Keolis Transit America, Inc. v. Teamsters Union, Local 533

CourtDistrict Court, D. Nevada
DecidedMarch 27, 2023
Docket2:22-cv-00710
StatusUnknown

This text of Keolis Transit America, Inc. v. Teamsters Union, Local 533 (Keolis Transit America, Inc. v. Teamsters Union, Local 533) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keolis Transit America, Inc. v. Teamsters Union, Local 533, (D. Nev. 2023).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 DISTRICT OF NEVADA 6 * * *

7 KEOLIS TRANSIT AMERICA INC., Case No. 2:22-cv-00710-RFB-EJY

8 Plaintiff, ORDER

9 v.

10 TEAMSTERS UNION, LOCAL 533,

11 Defendant.

12 13 I. INTRODUCTION 14 Before the Court are two motions and one cross-motion: Plaintiff Keolis Transit America 15 (“Keolis”), Inc.’s Notice and Motion to Vacate Arbitration Award (ECF No. 1) and Defendant 16 Teamsters Union, Local 533, Motion to Dismiss and Cross Motion to Confirm Arbitration Award 17 by Defendant Teamsters Union, Local 533 (“the Union” or “Teamsters”). For the reasons stated 18 below, the Court denies Keolis’ Motion and grants the Union’s cross-motion. 19 20 II. RELEVANT FACTUAL AND PROCEDURAL BACKGROUND 21 Keolis commenced this case by filing its Notice and Motion to Vacate Arbitration Award 22 on May 3, 2022. ECF No. 1. Teamsters filed a pre-answer Motion to Dismiss on June 1, 2022. 23 ECF No. 12. Keolis filed its Response to the Motion on June 13, 2022. ECF No. 13. Teamsters 24 filed its Reply in support of its Motion on June 17, 2022. ECF No. 14. On July 20, 2022, the 25 Court directed the parties to file a proposed discovery plan and scheduling order no later than 26 August 3, 2022. ECF No. 15. The parties filed a proposed joint discovery plan and scheduling 27 order on July 27, 2022, which the Court granted the same day. ECF Nos. 16, 17. The Court set a 28 hearing for the pending motions on January 27, 2023. ECF No. 18. 1 III. FACTUAL ALLEGATIONS 2 Keolis alleges the following facts in its Notice and Motion (ECF No. 1): 3 Keolis is a transportation company that operates public transportation bus routes around 4 the world, including in Nevada. Michael Rowan is a former Keolis bus driver. In Reno, where 5 Rowan was based, Keolis operates buses pursuant to a contract with the Regional Transit 6 Commission of Washoe County, Nevada (“RTC”). The parties are bound to a collective 7 bargaining agreement (“the CBA”). The CBA requires disputes involving the CBA to be submitted 8 to binding arbitration. 9 Rowan was terminated from Keolis because he engaged in unsafe behavior while operating 10 a vehicle in violation of the CBA and Keolis policies. Specifically, Rowan was seen on 11 surveillance video on June 1, 2020 watching a loud video on his cell phone on two separate 12 occasions for several minutes at a time, while passengers were boarding and exiting the bus. 13 Rowan played the videos so loudly that a customer complained on or about June 1, 2020. 14 In response to the customer complaint, Keolis investigated and confirmed via video 15 surveillance that Rowan’s conduct violated the following policies: CBA Section 9.6 (no use of cell 16 phone while operating vehicle); Company Rule 4 (no use of cell phone while in the seat of any 17 company vehicle), and provisions of the Keolis Handbook prohibiting the use of cell phones where 18 use or distraction with use could create a safety risk to an employee or others. After reviewing the 19 passenger complaint and observing Rowan’s safety violations, Keolis terminated Rowan’s 20 employment on June 19, 2020. The Union filed a grievance on June 24, 2020 alleging Rowan was 21 wrongfully discharged. 22 An arbitration hearing was held on June 15, 2021 in Reno Nevada before Arbitrator Robert 23 B. Hirsch. During the hearing, Keolis testified that there had never been an instance where a driver 24 was observed using a cellphone while operating a company vehicle and had NOT been terminated. 25 At the conclusion of the hearing, the parties filed post hearing briefs. On August 27, 2021, the 26 Arbitrator issued the award. 27 The Arbitrator mistakenly found that Keolis failed to rely upon the policy contained in the 28 handbook even though the termination form clearly states Rowan violated ” Keolis [] handbook 1 policies….and policies posted” even though Rowan violated both the handbook policies and the 2 posted Work Rule 4. The arbitrator found that work rule 4 violated the CBA. Section 9.3 of the 3 CBA allows the Union to grieve Keolis work rules and failure to do so within 14 days of 4 implementation means the rule stands implemented. This rule should be deemed to stand as 5 implemented. Furthermore, the Arbitrator found that Work Rule 4 was unreasonable because 6 operating a bus and sitting in a driver’s seat are two different things. The Arbitrator found that 7 operating a vehicle is not the same as sitting in the driver’s seat with the vehicle idling. Based on 8 these conclusions, The Arbitrator first found that Rowan did violate Keolis’ Personal Electronic 9 Devices policy that prohibits the use of cell phone where the “use or distraction with use could 10 create a safety risk to an employee or others.” The Arbitrator also found that “Rowan used his cell 11 phone to watch videos while he sat in the driver’s seat of his vehicle with passengers on board.” 12 The Arbitrator then found that “[i]t was clear from the video introduced into evidence that he was 13 focused solely on his phone and oblivious to the passengers who were in his custody and care” and 14 “Rowan was not mindful of his responsibilities – care for the transit passengers – while he watched 15 his phone,” 16 Even after making these findings, the Arbitrator only imposed a two (2) week suspension 17 for the clear violation rather than use it to sustain termination. The Arbitrator concluded that found 18 that: (a) Keolis’ decision to discharge Rowan violated the just cause doctrine; (b) Rowan was to 19 be reinstated and any reference to his discharge be expunged from Keolis’ personnel records; and 20 (c) Rowan was to be made whole for lost wages and benefits he would have earned, less two 21 weeks’ wages and benefits, and less any monies earned during time away from employment with 22 Keolis. 23 The Arbitration Award did not fix a total amount of backpay but merely provided that two 24 weeks should be deducted from the unspecified backpay awarded. Keolis reinstated Rowan on 25 September 1, 2021, but requested evidence of mitigation before backpay could be calculated. On 26 October 7, 2021, the Arbitrator ordered in an email that Rowan provide only a statement under 27 penalty of perjury confirming his earnings from his date of termination of employment with Keolis. 28 In this email, the Arbitrator requested only that Rowan account for his efforts to find other 1 employment and list unemployment benefits received. The email stated that “No other data or 2 documents are to be included” and “No other information is to be requested by the Employer.” 3 Rowan submitted a two-page statement that simply itemized his purported interim earnings and 4 stated without explanation that he applied for but received no unemployment benefits. 5 Rowan’s statement on backpay provided no explanation as to why he did not receive 6 unemployment benefits, and what, if any actions he took to obtain employment during his 6-month, 7 3-week period of unemployment. On January 5, 2022, Keolis requested an evidentiary backpay 8 hearing. Arbitrator Hirsch subsequently scheduled what Keolis understood was to be a joint status 9 conference (“Conference”) with counsel for the Union. All hearing requests were denied. Rowan 10 represented, by counsel, that he would seek 66 full weeks of backpay. There are, however, only 11 62 weeks and 4 days between June 20, 2020 (date of Rowan’s firing) and September 1, 2021 (date 12 of Rowan’s reinstatement). The Arbitrator was made aware of this on January 8, 2022. On 13 February 2, 2022, the Arbitrator ordered Keolis to pay Rowan backpay and benefits for 66 weeks. 14 The Arbitrator worked at the Union’s law firm for eleven years and was biased against Keolis. 15 16 IV. LEGAL STANDARD 17 a.

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Keolis Transit America, Inc. v. Teamsters Union, Local 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keolis-transit-america-inc-v-teamsters-union-local-533-nvd-2023.