The NFL Arbitration Decisions: Sanity Returns Cliff Godiner Thompson Coburn LLP One US Bank Plaza St. Louis, MO 63101 314-552-6433 [email protected] Copyright © 2016 Thompson Coburn LLP Last Year Adrian Peterson: Federal Court in Minnesota had overturned arbitration award imposing six-game suspension and fine for alleged child abuse Tom Brady: Federal Court in New York had overturned arbitration award imposing four-game suspension for alleged knowledge of deflating footballs and failure to cooperate with investigation My bold prediction: Both cases would be reversed on appeal Article 46 of the CBA The Commissioner can impose a fine or suspension for “conduct detrimental to the integrity of, or public confidence in, the game” A player has the right to appeal that decision to a Hearing Officer appointed by Commissioner or the Commissioner can act as Hearing Officer himself Parties must exchange exhibits 3 days before hearing No limit on remedy arbitrator may impose Adrian Peterson In May 2014, Peterson allegedly beat his 4-year old son with a tree branch, causing bruising and welts over his body At time, Personal Conduct Policy allowed suspensions and fines for domestic violence; history had been 2 game suspensions August 2014: Goddell announces presumptive 6 game suspension Peterson subsequently suspended for 6 games The Peterson Award Arbitrator Henderson upheld discipline • The August 2014 policy wasn’t really a new policy • Even under the prior policy, a six-game suspension was appropriate • Read the Ray Rice case as forbidding enhancement of prior imposed discipline and therefore not relevant Trial Court Decision Overturning Award • Arbitrator was required to follow Rice award not allowing retroactive application of August 2014 policy • Arbitrator had no authority to determine if discipline was allowable under the old policy because issue had not been submitted to him Court of Appeals Reverses Question of whether the 6 game presumption was a new policy or an explanation of the prior policy was a factual finding beyond review Applicability of Rice decision was a question of contract interpretation solely for the arbitrator Absent stipulation of the parties, arbitrator decides what questions are before him/her Tom Brady Patriots were accused of using deflated footballs in AFC Championship game League appointed Jeff Pash (NFL GC) and Ted Wells (NFL atty) to investigate Commissioner imposed four-game suspension based on investigation’s conclusion that Brady was “generally aware” of deflation After arbitration, Commissioner affirmed four-game suspension based on finding that Brady had been involved in the deflation and had refused to cooperate in the investigation. Analogized to PED use. Award Originally Overturned Court found that Brady lacked knowledge that he could be suspended for deflating balls because of a policy regarding equipment violations that stated that fines would be imposed for first offenses Court rejected PED analogy as inapt Court found lack of fundamental fairness because Commissioner refused to require GC Pash to testify or to require original investigative notes to be produced to union Award Reinstated on Appeal Conduct detrimental rule was enough to put Brady on notice of possible suspension. Equipment policy did not expressly apply to deflated balls, so it was up to arbitrator to decide whether it applied. PED analogy was not outside arbitrator’s authority – both involve cheating to gain a competitive advantage. CBA doesn’t require any discovery or specific witness testimony. Those are discretionary rulings. The Law Reaffirmed “We are therefore not authorized to review the arbitrator’s decision on the merits despite allegations that the decision rests on factual errors or misinterprets the parties’ agreement.” “[O]ur task is simply to ensure that the arbitrator was ‘even arguably construing or applying the contract’” and “did not ignore the plain language of the contract.” The Law Reaffirmed “If an arbitrator acts within the scope of [his/her] authority, the remedy for the dissatisfied party ‘is not judicial intervention,’ but ‘for the parties to draft their agreement to reflect the scope of power they would like their arbitrator to exercise.’” “We do not consider whether the punishment imposed was the most appropriate.” When parties do not stipulate to the issues, “[t]he scope of the arbitrator’s authority . . . [is] a question delegated to the arbitrator.” Are Arbitrators Required to Follow Other Awards? In both cases, trial court judges said arbitrators erred in not following prior arbitration awards Theory: CBAs are more than just the written agreement, they include past practices and implied agreements (the “law of the shop”) Reversed. Here’s the law: “Even failure to ‘follow arbitral precedent’ is no ‘reason to vacate an award.’” Limiting Arbitral Discretion Broad language such as “Carrier shall not discipline without just and sufficient cause” gives arbitrators almost unlimited discretion If you want someone to be (or not to be) fired for engaging in certain conduct, say so If you want to limit the arbitrator’s authority, agree on questions or create a procedural board to do so
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