Dayton City School Dist. Bd. of Edn. v. Dayton Edn. Assn.

2018 Ohio 4350, 122 N.E.3d 249
CourtOhio Court of Appeals
DecidedOctober 26, 2018
Docket27793
StatusPublished
Cited by8 cases

This text of 2018 Ohio 4350 (Dayton City School Dist. Bd. of Edn. v. Dayton Edn. Assn.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dayton City School Dist. Bd. of Edn. v. Dayton Edn. Assn., 2018 Ohio 4350, 122 N.E.3d 249 (Ohio Ct. App. 2018).

Opinions

WELBAUM, P.J.

{¶ 1} This case is before us on the appeal of Plaintiff-Appellant, Dayton City School District Board of Education ("Board") from a judgment affirming an arbitration award in favor of Defendants-Appellees, Dayton Education Association ("DEA"), and several Dayton Public School employees. The Board contends that the trial court erred in refusing to vacate the arbitration award because the award was not rationally derived from the terms of the collective bargaining agreement.

{¶ 2} We conclude that the trial court did not err in concluding that the arbitration award had a rational connection to the collective bargaining agreement and was not arbitrary, capricious, or unlawful. Accordingly, the judgment of the trial court will be affirmed.

I. Facts and Course of Proceedings

{¶ 3} The issues in this case involve a collective bargaining agreement (the Master Contract) between the Board and the DEA that was effective from December 21, 2013, through June 30, 2017. The DEA is a union representing just over 1,000 professional staff members; in total, the Dayton Public School District ("DPS") has more than 2,000 employees.

{¶ 4} Among other provisions, the Master Contract includes Article 49, which is titled "Insurance." Article 49 contains various subsections pertaining to medical and dental enrollment, medical and dental benefits, life insurance benefits, premium payments, flexible spending accounts, and so on.

*251{¶ 5} DPS has a self-funded insurance plan. Under the 2013-2017 contract, the parties switched from a preferred provider organization plan to a high deductible plan that included health savings accounts. DPS was a client of McGohan Brabender ("McGohan"), which consults with clients about various issues, including compliance and healthcare. Carrie Thornton, a McGohan account manager, was in charge of the DPS account and assisted DPS in transitioning to the high deductible plan. As part of the transition, McGohan representatives held hundreds of meetings with DPS employees to educate them about the plan.

{¶ 6} McGohan also worked with DPS senior personnel on strategic plans and recommended that DPS implement a dependent verification audit. Before the process began, McGohan reviewed different companies able to assist with such an audit and recommended ConSova, an out-of-state company. McGohan had previously worked with ConSova in many different situations involving its largest clients and was very comfortable with ConSova's documentation and resources for implementing the recommended audit. According to Thornton, McGohan particularly liked ConSova's assumption that employees were doing the right thing and that ConSova would work with employees on providing correct documentation.

{¶ 7} Prior to the audit, Thornton was involved in multiple conference calls with ConSova and DPS leadership. To select the documentation required for the audit, ConSova followed the guidelines for Section 125 of the Internal Revenue Code, which is the tax-free vehicle that allows employees to pay for insurance premiums on a pre-tax basis. The audit documentation itself was tailored to each type of dependent. For example, the documentation needed for a child would be different from what was required for a domestic partner, and so forth.

{¶ 8} During the conference calls, DPS leadership, Thornton, and ConSova discussed documentation that ConSova had recommended, as well as the reasons why DPS should use particular types of documents for verification. For example, ConSova recommended using marriage certificates rather than marriage licenses for verifying spouses, because marriage licenses are issued before marriage, with no guarantee that a marriage will actually occur; in contrast, marriage certificates are issued after marriage and verify that a marriage has taken place. After consulting with ConSova and Thornton, DPS used the documentation that ConSova had recommended.

{¶ 9} During the planning process, Thornton and DPS met with union leaders, including David Romick, the DEA president, and discussed the Board's intentions with respect to the audit. They also discussed the need for employees to affirmatively respond to the audit and what the consequences would be for dependents of employees who failed to affirmatively respond. The unions, including DEA, were told that if employees failed to respond or failed to respond correctly, their dependents would be removed retroactively from the plan before inception of the new insurance plan, which was scheduled to start on January 1, 2016. The audit, itself, had two phases, and Thornton and DPS met again with the union leaders after the close of the first phase of the audit.

{¶ 10} The audit began in September 2015, prior to open enrollment for the next year's health plan. Open enrollment took place in November 2015, and, as was noted, the next plan year was to begin on January 1, 2016.

{¶ 11} The first phase of the audit applied to all DPS employees with dependents *252enrolled in the current health plan. Anyone who had a currently-enrolled dependent was required to go through the audit process.

{¶ 12} After the audit began, people might either have life-changing events (like the birth of a child or a marriage) in connection with the current plan, or might enroll dependents for the next year's plan. This was the second phase of the audit. If employees had provided dependent verification during the previous phase, they would not be required to do so again. However, if employees added new dependents to the plan, they would need to go through the audit process and provide the required documentation.

{¶ 13} DEA president David Romick testified at the arbitration hearing. Romick recalled attending a meeting that included the presidents of the 14 DPS bargaining units, the DPS superintendent, and the DPS treasurer. This was a regularly scheduled meeting and was held before the DPS treasurer sent an email to all employees notifying them of the upcoming audit. The email was sent on September 3, 2015.

{¶ 14} At the meeting, the union presidents were told that DPS would be conducting a dependent audit using an outside agency. DEA did not object to the audit; in fact, Romick testified that DEA absolutely supported the audit because of cost savings for the district and for members in terms of what they would pay for their policies.

{¶ 15} Phase one of the verification process lasted from September 21 to October 25, 2015, and phase two took place between October 26, 2015, and November 22, 2015. An appeals phase, during which employees could appeal to ConSova after receiving a "drop letter," lasted from November 23, 2015 to January 11, 2016. In reality, this "appeals" phase simply offered employees a further opportunity to submit documentation without having their dependents removed from the plan.

{¶ 16} On September 3, 2015, the DPS treasurer, Craig Jones, sent an email to all DPS employees, notifying them about the dependent verification audit that was going to take place. Jones told employees that they would soon receive a mailing from ConSova at their addresses, and he also attached a flyer to the email. The email stressed that: "You must take action immediately upon receipt of the letter. If you do not take action your dependent(s) benefits may be cancelled. To cover eligible dependents, a response is mandatory." Board Ex. J-175.

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Dayton City School Dist. Bd. of Edn. v. Dayton Edn. Assn.
2018 Ohio 4350 (Ohio Court of Appeals, 2018)

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Bluebook (online)
2018 Ohio 4350, 122 N.E.3d 249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dayton-city-school-dist-bd-of-edn-v-dayton-edn-assn-ohioctapp-2018.