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A federal court in New York held that an arbitrator did not manifestly disregard the law in applying the McDonnell four-factor test to an employment discrimination case when the employee failed to present direct evidence of discrimination.
In Sierra v. Bally Total Fitness Corp., No. 1:06-CV-01688-ENV-MDG, 2007 WL 1028937 (E.D. N.Y. Mar. 30, 2007), Sierra brought employment discrimination claims against Bally. The claims were submitted to arbitration, and the arbitrator issued an award in Bally's favor.
Sierra brought a motion to vacate the award, arguing that the arbitrator manifestly disregarded the law by applying the four-factor test in McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1993) relating to the burden of proof necessary to maintain a prima facie Title VII claim. However, the Court held the arbitrator's application of the McDonnell factors did not amount to manifest disregard of the law.
The Court pointed out that the McDonnell factors should apply to employment discrimination cases unless the employee produces direct evidence of discrimination. Since the arbitrator found that Sierra failed to present direct evidence of discrimination, the arbitrator did not manifestly disregard the law by applying the McDonnell factors.
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