Opinion ID: 1189782
Heading Depth: 2
Heading Rank: 1

Heading: The Legal Standard for Review of the Arbitrator's Award

Text: The scope of review of an arbitrator's decision in a labor dispute is extremely narrow. Federated Dep't Stores v. United Food & Commercial Workers Union, Local 1442, 901 F.2d 1494, 1496 (9th Cir.1990). Arbitration awards are ordinarily upheld so long as they represent a plausible interpretation of the contract. Phoenix Newspapers, Inc. v. Phoenix Mailers Union Local 752, 989 F.2d 1077, 1080 (9th Cir.1993). However, one narrow exception to this generally deferential review is the now-settled rule that a court need not, in fact cannot, enforce an award which violates public policy. Stead Motors v. Automotive Machinists Lodge No. 1173, 886 F.2d 1200, 1209 (9th Cir.1989) (en banc); accord SFIC Properties, Inc. v. Int'l Ass'n of Machinists & Aerospace Workers, 103 F.3d 923, 925 (9th Cir.1996). [T]he question of public policy is ultimately one for resolution by the courts. United Food & Commercial Workers Int'l Union, Local 588 v. Foster Poultry Farms, 74 F.3d 169, 174 (9th Cir.1995). The public policy exception is Aramark's sole basis for attacking the arbitration award in this case. To vacate an arbitration award on public policy grounds, we must (1) find that an explicit, well defined and dominant policy exists here and (2) that the policy is one that specifically militates against the relief ordered by the arbitrator. Id. at 174 (citations and quotation marks omitted); accord W.R. Grace & Co. v. Local Union 759, Int'l Union of United Rubber, Cork, Linoleum & Plastic Workers of Am., 461 U.S. 757, 766, 103 S.Ct. 2177, 76 L.Ed.2d 298 (1983). In evaluating a public policy argument, we must focus on the award itself, not the behavior or conduct of the party in question. S. Cal. Gas Co. v. Utility Workers Union of Am., Local 132, AFL-CIO, 265 F.3d 787, 795 (9th Cir. 2001). We have stressed that courts should be reluctant to vacate arbitral awards on public policy grounds, because [t]he finality of arbitral awards must be preserved if arbitration is to remain a desirable alternative to courtroom litigation. Arizona Elec. Power Co-op., Inc. v. Berkeley, 59 F.3d 988, 992 (9th Cir.1995). Moreover, before the award will be vacated as against public policy, the policy violation must be clearly shown. Stead Motors, 886 F.2d at 1225 (quoting United Paperworkers Int'l Union, AFL-CIO v. Misco, Inc., 484 U.S. 29, 43, 108 S.Ct. 364, 98 L.Ed.2d 286 (1987)). Importantly, the public policy inquiry proceeds by taking the facts as found by the arbitrator. The parties did not bargain for the facts to be found by a court, but by an arbitrator chosen by them...[.] Nor does the fact that it is inquiring into a possible violation of public policy excuse a court for doing the arbitrator's task. Id. at 1211 (quoting Misco, 484 U.S. at 45, 108 S.Ct. 364); accord Prudential-Bache Secs., Inc. v. Tanner, 72 F.3d 234, 242 (1st Cir.1995); Bd. of County Comm'rs of Lawrence County, Ohio v. L. Robert Kimball & Assocs., 860 F.2d 683, 686 (6th Cir.1988); see also Int'l Bhd. of Elec. Workers, Local 97 v. Niagra Mohawk Power Corp., 143 F.3d 704, 716 (2d Cir.1998) ([I]n reviewing an arbitral award for possible violations of public policy... [a] court is not authorized to revisit or question the fact-finding or the reasoning which produced the award.); E.I. DuPont de Nemours & Co. v. Grasselli Employees Indep. Ass'n, 790 F.2d 611, 617 (7th Cir.1986) (rejecting a public policy attack because it would require[ ] this Court to re-find facts found by the arbitrator), disapproved on other grounds by Misco, 484 U.S. at 35 n. 7, 108 S.Ct. 364. Accordingly, in evaluating whether the arbitrator's award violated public policy here, we will not revisit the arbitrator's factual findings, in particular the finding that there was no convincing information that any of the terminated workers were undocumented.