Glasgow Ed. Ass'n v. Valley Cty Sch. Dists

Submitted January 9, 1990 At all times herein relations between School District No. 1 & 1A of Valley County, as employer, and Glasgow Education Association (Association), for the District employees, were governed by a written negotiated agreement. The agreement included a provision for arbitration of grievances, with the decision of the arbitrator to be binding and final. On receipt of an adverse decision from an arbitrator, the School District informed the Association that the District would not comply with the arbitrator's award. The Association brought a complaint in the District Court, Seventeenth Judicial District, Valley County, against the District for breach of contract, and to enforce the arbitration award. The School District filed its answer in the District Court, denying the breach of contract, and affirmatively defending that the award of the arbitrator sought to be enforced was illegal because the arbitrator had exceeded his authority in making the award. The School District also counterclaimed for an order vacating the arbitrator's award. There being no disputed facts, the District Court, on motions from both parties for summary judgment, entered its judgment vacating the arbitrator's award. The Association appealed the judgment to this Court. We reverse and order that the award of the arbitrator be reinstated The basis of our holding is that under the agreement between the parties providing for final and binding arbitration, the arbitrator's award draws its essence from the agreement, that is, from the parties' intentions. We further determine that the ""makewhole"" remedy of the arbitrator is correct under the agreement The agreement provided, as a fringe benefit, District payment of a percentage of the employees' health insurance premiums. The provision follows: ""ARTICLE 10. FRINGE BENEFITS