Sanford Home for Adults v. LOCAL 6, IFHP

665 F. Supp. 312, 126 L.R.R.M. (BNA) 3149, 1987 U.S. Dist. LEXIS 6865
CourtDistrict Court, S.D. New York
DecidedJuly 30, 1987
Docket86 CIV. 7700 (PKL)
StatusPublished
Cited by15 cases

This text of 665 F. Supp. 312 (Sanford Home for Adults v. LOCAL 6, IFHP) 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
Sanford Home for Adults v. LOCAL 6, IFHP, 665 F. Supp. 312, 126 L.R.R.M. (BNA) 3149, 1987 U.S. Dist. LEXIS 6865 (S.D.N.Y. 1987).

Opinion

OPINION & ORDER

LEISURE, District Judge:

Plaintiff Sanford Home for .Adults (“Sanford”), is an employer, some of whose employees are members of the International Federation of Health Professionals (“IFHP”). Defendant, Local 6, is a division of the IFHP. Plaintiff has brought a motion pursuant to 9 U.S.C. § 9 seeking an order confirming the award of Arbitrator Abraham Mordowitz rendered on August 28, 1986, and for counsel fees and costs incurred in seeking confirmation of this award. 1 Defendant has cross-moved for *314 vacatur of the award on the ground that Mordowitz was “evidently partial,” as an arbitrator.

FACTUAL BACKGROUND

On August 31, 1978, the parties signed a collective bargaining agreement (the “Agreement”), Affirmation of Jeffrey M. Strashun, Esq., affirmed on October 6, 1986 (“Strashun Aff.”), Exhibit A, attached thereto, in which Sanford agreed, inter alia, to discharge employees who were no longer members, in good standing, of the IFHP. As part of the Agreement, Local 6 agreed to “indemnify and hold the Emploeyr [sic] harmless against any and all actions, claims, suits, damages or expenses incurred by reason of discharge effected at the request of the Union.” Agreement at § 2(C). The Agreement also provided that complaints, disputes, controversies or grievances unsettled between the parties would be submitted to an arbitrator for resolution. Id. at § 8(A). The Agreement specified that Israel Fogel would act as arbitrator. Id. at § 8(B). In the event Fogel was unable to arbitrate, Abraham Mordowitz would take his place. Id. In the event Mordowitz was unable to arbitrate, Alan Weisenfeld would .take his place. Id. The Agreement also provided that if “all of the foregoing are unavailable ... then [Sanford] and [Local 6] shall ... designate another person to act as such [arbitrator].” Id.

On October 5, 1978, Local 6 requested that Sanford discharge certain employees because of their failure to become members of the Union. Affirmation of Jeffrey M. Strashun, Esq., affirmed November 12, 1986 (“Strashun Aff. II”), Ex. A attached thereto. Sanford complied, discharging two employees, Blanca Llanos and Elena Montaneau. Subsequently, Llanos and Montaneau filed charges at the NLRB, claiming that the discharges were discriminatory, in violation of Section 8(a)(3) of the National Labor Relations Act. Sanford’s counsel for the NLRB proceedings was Morris Tuchman, Esq., who had represented Sanford in other labor matters with Local 6. It was Tuchman who had recommended the arbitrators listed in the Agreement. Ultimately, the NLRB ordered Sanford to reinstate Llanos and Montaneau as employees and to reimburse them for their lost earnings. 2

Pursuant to the indemnification provision of the Agreement, Sanford sought reimbursement for the sum it had paid to Llanos and Montaneau. Local 6, however, refused to indemnify Sanford. Sanford, therefore, sought enforcement of the indemnification provisions of the Agreement by way of arbitration. 3 At this time, Jeffrey Strashun, Esq., was selected to repre *315 sent Sanford for the arbitration hearing. Tuchman claimed he was reluctant to engage in an adversarial proceeding with Local 6, due to their past relationship, and had therefore provided Sanford with a list of alternative counsel, which included Strashun. Strashun drafted the initial request for arbitration and has remained sole counsel to plaintiff for this matter since that time.

Prior to the arbitration - award, Sanford moved that Israel Fogel, the first arbitrator named in the Agreement, recuse himself, on the ground that Fogel’s attorney-client relationship with Local 6’s attorney impaired Fogel’s ability to arbitrate impartially. On April 15, 1986, Fogel granted Sanford’s motion, Affirmation of Jacob Laufer, Esq., affirmed October 28, 1986 (“Laufer Aff.”), Ex. D attached thereto, for recusal, thereby activating Mordowitz as arbitrator.

On May 6, 1986, after discovering that there had been a previous business relationship between Fogel and Sanford, counsel for Local 6 informed Mordowitz that all three arbitrators were unacceptable to Local 6. Strashun Aff. II, Ex. F. William Perry, president of Local 6, had obtained third-party information outlining a previous relationship between Mordowitz and Tuchman, in which Mordowitz had served as Tuchman’s attorney in an action concerning Tuchman and his former partners. 4 Affidavit of Abraham Mordowitz, Esq., sworn to on Dec. 16, 1986 (“Mordowitz Aff.”), 116. Mordowitz responded to Local 6’s request by stating that without documentation he could not reach a decision as to how to proceed. Laufer Aff., Ex. I. Counsel for Local 6 did not offer documentation; instead, he suggested that the parties use the American Arbitration Association in place of the designated arbitrators.

On August 28, 1986, pursuant to notice, Mordowitz conducted an arbitration hearing. Sanford was present. Local 6, however, was absent. Subsequently, Mordowitz awarded Sanford money compensation pursuant to Sanford’s request. The award included reimbursement for: (1) $8,500 previously paid by Sanford for lost earnings suffered by the two employees; (2) $2,475 in legal fees and expenses incurred by Sanford; (3) and $500 for arbitration expenses incurred by Sanford. The award also included prospective fees for any Court confirmation that would be necessary. Subsequently, Sanford requested that Local 6 comply with said award. Strashun Aff., Ex. C. Local 6 failed to do so. Sanford, therefore, brought the instant motion seeking confirmation. Defendant then filed its cross-motion.

Only after the filing of these motions, did defendant outline the alleged relationship between Tuchman and Mordowitz, which provided it with grounds to doubt the impartiality of the arbitrator. First, defendant expresses concern that Strashun is listed on Tuchman’s firm’s letter head as “New Jersey Counsel.” Strashun Aff. II, Ex. B. The Court notes, however, that Strashun’s correspondence concerning the instant action all appears on his own firm’s letter head and backings. See, e.g., Strashun Aff. II, Exs. D and E. Defendant also points out that Strashun’s wife, Brenda Pilchick Strashun, Esq., is an associate with the “law firm of Morris Tuchman” and has concededly assisted her husband’s preparation for the instant litigation by performing certain legal research activities.

DISCUSSION

The Court notes at the outset that much of the conflict in the present case could have been avoided by the earlier disclosure of ties between the designated arbitrators and the attorneys representing the parties. Both parties in the instant dispute had business ties with at least one of the arbitrators designated under the Agreement. Had these relationships been revealed, the parties could have arranged for an alternate arbitrator, as provided for under the Agreement. This Court must now, however, decide whether the relationship among Mordowitz, plaintiff and plaintiff’s counsel rises to a level of bias sufficient to merit vacatur.

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Bluebook (online)
665 F. Supp. 312, 126 L.R.R.M. (BNA) 3149, 1987 U.S. Dist. LEXIS 6865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanford-home-for-adults-v-local-6-ifhp-nysd-1987.