DiRussa v. Dean Witter Reynolds, Inc.

936 F. Supp. 104, 1996 U.S. Dist. LEXIS 10600, 69 Empl. Prac. Dec. (CCH) 44,529, 71 Fair Empl. Prac. Cas. (BNA) 1002, 1996 WL 424937
CourtDistrict Court, S.D. New York
DecidedJuly 29, 1996
Docket95 Civ. 4469 (CSH)
StatusPublished
Cited by4 cases

This text of 936 F. Supp. 104 (DiRussa v. Dean Witter Reynolds, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DiRussa v. Dean Witter Reynolds, Inc., 936 F. Supp. 104, 1996 U.S. Dist. LEXIS 10600, 69 Empl. Prac. Dec. (CCH) 44,529, 71 Fair Empl. Prac. Cas. (BNA) 1002, 1996 WL 424937 (S.D.N.Y. 1996).

Opinion

*105 MEMORANDUM AND ORDER

HAIGHT, Senior District Judge:

These are cross-motions to vacate and confirm an award of arbitrators. The factual background appears in the Court’s Memorandum and Order dated October 20, 1995, familiarity with which is presumed.

I

In their initial cross-motion, defendants moved to dismiss plaintiffs complaint, as well as confirm the award. The ground for the motion to dismiss was an asserted lack of subject matter jurisdiction in this Court. On the pleadings as they then existed, that question turned upon whether plaintiffs arbitra-ble claims sufficiently implicated the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), 29 U.S.C. §§ 621 et seq. But I need not resolve that question, since plaintiff has amended his complaint to allege complete diversity of citizenship. Defendants do not challenge plaintiffs jurisdictional allegations. It follows that whether or not subject matter jurisdiction exists under 28 U.S.C. § 1331, it clearly does under § 1332.

Plaintiff asks the Court to disregard as unauthorized written submissions by defendants that they characterize as “surreply.” In point of fact, defendants made these submissions as of right. Plaintiff moved to vacate or modify the award. Defendants then opposed that motion, and cross-moved to dismiss or confirm. Plaintiff then replied to defendants’ opposition to his motion, and opposed defendants’ cross-motion. Defendants then replied to plaintiffs opposition to their motion. This is all perfectly in order, and defendants’ use of the term “surreply” does not change that fact. I have considered all of the submissions before me.

*106 II

The first substantive point arises out of the arbitrators’ refusal to award plaintiff his attorney’s fees.

Plaintiff claimed that he had been wrongfully terminated by defendants on account of his age. His statement of claim before the National Association of Securities Dealers, Inc. (“NASD”) alleged jurisdiction under the ADEA and the New Jersey Law Against Discrimination (“NJLAD”), N.J.S.A. 10:5-1 et seq. Claim, ¶ 2. As plaintiff recognized in his statement of claim, the Supreme Court’s holding in Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 111 S.Ct. 1647, 114 L.Ed.2d 26 (1991), required him to submit his discrimination claim to arbitration under the terms of his contract of employment. Plaintiff claimed, inter alia, “attorney’s fees and costs of suit pursuant to the ADEA and NJLAD.” Id., p. 6, ¶ (e).

The arbitrators, after conducting hearings and receiving briefs of counsel, rendered an award which gave plaintiff a total of $220,000 in compensatory damages but denied all other requested relief, including plaintiffs claim for attorney’s fees.

Plaintiff asks the Court to vacate or modify the award in that respect, on the ground that the ADEA mandates an award of attorney’s fees to a successful claimant.

Despite defendants’ faint protests to the contrary, the factual predicate for plaintiffs contention is entirely accurate. Section 626(b) of the ADEA incorporates by reference that portion of the Fair Labor Standards Act providing that “[t]he court ... shall, in addition to any judgment awarded to the plaintiff ..., allow a reasonable attorney’s fee to be paid by the defendant, and costs of the action.” 29 U.S.C. § 216(b) (emphasis added). The Second Circuit has repeatedly held that the ADEA mandates an award of fees to a plaintiff who recovers a judgment. See, e.g., Hagelthorn v. Kennecott Corp., 710 F.2d 76, 86 (2d Cir.1983), citing Christiansburg Garment Co. v. E.E.O.C., 434 U.S. 412, 415 & n. 5, 98 S.Ct. 694, 697 & n. 5, 54 L.Ed.2d 648 (1978).

Since the arbitrator’s rejection of plaintiffs claim for attorney’s fees under the ADEA does not fall within any of the limited grounds for vacating an arbitration award found in the Federal Arbitration Act (“FAA”), 9 U.S.C. §§ 10, 11, plaintiff must rely upon that judicially created ground for overturning arbitration awards known as “manifest disregard of the law.” See Carte Blanche (Singapore) Pte, Ltd. v. Carte Blanche International, Ltd., 888 F.2d 260, 265 (2d Cir.1989). 1

The Second Circuit has cautioned that judicial inquiry into an arbitration award under the “manifest disregard” standard is “extremely limited.” Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Bobker, 808 F.2d 930, 934 (2d Cir.1986). The Bobker court continued: “The governing law alleged to have been ignored by the arbitrators must be well defined, explicit, and clearly applicable. We are not at liberty to set aside an arbitration panel’s award because of an arguable difference regarding the meaning or applicability of laws urged upon it.” Id.

Applying these principles to the case at bar, it is difficult to imagine a more “well defined, explicit and clearly applicable” provision of governing law than the ADEA’s mandate that successful age discrimination claimants such as plaintiff recover attorney’s fees. There is no “arguable difference” on the point, and consequently no basis for judicial reticence. In that regard, the case at bar is distinguishable from Emrick v. Deutsche Bank Capital Corp., 1991 WL 61091 (S.D.N.Y.), upon which defendants rely. Judge Mukasey’s discussion in Emrick demonstrates that the applicability of the state statute relied upon for attorney’s fees was far from clear under the cases. Id. at *4.

But defendants at bar also rely upon other language in Bobker. To constitute manifest disregard of law, “[t]he error must have been obvious and capable of being readily and instantly perceived by the aver *107 age person quaffied to serve as an arbitrator. Moreover, the term ‘disregard’ implies that the arbitrator appreciates the existence of a clearly governing legal principle but decides to ignore or pay no attention to it.” 808 F.2d at 933.

These cautionary principles enhance and supplement those previously quoted.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Commercial Union Insurance v. Lines
239 F. Supp. 2d 351 (S.D. New York, 2002)
DiRussa v. Dean Witter Reynolds Inc.
121 F.3d 818 (Second Circuit, 1997)
Chisolm v. Kidder, Peabody Asset Management, Inc.
966 F. Supp. 218 (S.D. New York, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
936 F. Supp. 104, 1996 U.S. Dist. LEXIS 10600, 69 Empl. Prac. Dec. (CCH) 44,529, 71 Fair Empl. Prac. Cas. (BNA) 1002, 1996 WL 424937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dirussa-v-dean-witter-reynolds-inc-nysd-1996.