Challenges to the Arbitral Award - Chapter 07 - AAA Yearbook on Arbitration and the Law - 27th Edition
Author(s):
Stephen K. Huber
Ben H. Sheppard Jr.
Page Count:
60 pages
Media Description:
1 PDF Download
Published:
September, 2015
Description:
Originally from AAA Yearbook on Arbitration and the Law - 27th Edition
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7.01 Statutory Deadlines for Submission of Application to
Vacate or Modify Award
United Food & Commercial Workers Int’l Union, Local No. 7 v.
King Soopers, Inc., 743 F.3d 1310 (10th Cir. 2014)
The employer’s failure to bring an action to vacate the arbitration
award within 90 days barred the employer from raising defenses
that could have been raised as grounds to vacate the award in a
subsequent confirmation proceeding.
An employee filed a grievance complaining that the operator of
grocery stores, King Soopers, created a hostile work environment. The
arbitrator who heard the case concluded that the dispute was arbitrable
and found in favor of the employee, and King Soopers neither complied
with the award nor sought to vacate it. After expiration of the time to
seek to vacate the award, the union filed its complaint in federal district
court to enforce the award and filed an amended complaint eleven days
later. King Soopers then answered that the award was unenforceable.
The court ruled that King Soopers’ affirmative defenses were timebarred
because they were not raised as the basis for an action to vacate
the award within the 90-day limitations period under Colorado statute.
The court nevertheless declined to enforce the award for other reasons.
The court of appeals cited to relevant precedent and decisions of
other circuits and agreed with the district court in finding that King
Soopers affirmative defenses were time barred. The court reiterated that
there was nothing irregular about ruling that a potential meritorious
argument is barred by delay in raising it. The court distinguished the
cases relied upon by King Soopers. In some of the cases, timeliness was
not an issue, and in others, the court found that King Soopers
misinterpreted the opinion.
Citations and References:
a. International Brotherhood of Electrical Workers, Local Union
No. 969 v. Babcock & Wilcox, 826 F.2d 962, 964–65 (10th Cir.
1987) (refusing to consider the merits of B&W’s defenses
because B&W did not move to vacate the arbitral award within
the limitations period as set forth in the state statute).
b. Sheet Metal Workers International Ass’n, Local Union No. 36 v.
Systemaire, Inc., 241 F.3d 972, 975 (8th Cir. 2001) (refraining
from addressing the merits of Systemaire’s defenses and granting
summary judgment for the union based solely on the
untimeliness of Systemaire’s challenge).
c. Sullivan v. Lemoncello, 36 F.3d 676, 681 (7th Cir. 1994)
(holding that Lemoncello was barred from attacking the awards
because he had not challenged them within the required time
period)
d. United States v. Kubrick, 444 U.S. 111, 125 (1979) (“[it] goes
without saying that statutes of limitations often make it
impossible to enforce what were otherwise perfectly valid
claims. But that is their very purpose . . . .”).
e. James Valley Grain v. David, 802 N.W.2d 158 (N.D. 2011)
(motion to confirm arbitration award does not extend the 90-day
period governing a motion to vacate an arbitration award).
Gonsalvez v. Celebrity Cruises Inc., 750 F.3d 1195 (11th Cir.
2013), cert. denied, No. 13-1285, 135 S.Ct 58 (Mem) (2014)
FAA’s three-month statute of limitations applied to an action to
vacate an arbitration award under the New York Convention.
The plaintiffs were former stateroom attendants who brought wage
claims against the defendant, Celebrity Cruises, Inc. The attendants
originally demanded arbitration, and Celebrity Cruises moved to dismiss
on the ground that the attendants failed to comply with their collective
bargaining agreements grievance procedure, which was a precondition to
submitting a dispute for arbitration. The arbitrator granted Celebrity
Cruises’ motion. When the attendants sought to vacate the arbitration
award, the district court dismissed the suit as barred by the statute of
limitations, and the attendants appealed.
limitations, and the attendants appealed.