|
14 Penn Plaza LLC v. Pyett Will Significantly Affect the Future of Labor Relations in the United States
February 19, 2008 (New York, NY) - Proskauer Rose LLP, an international law firm with more than 750 lawyers worldwide, is pleased to announce that the United States Supreme Court has agreed to hear a case involving its client, 14 Penn Plaza LLC, which will decide whether an arbitration clause in a collective bargaining agreement, which waives union members' right to a judicial forum for statutory discrimination claims, is enforceable.
The case, 14 Penn Plaza LLC, et al. v. Steven Pyett, et al., is of great importance to the New York City and national real estate and labor communities. It was originally brought by a group of night watchmen and porters employed by Temco Service Industries, Inc. to monitor the lobby of 14 Penn Plaza in New York City. After being transferred to different duties within their job description following the building's hiring of licensed security guards, and having their contractual grievances rejected by an arbitrator, the employees filed a federal action in the Southern District of New York alleging that the transfer was due to age discrimination. Defendants proceeded to move to compel arbitration pursuant to the collective bargaining agreement's arbitration provision.
"We are thrilled the Court has agreed to hear this case, which will resolve an issue it explicitly left open in Wright v. Universal Maritime Service Corp. In that case, the Court held that union-negotiated arbitration agreements covering employment discrimination claims must, at a minimum, be clear and unmistakable. However, because the agreement at issue in that case did not satisfy that standard, the Court declined to decide whether such an agreement is enforceable. This case presents an agreement that satisfies the clear and unmistakable standard and provides the Court with an opportunity to resolve the issue," said Paul Salvatore, partner and co-chair of Proskauer's Labor and Employment Law Department, which filed a petition for a writ of certiorari on behalf of 14 Penn Plaza asking the Supreme Court to hear the case.
The district court denied the motion to compel and the Second Circuit sustained the denial, resulting in Penn Plaza LLC' request for the Supreme Court to decide the matter. The lower courts based their rulings on Alexander v. Gardner-Denver 415 U.S. 36 (1974), a precedent that has been severely undercut in recent years.
"The lower courts' rulings were contrary to a number of federal and New York State court holdings," said Mr. Salvatore. "And by declaring that all union-negotiated arbitration agreements are unenforceable, the Second Circuit's holding is in direct conflict with the holdings of the Fourth Circuit, creating a pronounced and irreconcilable split."
In addition to Mr. Salvatore, the team representing 14 Penn Plaza in the case includes Brian Rauch and Ian Schaefer (Labor) and Mark Harris (Litigation) at Proskauer Rose. James F. Berg and Howard Rothschild of the Realty Advisory Board on Labor Relations represent the co-petitioner, Temco Service Industries, Inc.
About Proskauer Rose
Proskauer Rose, founded in 1875, is an international law firm providing a wide variety of legal services to clients worldwide from offices in Boca Raton, Boston, Chicago, Hong Kong, London, Los Angeles, New Orleans, New York, Newark, Paris, São Paulo, and Washington, D.C. The firm has wide experience in all areas of practice important to businesses and individuals including corporate finance, mergers and acquisitions, general commercial litigation, corporate governance matters, conducting internal corporate investigations, white collar criminal defense, private equity and fund formation, patent and intellectual property litigation and prosecution, labor and employment law, real estate transactions, bankruptcy and reorganizations, trusts and estates, and taxation. Its clients span industries including chemicals, entertainment, financial services, health care, information technology, insurance, internet, lodging and gaming, manufacturing, media and communications, pharmaceuticals, real estate investment, sports, and transportation. The firm can be found online at http://www.proskauer.com.
|
