Bureau of Special Investigations v. Coalition of Public Safety

722 N.E.2d 441, 430 Mass. 601, 2000 Mass. LEXIS 10, 164 L.R.R.M. (BNA) 2247
CourtMassachusetts Supreme Judicial Court
DecidedJanuary 20, 2000
StatusPublished
Cited by52 cases

This text of 722 N.E.2d 441 (Bureau of Special Investigations v. Coalition of Public Safety) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bureau of Special Investigations v. Coalition of Public Safety, 722 N.E.2d 441, 430 Mass. 601, 2000 Mass. LEXIS 10, 164 L.R.R.M. (BNA) 2247 (Mass. 2000).

Opinion

Abrams, J.

The Bureau of Special Investigations (BSI) appeals from a judgment of a Superior Court judge allowing the Coalition of Public Safety’s (union’s) motion for summary judgment. BSI sought the vacation of an arbitrator’s award reinstating Shawn Maloney and Carl Morton, two BSI investigators who were terminated after accessing confidential tax records without authorization. BSI and the union, which represents Maloney and Morton, filed cross motions for summary judgment. The judge allowed the union’s motion in a marginal order, stating that “there is no basis justifying vacating the arbitration [602]*602award.” We transferred the case here on our own motion. We affirm the Superior Court judge’s order allowing the union’s motion for summary judgment.

1. Facts. We recite the undisputed facts. BSI is a government agency charged with investigating complaints of fraud related to assistance programs administered by the Department of Transitional Assistance and the Department of Social Services. Through an agreement with the Department of Revenue (DOR), Maloney and Morton, as BSI investigators, had “on-line” access to a computerized database of wage reports of Massachusetts taxpayers.1 In September, 1996, a DOR investigation revealed that Maloney and Morton had used their access to DOR records to examine the tax records of various Boston sports celebrities and three BSI managers.2 Because the individuals whose records were accessed were not under investigation by BSI, the DOR terminated BSI’s access to confidential tax information. BSI discharged Maloney and Morton.

Pursuant to the collective bargaining agreement between BSI and the union, the union filed grievances protesting the discharges. The grievances were submitted to binding arbitration. The arbitrator concluded that “Shawn Maloney and Carl Morton were discharged without just cause.” The arbitrator noted a number of factors that he considered “extenuating.” He found that Morton and Maloney did not disclose any confidential information, did not gain anything from their unauthorized access to the files, and readily admitted culpability and responsibility for their actions. But see note 2, supra. The arbitrator’s award specified that the terminations be reduced to three-month suspensions without pay.

2. Standard of review. BSI asks us to vacate the arbitrator’s award reinstating Maloney and Morton because enforcement of the award would undermine the public’s interest in keeping tax [603]*603records confidential. According to BSI, we should review the arbitrator’s decision de nova. We do not agree.

“The role of courts in reviewing an arbitrator’s award is limited.” Concerned Minority Educators of Worcester v. School Comm, of Worcester, 392 Mass. 184, 187 (1984), citing G. L. c. 150C, § 11. Judges may not vacate an arbitrator’s award except in the circumstances set forth in G. L. c. 150C, § 11. See Massachusetts Highway Dep’t v. American Fed’n of State, County & Mun. Employees, Council 93, 420 Mass. 13, 15 (1995), citing Concerned Minority Educators of Worcester, supra', and School Comm, of W. Springfield v. Korbut, 373 Mass. 788, 792 (1977). Only G. L. c. 150C, § 11(a) (3), has potential application in this case. General Laws c. 150C, § 11 (a) (3), provides that: “Upon application of a party, the superior court shall vacate an award if: — . . . the arbitrators exceeded their powers or rendered an award requiring a person to commit an act or engage in conduct prohibited by state or federal law.” “Arbitration, it is clear, may not ‘award relief of a nature which offends public policy ....’” Lawrence v. Falzarano, 380 Mass. 18, 28 (1980), quoting S.E. Eager, The Arbitration Contract and Proceedings § 121.6 (1971).

Arbitrators are limited to considering matters encompassed by the collective bargaining or other agreements. Arbitrators do not have the authority to take into consideration the public policy implications of their awards. See, e.g., Iowa Elec. Light & Power Co. v. Local Union 204 of the Int’l Bhd. of Elec. Workers, 834 F.2d 1424, 1427 (8th Cir. 1987), quoting W.R. Grace & Co. v. Local Union 759, Int’l Union of the United Rubber, Cork, Linoleum & Plastic Workers, 461 U.S. 757, 766 (1983). Also, courts may not enforce contracts or agreements that violate strong public policy. Therefore, “the question of public policy is ultimately one for resolution by the courts” and not by arbitrators. Massachusetts Highway Dep’t, supra at 16 n.5, quoting W.R. Grace & Co., supra', Exxon Corp. v. Esso Workers’ Union, Inc., 118 F.3d 841, 845 (1st Cir. 1997).

We start with the principle that there is a “strong public policy favoring arbitration.” Massachusetts Highway Dep’t, supra at 16, quoting Plymouth-Carver Regional Sch. Dist. v. J. Farmer & Co., 407 Mass. 1006, 1007 (1990).3 See International Bhd. of Elec. Workers, Local 97 v. Niagara Mohawk [604]*604Power Corp., 143 F.3d 704, 714 (2d Cir. 1998); W.R. Grace & Co., supra at 764. Thus, because the public policy “doctrine allows courts to by-pass the normal heavy deference accorded to arbitration awards and potentially to ‘judicialize’ the arbitration process, the judiciary must be cautious about overruling an arbitration award on the ground that it conflicts with public policy.” E.I. DuPont de Nemours & Co. v. Grasselli Employees Indep. Ass’n of E. Chicago, 790 F.2d 611, 615 (7th Cir.), cert. denied, 479 U.S. 853 (1986), and cases cited.4

3. Discussion. We have vacated (or affirmed the vacation of) an arbitrator’s award under G. L. c. 150C, § 11 (a) (3), where that award directly conflicts with statutory provisions. See, e.g., Watertown Firefighters, Local 1347 v. Watertown, 376 Mass. 706, 713-714 (1978); School Comm, of Hanover v. Curry, 369 Mass. 683, 685 (1976). See also Boston v. Boston Police Patrolmen’s Ass’n, 8 Mass. App. Ct. 220, 227 (1979). However, in Massachusetts Highway Dep’t, supra, the Commonwealth asked that an arbitrator’s award be vacated because “it 'violate[d] the Commonwealth’s explicit, well-defined, and dominant public policy against the unauthorized possession of handguns.’ ” Id. at 14. The arbitrator’s award in that case ordered the reinstatement of a highway department employee who was terminated after a loaded handgun was found in his locked toolbox. Id. at 13-14. We held that the Commonwealth had not established that the award violated public policy to such an extent that it required vacation. We also implicitly set forth several prerequisites for establishing that an award violates public policy.

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Bluebook (online)
722 N.E.2d 441, 430 Mass. 601, 2000 Mass. LEXIS 10, 164 L.R.R.M. (BNA) 2247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bureau-of-special-investigations-v-coalition-of-public-safety-mass-2000.