Stead Motors of Walnut Creek v. Automotive MacHinists Lodge No. 1173, International Association of MacHinists and Aerospace Workers

This case requires us to consider once again the nature and extent of the “public policy exception” to the finality of labor arbitrators’ awards. In so doing, we reemphasize both the narrow manner in which we have historically construed that exception and the general deference we have afforded, and must afford, to the awards of labor arbitrators. Gale Rocks, an auto mechanic and member of appellant Lodge 1173 of the International Association of Machinists and Aerospace Workers (“Local” or “the union”), was discharged for work-related conduct. The matter was submitted to arbitration, and the arbitrator ordered Rocks reinstated to his former employment following a 120-day suspension. Appellee Stead Motors of Walnut Creek (“Stead Motors,” “the employer”), sued to vacate the award in the United States District Court for the Northern District of California, alleging that Rocks’ reinstatement would violate public policy by “endangering] the health and safety of [its] customers and the public.” The district judge apparently accepted this argument and vacated the portion of the award which ordered Rocks reinstated. A three-judge panel of this court affirmed. The case was then taken en…

dissenting, in which dissent Circuit Judge NOONAN concurs:

Judge Reinhardt’s scholarly opinion is impressive. It provides an excellent review of the law governing this case, as well as the policies at stake. But, in my respectful view, like a column of correct numbers added up improperly, the bottom line is wrong.

*1218 When I first read the opinion, I could not help but be reminded of an incident that occurred off the coast of Hawaii a year or so ago. Part of the skin blew off an Aloha Airliner in flight, exposing the crew and passengers to the possibility of a crash landing at sea and almost certain death. One person was sucked out of the fuselage and killed. Incredibly, the two pilots pulled off a miracle, landing the seriously crippled aircraft without further incident. The two pilots shortly thereafter were interviewed as heroes on one of the network morning television shows. As I watched them describe their brush with death, I was astounded by their cool and professional demeanor, as well as their amazing skill. But, as much as anything else, I will always remember the response of one of the pilots when asked at the end of the interview if she had any advice for airline…

joined by Circuit Judges ALARCON and O’SCANNLAIN, and joined by Chief Judge GOODWIN in part I only, concurring in part and dissenting in part:

I agree with the plurality’s conclusion that we must reverse the district court’s order, which partially vacated the arbitral award. As the plurality demonstrates, Stead Motors has failed to meet the first threshold requirement identified in United Paperworkers International Union, AFL-CIO v. Misco, Inc., 484 U.S. 29 , 108 S.Ct. 364 , 98 L.Ed.2d 286 (1987) (Misco). See plurality op. at 1216. Stead Motors has not demonstrated the existence of a well defined, dominant, and explicit public policy in California, sufficiently grounded in “laws and legal precedents” rather than in “general considerations of supposed public interests,” with which this arbitral award could conflict. Misco, 108 S.Ct. at 373-74 . To decide this case, we need go no further. I write separately because the plurality reaches out to cover ground that is neither necessary nor desirable.

I

The Supreme Court first explicitly recognized the “public policy” exception to enforcement of labor arbitration awards in W.R. Grace & Co. v. Local Union 759, 461 U.S. 757 , 103 S.Ct.…

886 F.2d 1200 132 L.R.R.M. (BNA) 2689 , 58 USLW 2252 , 113 Lab.Cas. P 11,538 STEAD MOTORS OF WALNUT CREEK, Plaintiff-Appellee, v. AUTOMOTIVE MACHINISTS LODGE NO. 1173, INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, Defendant-Appellant. No. 87-2053. United States Court of Appeals, Ninth Circuit. Argued En Banc and Submitted Jan. 18, 1989. Decided Oct. 6, 1989. David Rosenfeld, Van Bourg, Weinberg, Roger and Rosenfeld, San Francisco, Cal., for defendant-appellant. J. Mark Montobbio, Severson, Werson, Berke and Melchior, San Francisco, Cal., for plaintiff-appellee. Joseph Colton, Beeson, Tayer and Silbert, Bodine & Livingston, San Francisco, Cal., for amici curiae Teamsters Joint Councils 7 and 38 and California Nurses Association. Appeal from the United States District Court for the Northern District of California. Before GOODWIN, Chief Judge, BROWNING, WALLACE, TANG, FLETCHER, ALARCON, REINHARDT, NOONAN, O'SCANNLAIN, LEAVY and TROTT, Circuit Judges. REINHARDT, Circuit Judge: 1 This case requires us to consider once again the nature and extent of the "public policy exception" to the finality of labor arbitrators' awards. In so doing, we reemphasize both the…