Mandich v. North Star Partnership

450 N.W.2d 173, 1990 Minn. App. LEXIS 42, 1990 WL 1697
CourtCourt of Appeals of Minnesota
DecidedJanuary 16, 1990
DocketC4-89-1468
StatusPublished
Cited by3 cases

This text of 450 N.W.2d 173 (Mandich v. North Star Partnership) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mandich v. North Star Partnership, 450 N.W.2d 173, 1990 Minn. App. LEXIS 42, 1990 WL 1697 (Mich. Ct. App. 1990).

Opinions

OPINION

SCHUMACHER, Judge.

Daniel G. Mandich in this appeal challenges the trial court’s denial of his petition to set aside an arbitration award and denial of his motion for summary judgment.

FACTS

Daniel G. Mandich (Mandich) first signed a player contract with the Minnesota North Stars (North Stars) in July, 1982 and a second one-year contract in July, 1983. On January 16, 1984, Mandich sustained what turned out to be a career-ending injury to his knee and played in no hockey games until March, 1985. During this rehabilitative period, in August, 1984, Mandich signed a third one-year contract.

In May, 1985, two months after Mandich returned to the line-up, Mandich’s agent, Bill Waters, (Waters) began negotiating a new contract for Mandich with North Stars general manager, Lou Nanne (Nanne). Waters and Nanne negotiated a new two year contract which provided for a salary increase. This was a Standard Player’s Contract (SPC), and contained the following two provisions:

The Club and the Player further agree that in case of dispute between them, except as to the compensation to be paid to the Player on a new contract, the dispute shall be referred within one year from the date it arose to the President of the League, as an arbitrator and his decision shall be accepted as final by both parties, unless, and to the extent that, other arbitration procedures are provided in any Collective Bargaining Agreement between the member clubs of the League and the NHLPA to cover such dispute. [175]*175It is severally and mutually agreed that the only contracts recognized by the President of the League are the Standard Player’s Contracts, Player’s Termination Contracts, Player’s Option Contracts, Post-Option Year Termination Contracts, Standard Contracts (Corporate), Standard Termination Contracts (Corporate), Standard Option Contracts (Corporate) and Post-Option Year Termination Contracts (Corporate) which have been duly executed and filed in the League President’s office and approved by him (or his designated representative), and that this Agreement contains the entire agreement between the Parties and there are no oral or written inducements, promises or agreements except as provided herein, (emphasis added)

They also orally agreed that if Mandich’s knee forced him to retire from playing hockey and he was able to collect under the terms of a disability insurance policy provided for the players by the North Stars, then, and in that event, the North Stars would not be obligated under the contract to pay his salary. Mandich was not present at this meeting which is the custom when a hockey player’s agent was negotiating a contract. The oral agreement was not reduced to writing.

Under the new contract, Mandich was only able to play in 3 games at the beginning of the 1985-86 season. After consulting with the team doctors, as well as his own personal physician, he was forced to retire from hockey because of the injury. Mandich was eligible for disability benefits pursuant to the disability policy and subsequently collected $175,000 under the policy provided by the North Stars.

In November of 1985, Mandich met with Nanne to advise him of his decision to retire from hockey and at that time Nanne requested that Mandich sign a waiver which provided as follows:

As of the date indicated below, it is hereby agreed to by the Northstar Hockey Partnership (Minnesota North Stars) and Dan Mandich, that should said player file a disability claim for the injury he incurred in January of 1984, the Minnesota North Stars will not be liable to Dan Mandich for the contract terms as stated in his contract dated May 15, 1985, for the years 1985-86, 1986-87 and 1987-88.

Mandich signed the waiver after conferring with Waters on the telephone. Waters advised Mandich to sign the waiver.

Thereafter, Mandich made a claim for his salary under the contract and in February of 1987, he requested that his claim be submitted to arbitration. Under the terms of the collective bargaining agreement between the National Hockey League Player’s Association and the- National Hockey-League, all disputes to enforce a contract and to interpret its terms are to be submitted to the President of the National Hockey League for binding arbitration. The collective bargaining agreement provides that:

Any dispute involving a player, the Association and/or a Club concerning * * * the interpretation or application of the League Constitution or By-Laws, one of the Approved Standard Form Contracts or a League Rule should be referred exclusively to the President of the League or his designated representative for final and binding determination subject to any right of appeal provided for in the League Constitution or By-Laws.

Mandich’s grievance was heard by the National Hockey League President John A. Ziegler, Jr. (Ziegler), who found that Man-dich was not entitled to compensation under the 1985-86 contract.

Ziegler found in part as follows:
It is crystal clear from the submission and the testimony that 1) the duly authorized agent of Mandich, Waters, agreed with the duly authorized agent of the North Stars, Nanne, that the 1985 contract would not be effective if Mandich was physically unable to perform; 2) Mandich was physically unable to perform by reason of a career-ending injury occurring in January of 1984.

Mandich brought a petition before the district court to vacate the arbitration award and also a motion for summary judgment based on his claim for his salary under the contract. Mandich claims that [176]*176the arbitrator exceeded his authority by recognizing the validity of the oral agreement and further, that the arbitrator was biased in his decision. The trial court denied both motions and this appeal followed.

ISSUES

1. Did the arbitrator exceed his authority by recognizing the validity of an oral agreement?

2. Was the arbitrator biased in his decision?

ANALYSIS

On appeal from summary judgment, this court must determine whether there are any genuine issues of material fact or whether the trial court erred in its application of the law. Offerdahl v. University of Minnesota, 426 N.W.2d 425, 427 (Minn.1988).

The arbitrator is the final judge of both law and facts. State v. Berthiaume, 259 N.W.2d 904, 910 (Minn.1977), cited in In re Metropolitan Airports Commission v. Metropolitan Airports Police Federation, 443 N.W.2d 519, 524 (Minn. 1989). A court may vacate an arbitrator’s award if the award exceeds the arbitrator’s powers. Minn.Stat. § 572.19, subd. 1(3) (1988). If the arbitrator’s decision is challenged on the merits, the decision must be upheld if the award draws its essence from the collective bargaining agreement. Ramsey County v. AFSCME, Council 91, Local 8, 309 N.W.2d 785, 790 (Minn.1981).

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Related

Daniel G. Mandich v. William W. Watters
970 F.2d 462 (Eighth Circuit, 1992)
Labib v. Younan
755 F. Supp. 125 (D. New Jersey, 1991)
Mandich v. North Star Partnership
450 N.W.2d 173 (Court of Appeals of Minnesota, 1990)

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Bluebook (online)
450 N.W.2d 173, 1990 Minn. App. LEXIS 42, 1990 WL 1697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mandich-v-north-star-partnership-minnctapp-1990.