Arbitrator Did Not Err in Deciding Collateral Estoppel Issue, 2nd Cir. Rules

NEW YORK — Under a broad arbitration agreement in a collective bargaining agreement (CB), the preclusive effect of a prior judicial or administrative decision is a matter to be resolved by the arbitrator, the 2nd Circuit U.S. Court of Appeals has ruled.

On June 2, the appellate court found that an arbitrator did not exceed his powers by interpreting the terms of the CBA to allow use of collateral estoppel based on a prior administrative decision, therefore vacatur of the award is not warranted.

Carla LaGreca was employed by the U.S. Postal Service as a mail-processing clerk. In 1986, she …