In re Arbitration between Hawaii State Teachers Association and State of Hawaii, Department of EducationAnnotate this Case
Under the facts of this case, the doctrine of sovereign immunity did not protect the State from an arbitrator’s award of prejudgment interest.
This case arose from Grievant’s termination from her job as a public school teacher. The Hawaii State Teachers Association (HSTA) filed a grievance on Grievant’s behalf, and an arbitration hearing was held pursuant to a collective bargaining agreement between HSTA and the Hawaii State Department of Education (State). The arbitrator sustained the grievance and ordered that Grievant be restored to her former position. The arbitrator also determined that Grievant was entitled to interest on unpaid backpay. Before the circuit court, the State argued that Grievance was not entitled to the awarded interest. The circuit court vacated the portion of the award that gave Grievant prejudgment interest. The Intermediate Court of Appeals (ICA) reversed the circuit court’s order vacating the prejudgment interest award, concluding that the doctrine of sovereign immunity was not implicated in this case. The Supreme Court affirmed, holding that the ICA did not err in concluding that the State waived its sovereign immunity in the arbitration proceedings, even as to the issue of interest.