Randall Hale worked as a seaman on an Exxon Shipping Co. oil tanker for eight ye

Question

Randall Hale worked as a seaman on an Exxon Shipping Co. oil tanker for eight years without incident. One night, he boarded the ship for duty while intoxicated, in violation of company policy. This policy also allowed Exxon to discharge employees who were intoxicated and thus unfit for work. Exxon discharged Hale. Under a contract with Hale's union, the discharge was submitted to arbitration. The arbitrators ordered Exxon to reinstate Hale on an oil tanker. Exxon filed a suit against the union, challenging the award as contrary to public policy, which opposes having intoxicated persons operate seagoing vessels. Can a court set aside an arbitration award on the ground that the award violates public policy? Should the court set aside the case? Explain

Explanation / Answer

1. What are the key facts and issues? Randall Hale boarded the ship for duty while intoxicated Hale violated company policy Exxon discharged Hale Issue : The discharge after arbitration was cancelled and that was challenged by Exxon in the court 2. What rule of law applies to the case? First the arbitration is considered, if both parties agree it is closed. In case there is problem to any party that can be challenged in the court 3. How does the rule of law apply to the particular facts and circumstances of this case? As per the rule the Union arbitration was not as per the rule and public policy, where the discharge should be validated, if not permanently, there should be penalty of some sought. As it was risk to both parties. 4. What conclusion should be drawn? Conclusion that can be drawn is the court should see the claim of Exxon, and see the facts and honor the public policy and give a judgement, if arbitration should be re-considered. With guideline to pursue and justify the public policy which was ignored

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