Union-Endicott Central School District v. Peters

123 A.D.3d 1198, 998 N.Y.S.2d 505

This text of 123 A.D.3d 1198 (Union-Endicott Central School District v. Peters) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union-Endicott Central School District v. Peters, 123 A.D.3d 1198, 998 N.Y.S.2d 505 (N.Y. Ct. App. 2014).

Opinion

Clark, J.

Appeals from an order of the Supreme Court (Lebous, J.), entered April 22, 2013 in Broome County, which, among other things, denied plaintiffs’ motion in action No. 1 to amend the complaint.

Joanne Peters was employed as a teacher by the UnionEndicott Central School District (hereinafter the District), and she attempted to retire from that position after allegations surfaced that she had stolen district property. Peters is a member of the Endicott Teachers’ Association (hereinafter ETA), the exclusive bargaining representative of teaching personnel in the District. The present appeals mark the latest chapter in ongoing litigation, both in the proceedings now before us and elsewhere, and the underlying facts are set forth in our prior decisions (Matter of Peters v Union-Endicott Cent. School Dist., 77 AD3d 1236, 1236-1237 [2010]; Matter of Union-Endicott Cent. School Dist. [Endicott Teachers’ Assn.], 59 AD3d 799, 799-800 [2009]). As is relevant here, a dispute exists as to whether Peters is entitled to receive retiree health insurance benefits provided for in a collective bargaining agreement (hereinafter CBA) between the ETA and the District given the circumstances of her departure from employment with the District.

The District and its Board of Education (hereinafter the Board) commenced action No. 1 against Peters in 2007 and sought to recover damages stemming from, among other things, her alleged theft of District property and breach of the duty of loyalty owed by an employee. The District also determined that it had terminated Peters effective July 1, 2007 and that, as a result, she was not entitled to retiree health benefits. The ETA and Peters grieved the District’s determination under the CBA and demanded binding arbitration of it. The District responded by commencing proceeding No. 1 to seek a permanent stay of arbitration. Supreme Court rejected the District’s application and granted a cross motion by the ETA and Peters to compel arbitration and, upon appeal, we affirmed (Matter of Union-Endicott Cent. Sch. Dist. [Endicott Teachers’ Assn.], 25 Misc 3d 1210[A], 2009 NY Slip Op 52025[U] [Sup Ct, Broome County 2009], affd 77 AD3d 1236 [2010]). In so doing, we noted that “[t]he issue of the effect, if any, of Peters’ alleged misconduct on her entitlement to benefits goes to the merits of her grievance, not to its arbitrability” (Matter of Peters v Union-Endicott Cent. School Dist., 77 AD3d at 1240).

At the ensuing arbitration hearing, the District and the ETA [1200]*1200stipulated that the arbitrator would first assess whether the District’s determination had violated the terms of the CBA. If the arbitrator found a violation, he would then be obliged to decide whether Peters’ right to retiree health insurance benefits was impacted by the faithless servant doctrine, which provides that “[o]ne who owes a duty of fidelity to a principal and who is faithless in the performance of his [or her] services is generally disentitled to recover his [or her] compensation, whether commissions or salary” (Feiger v Iral Jewelry, 41 NY2d 928, 928 [1977]). In 2012, the arbitrator issued an opinion and award finding that the District had violated the terms of the CBA and that the faithless servant doctrine was inapplicable. The arbitrator went on to state that he “believe[d] the District’s claims [were] better suited for a lawsuit than a grievance arbitration proceeding.”

The District and Board thereafter moved for leave to amend their complaint in action No. 1 to assert causes of action invoking the faithless servant doctrine, seeking to both bar Peters’ receipt of retiree health insurance benefits and recover damages for the value of the benefits that she had already received. The District also commenced proceeding No. 2 and sought to either vacate the arbitration award or stay its enforcement until issues regarding the applicability of the faithless servant doctrine in action No. 1 had been resolved. The ETA, in turn, cross-moved for leave to intervene in action No. 1 in order to oppose the proposed amendments to the complaint. Supreme Court, among other things, declined to vacate the arbitration award or prevent it from going into effect, denied leave to amend the complaint in action No. 1 and granted the ETA leave to intervene in that action.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re the Arbitration between Falzone & New York Mutual Fire Insurance
939 N.E.2d 1197 (New York Court of Appeals, 2010)
Bolin v. Nassau County Board of Cooperative Educational Services
52 A.D.3d 704 (Appellate Division of the Supreme Court of New York, 2008)
Cafferty v. Cahill
53 A.D.3d 1007 (Appellate Division of the Supreme Court of New York, 2008)
In re the Arbitration between Union-Endicott Central School District & Endicott Teachers' Ass'n
59 A.D.3d 799 (Appellate Division of the Supreme Court of New York, 2009)
Bravo Knits, Inc. v. De Young
35 A.D.2d 932 (Appellate Division of the Supreme Court of New York, 1970)
Peters v. Union-Endicott Central School District
77 A.D.3d 1236 (Appellate Division of the Supreme Court of New York, 2010)
Crowley v. Board of Education
128 A.D.2d 871 (Appellate Division of the Supreme Court of New York, 1987)
Rourke v. New York State Department of Correctional Services
201 A.D.2d 179 (Appellate Division of the Supreme Court of New York, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
123 A.D.3d 1198, 998 N.Y.S.2d 505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-endicott-central-school-district-v-peters-nyappdiv-2014.