{ "attribution": { "source": "legal.exploreworldai.com", "canonical": "https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca7-25-2307-2026-07-20", "cite_as": "NovaCopilot, legal.exploreworldai.com (https://legal.exploreworldai.com/api/public/v1/judgment-text?id=us:ca7-25-2307-2026-07-20)", "license": "https://legal.exploreworldai.com/revision", "version": "legal-2026-10-14", "fingerprint": "ewai:us:88b5b2", "proof": "sha256:d67ad6a8cf1d9bab86122c7e9eb9acb343bac5f6530808eafb93f8b8d426de7e", "jurisdiction": "us", "lang": "en", "publisher": "NovaCopilot by ExploreWorld Legal", "terms": "https://legal.exploreworldai.com/om" }, "brand_source": "Source: NovaCopilot", "item": { "schema_version": "1.0.0", "id": "us:ca7-25-2307-2026-07-20", "jurisdiction": "us", "lang": "en", "brand_source": "Source: NovaCopilot", "brand": { "product": "NovaCopilot", "platform": "ExploreWorldAI", "infrastructure": "ExploreWorld Legal", "infrastructure_url": "legal.exploreworldai.com", "legal_entity": "Valkiv Ventures AB", "permanent_url": "https://legal.exploreworldai.com/novacopilot", "source": "Source: NovaCopilot", "powered_by": "Powered by NovaCopilot", "license": "https://legal.exploreworldai.com/licensvillkor" }, "sections": [ { "title": "In the", "paragraphs": [] }, { "title": "United States Court of Appeals", "paragraphs": [] }, { "title": "For the Seventh Circuit", "paragraphs": [ "para_4" ] }, { "title": "No. 25-2307", "paragraphs": [ "para_6", "para_7", "para_8", "para_9", "para_10", "para_11" ] }, { "title": "Appeal from the United States District Court for the", "paragraphs": [ "para_13", "para_14", "para_15" ] }, { "title": "ARGUED MAY 21, 2026 — DECIDED JULY 17, 2026", "paragraphs": [ "para_17", "para_18" ] }, { "title": "MALDONADO, Circuit Judge. This case centers on an arbitra-", "paragraphs": [ "para_20", "para_21", "para_22", "para_23", "para_24", "para_25" ] }, { "title": "2 No. 25-2307", "paragraphs": [ "para_27", "para_28" ] }, { "title": "I", "paragraphs": [] }, { "title": "In March 2021, Remo Polselli, acting on behalf of Allegiant", "paragraphs": [] }, { "title": "Equities, LLC (“Allegiant”), signed a purchase agreement for", "paragraphs": [ "para_32", "para_33", "para_34" ] }, { "title": "CBA, which had been signed by the Inn’s prior operator, pro-", "paragraphs": [ "para_36", "para_37", "para_38", "para_39", "para_40", "para_41", "para_42", "para_43", "para_44", "para_45" ] }, { "title": "In late 2022 or early 2023, the City of Chicago asked", "paragraphs": [ "para_47" ] }, { "title": "Polselli (not Elmar as the operator) signed a Group Sales", "paragraphs": [] }, { "title": "Agreement with ReloShare, Inc., a “hotel booking software", "paragraphs": [ "para_50" ] }, { "title": "(not on behalf of Allegiant as the owner), agreeing to sell", "paragraphs": [ "para_52", "para_53", "para_54", "para_55", "para_56", "para_57" ] }, { "title": "No. 25-2307 3", "paragraphs": [ "para_59" ] }, { "title": "Club Management, LLC (“Social Club”), which Karcho also", "paragraphs": [ "para_61" ] }, { "title": "The Union soon caught wind that the Inn was back in op-", "paragraphs": [ "para_63", "para_64", "para_65" ] }, { "title": "Polselli later explained to the representative that an outside", "paragraphs": [ "para_67", "para_68", "para_69" ] }, { "title": "Polselli and Karcho, as well as the Inn’s designated point of", "paragraphs": [ "para_71", "para_72", "para_73", "para_74" ] }, { "title": "(doing business as the Inn) with the National Labor Relations", "paragraphs": [] }, { "title": "Board (“NLRB”). The NLRB charge was deferred to arbitra-", "paragraphs": [ "para_77" ] }, { "title": "Between November 2023 and January 2024, the arbitrator", "paragraphs": [ "para_79", "para_80", "para_81", "para_82", "para_83", "para_84", "para_85", "para_86" ] }, { "title": "Relevant to this appeal, the arbitrator made three deci-", "paragraphs": [ "para_88", "para_89" ] }, { "title": "4 No. 25-2307", "paragraphs": [ "para_91" ] }, { "title": "In making that determination, the arbitrator looked to the", "paragraphs": [] }, { "title": "Group Sales Agreement. The arbitrator found that “nothing", "paragraphs": [ "para_94", "para_95", "para_96", "para_97" ] }, { "title": "Second, the arbitrator found that there was “a single em-", "paragraphs": [ "para_99", "para_100", "para_101", "para_102", "para_103", "para_104", "para_105", "para_106", "para_107", "para_108", "para_109", "para_110" ] }, { "title": "Third, the arbitrator found that the Employers violated the", "paragraphs": [] }, { "title": "CBA and the National Labor Relations Act (“NLRA”). Specif-", "paragraphs": [ "para_113", "para_114" ] }, { "title": "Inn’s desire to transfer work to non-Union employees, as well", "paragraphs": [ "para_116" ] }, { "title": "Displeased with the arbitrator’s decision, the Employers", "paragraphs": [ "para_118", "para_119" ] }, { "title": "No. 25-2307 5", "paragraphs": [] }, { "title": "II", "paragraphs": [ "para_122", "para_123", "para_124", "para_125", "para_126", "para_127", "para_128", "para_129", "para_130", "para_131", "para_132", "para_133", "para_134", "para_135", "para_136", "para_137" ] }, { "title": "Anglin, 216 F.3d 589, 593 (7th Cir. 2000) (citation omitted); see", "paragraphs": [ "para_139" ] }, { "title": "Cir. 2001) (party could not “sit back and allow the arbitration", "paragraphs": [ "para_141", "para_142", "para_143", "para_144", "para_145", "para_146" ] }, { "title": "Here, the Employers participated in the arbitration with-", "paragraphs": [ "para_148", "para_149", "para_150", "para_151" ] }, { "title": "6 No. 25-2307", "paragraphs": [ "para_153", "para_154", "para_155" ] }, { "title": "Fansteel, Inc., 900 F.2d 1005, 1009 (7th Cir. 1990) (explaining", "paragraphs": [ "para_157", "para_158", "para_159", "para_160", "para_161", "para_162", "para_163", "para_164" ] }, { "title": "United Food & Com. Workers Int’l Union, 760 F.2d 173, 175 (7th", "paragraphs": [ "para_166" ] }, { "title": "Second, the Employers argue that the arbitrator had no au-", "paragraphs": [ "para_168", "para_169", "para_170", "para_171", "para_172" ] }, { "title": "593, 597 (1960). But they are again mistaken. When it comes", "paragraphs": [ "para_174", "para_175", "para_176" ] }, { "title": "Id. Practically speaking, what this means is we “vacate only if", "paragraphs": [ "para_178", "para_179", "para_180", "para_181" ] }, { "title": "F.3d 345, 347 (7th Cir. 2001) (quoting Amax Coal Co. v. United", "paragraphs": [] }, { "title": "Mine Workers of Am., 92 F.3d 571, 576 (7th Cir. 1996) (quotation", "paragraphs": [ "para_184" ] }, { "title": "No. 25-2307 7", "paragraphs": [] }, { "title": "835 (7th Cir. 1999) (quotation omitted)). In fact, it does not", "paragraphs": [ "para_187", "para_188", "para_189", "para_190", "para_191", "para_192" ] }, { "title": "Here, the arbitrator’s decision was rooted in the CBA and", "paragraphs": [ "para_194" ] }, { "title": "CBA—which was replete with references to the building’s op-", "paragraphs": [ "para_196", "para_197", "para_198", "para_199", "para_200", "para_201", "para_202", "para_203" ] }, { "title": "Whether those conclusions were “correct” is wholly irrele-", "paragraphs": [ "para_205", "para_206" ] }, { "title": "Even assuming the arbitrator’s inquiry strayed from the", "paragraphs": [ "para_208", "para_209" ] }, { "title": "Workers Union, 185 F.3d at 835 (quoting Hill v. Staten Island", "paragraphs": [] }, { "title": "Zoological Soc’y, Inc., 147 F.3d 209, 214 (2d Cir. 1998)). In other", "paragraphs": [ "para_212", "para_213", "para_214", "para_215", "para_216" ] }, { "title": "8 No. 25-2307", "paragraphs": [ "para_218", "para_219", "para_220", "para_221", "para_222", "para_223" ] }, { "title": "Third, the Employers argue that the arbitrator had no au-", "paragraphs": [ "para_225", "para_226", "para_227", "para_228", "para_229", "para_230", "para_231", "para_232", "para_233", "para_234", "para_235", "para_236", "para_237", "para_238", "para_239", "para_240" ] }, { "title": "Polselli’s financial management consultant. The NLRB charge", "paragraphs": [ "para_242", "para_243", "para_244", "para_245", "para_246" ] }, { "title": "(via Karcho) were thus clearly on notice of the proceedings", "paragraphs": [ "para_248" ] }, { "title": "No. 25-2307 9", "paragraphs": [] }, { "title": "Elmar. The Employers also argue that the arbitrator improp-", "paragraphs": [ "para_251", "para_252" ] }, { "title": "But the arbitrator did not rely solely on the adverse inference", "paragraphs": [ "para_254", "para_255", "para_256" ] }, { "title": "Last, the Employers argue that the Award violated public", "paragraphs": [ "para_258", "para_259", "para_260", "para_261", "para_262", "para_263", "para_264", "para_265", "para_266" ] } ], "paragraphs": [ { "text": "In the", "paragraph_id": "para_1" }, { "text": "United States Court of Appeals", "paragraph_id": "para_2" }, { "text": "For the Seventh Circuit", "paragraph_id": "para_3" }, { "text": "____________________", "paragraph_id": "para_4" }, { "text": "No. 25-2307", "paragraph_id": "para_5" }, { "text": "ELMAR HOTEL MANAGEMENT, LLC, et al.,", "paragraph_id": "para_6" }, { "text": "Plaintiffs-Appellants,", "paragraph_id": "para_7" }, { "text": "v.", "paragraph_id": "para_8" }, { "text": "UNITE HERE LOCAL 1,", "paragraph_id": "para_9" }, { "text": "Defendant-Appellee.", "paragraph_id": "para_10" }, { "text": "____________________", "paragraph_id": "para_11" }, { "text": "Appeal from the United States District Court for the", "paragraph_id": "para_12" }, { "text": "Northern District of Illinois, Eastern Division.", "paragraph_id": "para_13" }, { "text": "No. 1:24-cv-09808 — Sunil R. Harjani, Judge.", "paragraph_id": "para_14" }, { "text": "____________________", "paragraph_id": "para_15" }, { "text": "ARGUED MAY 21, 2026 — DECIDED JULY 17, 2026", "paragraph_id": "para_16" }, { "text": "____________________", "paragraph_id": "para_17" }, { "text": "Before KIRSCH, PRYOR, and MALDONADO, Circuit Judges.", "paragraph_id": "para_18" }, { "text": "MALDONADO, Circuit Judge. This case centers on an arbitra-", "paragraph_id": "para_19" }, { "text": "tion award (the “Award”) entered against Elmar Hotel Man-", "paragraph_id": "para_20" }, { "text": "agement, LLC; Allegiant Equities, LLC; Social Club Manage-", "paragraph_id": "para_21" }, { "text": "ment, LLC; and Remo Polselli (the “Employers”). An arbitra-", "paragraph_id": "para_22" }, { "text": "tor found that the Employers violated a collective bargaining", "paragraph_id": "para_23" }, { "text": "agreement (the “CBA”) when they housed migrants at the Inn", "paragraph_id": "para_24" }, { "text": "of Chicago without using UNITE HERE Local 1 (the “Union”)", "paragraph_id": "para_25" }, { "text": "2 No. 25-2307", "paragraph_id": "para_26" }, { "text": "members to operate the facility. The district court confirmed", "paragraph_id": "para_27" }, { "text": "the Award, and we affirm.", "paragraph_id": "para_28" }, { "text": "I", "paragraph_id": "para_29" }, { "text": "In March 2021, Remo Polselli, acting on behalf of Allegiant", "paragraph_id": "para_30" }, { "text": "Equities, LLC (“Allegiant”), signed a purchase agreement for", "paragraph_id": "para_31" }, { "text": "the Inn of Chicago (the “Inn”). At the time, the Inn was not", "paragraph_id": "para_32" }, { "text": "operational, and its Union-represented employees were tem-", "paragraph_id": "para_33" }, { "text": "porarily laid off because of the COVID-19 pandemic. The", "paragraph_id": "para_34" }, { "text": "CBA, which had been signed by the Inn’s prior operator, pro-", "paragraph_id": "para_35" }, { "text": "vided that the agreement would continue with any change in", "paragraph_id": "para_36" }, { "text": "owner or operator. Consistent with that language, the pur-", "paragraph_id": "para_37" }, { "text": "chase agreement provided that Allegiant could either enter a", "paragraph_id": "para_38" }, { "text": "new CBA with the Union on substantially the same terms or", "paragraph_id": "para_39" }, { "text": "assume the existing CBA. Allegiant then designated Elmar", "paragraph_id": "para_40" }, { "text": "Hotel Management, LLC (“Elmar”) as the operator of the Inn.", "paragraph_id": "para_41" }, { "text": "And Hanna Karcho, Polselli’s wife and Elmar’s sole manager,", "paragraph_id": "para_42" }, { "text": "signed an agreement with the Union, assuming the CBA. De-", "paragraph_id": "para_43" }, { "text": "spite its new ownership and newly designated operator, the", "paragraph_id": "para_44" }, { "text": "Inn remained out of operation for the next couple of years.", "paragraph_id": "para_45" }, { "text": "In late 2022 or early 2023, the City of Chicago asked", "paragraph_id": "para_46" }, { "text": "Polselli if the Inn could be used to house displaced migrants.", "paragraph_id": "para_47" }, { "text": "Polselli (not Elmar as the operator) signed a Group Sales", "paragraph_id": "para_48" }, { "text": "Agreement with ReloShare, Inc., a “hotel booking software", "paragraph_id": "para_49" }, { "text": "for social service agencies,” on behalf of the “Inn of Chicago”", "paragraph_id": "para_50" }, { "text": "(not on behalf of Allegiant as the owner), agreeing to sell", "paragraph_id": "para_51" }, { "text": "blocks of rooms to the City. In subsequent months, Polselli", "paragraph_id": "para_52" }, { "text": "also signed three addenda to the agreement, increasing the", "paragraph_id": "para_53" }, { "text": "number of rooms and nights. Per the agreement, functions", "paragraph_id": "para_54" }, { "text": "that would ordinarily go to Union employees (e.g., house-", "paragraph_id": "para_55" }, { "text": "keeping and food and beverage tasks) were assigned to an", "paragraph_id": "para_56" }, { "text": "outside staffing agency. At some point, the arrangement with", "paragraph_id": "para_57" }, { "text": "No. 25-2307 3", "paragraph_id": "para_58" }, { "text": "that agency ended, and the functions were assigned to Social", "paragraph_id": "para_59" }, { "text": "Club Management, LLC (“Social Club”), which Karcho also", "paragraph_id": "para_60" }, { "text": "managed.", "paragraph_id": "para_61" }, { "text": "The Union soon caught wind that the Inn was back in op-", "paragraph_id": "para_62" }, { "text": "eration without the use of Union employees. In March 2023, a", "paragraph_id": "para_63" }, { "text": "Union representative visited the Inn, asked for information,", "paragraph_id": "para_64" }, { "text": "and was told to leave and that the police had been called.", "paragraph_id": "para_65" }, { "text": "Polselli later explained to the representative that an outside", "paragraph_id": "para_66" }, { "text": "agency was cleaning the rooms, and a church was providing", "paragraph_id": "para_67" }, { "text": "and serving the food. The Union filed grievances, alleging vi-", "paragraph_id": "para_68" }, { "text": "olations of the CBA. The grievances were addressed to", "paragraph_id": "para_69" }, { "text": "Polselli and Karcho, as well as the Inn’s designated point of", "paragraph_id": "para_70" }, { "text": "contact for the Union, Raymond Crouse, and Polselli’s finan-", "paragraph_id": "para_71" }, { "text": "cial management consultant, Michael Klein. Eventually, the", "paragraph_id": "para_72" }, { "text": "grievances were submitted to arbitration. The Union also filed", "paragraph_id": "para_73" }, { "text": "an unfair labor practice charge against Elmar and Allegiant", "paragraph_id": "para_74" }, { "text": "(doing business as the Inn) with the National Labor Relations", "paragraph_id": "para_75" }, { "text": "Board (“NLRB”). The NLRB charge was deferred to arbitra-", "paragraph_id": "para_76" }, { "text": "tion and consolidated with the resolution of the grievances.", "paragraph_id": "para_77" }, { "text": "Between November 2023 and January 2024, the arbitrator", "paragraph_id": "para_78" }, { "text": "held two evidentiary hearings. Polselli, Karcho, and Crouse", "paragraph_id": "para_79" }, { "text": "attended all or part of the hearings, represented by the same", "paragraph_id": "para_80" }, { "text": "counsel; Polselli and Crouse testified, but Karcho did not, de-", "paragraph_id": "para_81" }, { "text": "spite representations that she would. The arbitrator reviewed", "paragraph_id": "para_82" }, { "text": "the parties’ post-hearing briefs, and on July 20, 2024, he en-", "paragraph_id": "para_83" }, { "text": "tered an Award for the Union, ordering the Employers to op-", "paragraph_id": "para_84" }, { "text": "erate the Inn under the terms of the CBA, post notices about", "paragraph_id": "para_85" }, { "text": "the violations, and provide compensatory relief.", "paragraph_id": "para_86" }, { "text": "Relevant to this appeal, the arbitrator made three deci-", "paragraph_id": "para_87" }, { "text": "sions. First, he found that the Inn was operating as a “hotel”", "paragraph_id": "para_88" }, { "text": "within the meaning of the CBA when it housed the migrants", "paragraph_id": "para_89" }, { "text": "4 No. 25-2307", "paragraph_id": "para_90" }, { "text": "(and, thus, the CBA was “applicable to these circumstances”).", "paragraph_id": "para_91" }, { "text": "In making that determination, the arbitrator looked to the", "paragraph_id": "para_92" }, { "text": "Group Sales Agreement. The arbitrator found that “nothing", "paragraph_id": "para_93" }, { "text": "in the [agreement] remotely suggest[ed] the operation of the", "paragraph_id": "para_94" }, { "text": "building wasn’t still a hotel” and that “[i]t [wa]s more accu-", "paragraph_id": "para_95" }, { "text": "rate to say that the building became a different type of hotel", "paragraph_id": "para_96" }, { "text": "rather than saying it wasn’t a hotel at all.”", "paragraph_id": "para_97" }, { "text": "Second, the arbitrator found that there was “a single em-", "paragraph_id": "para_98" }, { "text": "ployer.” He explained that Allegiant, Elmar, and Social Club", "paragraph_id": "para_99" }, { "text": "“are practically speaking all parts of the same operation sub-", "paragraph_id": "para_100" }, { "text": "stantially under the personal control of Mr. Polselli as the Inn", "paragraph_id": "para_101" }, { "text": "of Chicago.” Put differently, “they were all fingers on the", "paragraph_id": "para_102" }, { "text": "same hand.” The arbitrator pointed out that Polselli signed", "paragraph_id": "para_103" }, { "text": "the Group Sales Agreement on behalf of the Inn, signed three", "paragraph_id": "para_104" }, { "text": "addenda to the agreement, and was involved in emails", "paragraph_id": "para_105" }, { "text": "demonstrating significant coordination between all the enti-", "paragraph_id": "para_106" }, { "text": "ties—in short, Polselli was the “common thread that knit[ted]", "paragraph_id": "para_107" }, { "text": "all this together.” The arbitrator also considered that Karcho", "paragraph_id": "para_108" }, { "text": "did not testify, and he drew an adverse inference from this", "paragraph_id": "para_109" }, { "text": "fact given the prior representations that she would.", "paragraph_id": "para_110" }, { "text": "Third, the arbitrator found that the Employers violated the", "paragraph_id": "para_111" }, { "text": "CBA and the National Labor Relations Act (“NLRA”). Specif-", "paragraph_id": "para_112" }, { "text": "ically, he called out the Employers’ failures to use Union em-", "paragraph_id": "para_113" }, { "text": "ployees, give notice to the Union, and bargain regarding the", "paragraph_id": "para_114" }, { "text": "Inn’s desire to transfer work to non-Union employees, as well", "paragraph_id": "para_115" }, { "text": "as the removal of the Union representative from the property.", "paragraph_id": "para_116" }, { "text": "Displeased with the arbitrator’s decision, the Employers", "paragraph_id": "para_117" }, { "text": "turned to federal court. The district court confirmed the", "paragraph_id": "para_118" }, { "text": "Award, and the Employers now appeal.", "paragraph_id": "para_119" }, { "text": "No. 25-2307 5", "paragraph_id": "para_120" }, { "text": "II", "paragraph_id": "para_121" }, { "text": "“When reviewing a district court’s decision to confirm an", "paragraph_id": "para_122" }, { "text": "arbitral award, we approach questions of law de novo and, to", "paragraph_id": "para_123" }, { "text": "the extent there are any facts that are properly before us, we", "paragraph_id": "para_124" }, { "text": "review them only for clear error.” Cont’l Cas. Co. v. Certain Un-", "paragraph_id": "para_125" }, { "text": "derwriters at Lloyd’s of London, 10 F.4th 814, 819 (7th Cir. 2021)", "paragraph_id": "para_126" }, { "text": "(citation omitted).", "paragraph_id": "para_127" }, { "text": "The Employers start by arguing that Allegiant, Polselli,", "paragraph_id": "para_128" }, { "text": "and Social Club could not be bound by the arbitrator’s deci-", "paragraph_id": "para_129" }, { "text": "sion because they did not agree to arbitrate—only Elmar did", "paragraph_id": "para_130" }, { "text": "when Karcho signed the agreement to assume the CBA. This", "paragraph_id": "para_131" }, { "text": "argument goes nowhere. To be sure, the general rule is that", "paragraph_id": "para_132" }, { "text": "non-signatories to an arbitration agreement are not bound by", "paragraph_id": "para_133" }, { "text": "the resulting decision, but where “a party willingly and with-", "paragraph_id": "para_134" }, { "text": "out reservation allows an issue to be submitted to arbitration,", "paragraph_id": "para_135" }, { "text": "he cannot await the outcome and then later argue that the ar-", "paragraph_id": "para_136" }, { "text": "bitrator lacked authority to decide the matter.” AGCO Corp. v.", "paragraph_id": "para_137" }, { "text": "Anglin, 216 F.3d 589, 593 (7th Cir. 2000) (citation omitted); see", "paragraph_id": "para_138" }, { "text": "also Slaney v. Int’l Amateur Athletic Fed’n, 244 F.3d 580, 591 (7th", "paragraph_id": "para_139" }, { "text": "Cir. 2001) (party could not “sit back and allow the arbitration", "paragraph_id": "para_140" }, { "text": "to go forward” and then argue after the fact that it never", "paragraph_id": "para_141" }, { "text": "agreed to arbitrate) (quotation omitted). And, true, a party", "paragraph_id": "para_142" }, { "text": "can participate in arbitration and preserve its ability to later", "paragraph_id": "para_143" }, { "text": "challenge the arbitrator’s authority to bind it, but it must", "paragraph_id": "para_144" }, { "text": "“clearly and explicitly reserve[] the right” to do so. AGCO", "paragraph_id": "para_145" }, { "text": "Corp., 216 F.3d at 593.", "paragraph_id": "para_146" }, { "text": "Here, the Employers participated in the arbitration with-", "paragraph_id": "para_147" }, { "text": "out reserving the right to later object to arbitrability. They", "paragraph_id": "para_148" }, { "text": "were all present for at least a portion of the arbitration hear-", "paragraph_id": "para_149" }, { "text": "ings. And they all shared the same counsel, who characterized", "paragraph_id": "para_150" }, { "text": "himself as the “Attorney for each Respondent” and never as-", "paragraph_id": "para_151" }, { "text": "6 No. 25-2307", "paragraph_id": "para_152" }, { "text": "serted that he was appearing solely on behalf of Elmar or that", "paragraph_id": "para_153" }, { "text": "any subset of the Employers was objecting to arbitrability. See", "paragraph_id": "para_154" }, { "text": "Int’l Ass’n of Machinists & Aerospace Workers, Lodge No. 1777 v.", "paragraph_id": "para_155" }, { "text": "Fansteel, Inc., 900 F.2d 1005, 1009 (7th Cir. 1990) (explaining", "paragraph_id": "para_156" }, { "text": "that a party must “carefully and explicitly, in unambiguous", "paragraph_id": "para_157" }, { "text": "language, ma[k]e known to the arbitrator and the union its", "paragraph_id": "para_158" }, { "text": "clear intention that it [is] maintaining its objections to arbitra-", "paragraph_id": "para_159" }, { "text": "bility even though it [is] agreeing to proceed with the arbitra-", "paragraph_id": "para_160" }, { "text": "tion hearing”). In short, with no evidence in this record that", "paragraph_id": "para_161" }, { "text": "the Employers “questioned the arbitrator’s authority” to re-", "paragraph_id": "para_162" }, { "text": "solve the dispute, they cannot now argue that he “had no au-", "paragraph_id": "para_163" }, { "text": "thority” to bind them. Jones Dairy Farm v. Local No. P-1236,", "paragraph_id": "para_164" }, { "text": "United Food & Com. Workers Int’l Union, 760 F.2d 173, 175 (7th", "paragraph_id": "para_165" }, { "text": "Cir. 1985).", "paragraph_id": "para_166" }, { "text": "Second, the Employers argue that the arbitrator had no au-", "paragraph_id": "para_167" }, { "text": "thority to find that any of them were the “Employer” as de-", "paragraph_id": "para_168" }, { "text": "fined by the CBA or that the Inn was operating as a “hotel”", "paragraph_id": "para_169" }, { "text": "when it was housing migrants. They insist that these determi-", "paragraph_id": "para_170" }, { "text": "nations did not “draw[] [their] essence from” the CBA. See", "paragraph_id": "para_171" }, { "text": "United Steelworkers of Am. v. Enter. Wheel & Car Corp., 363 U.S.", "paragraph_id": "para_172" }, { "text": "593, 597 (1960). But they are again mistaken. When it comes", "paragraph_id": "para_173" }, { "text": "to arbitral awards, “an arbitrator is confined to interpretation", "paragraph_id": "para_174" }, { "text": "and application of the collective bargaining agreement; he", "paragraph_id": "para_175" }, { "text": "does not sit to dispense his own brand of industrial justice.”", "paragraph_id": "para_176" }, { "text": "Id. Practically speaking, what this means is we “vacate only if", "paragraph_id": "para_177" }, { "text": "there is ‘no possible interpretive route’ to the award” such", "paragraph_id": "para_178" }, { "text": "that the arbitrator “must have based his award on some body", "paragraph_id": "para_179" }, { "text": "of thought, or feeling, or policy, or law that is outside the con-", "paragraph_id": "para_180" }, { "text": "tract.” N. Ind. Pub. Serv. Co. v. United Steelworkers of Am., 243", "paragraph_id": "para_181" }, { "text": "F.3d 345, 347 (7th Cir. 2001) (quoting Amax Coal Co. v. United", "paragraph_id": "para_182" }, { "text": "Mine Workers of Am., 92 F.3d 571, 576 (7th Cir. 1996) (quotation", "paragraph_id": "para_183" }, { "text": "omitted); Am. Postal Workers Union v. Runyon, 185 F.3d 832,", "paragraph_id": "para_184" }, { "text": "No. 25-2307 7", "paragraph_id": "para_185" }, { "text": "835 (7th Cir. 1999) (quotation omitted)). In fact, it does not", "paragraph_id": "para_186" }, { "text": "matter whether the arbitrator “erred in interpreting the con-", "paragraph_id": "para_187" }, { "text": "tract[,] . . . clearly erred in interpreting the contract[,] . . . [or]", "paragraph_id": "para_188" }, { "text": "grossly erred in interpreting the contract”—all that matters is", "paragraph_id": "para_189" }, { "text": "“whether they interpreted the contract.” U.S. Soccer Fed’n, Inc.", "paragraph_id": "para_190" }, { "text": "v. U.S. Nat’l Soccer Team Players Ass’n, 838 F.3d 826, 832 (7th", "paragraph_id": "para_191" }, { "text": "Cir. 2016) (quotation omitted).", "paragraph_id": "para_192" }, { "text": "Here, the arbitrator’s decision was rooted in the CBA and", "paragraph_id": "para_193" }, { "text": "nowhere else. First, he agreed with the Employers that the", "paragraph_id": "para_194" }, { "text": "CBA—which was replete with references to the building’s op-", "paragraph_id": "para_195" }, { "text": "erations as a “hotel”—would apply only if the Inn was still", "paragraph_id": "para_196" }, { "text": "acting as a “hotel” when it was housing migrants. He deter-", "paragraph_id": "para_197" }, { "text": "mined it was. The arbitrator also reviewed the CBA’s “broad", "paragraph_id": "para_198" }, { "text": "definition” of “Employer”—which included “any person,", "paragraph_id": "para_199" }, { "text": "firm, partnership, corporation, joint venture or other legal en-", "paragraph_id": "para_200" }, { "text": "tity substantially under the control of the [Inn]”—and deter-", "paragraph_id": "para_201" }, { "text": "mined that Allegiant, Elmar, and Social Club were all “under", "paragraph_id": "para_202" }, { "text": "the personal control of Mr. Polselli as the Inn of Chicago.”", "paragraph_id": "para_203" }, { "text": "Whether those conclusions were “correct” is wholly irrele-", "paragraph_id": "para_204" }, { "text": "vant to our analysis—we are satisfied that the arbitrator con-", "paragraph_id": "para_205" }, { "text": "fined his inquiry to interpreting and applying the CBA.", "paragraph_id": "para_206" }, { "text": "Even assuming the arbitrator’s inquiry strayed from the", "paragraph_id": "para_207" }, { "text": "confines of the CBA, parties can “increase . . . the arbitrator’s", "paragraph_id": "para_208" }, { "text": "contractual authority by their express submission.” Am. Postal", "paragraph_id": "para_209" }, { "text": "Workers Union, 185 F.3d at 835 (quoting Hill v. Staten Island", "paragraph_id": "para_210" }, { "text": "Zoological Soc’y, Inc., 147 F.3d 209, 214 (2d Cir. 1998)). In other", "paragraph_id": "para_211" }, { "text": "words, the scope of the arbitrator’s authority can go beyond", "paragraph_id": "para_212" }, { "text": "the agreement if the parties submit such issues to him. Here,", "paragraph_id": "para_213" }, { "text": "the parties—including the Employers—argued extensively", "paragraph_id": "para_214" }, { "text": "about whether the facts indicated that there was a “single em-", "paragraph_id": "para_215" }, { "text": "ployer” and about whether the Inn was operating as a “hotel,”", "paragraph_id": "para_216" }, { "text": "8 No. 25-2307", "paragraph_id": "para_217" }, { "text": "and the Employers never raised any concerns about whether", "paragraph_id": "para_218" }, { "text": "the arbitrator had authority to answer those questions or oth-", "paragraph_id": "para_219" }, { "text": "erwise objected to the issues being resolved by him. These", "paragraph_id": "para_220" }, { "text": "questions were thus squarely presented to the arbitrator to re-", "paragraph_id": "para_221" }, { "text": "solve, and the Employers cannot now complain about his do-", "paragraph_id": "para_222" }, { "text": "ing so.", "paragraph_id": "para_223" }, { "text": "Third, the Employers argue that the arbitrator had no au-", "paragraph_id": "para_224" }, { "text": "thority to find that Polselli and Social Club violated the NLRA", "paragraph_id": "para_225" }, { "text": "because the unfair labor practice charge that was submitted", "paragraph_id": "para_226" }, { "text": "to the NLRB did not specifically name them as parties (the", "paragraph_id": "para_227" }, { "text": "charge named only Elmar and Allegiant). But this is just an-", "paragraph_id": "para_228" }, { "text": "other way of attacking the arbitrator’s finding that they were", "paragraph_id": "para_229" }, { "text": "all “Employers.” And, to the extent that it is an argument that", "paragraph_id": "para_230" }, { "text": "they lacked notice of the charge, that bleeds into their due pro-", "paragraph_id": "para_231" }, { "text": "cess argument, addressed next.", "paragraph_id": "para_232" }, { "text": "The Employers attack the Award on due process grounds,", "paragraph_id": "para_233" }, { "text": "arguing first that Allegiant, Polselli, and Social Club lacked", "paragraph_id": "para_234" }, { "text": "notice of the grievances and the NLRB charge, so they were", "paragraph_id": "para_235" }, { "text": "not aware of the potential for liability. This argument is quite", "paragraph_id": "para_236" }, { "text": "a stretch. The grievances were addressed to Crouse (Polselli’s", "paragraph_id": "para_237" }, { "text": "designated point of contact for the Union), Polselli (who", "paragraph_id": "para_238" }, { "text": "signed documents on behalf of Allegiant), Karcho (who", "paragraph_id": "para_239" }, { "text": "signed on behalf of Elmar and managed Social Club), and", "paragraph_id": "para_240" }, { "text": "Polselli’s financial management consultant. The NLRB charge", "paragraph_id": "para_241" }, { "text": "named Elmar and Allegiant, and listed Crouse and Polselli as", "paragraph_id": "para_242" }, { "text": "representatives. And Polselli, Karcho, and Crouse showed up", "paragraph_id": "para_243" }, { "text": "to the arbitration hearings with shared counsel, who actively", "paragraph_id": "para_244" }, { "text": "argued on their behalf about who should be considered the", "paragraph_id": "para_245" }, { "text": "“Employer.” Polselli, Allegiant (via Polselli), and Social Club", "paragraph_id": "para_246" }, { "text": "(via Karcho) were thus clearly on notice of the proceedings", "paragraph_id": "para_247" }, { "text": "and of the possibility that liability might extend beyond only", "paragraph_id": "para_248" }, { "text": "No. 25-2307 9", "paragraph_id": "para_249" }, { "text": "Elmar. The Employers also argue that the arbitrator improp-", "paragraph_id": "para_250" }, { "text": "erly shifted the burden of proof when he drew an adverse in-", "paragraph_id": "para_251" }, { "text": "ference from Karcho’s decision not to testify at the hearings.", "paragraph_id": "para_252" }, { "text": "But the arbitrator did not rely solely on the adverse inference", "paragraph_id": "para_253" }, { "text": "from Karcho’s sudden decision not to testify—that was just", "paragraph_id": "para_254" }, { "text": "one of many things he weighed in reaching his ultimate de-", "paragraph_id": "para_255" }, { "text": "termination.", "paragraph_id": "para_256" }, { "text": "Last, the Employers argue that the Award violated public", "paragraph_id": "para_257" }, { "text": "policy because the arbitrator “pierced the corporate veil” to", "paragraph_id": "para_258" }, { "text": "hold Allegiant, Polselli, and Social Club liable even though", "paragraph_id": "para_259" }, { "text": "they were not signatories to the CBA. 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