Voss v. City of Oklahoma City, 52215

Decision Date07 October 1980
Docket NumberNo. 52215,52215
Citation618 P.2d 925,1980 OK 148
PartiesLawrence VOSS, Appellant, v. CITY OF OKLAHOMA CITY, A Municipal Corporation, Appellee.
CourtOklahoma Supreme Court

Appeal from the District Court of Oklahoma County: Jack Parr, Judge.

Appellant appeals from an order of the district court which sustained appellee's motion for judgment notwithstanding the verdict, granted because the court found it did not have subject matter jurisdiction over appellant's employment contract dispute.

AFFIRMED.

James F. Fellingham, Oklahoma City, for appellant.

Walter M. Powell, Municipal Counselor by Dick A. Blakeley, Asst. Municipal Counselor and Kenneth D. Jordan, Law Clerk, Oklahoma City, for appellee.

HODGES, Justice.

The resolution of the following questions is necessary to determine this appeal: 1) whether the trial court had jurisdiction to determine a contractual dispute after the employee had utilized the grievance procedures provided for by the union collective bargaining agreement; 2) may the decision of the arbitrator be challenged because the arbitrator acted in excess of his authority; and 3) did the union waive the rights of the employee to proceed in district court by adoption of the collective bargaining agreement.

The City of Oklahoma City (City-appellee) terminated Lawrence Voss's employment as a firefighter. The firefighter, pursuant to the collective bargaining agreement 1 and the Oklahoma City Employees Grievances Procedures 2 incorporated in the collective bargaining agreement, sought review of his discharge. In accordance with these procedures, he received a hearing before the Union Grievance Committee and the Grievance Review Board. The decision to discharge Voss was upheld by the City Manager, whose decision under the Oklahoma City Employees Grievance Procedure was final. Subsequently, he instituted an action in the district court for breach of the contract of employment between the City and the International Association of Firefighters, Local 1524.

The matter was tried to a jury which returned a $20,978.00 verdict for Voss. The City filed a motion for judgment notwithstanding the verdict. The City argued that the district court lacked subject matter jurisdiction because the collective bargaining agreement contained negotiated grievance procedures which constituted the firefighters exclusive, final, and binding remedy. The motion was sustained.

I

Arbitration is the referral of a dispute by the voluntary agreement of the parties to one or more impartial arbitrators for a final and binding decision as a determination of their dispute. An arbitration award is made on the basis of evidence and argument presented by the parties who agree in advance to accept the decision of the arbitrator as final and binding. 3 An award which is within the scope of the arbitration agreement is as binding as was the agreement authorizing it. In some instances, it is as binding as a judgment of a court. A labor arbitrator is usually selected because the parties have confidence in his impartiality, knowledge, and personal judgment. The arbitrator is a part of a system of self-government which the parties have created. Parties are relatively free to select individuals as arbitrators although certain minimum standards of knowledge, impartiality and moral character are required which tend to equate a private arbitrator with a public judge. 4 The United States Supreme Court in Commonwealth Coatings Corp. v. Continental Casualty Co., 393 U.S. 145, 89 S.Ct. 337, 21 L.Ed.2d 301, 305 held that courts should be even more scrupulous to safeguard the impartiality of arbitrators than judges, because arbitrators are completely free to decide the law and determine the facts and are not subject to appellate review.

The fundamental purpose of arbitration is to preclude court intervention into the merits of disputes when arbitration has been provided for contractually. The basis for the institution of an arbitration proceeding may be either an agreement which provides for arbitration of future controversies or for submission of existing controversies. An agreement for the submission of an issue to arbitrators is a prerequisite to the commencement of a valid arbitration agreement. 5 Where arbitration has been contracted for it constitutes a substantive and mandatory right. There cannot be a valid arbitration or award without a binding submission to arbitration or an impartial arbitrator. 6

Courts generally favor arbitration statutes and collective bargaining agreements because they provide substantial justice by an immediate and speedy resolution with a minimum of court interference. 7 The function of the court is generally limited to ascertaining whether the party is making a claim which is governed by the contract when the parties have agreed to submit all questions of contract interpretation to an arbitrator. The Steelworkers Trilogy decisions 8 simultaneously determined by the United States Supreme Court held that courts are limited to determining whether: 1) there is a collective bargaining agreement in existence; 2) there is an arbitration clause; and 3) if there is an allegation that a provision of the agreement has been violated. If the arbitration clause is broad enough to include the alleged dispute, arbitration must be ordered. If the arbitrator stays within the submission and makes an award within the authority established by the contract, the award must be enforced. 9

A similar situation was presented in City of Midwest City v. Harris, 561 P.2d 1357, 1359 (Okl.1977). This Court in interpreting 11 O.S.1971, § 584.12 (presently codified as 11 O.S.Supp.1977 § 51-111) 10 determined pursuant to the statute a collective bargaining agreement between the City and the Fraternal Order of Police should contain the procedure for required arbitration. The Court held that: the district court lacked jurisdiction; arbitration was required; and the opinion of the arbitrators was binding and final on both parties.

The statutory language expresses a clear legislative intent that any disputes arising from the interpretation or application of the binding collective bargaining agreement shall have an immediate and speedy resolution by required arbitration. The Oklahoma City Employees Grievance Procedure was specifically incorporated into the collective bargaining agreement reached between the City and the firefighters. The collective bargaining agreement limited the employee to the rights and remedies specified therein. The grievance provisions of the collective bargaining agreement controlled the procedure to be followed in the settlement of grievances. Voss had a full hearing before the Union Grievance Committee and the Oklahoma City Employees Grievance Review Board. His grievance was denied by two entirely separate grievance boards and by the City Manager. The firefighter was accorded every grievance remedy provided by the collective bargaining agreement and the City Personnel Grievance Review Board. The Union waived the rights of the employee to proceed in district court by the adoption of the collective bargaining agreement.

There was no allegation raised either at the trial court or on appeal that the arbitrator acted in excess of his authority. Unless some improper discrimination against the individual is inherent in the system or is likely to be brought to bear against him in the particular case by the employer or the union through control of the procedure, 11 the grievance procedure delineated in a collective bargaining agreement should be regarded as the exclusive method of adjusting grievances.

AFFIRMED.

LAVENDER, C. J., and WILLIAMS, BARNES and OPALA, JJ., concur.

IRWIN, V. C. J., concurs in result.

SIMMS, DOOLIN and HARGRAVE, JJ., dissenting.

DOOLIN, Justice, dissenting:

The City of Oklahoma City (City) terminated plaintiff's employment as a firefighter. Pursuant to certain Oklahoma City Employees Grievances Procedures contained in an union collective bargaining agreement, plaintiff sought review of his discharge. In accordance with these procedures plaintiff received a hearing before the Union Grievance Committee and the Grievance Review Board. The decision to uphold his termination was affirmed by the City Manager. Plaintiff then instituted the present action in district court for breach of his contract of employment, namely the contract between City and the International Association of Firefighters, Local 1524 (Union).

The case was tried to a jury who returned a verdict in favor of plaintiff for $20,978.00. City filed a motion for judgment notwithstanding the verdict, arguing, district court had no subject matter jurisdiction over the controversy. This motion was sustained and plaintiff appeals.

The City did not move for a directed verdict at the close of the evidence, a prerequisite for an evidentiary review by motion notwithstanding the verdict. 1 Thus only jurisdiction of the trial court and not evidence was challenged by the motion for judgment notwithstanding the verdict:

"The question of whether or not the (plaintiff's) motion for judgment notwithstanding the verdict should have been sustained depends upon whether or not her motion for a directed verdict, made at the close of all of the evidence, should have been granted." McInturff v. Oklahoma Natural Gas Transmission Company, 475 P.2d 160 (Okl.1970).

12 O.S.1971 Supp. § 698:

"When a motion for a directed verdict which was made at the close of all of the evidence should have been granted, the court shall, at the request of the moving party, render judgment in his favor though a verdict has been found against him ..."

The contract between City and Union incorporated the grievance procedures. City did not argue plaintiff failed to exhaust his administration remedies, 2 only that the administrative decision is final and may not be attacked in district court.

It is true the grievance procedures provide a...

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