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United States Court of Appeals for the Sixth Circuit
September 13, 2006, Argued ; January 26, 2007, Decided ; January 26, 2007, Filed
File Name: 07a0040p.06
[*748] [***2] SUTTON, Circuit Judge. Local 517M of the Service Employees International Union challenges the decision of the district court vacating an arbitration award in its favor. Because the arbitrator was "acting within the scope of his authority" in resolving this dispute, because the company has not charged the arbitrator with fraud or dishonesty in making the award, because the arbitrator was "arguably construing . . . the contract" when he awarded union employees a 4% cost-of-living increase for 2003 and because the company has shown no more than that the arbitrator made an error, perhaps even a "serious error," in interpreting the contract, we reverse and direct the district court to enter an order enforcing the award. See United Paperworkers Int'l Union, AFL-CIO v. Misco, 484 U.S. 29, 38-39, 108 S. Ct. 364, 98 L. Ed. 2d 286 (1987).
Michigan Family Resources (MFR) runs the federal Headstart Program that serves Kent County, which lies in western Michigan. Local 517M of [**3] the Service Employees International Union represents some of MFR's employees. On behalf of its members, the union negotiated a collective bargaining agreement with MFR that entitled its members to annual wage increases. The agreement contains four pertinent provisions.
Article 35(1) of the agreement provides:
[*749] Bargaining unit members will receive the same cost of living increases paid to other MFR employees pursuant to the directive of MFR's funding source. The parties understand that the timing and amount of any such increase is entirely dictated by the funding source.
JA 43. The "funding source" mentioned in this provision, the parties agree, refers to the federal government.
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
475 F.3d 746 *; 2007 U.S. App. LEXIS 1734 **; 2007 FED App. 0040P (6th Cir.) ***; 181 L.R.R.M. 2257; 153 Lab. Cas. (CCH) P10,790
MICHIGAN FAMILY RESOURCES, INC., Plaintiff-Appellee, v. SERVICE EMPLOYEES INTERNATIONAL UNION LOCAL 517M, Defendant-Appellant.
Subsequent History: US Supreme Court certiorari denied by Mich. Family Res., Inc. v. SEIU Local No. 517M, 2007 U.S. LEXIS 7751 (U.S., June 18, 2007)
Prior History: [**1] Appeal from the United States District Court for the Western District of Michigan at Grand Rapids. No. 04-00019--Gordon J. Quist, District Judge.
Mich. Family Res., Inc. v. SEIU Local 517M, 438 F.3d 653, 2006 U.S. App. LEXIS 2007 (6th Cir. Mich., 2006)
Disposition: The court of appeals reversed and remanded the case so that the federal district court could enter an order enforcing the arbitration award.
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