Friday, December 19th, 2008...10:22 am
Alaska Supreme Court: Arbitrator May Award Pre-Judgment Interest Against the State
The Alaska Supreme Court has unanimously held that an arbitrator didn’t commit “gross error” in awarding pre-judgment interest on a back pay award against the State, under the Public Employment Relations Act. The Court reasoned that the interest in effective arbitration overrode the requirement of express waiver of sovereign immunity, especially where the State had already agreed to arbitration.
In the course of so holding, the Court clarified that the standard of review dictum in PSEA v. State, 895 P.2d 980 (Alaska 1995), is correct: judicial review of PERA grievance arbitration is governed by the “gross error” rather than the (less deferential) “arbitrary and capricious” standard. Opinion at Footnote 10.
State v. APEA, Op. No. 6330 (Alaska Dec. 19, 2008)
Chief Justice Fabe didn’t participate.
William Milks, Juneau AAG, represented the State. Sarah Josephson of JDO represented APEA.
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