Keaten v. Oreskovich

STATE OF MAINE SUPERIOR COURT

KENNEBEC, ss CIVIL ACTION

DOCKET NO. AP-1~-?; J

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STEVEN KEATEN,

Appellant,

v. ORDER ON APPEAL FROM

DISTRICT COURT DISMISSAL

OF SMALL CLAIMS ACTION

JOYCE ORESKOVICH, DIRECTOR

STATE OF MAINE, DEPARTMENT

OF ADMINISTRATIVE AND FINANCIAL

SERVICES BUREAU OF HUMAN RESOURCES,

Appellee.

Before the Court is Steven Keaten's ("Keaten") appeal of the District Court's order dated

June 12, 2013, in which the District Court Judge dismissed Keaten's action seeking to enforce an

arbitration award dated December 10,2010 (the "Arbitration Award") on the grounds of res

judicata, or in the alternative, for lack of jurisdiction.

FACTUALANDPROCEDURALBACKGROUND

In October 2005, in accordance with the collective bargaining agreement (the "CBA")

between the State of Maine and the Maine State Employees Association SEIU Local 1989 (the

"MSEA"), Keaten filed a request to reclassify his position with the Maine Department of Health

and Human Services (the "Department" or the "Employer") from Health Care Financial Analyst

to Senior Health Care Financial Analyst. After his request was denied, the MSEA requested

arbitration of the dispute. Foil owing a hearing, on December 10, 2010, the arbitrator determined

that reclassification was warranted and ordered the reclassification ofKeaten's position

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retroactive to October 6, 2005. The arbitrator further ordered that Keaten "shall otherwise be

made whole." (Arbitration Award, p. 13.)

Because the reclassification required legislative funding, the reclassification back pay

was not implemented until the funding was approved on April 14, 2012. Keaten v. Maine State

Civil Appeals Board, No. 12-AP-052, at 2 (Me. Super. Ct., Ken. Cty., Apr. 19. 2013) (Nivison,

J.). Keaten, however, resigned from his position on December 30, 2011. From the date of the

Arbitration Award to the date of his resignation, Keaten remained a Senior Health Care Financial

Analyst. After the legislature approved funding for the reclassification, the State issued a check

to Keaten in the amount of back pay and interest. !d. Prior to his resignation, Petitioner requested

certain disability benefits 1 and that his back pay and interest be deposited into his deferred

compensation account, but the Bureau of Human Services denied Keaten's requests and

informed him that under federal law, the State could not defer his back pay award. !d.

In August 2012, Keaten filed a Statement of Claim with the District Court (Small

Claims), Keaten v. Oreskovich, No. SC-2012-571, seeking monetary damages with respect to the

Arbitration A ward and an injunction ordering the State of Maine to allow for a deferred

compensation deduction. On October 2, 2012, following an unopposed motion to dismiss, the

Court dismissed his August 13, 2012 Notice of Claim on the ground that the District Court

lacked jurisdiction over the matter.

On November 19, 2012, MSEA filed with the same arbitrator a motion for clarification of

remedy alleging that subsequent to the Arbitration Award, the Employer had refused to fully

implement the Arbitration Award by denying Keaten the opportunity to participate in an income

protection/short-term disability plan or to place any portion of the back pay award in a deferred

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After being reclassified as a "confidential employee," Keaten argues he was entitled to payment of

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compensation account. On January 10, 2013, the arbitrator dismissed MSEA's motion without

prejudice because pursuant to 14 M.R.S. § 5935, the arbitrator did not have jurisdiction to clarify

the Arbitration Award beyond 20 days after delivery of the Arbitration Award to the applicant.

In May 20l3, Keaten filed another Statement of Claim with the District Court (Small

Claims), Keaten v. Oreskovich, No. SC-2013-273, again seeking monetary damages with respect

to the Arbitration Award 2 and an injunction ordering the State of Maine to allow for a deferred

compensation deduction. On June 12, 2013, the District Court dismissed Keaten's action. The

District Court held that Keaten's action was barred by res judicata because the same cause of

action was dismissed by the District Court on October 2, 2012 in Keaten v. Oreskovich, No. SC

2012-571. The District Court further held that it lacked jurisdiction to enforce provisions of the

Arbitration Award. The appeal from the District Court's June 12, 2013 order is before this Court.

STANDARD OF REVIEW

Pursuant to M.R.S.C.P. 11(a), an aggrieved party may appeal from a judgment ofthe

District Court in a small claims action to the Superior Court in the county in which the division

of the District Court entering judgment is located. Under M.R.S.C.P. 11(d), an appeal by a

plaintiff shall be on questions of law only and shall be determined by the Superior Court without

jury on the record on appeal. Any findings of fact ofthe District Court shall not be set aside

unless clearly erroneous. Johnson v. Johnson, AP-00-024, 2001 WL 1671605, at *1 (Me. Super.

Mar. 19, 2001) (citing M. R. Civ. P. 76D).

A party to arbitration may petition the court to confirm an award. 14 M.R.S. § 5937. The

term "court" means the Superior Court or the District Court of this State. 14 M.R.S. § 5943. A

summary proceeding such as a motion to confirm arbitrators' award may be commenced by

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In addition to disability benefits under the income protection plan, Keaten was seeking a refund of

interest on his contribution to the MainePERS.

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motion or petition and may proceed without formal pleadings. Cutler Associates, Inc. v. Merrill

Trust Co., 395 A.2d 453, 455 (Me. 1978). Unlike applications seeking to vacate, modify, or

correct an arbitration award-which must be made within 90 days after delivery of a copy of the

award to the applicant-petitions to confirm are not subject to time restrictions. 14 M.R.S. §

5937. See also Maine Sch. Admin. Dist. No. 5 v. M S. A. D. No. 5 Teachers Ass 'n, 324 A.2d 308,

314 (Me. 1974) (allowing a motion for confirmation after the time to vacate, modify, or correct

the arbitration award had lapsed).

In actions seeking to confirm an arbitration award, the District Court has power to grant

monetary and equitable relief, but equitable relief is limited to orders to return, reform, refund,

repair or rescind. 14 M.R.S. § 7481. There can be no removal of a small claims action to the

Superior Court. Ela v. Pelletier, 495 A.2d 1225, 1227 (Me. 1985).

DISCUSSION

This Court is ofthe opinion that the District Court lacked jurisdiction over Keaten's May

2013 Small Claims action. While Keaton suggests that he was asking the District Court to

enforce an arbitration award, he was asking for relief beyond the power of the District Court to

provide, as the District Court itself found. For that reason this Court affirms the District Court's

June 12, 2013 order granting Defendants' motion to dismiss.

The District Court's power to grant equitable relief is limited to orders to return, reform,

refund, repair, or rescind. 14 M.R.S. § 7481. But the injunctive relief sought by Keaten's

Statements of Claim filed with the District Court-an injunction ordering the State of Maine to

allow for a deferred compensation deduction-is beyond this limited equitable power vested in

the District Court by this statute. The Superior Court, the court of much broader equitable

powers, is the proper forum for a petition to confirm and enforce an arbitration award that

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includes a request for the type of injunction Keaten sought in his District Court actions. Bar

Harbor Banking & Trust Co. v. Alexander, 411 A.2d 74, 79 (Me. 1980) ("The broad statutory

grant of equity jurisdiction to the Superior Court is 'full equity jurisdiction, according to the

usage and practice of courts of equity, in all other cases where there is not a plain, adequate and

complete remedy at law."') (quoting 14 M.R.S.A. § 6051(13)).

Nevertheless, this Court cannot simply remove Keaten's small claims action from the

I

District Court to the Superior Court. Ela v. Pelletier, 495 A.2d 1225, 1227 (Me. 1985). Nor can

this Court remand this action back to the Arbitrator for clarifications because in the present

matter, this Court is acting in its appellate capacity. To obtain the requested injunctive relief and

to reduce the Arbitration Award to a judgment, the MSEA, a party to the original arbitration,

may make an application with the Superior Court to confirm the Arbitration Award pursuant to

14 M.R.S. § 5937. 3

The entry will be:

The decision of the District Court dated June 12, 2013 is AFFIRMED.

DATE

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3

In general, an individual employee lacks standing to enforce an arbitration award. Plumley v. S.

Container, Inc., 125 F. Supp. 2d 556, 559 (D. Me. 2000) (citing Cleveland v. Porca Co., 38 F.3d 289, 296

& n. 5 (7th Cir.1994)). However, an individual employee may bring such a claim on his/her own ifs/he

also alleges and proves that the union, which was a party to the original arbitration, breached its duty of

fair representation in connection with the substance of the employee's claim. !d. (citing Cleveland, 38

F.3d at 297). See generally Sarnelli v. Amalgamated Meat Cutters & Butcher Workmen ofN Am., 457

F.2d 807, 808 (1st Cir. 1972).

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Date Filed 7/10/13 Kennebec Docket No. AP-13-28 F

County

Action: Small Claims

J. Murphy J. Ni·;ison

Steven R. Keaten vs. Joyce Oreskovich, Director, Dept of

Administrative & Financial Services

Plaintiff's Attorney Defendant's Attorney

Steven Keaten, ProSe Susan Herman, AAG

PO Box 6234 6 State House Station

China Village, ME 04926 Augusta, ME 04333-0006

Date of Entry

7/15/13 Entire file received from Augusta D.C. (SC-13-273), 7/10/13.

7/15/13 Notice to Parties, Small Claims Appeal, sent to Petitioner and AAG Herman

7/15/13 Notice and Briefing Schedule issued.

Copy to Petitioner and AAG Herman

7/18/13 Brief of Defendant Joyce Oreskovich on Appeal from Small Claims Court and

Opposition to Motion to Transfer Case to Superior Court, filed 7/18/13. s/Herman, AAG

7/31/13 Plaintiffs Response To Defendant's Brief on Plaintiffs Appeal of District Courts (Small

Claims) Decision on Defendant's Motion to Dismiss and Plaintiffs Motion to Transfer

Case Jurisdiction to Superior Court, filed 7/30/13. s/Keaten, ProSe

9/21/13 Oral argument scheduled for 10/9/13 at 2:00p.m.

Motion/Oral Argument List and Notice of Hearing to Petitioner and AAG Herman.

10/9/13 Oral argument held. J. Murphy presiding.

Stephen Keaten and Susan Herman, AAG appeared.

Tape 1768, Index 1250-2140

Under advisement.

12/5/13 ORDER ON APPEAL FROM DISTRICT COURT DISMISSAL OF SMALL CLAIMS

ACTION, Murphy, J.

The decision of the District Court dated June 12, 2013 is AFFIRMED.

Copy to Petitioner and AAG Herman.

Copy to repositories.

12/5/13 File returned to Augusta D.C.

Page 1 AP-13-28