Opinion ID: 453021
Heading Depth: 2
Heading Rank: 2

Heading: Consideration of the Trial Transcript

Text: 12 Mrs. Flores refused to testify at the arbitration hearing following the arbitrator's determination that her husband could not be present during her testimony. The Company then submitted into evidence, 5 in substitution of Mrs. Flores's live testimony, the transcript of the criminal proceedings against Otero. In issuing his final award, however, the arbitrator determined that the judgment in the criminal proceeding was based on the trial court's assessment of the credibility of the witnesses, that the arbitrator was not bound by the judgment reached in the criminal proceedings, and that the arbitrator was unable to assess the credibility of the witnesses from the trial transcript. The arbitrator refused, therefore, to give the transcript any weight in rendering his award, and concluded that the Company had failed to submit sufficient evidence to prove that the Company was justified in dismissing Otero. 13 The arbitrator is the judge of the admissibility and relevancy of evidence submitted in an arbitration proceeding. See M. Hill & A. Sinicropi, Evidence in Arbitration 22 (1980). The arbitrator is not bound to hear all of the evidence tendered by the parties; however, he must give each of the parties to the dispute an adequate opportunity to present its evidence and arguments. National Post Office, Mailhandlers, Watchmen, Messengers and Group Leaders Division, Laborers International Union of North America v. United States Postal Service, 751 F.2d 834, 841 (6th Cir.1985); Totem Marine Tug & Barge, Inc. v. North American Towing, Inc., 607 F.2d 649, 651 (5th Cir.1979); Bell Aerospace Company Division of Textron, Inc. v. Local 516, International Union, United Automobile Workers of America, 500 F.2d 921, 923 (2nd Cir.1974). The arbitrator must then determine the truth respecting material matters in controversy, as he believes it to be, based upon a full and fair consideration of the entire evidence and after he has accorded each witness and each piece of documentary evidence, the weight, if any, to which he honestly believes it to be entitled. F. Elkouri & E. Elkouri, How Arbitration Works 273-74 (3d ed. 1973). Absent exceptional circumstances, therefore, a reviewing court may not overturn an arbitration award based on the arbitrator's determination of the relevancy or persuasiveness of the evidence submitted by the parties. 14 Every failure of an arbitrator to receive relevant evidence does not constitute misconduct requiring vacatur of an arbitrator's award. Newark Stereotypers' Union No. 18 v. Newark Morning Ledger Co., 397 F.2d 594, 599 (3rd Cir.), cert. denied, 393 U.S. 954, 89 S.Ct. 378, 21 L.Ed.2d 365 (1968). A federal court may vacate an arbitrator's award only if the arbitrator's refusal to hear pertinent and material evidence prejudices the rights of the parties to the arbitration proceedings. 9 U.S.C. Sec. 10(c). An arbitration award must not be set aside for the arbitrator's refusal to hear evidence that is cumulative, e.g. National Post Office Mailhandlers, 751 F.2d at 841, or irrelevant, e.g. Grahams Service Inc. v. Teamsters Local 975, 700 F.2d 420, 422-23 (8th Cir.1982). Vacatur is appropriate only when the exclusion of relevant evidence so affects the rights of a party that it may be said that he was deprived of a fair hearing. Newark Stereotypers' Union, 397 F.2d at 599; see also National Post Office Mailhandlers, 751 F.2d at 841. 15 In the case at bar, no live testimony was available. The arbitrator therefore accepted into evidence the trial transcript of criminal proceedings concerning the event that allegedly justified the Company's dismissal of its employee. After accepting the transcript into evidence, however, the arbitrator refused to give any weight to this evidence. It is undisputed that the arbitrator was not bound by the Superior Court of Puerto Rico's findings in the criminal proceedings against Otero; however, the arbitrator's refusal to ascribe any weight to the testimony given at the criminal proceedings effectively denied the Company an opportunity to present any evidence in the arbitration proceeding. The testimony was unquestionably relevant to a determination of whether Otero actually engaged in immoral conduct in violation of the Company's disciplinary regulations. Moreover, no other evidence was available to substantiate or to refute the Company's charges that Otero had violated the rules regarding employment. The evidence effectively excluded by the arbitrator was both central and decisive to the Company's position; therefore, the arbitrator's refusal to consider this evidence was, as the district court concluded, so destructive of [the Company's] right to present [its] case, that it warrants the setting aside of the arbitration award. Hoteles Condado Beach, 588 F.Supp. at 685. 16