12.7 - 2. Litigation

• Jurisdiction: New York

2. Litigation

Absent an agreement to arbitrate, the courts are available to enforce contracts, and litigation remains the presumptive method by which contracts are to be enforced.⁵⁴⁰⁹

There are significant differences between arbitration and litigation in court. Court orders are appealable both as to the result reached and the remedy obtained. The grounds for reviewing arbitration awards are limited. An arbitrator’s decision, and the remedy awarded, will be enforced if any rational basis exists to sustain it.⁵⁴¹⁰ That courts might prove more circumspect than arbitrators with respect to the specific performance of labor agreements is indicated by the Court of Appeals decision in Burke v. Bowen.⁵⁴¹¹ In that case, the city of Long Beach had laid off 13 firefighters in clear violation of a job security clause in the city’s agreement with its firefighters’ union. There was no arbitration agreement, so the union turned to the courts for enforcement of the contract. Pursuant to a CPLR article 78 proceeding, the union sought to enjoin the breach and obtain an order reinstating the laid-off firefighters. While the Court of Appeals agreed that the contract had been breached, it affirmed the denial of specific performance relief. Applying traditional rules of remedy in contract law, the Court found that monetary damages would be adequate to compensate those illegally let go, and that, as a matter of equity, the city could not be compelled to reinstate the dismissed firefighters. On similar facts, the Court confirmed an arbitration award specifically enforcing a job security clause.⁵⁴¹²

Resort to litigation to...