Toyota of Berkeley, a Corporation v. Automobile Salesmen's Union, Local 1095, United Food and Commercial Workers Union

The Automobile Salesmen’s Union, Local 1095, United Food and Commercial Workers Union (Union) appeals the district court order vacating an arbitration award on the grievance of a discharged employee. The district court held that the ex parte arbitration hearing was improper and the arbitrator was biased. We reverse.

At issue is the right to proceed ex parte with an arbitration after both parties have agreed to arbitration and the time and place of arbitration. We also must decide the proper standard for determining bias of an arbitrator and whether the district court erred in deciding that there was bias because the arbitrator proceeded ex parte, was named a defendant in a civil suit filed by a party to the arbitration seeking injunc-tive relief from the arbitration, and later sought sanctions against the attorney for the plaintiff in that suit.

FACTS

Toyota of Berkeley (Toyota) and the Union were parties to a collective bargaining agreement. Section 4 of the agreement covers the discharge of employees. Section 17 of the agreement calls for the arbitration of disputes arising from the interpretation of its specific provisions. The section requires that grievances be submitted…