48 N.Y.2d 66 (1979)
An arbitrator’s award that violates a strong public policy, such as the Civil Service Law’s requirement for municipal civil service commission approval of new positions, is unenforceable, even if the arbitrator’s factual findings are binding.
Summary
The Town of Harrison eliminated Badolato’s position as a junior engineering aide and reassigned his duties to Calandruccio, a draftsman. The union argued this violated their collective bargaining agreement. An arbitrator found the town had created a “new” position without proper notification and awarded it to Badolato. The court vacated the award, holding that the arbitrator’s decision conflicted with Section 22 of the Civil Service Law, which requires municipal civil service commission approval for new positions. The court emphasized that public policy, as reflected in the Civil Service Law, cannot be circumvented by arbitration.
Facts
Christopher Badolato was a junior engineering aide, and James Calandruccio was a draftsman for the Town of Harrison. On December 17, 1975, the town abolished Badolato’s position for economic reasons, effective December 31, 1975. Badolato’s duties were then assigned to Calandruccio in the town engineer’s department. The union argued that the town violated the collective bargaining agreement by not notifying them of the “new” position and not offering it to the senior qualified employee. The town did not seek approval from the municipal civil service commission before creating this new role.
Procedural History
The union sought arbitration, claiming the town violated the collective bargaining agreement. The town’s motion to stay arbitration was denied. The arbitrator ruled in favor of the union, finding a violation of the agreement. The town moved to vacate the award, and the union moved to confirm it. Special Term granted the town’s motion, and the Appellate Division affirmed. The New York Court of Appeals affirmed the Appellate Division’s order.
Issue(s)
Whether an arbitrator’s award is enforceable when it directs a municipality to place an employee in a newly created position without compliance with Section 22 of the Civil Service Law, which requires municipal civil service commission approval for such positions.
Holding
No, because the arbitrator’s award violates a strong public policy manifested in the Civil Service Law, specifically the requirement that the municipal civil service commission approve and certify new positions before they are created.
Court’s Reasoning
The Court of Appeals acknowledged the general deference given to arbitration awards but emphasized that exceptions exist when the award violates a strong public policy. It cited Section 22 of the Civil Service Law, which mandates that new positions be referred to the municipal civil service commission for approval and certification. The court found that this requirement was completely ignored in this case. The court reasoned that the public has an interest in the creation of new positions, and municipalities cannot circumvent the Civil Service Law through collective bargaining or arbitration. The court stated, “Section 22 states a statutory imperative which ‘is beyond the power of the parties to alter or modify * * * by collective bargaining, agreement to arbitrate or otherwise.’” The court emphasized that while the arbitrator’s factual determination that a new job was created was binding, the arbitrator lacked the power to give legal recognition to that determination in violation of established public policy. The court found that the town’s failure to raise the public policy argument earlier did not constitute a waiver. This case illustrates the principle that an arbitrator’s authority is limited by overriding public policy considerations. The court explicitly noted, “there are now but a few matters of concern which have been recognized as so intertwined with overriding public policy considerations as to either place them beyond the bounds of the arbitration process itself or mandate the vacatur of awards which do violence to the principles upon which such matters rest.”