Troilo v. Big Sandy Band
Appellant, Big Sandy Band of Western Mono Indians, a federally recognized Indian tribe (Tribe), challenges the judgment confirming an arbitration award in favor of respondent, Michael Troilo. The Tribe contends the arbitrator exceeded his authority under the employment agreement entered into by Troilo and the Tribe when he awarded $478,000 plus interest in damages to Troilo for wrongful termination. According to the Tribe, the employment agreement limited Troilo to $75,000 in severance pay. The Tribe argues that the arbitrator further exceeded his authority by disregarding the agreements sovereign immunity waiver and definitions of good cause.
As discussed below, the arbitrator did not disregard or modify a plain and unambiguous provision of the agreement when he awarded damages. The employment agreement was silent as to remedies for a wrongful termination. Contrary to the Tribes position, the severance pay was not equivalent to liquidated damages. Rather, it was earned compensation. The arbitrator also considered and applied the agreements sovereign immunity waiver and good cause definitions. Since the arbitrator did not exceed his authority, his interpretation of the contract must be sustained.
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