SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-5284-01T2
CRESSKILL BOARD OF EDUCATION,
Plaintiff-Respondent,
v.
CRESSKILL EDUCATION ASSOCIATION,
Defendant-Appellant.
________________________________
Argued: April 8, 2003 - Decided: July 3, 2003
Before Judges Pressler, Axelrad, and Hoens.
On appeal from the Superior Court of New
Jersey, Chancery Division, Bergen County, C-
74-02.
Judiann Chartier argued the cause for
appellant (Oxfeld Cohen, attorneys; Sanford R.
Oxfeld, of counsel and on the brief).
Rodney T. Hara argued the cause for respondent
(Fogarty & Hara, attorneys; Mr. Hara, of
counsel and on the brief; Janet L. Parmelee,
on the brief).
The opinion of the court was delivered by
AXELRAD, J.T.C. (temporarily assigned).
Defendant, Cresskill Education Association (Association), the
collective bargaining representative for the school district's
employees, appeals the Chancery Division judgment restraining
arbitration of a grievance challenging the decision of the
Cresskill Board of Education (Board) not to renew the annual
employment contract of a non-tenured school custodian, Robert
DeMarco. On appeal, the Association argues that the trial court
exercised jurisdiction greater than that given in the collective
negotiations agreement (CNA) in restraining the arbitration. It
further contends the lack of prohibitive language in the CNA and
the lack of public policy restraint indicate that arbitration
should be allowed under these circumstances. The Association also
claims the trial court erred in its analysis of relevant case law
and ignored other relevant case law, leading to an incorrect
conclusion. Finally, the Association asserts the trial court erred
in relying on DeMarco's individual employment contract which it
contends was in conflict with the CNA.
We are not persuaded by the Association's arguments. After
reviewing the record in light of the oral and written arguments of
the parties, we affirm the grant of the final judgment
substantially for the reasons articulated by Judge Gerald C. Escala
in his well-reasoned written opinion of April 24, 2002.
On July 1, 1998, the Board, a public employer as defined by
the New Jersey Employer-Employee Relations Act, N.J.S.A. 34:13A-1,
hired DeMarco as a public school custodian under a one-year
renewable employment agreement. DeMarco's annual contract was
subsequently renewed twice to include the 1999-2000 and 2000-2001
school years, and he was issued an annual employment contract for
each school year. DeMarco's one-page employment contract states
term, salary, employee requirements, and provides that it "may at
any time be terminated by either party without cause by giving to
the other 30 day's notice in writing of intention to terminate the
same, [otherwise] the contract shall run for the full term named
above. The contract may be terminated at anytime for good cause."
None of these provisions conflicts with, limits, or constitutes a
waiver of any provision in the CNA.
At all times relevant to this case, DeMarco was represented by
the Association, which negotiated a CNA with the Board, on behalf
of the janitors, commencing July 1, 1999 and ending June 30, 2002.
The CNA does not contain any language, express or which could be
implied, granting tenure or guaranteeing reemployment for janitors
who work for the Board. According to Board Policy No. 4146,
"Nonrenewal of Nontenured Support Staff Employment Contracts," the
only rights to which non-tenured support staff members who are
nonrenewed are entitled are a written statement of reasons for the
non-renewal and an opportunity to meet informally with the Board,
provided the support staff person follows the prescribed
timeliness. Nor does the CNA contain any provision conferring on
the arbitrator the authority to settle arbitrability disputes.
Based upon a series of performance evaluations during the
summers of l999 and 2000 noting problems with DeMarco's attitude,
inefficiency in completing tasks outlined by his supervisor, and
lack of cooperation with other employees, on August 23, 2000,
superintendent Dr. Judith Weiss notified DeMarco in writing he
would be terminated effective August 31, 2000, and would be given
thirty days' pay in lieu of the thirty-day notification period
required under his employment contract. The Association filed a
grievance with the superintendent of schools on DeMarco's behalf on
September 26, 2000, alleging the dismissal was "unjust and
improper". Weiss denied the grievance. The Association then filed
a grievance with the Board, which was denied on November 17, 2000.
Consequently, the Association submitted the grievance to the New
Jersey Public Employment Relations Commission ("PERC") for
arbitration. In a decision issued May 30, 2001, the arbitrator
concluded that although the Board had just cause to discipline
DeMarco, because there was no progressive discipline, it did not
have just cause to terminate him. The arbitrator reinstated
DeMarco to his former position without back pay.
On June 6, 2001, Weiss notified DeMarco in writing that his
contract for employment would not be renewed for the 2001-2002
school year. The letter also informed DeMarco he could request a
statement of reasons for the non-renewal from the Board and an
informal hearing before the Board. On June 12, 2001, Weiss
informed DeMarco in writing that the Board determined it was not in
the school district's best interests for him to return to work for
the final month of the reinstated contract and the Board would
compensate him for the time. Pursuant to DeMarco's request, on
June 12, 2001 Weiss provided a written statement of reasons for his
non-renewal, which were identical to the problems noted in previous
performance evaluations, and the letter made particular reference
to the June 2000 evaluation.
On June 28, 2001, the Association again filed a grievance with
Weiss, this time alleging DeMarco's termination was disciplinary
and without just cause. In denying the grievance in her letter of
July 19, 2001, Weiss noted it was the Board's position that since
the individual employment contract ends on June 30 of each year and
a custodian does not acquire tenure, the non-renewal of the non-
tenured employee's annual contract is non-grievable. Weiss
enumerated a list of reasons for DeMarco's non-renewal including
problems listed in DeMarco's evaluations, negative reports from his
former supervisors, and her own observations. In response, the
Association filed a grievance with the Board, which was denied in
writing on August 7, 2001, for substantially the same reasons
previously set forth by Weiss. On August l7, 200l, the Association
filed another request for arbitration regarding the "improper
dismissal of Bob DeMarco."
The Board filed a verified complaint and order to show cause
seeking to restrain the arbitration of the grievance. The Board
argued the matter was not arbitrable predicated on the parties' CNA
which does not confer a right of reemployment of school custodians.
The Association took the position there is no specific language in
the agreement precluding arbitration so the Board's decision not to
renew DeMarco's contract is arbitrable. The parties agreed to hold
the arbitration in abeyance pending the outcome of this litigation.
On April 24, 2002, Judge Escala issued a final judgment
restraining arbitration of the grievance for improper dismissal,
which is the subject of this appeal. He preliminarily found it was
within the province of the court to determine whether the dispute
was arbitrable because the parties' CNA did not contain an express
contractual provision delegating the authority to resolve disputes
over arbitrability to arbitrators. Moreover, he noted that our
Supreme Court in Wright v. Board of Educ. of the City of East
Orange,
99 N.J. 112, 119 (1985), interpreted N.J.S.A. 18A:17-2 as
allowing the Board to deny tenure to custodians. Therefore, it was
the parties' prerogative whether or not to negotiate a right of
reemployment for custodians in their collective negotiations
agreement. Accordingly, he concluded, "[i]n view of the court's
holding in Wright, and the parties' failure to negotiate a right of
reemployment, . . . the language of the collective negotiations
agreement controls and . . . Mr. DeMarco has no right of
reemployment."
In reaching his decision, the judge relied on Marlboro
Township Bd. of Educ. v. Marlboro Township Educ. Ass'n.,
299 N.J.
Super. 283 (App. Div.), certif. denied,
151 N.J. 71 (1997),
involving a grievance filed on behalf of a non-tenured bus driver
whose annual employment contract was not renewed because he had
been chronically absent from work. In Marlboro we held that the
Board's decision not to renew the bus driver's annual employment
contract did not constitute discipline, but was rather "a clearly
enunciated contractual right not to renew, an issue we do not
regard as arbitrable in these circumstances." Id. at 286. We
declined "to insert judicially a tenure provision into a contract
when it was not negotiated by the parties" noting that "even if we
deemed this to be a disciplinary termination, the rights of a
similarly situated disciplinee should rise no higher than those of
a faultless employee who had no right to reemployment." Id. at
286-87.
Judge Escala was not persuaded by the Association's argument
that Marlboro is distinguishable because the Board's decision not
to renew DeMarco's contract was disciplinary in nature. He
concluded:
In both instances, the Board's decision not to
renew the employee was a result of
performance-related deficiencies. In Mr.
DeMarco's case, it was his failure to assist
other custodians and his inefficiency in
completing assignments. In Marlboro, the bus
driver's chronic absences prompted the Board's
non-renewal. Therefore, I hold that the
Board's decision not to renew Mr. DeMarco's
annual employment contract did not constitute
discipline, but was rather a contractual
prerogative of the Board. Accordingly, I find
that the Board has a right to restrain the
instant arbitration.
Nor was Judge Escala persuaded by the Association's reliance on
Hunterdon Central Regional High School Bd. of Educ. v. Hunterdon
Central Bus Driver's Ass'n., 21 N.J.P.E.R. ¶ 26030 (App. Div.),
certif. denied,
140 N.J. 277 (1995). In Hunterdon Central, a bus
driver who had consistently disregarded work rules was terminated
at the expiration of her annual contract. In holding that the bus
driver's grievance was arbitrable, we noted that "a school board
may agree to extend contractual tenure to a non-professional
employee such as a bus driver by a promise to continue his or her
employment absent just cause for termination or renewal" and held
that the question of whether the Board negotiated job security was
one for the arbitrator. Id. Judge Escala concluded:
The case at bar is markedly different from
Hunterdon Central. The issue in the matter
sub judice is whether Mr. DeMarco had a
contractual right to reemployment, not whether
the Board negotiated job security. Moreover,
the instant case concerns the non-renewal of a
non-tenured employee, rather than the mere
termination of a contract as in Hunterdon
Central. These nuances distinguish the
instant matter from Hunterdon Central and
undermine its precedential import.
Judge Escala properly analyzed the relevant case law in light
of the facts of this case. We discern no abuse of discretion in
the judge's conclusion that he had the authority to determine
whether the instant dispute was arbitrable. He noted the absence
of any provision in the CNA or DeMarco's individual contract
conferring on the employee a right to contract renewal or re-
employment, or any right to proceed with a grievance for non-
renewal of his annual contract. Moreover, even though New Jersey
public policy favors arbitration of disputes over litigation,
public policy also favors upholding the terms of a contract as
negotiated by the parties. "In the absence of an express contract
provision conferring authority on the arbitrator, it is uniquely
within the province of the courts, and not arbitrators, to make the
initial and threshold determination of the arbitrability of a
particular issue." Laborers' Local Union v. Interstate Curb &
Sidewalk,
90 N.J. 456, 463 (1982).
Nor did Judge Escala err in applying the Marlboro holding and
finding that the Board's decision not to renew the contract of
DeMarco, a non-tenured employee, because of his failure to be a
team player, was a contractual prerogative of the Board and,
therefore, non-grievable. The arbitration of DeMarco's
disciplinary action was concluded in May 200l, when the arbitrator
reinstated DeMarco to his position for the balance of his contract
without back pay.
The fact that the arbitrator reinstated DeMarco for the final
month of his 2000-2001 contract does not confer additional rights
with respect to subsequent reemployment. The decision not to renew
his contract occurred subsequently and was independent of the
disciplinary matter. And the basis of the arbitration decision was
simply that the termination during the term of DeMarco's contract
was not justified. The issue here was, rather, the right of the
Board after the expiration of the initial term not to offer DeMarco
an additional term of employment. It is immaterial that the
reasons cited by the superintendent for non-renewal of DeMarco's
contract were identical to the problems noted in previous
performance evaluations and the basis for his termination during
the term. It is of no consequence that in Marlboro the Board
expressly retained the prerogative of annual renewal of
transportation and other contracts while here there was no such
reservation in any Board policy contained in the record.
The fact remains that DeMarco had no right of reemployment or
renewal under either the CNA or his individual contract. Echoing
the words of Judge Landau in Marlboro, a disciplinee should be
accorded no greater rights than those accorded to a faultless non-
renewed employee. 299 N.J. Super. at 286-87. The non-renewal was
within the purview of the CNA and within the Board's prerogative
and not subject to arbitration. Moreover, the Hunterdon decision
on which the Association relies involved a scope of negotiations
dispute that was properly heard by PERC. PERC did not address
contractual arbitrability, but rather, it affirmed the
negotiability of the subject of job permanence for nonprofessional,
non-tenured employees, which is not an issue in our case. 21
N.J.P.E.R. ¶ 26030.
The Association also urges us to rely on a recent unpublished
opinion of this court. We are, however, satisfied it is not
precedential and is distinguishable on its facts. R. 1:36-3.
Finally, we find no inconsistency between the terms of the CNA
and DeMarco's individual contract. Nor do we discern an abuse of
discretion in Judge Escala's interpretation of the parties'
agreements. We are satisfied there is an adequate basis in the
record and in the applicable law to support the court's restraint
of the arbitration of DeMarco's grievance.
Affirmed.