Northern Michigan Education Ass'n v. Board of Education

126 Mich. App. 781
CourtMichigan Court of Appeals
DecidedJuly 6, 1983
DocketDocket No. 63930
StatusPublished
Cited by4 cases

This text of 126 Mich. App. 781 (Northern Michigan Education Ass'n v. Board of Education) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northern Michigan Education Ass'n v. Board of Education, 126 Mich. App. 781 (Mich. Ct. App. 1983).

Opinion

Danhof, C.J.

Appellant Board of Education of the Cheboygan Area Schools (school board) appeals as of right from an order of acting Cheboygan County Circuit Court Judge John Henry Butts modifying an arbitration award and awarding appellees $17,462.35 plus statutory interest on their breach of contract claim.

On September 1, 1978, appellee Northern Michigan Education Association (NMEA) entered into a collective-bargaining agreement with the school board which required the school board to provide health insurance coverage without cost to NMEA members who were employed by the school board. The agreement provided that the school board was required to provide coverage either with Michigan Blue Cross-Blue Shield or with an insurance program administered by a company affiliated with the Michigan Education Association known as MESSA.

On August 13, 1979, NMEA was notified that, because of increased costs, the school board was discontinuing MESSA coverage effective August [784]*78431, 1979, and that, thereafter, only Blue Cross-Blue Shield coverage would be provided.

On August 31, 1979, NMEA commenced this action seeking to enjoin the school board from terminating MESSA coverage pending an arbitrator’s decision resolving the issue concerning whether the school board had authority under the collective-bargaining agreement to decline to offer NMEA members a choice of either MESSA or Blue Cross-Blue Shield coverage.

At a show cause hearing held on September 17, 1979, the attorney representing the school board indicated that a settlement had been agreed upon pending arbitration and stated the following on the record:

"The Court: Have we resolved something, or you want to see me in chambers?
"Mr. Nordberg: No, I think we have, your Honor. I suggested to Mr. Baird that we would be willing to allow any teacher to come into our office and execute an authorization card authorizing us to deduct from their pay the amount of money — the difference between the Blue Cross/Blue Shield rates and the MESSA rates, and that we would then allow that individual to continue with the MESSA coverage pending the arbitration hearing. And they would pay the additional costs. Now, they could also then, as I understand it, sign up for any of the options that are covered — that are provided under MESSA.
"Mr. Nordberg: In order to alleviate the concerns that maybe some of our staff have, I think it would be, as far as we are concerned, an equitable procedure that they provide their own moneys during the pendency of this to cover the difference in cost. And if we are wrong, we will pay them back and we will pay them the court interest on it, whatever it is.”

Subsequently, the school board’s attorney sent a [785]*785letter to the attorney representing NMEA which provided in part:

"The purpose of this letter is to reiterate to you once again the position which I have taken on behalf of the Cheboygan Area Schools. In the simplest of terms, let me state that any teacher employed by the Cheboygan Area Schools may be covered as of October 1, 1979 by MESSA Super-Med II insurance so long as that individual signs an authorization card authorizing the payroll deduction of the amount of premium difference between the Blus Cross rates and the MESSA rates. If an arbitrator rules that the Union’s position is correct, the Board of Education agrees to refund to any teacher the amount of additional premium which they paid from October 1 on as the result of the Board of Education’s contract violation. This amount of repayment would include statutory interest. However, I don’t expect an arbitrator to rule against the Board’s position.

The authorization cards which were signed by a number of NMEA members contain language which was virtually identical to that which was contained in the letter sent by the school board’s attorney.

On March 10, 1980, the arbitration proceeding was conducted. In an opinion issued May 28, 1980, the arbitrator indicated that the issue presented for resolution was the following:

"Did the employer violate the collective bargaining agreement when it cancelled all MESSA health insurance coverage for the members of the bargaining unit and required all eligible employees to enroll under Blue Cross coverage?”

The arbitrator resolved that issue in favor of NMEA by finding that the school board did not [786]*786have the authority pursuant to the collective-bargaining agreement to discontinue the availability of MESSA coverage for the 1979-1980 school year. However, he declined to award damages because:

"It would not be fair to award damages to a teacher previously covered by MESSA for certain areas of non-coverage under Blue Cross-Blue Shield because the same teachers may have also received greater benefits than MESSA would offer in other areas under the Blue Cross-Blue Shield policy. It is simply too difficult to turn back the clock and to reconstruct the effects of changes in comparable insurance coverage for a full year. For this reason the award must only apply to the next school year and there is no award for damages for the 1979-80 school year.”

It appears that the arbitrator was acting on the assumption that all NMEA members had been switched to Blue Cross-Blue Shield coverage for the 1979-1980 school year and that it would be too difficult to ascertain the amount of loss they had suffered by such a switch.

Following proceedings which were held on October 16, 1981, Judge Butts ruled that the parties had not agreed to submit the issue of damages to arbitration and that the arbitrator’s resolution of that issue exceeded the scope of his jurisdiction. Therefore, he modified the arbitrator’s award to delete that part of the decision which dealt with the issue of damages and awarded NMEA the amount which had been withheld, plus interest.

We initially reject the school board’s claim that the trial court’s findings of fact were inadequate. Upon review of the trial court’s opinion, we find that the court’s findings were sufficient to indicate the path which was chosen to reach the conclusions of law and that remand for further proceedings is not warranted. GCR 1963, 517.1; Coburn v [787]*787Public Service Comm, 104 Mich App 322, 325; 304 NW2d 570 (1981).

The School Board claims that the trial court erred in ruling that the parties did not agree to submit the issue of damages to arbitration. It claims that reference to the collective-bargaining agreement demonstrates that that issue was subject to binding arbitration. We disagree.

It is well established that the question of arbitrability of a particular dispute is for the courts. Kaleva-Norman-Dickson School Dist #6 v Kaleva-Norman-Dickson School Teachers’ Ass’n, 393 Mich 583, 587; 227 NW2d 500 (1975). Furthermore, it is clear that the issue concerning whether a dispute is subject to arbitration must be decided by reference to the collective-bargaining agreement. See Southeastern Michigan Transportation Authority v Amalgamated Transit Union, Local 1564, AFL-CIO, 116 Mich App 154, 157-158; 321 NW2d 876 (1982).

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Cite This Page — Counsel Stack

Bluebook (online)
126 Mich. App. 781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northern-michigan-education-assn-v-board-of-education-michctapp-1983.