, 42 L.Ed.2d 68 (1974). We have also held that arbitral action contrary to express contractual provisions will not be respected on judicial review. Delta Queen Steamboat Co. v. District 2 Marine Eng'rs Beneficial Ass'n, 889 F.2d 599, 604 (5th Cir.1989), cert. denied, 498 U.S. 853, 111 S.Ct. 148, 112 L.Ed.2d 114 (1990); see also Misco, 484 U.S. at 38, 108 S.Ct. at 370-71 (The arbitrator may not ignore the plain language of the contract....). Thus, if a collective bargaining agreement permits an employer to discharge an employee for proper cause, and the arbitrator expressly or implicitly finds that proper cause existed, we will vacate the arbitrator's inconsistent reinstatement award. Delta Queen, 889 F.2d at 604; Container Prods., Inc. v. United Steelworkers of Am., Local 5651, 873 F.2d 818, 819-20 (5th Cir.1989). 66