Sixth Circuit Adopts New Test for Reviewing Labor Arbitration Awards

The Sixth Circuit Friday released an en banc decision abandoning its four-part test for determining whether a labor arbitration award "fails to draw its essence from the [collective bargaining] agreement."  The Sixth Circuit substituted a new test: (1) whether the arbitrator was "arguably construing or applying the contract"; and, if so, whether (2) "the request for judicial intervention should be resisted even though the arbitrator made 'serious,' 'improvident,' or 'silly' errors in resolving the merits of the dispute."

Though the court unanimously agreed to the new test, the court split on how to apply the test to the facts of the case.  The majority affirmed the award; five dissenters would have vacated for two different reasons.

The case is Michigan Family Resources v. SEIU, No. 04-2564 (6th Cir. Jan. 26, 2007).  Hat tip: Ross Runkel.

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