City of Lynn v. Lynn Police Ass'n

899 N.E.2d 106, 73 Mass. App. Ct. 489, 2009 Mass. App. LEXIS 21
CourtMassachusetts Appeals Court
DecidedJanuary 9, 2009
DocketNo. 07-P-1090
StatusPublished
Cited by2 cases

This text of 899 N.E.2d 106 (City of Lynn v. Lynn Police Ass'n) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Lynn v. Lynn Police Ass'n, 899 N.E.2d 106, 73 Mass. App. Ct. 489, 2009 Mass. App. LEXIS 21 (Mass. Ct. App. 2009).

Opinion

McHugh, J.

Appealing from a Superior Court judge’s decision confirming an arbitrator’s award requiring the city of Lynn (city) to pay members of the Lynn Police Association (union) certain back wages, the city asserts that the arbitrator exceeded his authority and committed an error of law. We disagree and affirm.

The dispute between the city and the union is rooted in a statute enacted in 1985 when the city was on the verge of bankruptcy and unable to meet financial obligations, including wage obligations under its collective bargaining agreements. To prevent bankruptcy, the city sought financial relief from the Com[490]*490monwealth. In response, the Commonwealth enacted the so-called “Lynn Bailout Act” (bailout bill), see St. 1985, c. 8, under which it loaned the city $3.5 million but required the city to comply with certain financial safeguards to prevent spending in excess of revenues, the practice that had created the city’s crisis.

The safeguards are rigorous. The bailout bill amended the city’s charter to require, among other things, that each department head submit to the city’s chief financial officer quarterly spending schedules, or allotments, within ten days after the mayor and city council set the department’s annual appropriation. Under the amended charter, no department may overspend a quarterly allotment without the mayor’s approval. If the mayor approves excess spending within a quarter, the department head must adjust the remaining quarterly allotments to ensure that future spending does not exceed the department’s annual appropriation. See St. 1985, c. 8, § 3.

Under the charter as amended by the bailout bill, any city official who intentionally causes his or her department to overspend an appropriation is personally liable to the city for the excess. Ibid. Of most importance here, the charter, as amended by the bailout bill, provides that

“[n]o personnel expenses earned or accrued, within any department, shall be charged to or paid from such department’s . . . [quarterly] allotment of a subsequent period without approval by the mayor, except for subsequently determined retroactive compensation adjustments. Approval of a payroll for payment of wages, or salaried [Ac] or other personnel expenses which would result in an expenditure in excess of the allotment shall be a violation of this section by the department or agency head .... If the continued payment of wages, salaries or other personnel expenses is not approved in a period where a department has exhausted the . . . allotment or allotments as specified above, or, in any event, if a department has exceeded its appropriation for a fiscal year, the city shall have no obligation to pay such personnel cost or expense arising after such allotment or appropriation has been exhausted” (emphasis added).

[491]*491Ibid. Finally, § 3 of the bailout bill amended the city charter to provide that “every collective bargaining agreement entered into by the city . . . after the effective date of this act shall be subject to and shall expressly incorporate the provisions of this section.” Accordingly, § 3 was set forth virtually verbatim in art. 40 of the collective bargaining agreement (CBA) in effect at the time the present dispute arose.

In fiscal year (FY) 2004, eighteen years after the bailout bill’s enactment, the city was facing cuts in the amount of aid it was receiving from the Commonwealth and was considering police department personnel layoffs to deal with the shortfall. In October, 2003, to avoid layoffs, the union and the city entered into a “Memorandum of Agreement” (MOA), in which they temporarily modified certain terms of the then-existing CBA to reduce each employee’s pay and to reduce certain allowances the CBA provided. Anticipating that financial assistance of some kind might be forthcoming from the Commonwealth or the Federal government, the MOA also provided that

“[i]n the event... the City receives additional assistance from the State or Federal governments during FY 04 that improves the City’s current financial situation the concessions [made by the union] shall be reconfigured proportionately to repay the officers up to the amount of the concessions. For example, if the concessions of this Agreement equal $300,000 and the City receives an additional $100,000 from the Commonwealth of Massachusetts, the concessions will be reconfigured to be reduced by Vs.”

The MOA saved the city $290,360 and layoffs were averted.

In December, 2003, shortly after the MOA took effect, the department received a community policing grant from the Massachusetts Executive Office of Public Safety (EOPS) in the amount of $277,815. In a finding not challenged here or in Superior Court, an arbitrator eventually ruled that the Lynn police chief

“had broad discretion how to expend the . . . grant funds. The grant was not restricted to discrete law enforcement activities or equipment. So long as the funds were used for community policing initiatives, which all sworn personnel [492]*492in the Lynn Police Department participate in, there were no restrictions on how the funds could be used. For all practical purposes, the grant was unrestricted.”

The arbitrator also found that the EOPS expressly prohibited police departments from using the community policing grant funds to “supplant” rather than “supplement” their budgets. In other words, the grant was designed to add to the funds allocated to the department for the fiscal year and not to replace a portion of the department’s allocation so that the city could spend that portion elsewhere. Again, the city did not challenge that finding in the Superior Court and does not challenge it here. In any event, the city did not use the grant funds to repay the union members for concessions they had made in the MOA and, instead, used the money for other purposes.1 In June, 2004, at the end of the fiscal year, $7,000 of the police department’s allocation remained and the department used that sum to repay union members for a part of their MOA concessions.

The union became aware of the EOPS grant in February, 2004, and began discussions with the city about using the grant funds to end the MOA and restore concessions members had already incurred. The city declined and the union filed a grievance that led to arbitration hearings in August, 2005.2 On December 19, 2005, the arbitrator ruled that the city had violated the MOA by failing to use the EOPS grant funds to repay the union members for their concessions and, as a result, was required to repay those concessions from other funds. Rejecting the city’s argument that the bailout bill precluded repayment of the [493]*493MOA concessions, the arbitrator ruled that the city was aware of the bill’s strictures when it entered into the MOA and was therefore obliged to figure out how to repay the concessions without violating the bailout bill. The arbitrator’s award was confirmed by a judgment entered in the Superior Court.

On appeal, the city contends that compliance with an award requiring retroactive repayment of the MOA concessions was prohibited by the bailout bill and that the award therefore exceeded the scope of the arbitrator’s authority.3 In addressing that contention, we keep in mind several principles. Paramount, perhaps, is that “[t]he role of courts in reviewing an arbitrator’s award is limited.”

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Related

Commonwealth v. Kelsey
982 N.E.2d 1134 (Massachusetts Supreme Judicial Court, 2013)
City of Lynn v. Lynn Police Ass'n
919 N.E.2d 158 (Massachusetts Supreme Judicial Court, 2010)

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Bluebook (online)
899 N.E.2d 106, 73 Mass. App. Ct. 489, 2009 Mass. App. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-lynn-v-lynn-police-assn-massappct-2009.