Fraternal Order of Police, Montgomery County Lodge 35 v. Montgomery County

88 A.3d 887, 216 Md. App. 634, 2014 WL 1258031, 2014 Md. App. LEXIS 34
CourtCourt of Special Appeals of Maryland
DecidedMarch 27, 2014
Docket0335/13
StatusPublished
Cited by2 cases

This text of 88 A.3d 887 (Fraternal Order of Police, Montgomery County Lodge 35 v. Montgomery County) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fraternal Order of Police, Montgomery County Lodge 35 v. Montgomery County, 88 A.3d 887, 216 Md. App. 634, 2014 WL 1258031, 2014 Md. App. LEXIS 34 (Md. Ct. App. 2014).

Opinion

MEREDITH, J.

The Circuit Court for Montgomery County denied a Petition for Award of Costs and Disbursements that was filed by Fraternal Order of Police, Lodge 35 (“appellant” or “FOP”), which was seeking reimbursement of the fees it incurred in fending off a motion to stay a request for arbitration. FOP’s claim for attorneys’ fees and costs was filed after appellant scored a court victory over Montgomery County (“appellee” or “the County”); the Court of Appeals ruled that a grievance filed by FOP was subject to arbitration pursuant to a collective bargaining agreement between the parties. Montgomery County, Maryland v. Fraternal Order of Police, Montgomery *636 County Lodge 35, Inc., 427 Md. 561, 567, 50 A.3d 579 (2012) (hereafter referred to as “FOP /”). After the Court of Appeals ruled in FOP I that the grievance was indeed subject to arbitration, FOP filed its petition asking that the Circuit Court for Montgomery County order the County to reimburse FOP for the litigation expenses and costs it had incurred up to that point in its efforts to establish and confirm that the grievance was arbitrable. The circuit court rejected FOP’s argument that § 3-228(b) of the Courts and Judicial Proceedings Article of the Maryland Code authorizes such an award of litigation expenses at that preliminary stage in the arbitration proceedings, and the court denied FOP’s fee petition. This appeal followed.

QUESTION PRESENTED

Appellant presents a single question for our review: Does Section 3-228(b) of the Maryland Uniform Arbitration Act permit a court, following litigation of a petition to stay arbitration, to award the prevailing party reasonable attorneys’ fees and costs?

We will affirm the circuit court’s denial of the appellant’s Petition for Award of Costs and Disbursements.

FACTS AND PROCEDURAL HISTORY

The proceedings that led to the present dispute were described as follows by the Court of Appeals in FOP I:

The Fraternal Order of Police, Montgomery County Lodge 35, Inc. (“FOP” or “Appellee”) filed a grievance under the “Maintenance of Standards” provision of its collective bargaining agreement (“CBA” or “Agreement”) with Montgomery County (“County” or “Appellant”) following the County’s unilateral decision to discontinue a long-standing practice of allowing shop stewards to sit in on disciplinary interrogations for training purposes. The County filed a motion to dismiss the grievance, arguing that arbitration of the issue was preempted by the Law Enforcement Officers’ Bill of Rights ... [LEOBR]. The arbitrator deter *637 mined that the grievance was not preempted and denied the motion to dismiss. The County then filed a petition to vacate the “arbitration award” in the Circuit Court for Montgomery County. The Circuit Court affirmed the arbitrator’s decision and granted summary judgment on behalf of the FOP. We affirm the judgment of the Circuit Court that the LEOBR is not implicated by the steward training grievance and, therefore, does not preempt its arbitration under the CBA.

427 Md. at 564, 50 A.3d 579 (emphasis added) (footnote omitted).

The Court of Appeals observed in FOP I that the County had been mistaken in labeling its motion as a petition to vacate an arbitration award; there was no award to be vacated. Consequently, the Court of Appeals treated the claim for relief which the County had labeled a “petition to vacate” as a motion to stay arbitration. The Court explained, id. at 568-69, 50 A.3d 579:

Preliminarily, we take this opportunity to clarify the procedural issue raised by the trial judge when, in confirming the determination of the arbitrator, he noted confusion as to whether a petition to “vacate” was the “correct terminology,” under the circumstances. Indeed, by filing a petition to vacate the “arbitration award,” the County suggested that an award was, in fact, made by the arbitrator. It used language throughout the petition that referred to the arbitrator’s denial of its dispositive motion as an “award,” despite its preliminary nature and the fact that arbitration on the merits had not taken place.
Appellant apparently relied on Montgomery County v. Fraternal Order of Police Montgomery County Lodge 35, Inc., 147 Md.App. 659, 810 A.2d 519 (2002) (“Lodge 35 ”), as the blueprint for pursuing this procedural error. In that case the FOP requested arbitration, and the County, rather than petitioning the circuit court for a stay of arbitration, filed a motion to dismiss before the arbitrator, arguing that the particular dispute was not arbitrable. After the arbitrator denied the motion to dismiss, the County filed a “peti *638 tion to vacate arbitration award” in the circuit court. The circuit court affirmed the determination of arbitrability, which was then appealed. On appeal, the intermediate appellate court stated that although the arbitrator issued a preliminary decision rather than a final award, “[n]evertheless, the parties have not argued that an arbitrator has to render a final award before a petition to vacate a preliminary decision can be filed, and we are not aware of any authority compelling that conclusion.” Lodge 35, 147 Md. App. at 666, 810 A.2d at 523. The intermediate appellate court then continued to evaluate whether the arbitrator exceeded his powers and whether the “award” should be “vacated” under the Arbitration Act, Maryland Code § 3-224 of the Courts and Judicial Proceedings Article.
The reasoning of the intermediate appellate court in Lodge 35 is incorrect because it is clear, pursuant to our case law, that a petition to vacate an arbitration award requires an actual award, i.e., a final decision by an arbitrator on the merits. See Messersmith, Inc. v. Barclay Townhouse, 313 Md. 652, 663, 547 A.2d 1048, 1053 (1988) (noting that Md.Code § 3-208 and § 3-224 of the Courts and Judicial Proceedings Article are “mechanisms through which a court (based upon its independent assessment of the evidence thereby concluding that no agreement to arbitrate exists) is authorized to either stay an arbitration proceeding, under § 3-208, or invalidate it after the fact, under § 3-224(b)(5).” (emphasis added)); Brewster v. Woodhaven Bldg. & Dev., Inc., 360 Md. 602, 620, 759 A.2d 738

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88 A.3d 887, 216 Md. App. 634, 2014 WL 1258031, 2014 Md. App. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fraternal-order-of-police-montgomery-county-lodge-35-v-montgomery-county-mdctspecapp-2014.