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In re: Stucky v. Okabe

2026-08-24

Summary

Holding. The Circuit Court correctly affirmed the Labor Relations Board's denial of Stucky's prohibited practice complaint. The court held that HSTA did not breach its duty of fair representation by declining to move to vacate the arbitration award, as HSTA's decision involved the exercise of judgment regarding how to handle a grievance and was neither arbitrary nor made in bad faith.

Stephanie Stucky, a public school teacher, was discharged after receiving an unsatisfactory rating. Her union, the Hawaii State Teachers Association (HSTA), pursued a grievance on her behalf and submitted the dispute to arbitration. The arbitrator upheld her termination. When HSTA declined her request to file a motion to vacate the arbitration award, Stucky filed a complaint with the Hawaii Labor Relations Board alleging that HSTA committed prohibited union practices by breaching its duty of fair representation. The Board denied the complaint, finding Stucky did not meet her burden of proof.

On appeal, Stucky argued that HSTA acted arbitrarily and in bad faith by not pursuing further remedies. The court examined whether the union's conduct met the legal standard for a breach of fair representation. The court found that HSTA had provided multiple opportunities for Stucky to present her arguments, retained legal counsel to evaluate the merits, and exercised reasoned judgment based on the narrow grounds available for vacating arbitration awards. Stucky also raised a due process argument based on the Board's delay in ruling, but the court found this argument inadequately developed and waived.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a union breaches its duty of fair representation by declining to move to vacate an unfavorable arbitration award
  • Standards for determining when union conduct is arbitrary versus a legitimate exercise of discretion in handling a grievance
  • Whether a union acts in bad faith absent evidence of fraud, deceitful action, or dishonest conduct
  • Whether procedural due process rights were violated by administrative delay

Procedural posture

Stucky appealed from the Circuit Court of the Second Circuit's affirmance of the Hawaii Labor Relations Board's decision denying her prohibited practice complaint against HSTA.

Authorities cited

Opinion

majority opinion

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Electronically Filed

Intermediate Court of Appeals

CAAP-XX-XXXXXXX

24-AUG-2026

08:07 AM

Dkt. 100 SO

NO. CAAP-XX-XXXXXXX

IN THE INTERMEDIATE COURT OF APPEALS

OF THE STATE OF HAWAI I

IN THE MATTER OF STEPHANIE C. STUCKY,

Complainant-Appellant/Appellant, v.

WILFRED OKABE, President, Hawai i State Teachers Association;

WILBERT HOLCK, UniServ, Hawai i State Teachers Association; ERIN NAGAMINE, Maui UniServ, Hawai i State Teachers Association; DAVID FORREST, O ahu UniServ, Hawai i State Teachers Association;

and HAWAI I STATE TEACHERS ASSOCIATION,

Respondents-Appellees/Appellees, and

HAWAI I LABOR RELATIONS BOARD,

Agency-Appellee/Appellee

APPEAL FROM THE CIRCUIT COURT OF THE SECOND CIRCUIT

(CASE NO. 2CCV-XX-XXXXXXX)

SUMMARY DISPOSITION ORDER

(By: Nakasone, Chief Judge, Leonard and McCullen, JJ.)

Complainant-Appellant/Appellant Stephanie C. Stucky

(Stucky) appeals from the June 21, 2024 Final Judgment (Judgment)

entered in the Circuit Court of the Second Circuit (Circuit

Court).1 Stucky raises two points of error, contending that the

Circuit Court: (1) clearly erred in entering findings of fact

(FOFs) 59 and 62, because Stucky proved her case by a

preponderance of the evidence that her termination from

employment was without just and proper cause and in retaliation

1

The Honorable Kelsey T. Kawano presided.

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for protected activity; and (2) erred in entering conclusions of

law (COLs) 25-32 based on essentially the same reasons, and

therefore, Stucky contends that the Circuit Court erred in

affirming her administrative appeal from Agency-Appellee/Appellee

Hawai i Labor Relations Board (Board).

Upon careful review of the record and the briefs

submitted by the parties, and having given due consideration to

the arguments advanced and the issues raised, we resolve Stucky's

points of error as follows.

Prior to her termination, Stucky was employed by the

Department of Education, State of Hawai i (DOE) as a teacher and

member of Respondent-Appellee/Appellee Hawai i State Teachers

Association (HSTA). HSTA is and was an employee organization and

Stucky's exclusive bargaining representative, as defined in

Hawaii Revised Statutes (HRS) § 89-2 (2012).2 After receiving an

"unsatisfactory rating" from her employer, Stucky was discharged.

In accordance with the operative collective bargaining agreement

(CBA), HSTA filed a grievance on Stucky's behalf, contesting her

discharge, which the DOE denied. HSTA then requested

arbitration, and the parties selected Frank Yap, Jr. to serve as

the arbitrator. Yap entered a decision and award sustaining

Stucky's termination (Yap Award). Stucky then requested that

HSTA file a motion to vacate the Yap Award. After considering

her request, and the likelihood of success of such a motion, HSTA

declined.

2

HRS § 89-2 provides, in relevant part: "'Exclusive representative' means the employee organization certified by the board under [HRS] section 89-8 as the collective bargaining agent to represent all employees in an appropriate bargaining unit without discrimination and without regard to employee organization membership."

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Stucky then filed a prohibited practice complaint with

the Board, alleging that HSTA, its President, and its UniServ

directors (together, HSTA Parties) committed prohibited practices

as defined in HRS § 89-13(b)(3), (4), and (5) (2012). 3 On

September 20, 2016, HSTA moved for a decision against Stucky for

failing to meet her burden of proof at the conclusion of her

case-in-chief. On June 30, 2021, 4 the Board issued its Findings

of Fact, Conclusions of Law, Decision and Order denying the

complaint, and finding that Stucky "did not carry her burden of

proof" that HSTA Parties violated HRS § 89-13(b)(3)-(5). Stucky

appealed to the Circuit Court, which affirmed. This appeal

followed.

We construe Stucky's arguments on appeal as follows. 5

Stucky maintains that at arbitration, she objected to Principal

3

HRS § 89-13(b) provides, in relevant part:

(b) It shall be a prohibited practice for a public

employee or for an employee organization or its designated

agent wilfully to:

(3) Refuse to participate in good faith in the

mediation and arbitration procedures set forth

in section 89-11;

(4) Refuse or fail to comply with any provision of

this chapter; or

(5) Violate the terms of a collective bargaining

agreement.

4

None of the parties explain why the Board took nearly five years to enter its decision and order.

5

Stucky's argument does not address the challenged FOFs and COLs identified in her points of error. See Hawai i Rules of Appellate Procedure Rule 28(b)(7) ("Points not argued may be deemed waived"); Hussey v. Say, 139 Hawai i 181, 191, 384 P.3d 1282, 1292 (2016) (holding that the appellate court is "not obliged to address matters for which the appellants have failed to present discernible arguments"); see, e.g., Interest of KJ-I, No. CAAP-XX-XXXXXXX, 2021 WL 3855772, at *5 n.3 (Haw. App. Aug. 30, 2021) (SDO) ("We decline to address the individual FOFs and COLs Mother challenges as she fails to present argument on each."). Accordingly, our review is limited to what is addressed in her arguments.

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Catherine Kilborn (Kilborn) rating her because Stucky had filed

grievances against Kilborn and her predecessor. Stucky believed

Kilborn would be biased. HSTA argued that Kilborn was

retaliating against Stucky for her prior protected activity, but

Stucky argues that the arbitrator "downplayed the evidence of

retaliation." Stucky points to HSTA's duty to represent her in

good faith and to not allow the DOE to retaliate against her for

pursuing grievances and argues that HSTA breached that duty by

declining to file a motion to set aside the Yap Award. Stucky

argues that HSTA's decision not to do so was arbitrary, as it

"failed to adequately consider Stucky's arguments and the

potential grounds for vacating the award under HRS [§] 658A-23."

Stucky further argues that the Board erred in relying solely on

the absence of HSTA's bad faith conduct, as arbitrary conduct

also constitutes a breach. Stucky argues that she established a

prima facie case for pretextual termination, which shifted the

burden to the DOE and HSTA failed to set forth any evidence that

Stucky was terminated for good cause. Stucky also maintains that

the Board erred in concluding Stucky could not prevail in a

"hybrid" claim under Poe v. Haw. Lab. Rels. Bd., 105 Hawai i 97,

94 P.3d 652 (2004). Stucky argues that the Board was bound by

the Yap Award, in which the arbitrator determined the DOE did not

violate the CBA because the Board's approach is inconsistent with

the principle that hybrid claims are inextricably linked.

Finally, although acknowledging that she was given notice and an

opportunity to be heard, Stucky submits that the Board's delay in

ruling on the motion undermined the fairness of the process.

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"Review of a decision made by [a] circuit court upon

its review of an agency's decision is a secondary

appeal. The standard of review is one in which this

court must determine whether the circuit court was

right or wrong in its decision, applying the standards

set forth in HRS § 91-14(g) [1993] to the agency's

decision."

Flores v. Bd. of Land & Nat. Res., 143 Hawai i 114, 120, 424 P.3d

469, 475 (2018) (citing Paul's Elec. Serv., Inc. v. Befitel, 104

Hawai i 412, 416, 91 P.3d 494, 498 (2004) (brackets in

original)).

Pursuant to HRS § 91-14(g) (Supp. 2023), an agency's

conclusions of law are reviewed de novo, while under HRS §

91-14(g)(5), an agency's factual findings are reviewed for clear

error. Paul's Elec. Serv., 104 Hawai i at 420, 91 P.3d at 502

(internal citation omitted). The appellate court answers

"questions of constitutional law by exercising [its] own

independent judgment based on the facts of the case . . . under

the 'right/wrong' standard." City & Cnty. of Honolulu v.

Sherman, 110 Hawai i 39, 49, 129 P.3d 542, 552 (2006).

In Poe, the Hawai i Supreme Court held that

an employee who is prevented from exhausting the remedies

provided by the collective bargaining agreement may,

nevertheless, bring an action against his or her employer.

Under federal precedent, such an action consists of two

separate claims: (1) a claim against the employer alleging

a breach of the collective bargaining agreement and (2) a

claim against the union for breach of the duty of fair

representation.

105 Hawai i at 102, 94 P.3d at 657 (citation omitted). Here,

arbitration is the last step identified in the grievance process,

contained in Article V of the CBA. Unlike in Poe, HSTA demanded

arbitration on Stucky's behalf, but did not prevail. Thus,

Stucky was not prevented from exhausting the remedies provided by

the CBA, which was a key issue in Poe. However, we need not

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reach whether or how the Poe "hybrid" analysis would apply

because, as discussed below, Stucky fails to show that HSTA

breached a duty of fair representation in declining to move to

set aside the Yap Award. See, e.g., Asato v. Haw. Gov't Emps.

Ass'n, No. CAAP-XX-XXXXXXX, 2025 WL 502738, *1, *7-8 (Haw. App.

Feb. 14, 2025) (mem. op.) (concluding that the union did not

breach its duty of fair representation in deciding not to move to

vacate an arbitration award against the employee), cert.

rejected, No. SCWC-XX-XXXXXXX, 2025 WL 2017493 (Haw. Jul. 18,

2025), cert. denied, 146 S.Ct. 1486 (2026).

A union breaches its duty of fair representation when

its conduct towards a member of a collective bargaining unit is

arbitrary, discriminatory, or in bad faith. Poe, 105 Hawai i at

104, 94 P.3d at 659. "Whether a union acted arbitrarily,

discriminatorily or in bad faith requires a separate analysis,

because each of these requirements represents a distinct and

separate obligation." Simo v. Union of Needletrades, Indus. &

Textile Emps., 322 F.3d 602, 617 (9th Cir. 2003). Here, we

construe Stucky's arguments as contending that the Board erred in

concluding that HSTA did not act arbitrarily or in bad faith.

The Ninth Circuit Court of Appeals has discussed

examples of when a union acts arbitrarily, including when a union

fails to:

(1) disclose to an employee its decision not to submit her

grievance to arbitration when the employee was attempting to

determine whether to accept or reject a settlement offer

from her employer; (2) file a timely grievance after it had

decided that the grievance was meritorious and should be

filed; (3) consider individually the grievances of

particular employees where the factual and legal differences

among them were significant; or (4) permit employees to

explain the events which led to their discharge before

deciding not to submit their grievances to arbitration.

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Peterson v. Kennedy, 771 F.2d 1244, 1254 (9th Cir. 1985) (cleaned

up).

A union does not act in an arbitrary manner when the

union's challenged conduct involves the union's judgment as to

how best to handle a grievance. Id. A union's conduct is not

arbitrary simply because it erred "in evaluating the merits of a

grievance, in interpreting particular provisions of a collective

bargaining agreement, or in presenting the grievance at an

arbitration hearing." Id. "Only when the challenged conduct was

procedural or ministerial does arbitrariness become controlling."

Moore v. Bechtel Power Corp., 840 F.2d 634, 636 (9th Cir. 1988).

Here, HSTA's UniServ directors reviewed Stucky's

request that HSTA move to set aside the Yap Award and recommended

against it. HSTA also retained legal counsel to assess the

likelihood of prevailing on such a motion. Counsel opined that:

Given the narrow confines to which a court will review

an arbitral award and the very limited terms by which

a motion to vacate the award would be successful, even

based on a public policy argument, it is our opinion

that there may be insufficient grounds for vacating

the award.

(Emphasis added).

After HSTA informed Stucky it declined to file a

petition, Stucky filed an Application for Legal Services Program

for the HSTA/DUSHANE Legal Appeal Services Program. HSTA

convened a three-member panel to consider her appeal. After

allowing Stucky to appear and present her arguments, the panel

ultimately declined, explaining that "there is no basis upon

which to grant your appeal for legal services. No reasons were

presented refuting the statutory requirements . . . for vacating

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an arbitration award[.]" On this record, it appears HSTA offered

Stucky multiple opportunities to explain her request, and the

justification therefor, which it considered, including a public

policy argument. The UniServ directors, HSTA's counsel, and the

three-member panel each evaluated the merits of her request.

HTSA ultimately exercised its judgment in declining to pursue

further remedies. Therefore, HSTA did not act arbitrarily.

"To establish that the union's exercise of judgment was

in bad faith, the plaintiff must show 'substantial evidence of

fraud, deceitful action or dishonest conduct.'" Beck v. United

Food & Com. Workers Union, Loc. 99, 506 F.3d 874, 880 (9th Cir.

2007) (citation omitted). "[M]ere negligence and erroneous

judgment calls cannot, by themselves, support an inference of bad

faith." Demetris v. Transp. Workers Union of Am., AFL-CIO, 862

F.3d 799, 808 (9th Cir. 2017) (citation omitted). Courts should

afford substantial deference to the union's decisions regarding

whether and to what extent to pursue a particular grievance.

Dutrisac v. Caterpillar Tractor Co., 749 F.2d 1270, 1273 (9th

Cir. 1983). A disagreement between a union and an employee over

a grievance does not alone constitute evidence of bad faith, even

when the union is ultimately shown to be mistaken. Moore, 840

P.2d at 637.

Stucky identifies no evidence of fraud, deceitful

action or dishonest conduct by HSTA in deciding not to move to

set aside the Yap Award. Even if HSTA was wrong in deciding that

a public policy argument would not have succeeded, that is not

enough to infer bad faith.

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As to Stucky's remaining arguments, whether she was

terminated pretextually or for good cause was determined in the

Yap Award, "which is not properly before [the court] in this

appeal." See Asato, 2025 WL 502738, at *8. Stucky points to no

authority that HSTA was obligated to move to vacate the Yap Award

on public policy grounds, based on the argument of pretext.

HSTA's decision whether to pursue such relief is reviewed for a

breach of its duty of fair representation.

As to her due process argument, procedural due process

requires "notice and an opportunity to be heard at a meaningful

time and in a meaningful manner before governmental deprivation

of property interest." Ito v. Inv'rs Equity Life Holding Co.,

135 Hawai i 49, 73, 346 P.3d 118, 142 (2015). Stucky admits she

was given notice and an opportunity to be heard. The Board

announced its decision more than four years after HSTA moved for

a decision. However, Stucky fails to address why the decision

was delayed, whether she opposed or stipulated to the delay, or

how the delay prejudiced her. "Where an appellant makes general

assertions of a due process violation, without further

elaboration or citation to authority, the court cannot reach a

reasoned conclusion, and the due process argument is deemed

waived." Id. at 74, 346 P.3d at 143. Also, an appellant may not

claim a due process violation based on delay where the appellant

was responsible for or agreeable to the delay. In re Doe, 99

Hawai i 522, 542, 57 P.3d 447, 467 (2002). Stucky fails to

demonstrate that the Board violated her due process rights.

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For these reasons, the Circuit Court's June 21, 2024

Judgment is affirmed.

DATED: Honolulu, Hawai i, August 24, 2026.

On the briefs: /s/ Karen T. Nakasone

Chief Judge

Shawn Luiz,

for Complainant-Appellant/ /s/ Katherine G. Leonard Appellant Associate Judge

Keani Alapa /s/ Sonja M.P. McCullen (Alapa & Otake, LLLC), Associate Judge

for Respondents-Appellees/

Appellees

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