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KEVIN
PAT
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FIORETTO
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Arbitrator orders City to indemnify officer for nearly $300,000 in assessed attorneys’ fees
LODGE 7 LABOR CORNER
On Nov. 27, 2012, a Federal Court jury ruled against a 13-year veteran officer in the amount of $1 in compensatory damages and $7,500 in puni- tive damages. Thereafter, the Court entered a series of orders in which the plaintiff’s attorneys’ fees were assessed against the individual officer. The Court further ordered a deduction on each pay period from the officer’s wages, until all amounts were satisfied. The Lodge filed a griev- ance on behalf of the officer and submitted the matter to final and binding arbitration. As of the
less from and pay for damages or monies which may be adjudged, assessed or otherwise levied against any Officer cov- ered by this Agreement. . . .”
date of the arbitration hearing, attorneys’ fees assessed against the Officer totaled $278,244.
In response to the grievance, the City argued that since the jury only awarded $1 in compensatory damages, the attorneys’ fees should be treated as part of the punitive damage award and thus, per state law, the City is not permitted to indemnify the Officer for punitive damages. In response, the Lodge successfully demonstrated that the City’s position was not only contrary to the facts set forth in the case, but also existing law. Indeed, the jury determined the punitive damages to be the finite amount of $7,500. Accordingly, only that amount repre- sented the punitive damage award. Similarly, the Lodge noted that the City’s claim that the attorneys’ fees be divided between the legal work for compensatory damages as opposed to the legal work to achieve the punitive damages was specifically rejected by the Court:
On Nov. 30, 2015, Arbitrator George Roumell granted the Lodge’s grievance and ordered the City to pay all attorneys’ fees assessed against the officer. Further, the Arbitrator ordered the City to reimburse the officer for any portion of said fees that had been deducted from the officer’s wages.
“. . . in this case, there is no clear divide between the legal work performed in support of [Plaintiff’s] claim for compensatory
As the arbitrator noted, Article 22 - Indemnification explicitly states that the City “shall be responsible for, hold Officers harm-
16 CHICAGO LODGE 7 ■ JANUARY 2016