Respondent National Football League Management Council (the "Management Council" or "Management") appeals from an order of the district court that addressed the terms of an injunction it had earlier issued.
The NFLPA and the Management Council are parties to a collective bargaining agreement ("CBA") that incorporates a standard Player's Contract (the "Player's Contract") between a player and his Club. Together, these agreements provide that when a player suffers a football-related injury that prevents him from playing, his Club must protect him in two ways. First, it must pay him his full salary for the remainder of the season in which he is injured. Second, if the player remains unable to play at the beginning of the following season, the Club may terminate his contract, but it must pay him a limited salary for that season.
Like other injured workers, injured players are entitled to seek benefits from state workers' compensation funds. Paragraph 10 of the Player's Contract addresses a Club's rights when one of its players is entitled to receive both state workers' compensation and salary.
The Players and Management disagree, however, about the amount of the offset that Paragraph 10 authorizes. The Players argue that the Clubs are entitled to collect only those state workers' compensation payments an injured player receives while the Club is paying him salary under the terms of the Player's Contract. The parties refer to this as a "time" offset. Management argues, in contrast, that a Club is entitled to collect an injured player's workers' compensation payments until such time as the Club has recouped the total amount of salary it paid the player while he was injured, even if, while those additional worker's compensation payments are being made by the state, the player is no longer under contract to the Club and no longer receives a salary from the Club. The parties refer to this as a "dollar-for-dollar" offset.
In 2005, pursuant to the dispute-settlement mechanism established by the CBA, the Players brought an arbitration proceeding in New York seeking a declaration that Paragraph 10 mandates a time offset. Two years later, after extensive proceedings, Arbitrator Shyam Das issued an award in favor of the Players. He summarized his findings as follows: "Paragraph 10 of the NFL Player Contract provides only for a time offset, and not for a dollar-for-dollar offset . . . . [T]his is the law of the shop under this CBA and is binding on all the Clubs." App. 63.
Soon after the arbitrator issued his award, the Players filed a petition in the district court to confirm the award. The district court granted that petition on March 29, 2009.
After the district court confirmed the award, the Clubs — acting individually and not through the Management Council — continued to seek dollar-for-dollar offsets in various state workers' compensation tribunals and courts. Spurred by the Clubs' actions, the Players returned to the district court requesting injunctive relief. They argued that, by making the dollar-for-dollar arguments in state fora, the Clubs were violating the arbitration award that the district court had confirmed.
In response, on March 25, 2011, the district court issued an Order granting injunctive relief to the Players. The court framed its injunction as follows: "Management is hereby enjoined from attempting to assert dollar-for-dollar offsets under Paragraph 10 of the CBA."
That did not end the matter. After several Clubs continued to seek dollar-for-dollar offsets, ostensibly (as described by Management in at least one case) "under New York state law in New York workers' compensation courts, but not under Paragraph 10," Appellant's Br. at 14 (emphasis added), the Players moved the district court to hold Management in contempt.
In an opinion dated January 3, 2012, the district court denied the contempt motion. At the same time, it "clarifie[d] the Order's meaning," declaring that "[i]n addition to providing for a time offset, Paragraph 10 of the Player's Contract preempts any state law to the contrary." Order at 3,
The Management Council now challenges the district court's 2012 Order on two grounds. First, Management contends that because Arbitrator Das expressly declined to address whether Paragraph 10 preempts state laws providing for dollar-for-dollar offsets, the district court was not authorized to resolve the preemption issue in proceedings to enforce the arbitration award. Second, Management argues that even if the district court had the authority to reach the preemption question, its analysis was incorrect.
We agree with Management that, given the procedural posture of the case before it, the district court lacked the authority to reach the preemption question. Accordingly, we vacate the 2012 Order. We do not consider the merits of the district court's preemption analysis, however, and our decision is without prejudice to future adjudication of the preemption question through a separate action.
Preliminarily, we consider two procedural challenges to Management's appeal. First, the Players argue that the appeal is untimely because it was not filed within thirty days of the district court's entry of the 2011 Order, which first provided injunctive relief.
Second, the Players argue that Management cannot appeal from the 2012 Order because Management prevailed in the contempt proceeding. We reject this position, too, because the court's 2012 order "substantially change[d] the terms and force of the injunction."
The Players brought their petition to confirm the arbitration award under section 301 of the Labor Management Relations Act, 29 U.S.C. § 185(a). Section 301 gives district courts jurisdiction over "[s]uits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this chapter, or between any such labor organizations."
The FAA limits a district court's authority when reviewing an arbitration award. To vacate an arbitral award, for instance, a district court must find that the award "falls within a very narrow set of circumstances," all of which "involve corruption, fraud, or some other impropriety on the part of the arbitrators."
We have held that actions to confirm such awards are "straightforward proceedings in which no other claims are to be adjudicated."
Here, when the district court held that Paragraph 10 preempted contrary state law, it in effect expanded the terms of the arbitration award. Arbitrator Das had expressly (and properly) declined to resolve this question, and the district court's preemption ruling, while not unrelated to the underlying arbitration, was not "necessary to vindicate [the district court's] authority, and effectuate its decree[]."
In the award that the district court confirmed, the arbitrator determined that "Paragraph 10 of the NFL Player Contract provides only for a time offset" and that "this is the law of the shop under this CBA and is binding on all the Clubs." App. 64. As Management acknowledged at oral argument, the NFLPA is free to bring a separate action for a declaratory judgment that, under federal labor law, Paragraph 10 preempts contrary state laws.
Accordingly, the January 3, 2012 order is VACATED, and the cause is REMANDED for further proceedings consistent with this opinion.