School District of Spooner v. Northwest United Educators

401 N.W.2d 578, 136 Wis. 2d 263, 1987 Wisc. LEXIS 637
CourtWisconsin Supreme Court
DecidedMarch 9, 1987
Docket84-1625
StatusPublished
Cited by5 cases

This text of 401 N.W.2d 578 (School District of Spooner v. Northwest United Educators) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
School District of Spooner v. Northwest United Educators, 401 N.W.2d 578, 136 Wis. 2d 263, 1987 Wisc. LEXIS 637 (Wis. 1987).

Opinions

HEFFERNAN, CHIEF JUSTICE.

This is a review of an unpublished opinion dated January 21, 1986, which reversed a decision of the circuit court for Washburn county vacating an arbitrator’s award. We reverse the decision of the court of appeals and remand for further arbitration.

The arbitrator had directed that petitioner, School District of Spooner (hereinafter "School District”) reinstate with back pay John Patrick, an industrial arts teacher whom it had discharged, on the [265]*265grounds that the School District had lacked just cause for Patrick’s dismissal. The circuit court for Wash-burn county vacated the arbitrator’s award on the merits because it found the arbitrator’s failure to disclose that he had once been employed by the Wisconsin Education Association Council ("WEAC”) to constitute evident partiality, and because it found that the arbitrator exceeded his authority under the collective bargaining agreement between the parties. The court of appeals reversed the circuit court’s decision on both issues and reinstated the arbitrator’s award. Because we find that the arbitrator’s failure to disclose his prior employment with WEAC constitutes evident partiality, we reverse the decision of the court of appeals and remand the case for re-arbitration. We thus do not reach the merits of the arbitrator’s award or the question of whether the award exceeded the authority granted to the arbitrator under the collective bargaining agreement.

John Patrick was an industrial arts teacher in the Spooner School District from 1965 until his dismissal on June 1, 1981. On April 9 of that year, he went drinking with some friends, became intoxicated, and, later that night, broke into a locked truck. He stole several items from the truck. The theft was reported, and the missing items were found on Patrick’s property the next day. Patrick told authorities that he had no recollection of the incident. However, he was arrested and charged with theft and intentionally entering a locked vehicle with intent to steal. He was also suspended from his teaching job. Patrick subsequently entered into a plea agreement whereby he pleaded no contest to the charge of entering a locked vehicle in exchange for dismissal of the theft charge.

[266]*266Between the time Patrick was charged and the time he entered into the plea agreement, the School District held a hearing in order to determine the facts surrounding the incident. Patrick did not participate because the criminal charges had not yet been resolved. The School District decided to continue the suspension.

Four days after Patrick entered into the plea agreement, the School District held a meeting at which it decided to dismiss him. Patrick was allowed to be present, but was limited to speaking about the alcohol and psychiatrist counselling he had received since the incident. He was not permitted to present evidence or witnesses, having been deemed by the School District to have forfeited his opportunity to do so because he had not participated in the previous hearing.

After the School District decided to discharge Patrick, a grievance was filed on his behalf. The matter was submitted to arbitration, pursuant to the collective bargaining agreement between the School District and the Spooner Education Association. The Wisconsin Employment Relations Commission ("WERC”) assigned arbitrator William C. Houlihan to the dispute. A hearing was held on February 12,1982, after which the parties filed briefs. The School District was represented by its counsel, while the teacher’s union was represented by Priscilla Ruth MacDougall, a WEAC staff attorney.

The arbitrator directed that Patrick be reinstated with back pay. He concluded that the School District lacked just cause to dismiss Patrick. The School District then commenced this action in Washburn county circuit court. It argued that the award should be vacated under sec. 788.10(1), Stats., on the ground [267]*267of evident partiality and because the arbitrator had exceeded the powers granted to him under the collective bargaining agreement.1 The School District alleged that arbitrator Houlihan had worked for WEAC prior to his employment with the WERC, had worked for Priscilla Ruth MacDougall while at WEAC, and had failed to disclose these facts to the School District before hearing the dispute. It also alleged that the WERC had failed to disclose arbitrator Houlihan’s past employment.

Arbitrator Houlihan admitted, in interrogatories, that he had worked for WEAC as a part-time law clerk while he was in law school. He was employed there for approximately eighteen months. During that time, however, he was not assigned to work for Priscilla Ruth MacDougall; he only prepared one internal memorandum for her during the entire course of his employment with WEAC. Apparently, he also attended a party that MacDougall gave for all WEAC law clerks and their spouses. Arbitrator Houlihan also [268]*268stated that he had not been involved in any discharge cases while at WEAC. Finally, he acknowledged that he could not recall having advised the School District or its counsel that he had been employed by WEAC before becoming an arbitrator.

The circuit court agreed that arbitrator Houlihan should have disclosed his prior employment with WEAC before arbitrating the dispute. Because it found that a reasonable person, as a party to the arbitration, upon being advised of Houlihan’s prior employment at WEAC and of the fact that he had prepared a memo for Priscilla Ruth MacDougall while employed there, would have sufficient doubts as to Houlihan’s impartiality that he or she would investigate further, the circuit court found evident partiality and vacated the award.2

On review, the court of appeals reversed the circuit court’s finding of evident partiality, concluding that there was no evidence that would cause a reasonable person to doubt arbitrator Houlihan’s impartiality. It found that Houlihan’s "indirect professional contact and very slight social contact with MacDougall four years prior to this arbitrated dispute” did not constitute evident partiality. The court of appeals also affirmed the award on its merits, and remanded the case with directions that an order be entered confirming the award.

[269]*269In reviewing the decision of the court of appeals that arbitrator Houlihan’s past employment with WEAC does not constitute evident partiality, this court is presented with a question of law. Whether facts fulfill a particular legal standard is a question of law. Nottelson v. ILHR Department, 94 Wis. 2d 106, 116, 287 N.W.2d 763 (1980). This court decides questions of law independently, without deference to the decisions of the trial court or court of appeals. Ball v. District No. 4, Area Board, 117 Wis. 2d 529, 537, 345 N.W.2d 389 (1984).

The test for evident partiality was laid out by this court in Richco Structures v. Parkside Village, Inc., 82 Wis. 2d 547, 263 N.W.2d 204 (1978).

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School District of Spooner v. Northwest United Educators
401 N.W.2d 578 (Wisconsin Supreme Court, 1987)

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Bluebook (online)
401 N.W.2d 578, 136 Wis. 2d 263, 1987 Wisc. LEXIS 637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/school-district-of-spooner-v-northwest-united-educators-wis-1987.