Business Law 110
Case Study Problem #1
September 16, 2009
Case Study: Arbitration
The issue pertaining to this case is whether a court can set aside an arbitration award on the basis that it violates public policy, subsequent to Mr. Edson being released from his job after being found intoxicated while on duty and being awarded reinstatement by the arbitrators. Exxon Mobile, the employer, filed a suit claiming that the award contravenes with public policy, which opposes intoxicated individuals from operating seagoing vessels. Rules and Laws that apply to this case:
• arbitration process
• setting aside an arbitration award
• appeals to the courts
• violating public policy
The courts have the right to set aside an arbitration award on the fact that it violates public policy. During the arbitration process the arbitrator made the decision to reinstate Mr. Edson, from the evidence he was presented, concluding that he had the right to continue his employment for the company. Exxon Mobile didn’t agree with the decision, deciding to file a suit against the union, doing so appealing the decision to the court. The court then has the power to decide whether a valid award exists and has the right to overturn it if it violates public policy. The public policies in contention contests having intoxicated persons operate seagoing vessels, consequently endangering the lives of many including the individuals on board and other sea vessels. Mr. Edson could argue that his intoxication wasn’t due to bring any intentional harm, and if his position in work doesn’t involve any direct interaction with the sailing of the ship, he has a strong case.
Finally, because of Mr. Edson’s capability to cause harm and danger to those around him at his work environment, while intoxicated, considering public policy, the court should appeal his award and allow Exxon Mobile to fully discharge him from the company.
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