Lead Opinion
This appeal arises from an action filed by nine professional football players and one prospective football player (“the Players”) against the National Football League and its thirty-two separately-owned clubs, more commonly known as football teams (collectively, “the NFL” or “the League”). On March 11, 2011, a collective bargaining agreement between the League and a union representing professional football players expired. The League had made known that if a new agreement was not reached before the expiration date, then it would implement a lockout of players, during which the athletes would not be paid or permitted to use club facilities. The League viewed a lockout as a legitimate tactic under the labor laws to bring economic pressure to bear on the players as part of the bargaining process. See Am. Ship Bldg. Co. v. NLRB,
The players, aware of the League’s strategy, opted to terminate the union’s status as their collective bargaining agent as of 4:00 p.m. on March 11, just before the agreement expired. Later that day, the Players filed an action in the district court alleging that the lockout planned by the League would constitute a group boycott and price-fixing agreement that would violate § 1 of the Sherman Antitrust Act. The complaint explained that “the players in the NFL have determined that it is not in their interest to remain unionized if the existence of such a union would serve to allow the NFL to impose anticompetitive restrictions with impunity.” The plaintiffs also alleged other violations of the antitrust laws and state common law.
The League proceeded with its planned lockout on March 12, 2011. The Players moved for a preliminary injunction in the district court, urging the court to enjoin the lockout as an unlawful group boycott that was causing irreparable harm to the Players. The district court granted a preliminary injunction, and the League appealed. We conclude that the injunction did not conform to the provisions of the Norris-LaGuardia Act, 29 U.S.C. § 101 et seq., and we therefore vacate the district court’s order.
I.
A.
Some historical background will place this case in context. In Radovich v. NFL,
In 1972, several players filed an antitrust action against the League in Mackey v. NFL, alleging that the League’s policy with respect to free agents — that is, players whose contracts with a particular team have expired — violated § 1 of the Sherman Act, 15 U.S.C. § 1.
This state of affairs lasted until December 1982, when the NFL players engaged in a fifty-seven-day strike before agreeing to a new CBA that included a modified version of the “right of first refusal/compensation” system. Powell v. NFL,
Two days after this court’s decision in Powell, on November 3, 1989, the NFLPA’s executive committee decided to
In 1990, eight individual football players brought a new antitrust action against the League in McNeil v. NFL, contending that new player restraints imposed by the League during the 1990-1991 season violated § 1 of the Sherman Act. Id. at 1359. Following a ten-week trial in late 1992, a jury rendered a verdict in favor of the McNeil plaintiffs and awarded substantial damages. See McNeil v. NFL, No. 4-90-476,
Two new antitrust lawsuits were filed in the two-week period after the McNeil verdict. Ten NFL players brought suit in Jackson v. NFL, alleging that the League’s free agency restrictions violated the Sherman Act. Jackson v. NFL,
Many disputes between the League and the players were resolved when the parties entered into a class action settlement agreement in White. In January 1993, the parties reached a tentative agreement designed to resolve WMfe and related cases. Id. at 1395-96. The NFLPA subsequently collected authorization cards from NFL players re-designating the organization as the players’ exclusive collective bargaining representative, and the NFL voluntarily recognized the NFLPA as the players’ union on March 29, 1993. Id. at 1396-97. The district court approved the parties’ Stipulation and Settlement Agreement (“SSA”) in April 1993, and the NFL and the NFLPA entered into a new CBA shortly thereafter. White v. NFL,
In 1996, the Supreme Court decided an important case concerning professional football and the scope of .the nonstatutory labor exemption from the antitrust laws, Brown v. Pro Football, Inc.,
Our holding is not intended to insulate from antitrust review every joint imposition of terms by employers, for an agreement among employers could be sufficiently distant in time and in circumstances from the collective-bargaining process that a rule permitting antitrust intervention would not significantly interfere with that process. See, e.g.,50 F.3d, at 1057 (suggesting that exemption lasts until collapse of the collective-bargaining relationship, as evidenced by decertification of the union); El Cerrito Mill & Lumber Co., 316 N.L.R.B. [1005], at 1006-1007 [ (1995) ] (suggesting that “extremely long” impasse, accompanied by “instability” or “defunctness” of multiemployer unit, might justify union withdrawal from group bargaining). We need not decide in this case whether, or where, within these extreme boundaries to draw that line. Nor would it be appropriate for us to do so without the detailed views of the Board, to whose “specialized judgment” Congress “intended to leave” many of the “inevitable questions concerning multiemployer bargaining bound to arise in the future.”
Id. (citations omitted).
The Supreme Court’s most recent decision regarding this industry came in American Needle, Inc. v. NFL, — U.S. -,
B.
Since 1993, the players and the League have operated under the White SSA, and the district court has continued to oversee the settlement by resolving numerous disputes over the terms of the SSA and CBA. White v. NFL,
In May 2008, the NFL opted out of the final two years of the SSA and CBA, citing concerns about operating costs and other elements of the agreements. White v. NFL,
As the deadline approached, a substantial majority of NFL players voted to end the NFLPA’s status as their collective bargaining representative. On March 11, 2011 — the expiration date of the SSA and CBA — the NFLPA notified the NFL that it disclaimed interest in continuing to serve as the players’ collective bargaining representative, effective at 4:00 p.m. The NFLPA also amended its bylaws to prohibit collective bargaining with the League or its agents, filed a labor organization termination notice with the Department of Labor, asked the Internal Revenue Service to reclassify the NFLPA as a professional association rather than a labor organization, and notified the NFL that it would no longer represent players bringing grievances against the League.
The League filed an amended unfair labor practice charge on March 11, alleging that the NFLPA’s disclaimer was a “sham” and that the combination of a disclaimer by the union and subsequent antitrust litigation was “a ploy and an unlawful subversion of the collective bargaining process.” The Players dispute the charge, citing an advice memorandum of an associate general counsel of the NLRB in Pittsburgh Steelers, Inc., No. 6-CA-23143,
The Players, funded by the NFLPA, commenced this action on the same day as the disclaimer, March 11, 2011. Four of the plaintiffs are under contract with an NFL club; five are free agents, and one is a prospective player who had entered the 2011 NFL draft and was ultimately selected in that draft. The Players brought this action on behalf of themselves and a putative class consisting of players who are under contract with any NFL club, free agents seeking employment with any NFL club, and college or other players who have not previously been under contract with any NFL club and who are eligible to play as a rookies for any club. As the case comes to us, no class has been certified.
The Players explained in their complaint that “[t]he players ... have ended the role of the NFLPA as their collective bargaining representative and no longer have a collective bargaining relationship with the NFL defendants.” They asserted, based on the Supreme Court’s language in Brown, that the nonstatutory labor exemption therefore no longer protects the League from antitrust liability. The complaint alleged that the NFL’s planned lockout was an illegal group boycott and price-fixing arrangement that violated § 1 of the Sherman Act. In addition, the Players claimed that the lockout would violate state contract law by depriving players of contractually owed compensation, and would violate state tort law by interfering with players’ existing contracts as well as their opportunities to enter into new contracts with NFL teams.
The complaint further alleged that the League planned to institute or to continue several anticompetitive practices that would violate § 1 of the Sherman Act, including a limitation on the amount of compensation that can be paid to recently drafted first-year “rookie” players, a cap on salaries for current players, and “fian
The SSA and CBA expired at 11:59 p.m. on March 11. At 12:00 a.m. on March 12, the League instituted a lockout of members of the NFLPA’s “bargaining unit,” which includes professional football players under contract, free agents, and prospective players who have been drafted by or entered into negotiations with an NFL team. The NFL informed players under contract that the lockout would prohibit them from entering League facilities, from receiving any compensation or benefits, and from performing any employment duties including playing, practicing, working out, attending meetings, making promotional appearances, and consulting medical and training personnel except in limited situations. The League also notified the players that they could be required to report back to work immediately “[o]nce a new labor agreement is reached” between the NFL and the NFLPA.
On April 25, 2011, the district court granted the Players’ motion to enjoin the lockout, rejecting the League’s assertions that the court lacked jurisdiction to enter the injunction, that the court should defer to the primary jurisdiction of the NLRB, and that the League is in any event immune from antitrust liability under the nonstatutory labor exemption. See Brady v. NFL,
The district court also declined to stay the action pending the NLRB’s resolution of the League’s pending unfair labor practice charges. See id. at 1006-07,
The district court’s order stated only that “[t]he ‘lockout’ is enjoined,” id. at 1042-43,
The League appealed, challenging the district court’s application of the NorrisLaGuardia Act, the doctrine of primary jurisdiction, and the nonstatutory labor exemption. This court granted the NFL’s motion to expedite the appeal and its motion for a stay of the district court’s order pending appeal. We now consider the merits of the appeal.
II.
We consider first the League’s contention that the Norris-LaGuardia Act deprived the district court of jurisdiction to enter the injunction. The NLGA, enacted in 1932, curtails the authority of a district court to issue injunctions in a labor dispute. “Congress was intent upon taking the federal courts out of the labor injunction business except in the very limited circumstances left open for federal jurisdiction under the Norris-LaGuardia Act.” Marine Cooks & Stewards v. Pan. S.S. Co.,
The Supreme Court has explained that the NLGA responded directly to the Court’s construction of § 20 of the Clayton Act of 1914, 29 U.S.C. § 52, in Duplex Printing Press Co. v. Deering,
The language of the Act, however, extends well beyond the specific issues decided in such cases as Duplex Printing and Bedford Cut Stone. The impetus for the NLGA was dissatisfaction with injunctions entered against workers in labor disputes, but the statute also requires that an injunction against an employer participating in a labor dispute must conform to the Act. E. g., Bodecker v. Local Union No. P-46,
To determine whether the NLGA forbids or places conditions on the issuance of an injunction here, we begin with the text of the statute. Section 1 provides that “[n]o court of the United States ... shall have jurisdiction to issue any ... temporary or permanent injunction in a case involving or growing out of a labor dispute, except in strict conformity with the provisions of this chapter.” 29 U.S.C. § 101. As noted, the district court concluded that the Act is inapplicable to this action, because the case is not one “involving or growing out of a labor dispute.”
Section 13(c) of the Act states that “[t]he term ‘labor dispute’ includes any controversy concerning terms or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether or not the disputants stand in the proximate relation of employer and employee.” 29 U.S.C. § 113(c) (emphasis added). This lawsuit is a controversy concerning terms or conditions of employment. The Players seek broad relief that would affect the terms or conditions of employment for the entire industry of professional football. In particular, they urge the court to declare unlawful and to enjoin several features of the relationship between the League and the players, including the limit on compensation that can be paid to rookies, the salary cap, the “franchise player” designation, and the “transition player” designation, all of which the Players assert are anticompetitive restrictions that violate § 1 of the Sherman Act. The district court did not appear to question this point, even distinguishing authority cited by the Players on the ground that it involved a dispute over the sale of commodities rather than “a controversy over terms and conditions of employment.” Brady I,
We are not convinced by the Players’ contention that because § 13(c) uses the term “includes,” rather than “means,” to introduce the substance of a “labor dispute,” Congress did not fully define the term. They urge that § 13(c) merely ex
The Act also states expressly that “[a] case shall be held to involve or grow out of a labor dispute when the case involves persons who are engaged in the same industry, trade, craft, or occupation.” 29 U.S.C. § 113(a). This case, of course, involves persons engaged in the “same industry,” namely, professional football. The statute continues that such a case “shall be held to involve or grow out of a labor dispute” when “such dispute is ... between one or more employers or associations of employers and one or more employees or associations of employees.” Id. This dispute is between one or more employers or associations of employers (the League and the NFL teams) and one or more employees (the Players under contract). By the plain terms of the Act, this case “shall be held to involve or grow out of a labor dispute.”
The district court reached a contrary conclusion by departing from the text of § 13(a). The court thought the phrase “one or more employees or associations of employees” did not encompass the Players in this dispute, because “one or more employees” means “individual unionized employee or employees.” Brady I,
A similar argument did not persuade the Supreme Court in New Negro Alliance v. Sanitary Grocery Co.,
*672 “The controversy here is not a labor dispute. The defendants do not constitute a labor union or a labor organization of any kind. They do not compose, nor are they all members, of any single trade or class of trades. Their demands are not connected with any one industry. The questions about which they are now picketing have no connection with wages, hours of labor, unionization, or betterment of working conditions.... It is solely a racial dispute.”
New Negro Alliance v. Sanitary Grocery Co.
The Supreme Court reversed. Although no labor organization was involved in the dispute, and the company argued that “a recognized labor union or unions or individual members thereof were involved” in all but one of the “labor dispute” precedents cited by the Alliance, Brief for Respondent at 24, New Negro Alliance,
Further confirmation that the present existence of a union is not required for a “labor dispute” comes from NLRB v. Washington Aluminum Co.,
Even § 2 of the NLGA, cited by the Players as an interpretive guide for the Act based on its declaration of “[p]ublic policy in labor matters,” conflicts with the district court’s conclusion. Section 2 declares, among other things, that the “individual unorganized worker” shall be free from the interference of employers in “the designation of ... representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection.” 29 U.S.C. § 102 (emphasis added). Employees may engage in activities for the purpose of “mutual aid or protection” without the present existence of a union. Wash. Aluminum,
The Players, citing Ozark Air Lines, Inc. v. National Mediation Board,
The definitions in the NLGA provide that a case shall be held to involve or grow out of a labor dispute if a controversy over terms and conditions of employment is between an employer and “one or more employees.” 29 U.S.C. § 113(a) (emphasis added). The Act’s reference to “concerted activities” appears only in the public policy section, 29 U.S.C. § 102. If the NLGA nonetheless were construed to require concerted activity by employees to establish a labor dispute, a lawsuit filed in good faith by a group of employees to achieve more favorable terms or conditions of employment is “concerted activity” under § 7 of the National Labor Relations Act. Mohave Elec. Co-op., Inc. v. NLRB,
The text of the Norris-LaGuardia Act and the cases interpreting the term “labor dispute” do not require the present existence of a union to establish a labor dispute. Whatever the precise limits of the phrase “involving or growing out of a labor dispute,” this case does not press the outer boundary. The League and the players’ union were parties to a collective bargaining agreement for almost eighteen years prior to March 2011. They were engaged in collective bargaining over terms and conditions of employment for approximately two years through March 11, 2011. At that point, the parties were involved in a classic “labor dispute” by the Players’ own definition. Then, on a single day, just hours before the CBA’s expiration, the union discontinued collective bargaining and disclaimed its status, and the Players filed this action seeking relief concerning industry-wide terms and conditions of employment. Whatever the effect of the union’s disclaimer on the League’s immunity from antitrust liability, the labor dispute did not suddenly disappear just because the Players elected to pursue the dispute through antitrust litigation rather than collective bargaining.
III.
The Players argue alternatively that even if this case does involve or grow out of a labor dispute, the district court’s injunction conforms to the provisions of the NLGA, and should be affirmed on this alternative ground. The League counters that § 4 of the Act includes a flat prohibition on injunctions against a lockout, and, alternatively, that even if the court has authority to enjoin a lockout under certain circumstances, the district court did not comply with the procedural requirements set forth in § 7 of the Act.
A.
Section 4 of the NLGA, 29 U.S.C. § 104, is entitled, “Enumeration of specific acts not subject to restraining orders or injunctions.” It provides:
*674 No court of the United States shall have jurisdiction to issue any restraining order or temporary or permanent injunction in any case involving or growing out of any labor dispute to prohibit any person or persons participating or interested in such dispute ... from doing, whether singly or in concert, any of the following acts:
(a) Ceasing or refusing to perform any work or to remain in any relation of employment;
(b) Becoming or remaining a member of any labor organization or of any employer organization, regardless of any such undertaking or promise as is described in section 103 of this title;
(c) Paying or giving to, or withholding from, any person participating or interested in such labor dispute, any strike or unemployment benefits or insurance, or other moneys or things of value;
(d) By all lawful means aiding any person participating or interested in any labor dispute who is being proceeded against in, or is prosecuting, any action or suit in any court of the United States or of any State;
(e) Giving publicity to the existence of, or the facts involved in, any labor dispute, whether by advertising, speaking, patrolling, or by any other method not involving fraud or violence;
(f) Assembling peaceably to act or to organize to act in promotion of their interests in a labor dispute;
(g) Advising or notifying any person of an intention to do any of the acts heretofore specified;
(h) Agreeing with other persons to do or not to do any of the acts heretofore specified; and
(i) Advising, urging, or otherwise causing or inducing without fraud or violence the acts heretofore specified, regardless of any such undertaking or promise as is described in section 103 of this title.
The League relies on § 4(a). It argues that this subsection forbids an injunction to prohibit a lockout. There is no uniform definition of the term “lockout,” but one “practical definition” used by this court is “a refusal by [an employer] to furnish available work to its regular employees.” Laclede Gas Co. v. NLRB,
The Players respond that § 4(a) does not apply to employer injunctions at all. They cite the First Circuit’s decision in de Arroyo v. Sindicato de Trabajadores Packinghouse,
de Arroyo rejected a “literal” application of § 4(a) sought by an employer, because the court’s “understanding of the legislative history behind section 4(a)” led it to conclude that § 4(a) “was not intended as a protection for employers.” de Arroyo,
With due respect to these courts, we think it better to begin the analysis with the text of § 4(a). The introductory clause of § 4 forbids a court to issue an injunction to prohibit “any person or persons participating or interested” in a labor dispute from doing any of the acts set forth below, including those in § 4(a). Employers, of course, are among the persons participating in a labor dispute. The introductory clause thus plainly encompasses employers. If language in a particular subsection is applicable on its face to employees and employers alike (or to employers alone), then there is no need for a specific mention of employers. An employer against whom injunctive relief is sought may invoke the protection of a subsection as a “person ... participating or interested” in the labor dispute. This court already has recognized that § 4(c) applies to injunctions against employers, Local Union No. 881, United Rubber, Cork, Linoleum, & Plastic Workers v. Bridgestone/Firestone, Inc.,
The disputed language in § 4(a) — “remain in any relation of employment” — may apply to an employer. Section 3 of the Act makes clear that both employers and employees can be in a “relation of employment.” Section 3(b) contemplates that either party to a labor agreement can agree to “withdraw from an employment relation.” 29 U.S.C. § 103(b).
The term “any” is an expansive modifier for “relation of employment,” and especially where the Supreme Court has emphasized the breadth of the NLGA’s prohibition on injunctions, it would be odd to apply a narrow construction of “any relation of employment.” Cf. Ali v. Fed. Bureau of Prisons,
So understood, the phrase “refusing ... to remain in any relation of employment” encompasses a non-permanent work stoppage. To “remain” is “[t]o continue unchanged in place, form, or condition,” Webster’s New International Dictionary 1802 (1932), or “[t]o continue, as in one place, condition, or character.” Funk & Wagnalls New Standard Dictionary 2082 (1931). While a strike or lockout may not permanently end a relation of employment, it changes the condition or character of that relationship. As one court of the era expressed it: “The relation of employer and employe[e] is temporarily suspended during a strike.” Tri-City Cent.
Other contemporaneous judicial decisions show that Congress likely would have understood “refusing to remain in any relation of employment” as including a non-permanent work stoppage such as a strike or lockout of employees. In his dissent in Duplex Printing, Justice Brandeis remarked that the very acts to which § 20 of the Clayton Act applied “sever the continuity of the legal relationship” between employer and employee.
It is true that if § 4(a) is construed to include a lockout of employees, then the section is not symmetrical. Contrary to the League’s suggestion, Appellants’ Reply Br. at 16, we do not think the second clause should be understood as applying only to employers. But cf. Local Union No. 861 of IBEW v. Stone & Webster Eng’g Corp.,
The employer, by contrast, does not perform work, so it may invoke only the second clause. Insofar as an employer’s lockout extends to acts by other employers who refuse to take in the “late employees” of the first employer, see Iron Molders’ Union No. 125,
Aside from the text and structure of § 4, the Players argue that the policy of the NLGA and the legislative history support their position that § 4(a) offers no protection to employers. To be sure, the policy stated in § 2 is that the individual unorganized worker should be free from the interference, restraint, or coercion of employers in the designation of representatives, self-organization, or other concerted activities. But it does not follow that a prohibition on injunctions against employer lockouts is contrary to the policy of the Act. The Supreme Court has observed that while the Act was designed to protect workingmen, the broader purpose was “to prevent the injunctions of the federal courts from upsetting the natural interplay of the competing economic forces of labor and capital.” Bhd. of R.R. Trainmen v. Chi. River & Ind. R.R. Co.,
The Court elsewhere explained that “powerful judicial dissents,” such as that of Justice Brandéis in Duplex Printing, urged that labor disputes were an “area of economic conflict that had best be left to economic forces and the pressure of public opinion and not subjected to the judgment of courts.” Hutcheson,
There are apparently, only two lines of action possible: First to restrict the rights and powers of employers to correspond in substance to the powers and rights now allowed to trade unions, and second, to remove all restriction which now prevent the freedom of action of both parties to industrial disputes, retaining only the ordinary civil and criminal restraints for the preservation of life, property and the public peace. The first method has been tried and failed absolutely. ... The only method therefore seems to be the removal of all restrictions upon both parties, thus legalizing the strike, the lockout, the boycott, the blacklist, the bringing in of strike-breakers, and peaceful picketing.
Duplex Printing,
The Players also contend that the legislative history of the NLGA shows that § 4(a) prohibits only injunctions against employees. They cite a House Committee Report, which states that § 4 was “intended by more specific language” to overcome the effects of judicial decisions that upheld injunctions against workers. H.R. Rep. 72-669, at 728 (1932). They point as well to then-Professor Frankfurter’s treatise, which characterized § 4(a) as “declaratory of the modern common law right to strike.” Felix Frankfurter & Nathan Greene, The Labor Injunction 217-18 (1930). Cf. Textile Workers Union v. Lincoln Mills,
Other materials cited by the League suggest that Members of Congress did contemplate that employers could invoke the plain language of § 4(a), although they do not address the precise question either. S.Rep. No. 72-163, at 19 (1932) (“[I]t will be observed that this section [§ 6], as do most all of the other prohibitive sections of the bill, applies both to organizations of labor and organizations of capital. The same rule throughout the bill, wherever it is applicable, applies both to employers and employees, and also to organizations
One last point raised by the Players is that § 4(a) of the NLGA merely paraphrases language in § 20 of the Clayton Act that forbade injunctions prohibiting “any person or persons, whether singly or in concert, from terminating any relation of employment, or from ceasing to perform any work or labor.” 29 U.S.C. § 52; see Frankfurter & Greene, at 217. They contend that the Supreme Court in American Steel Foundries v. Tri-City Central Trades Council,
We do not agree that American Steel Foundries established the asserted meaning. The cited portion of the case did not concern the specific clauses that evidently were paraphrased in § 4(a) of the NLGA, and because the case arose from an injunction issued against employees, the court addressed § 20 of the Clayton Act only as it applied to employees. There was no question raised in the case about whether or how § 20 and the “terminating any relation of employment” clause applied to employers.
When the Second Circuit later addressed the Clayton Act in a discussion of multiemployer collective bargaining, it reasoned that “[a]lthough Congress was largely concerned with the effect of [federal court] interference on unions, the statute was phrased in an evenhanded fashion to protect employer conduct in labor disputes as well as that of unions. Section 20 thus exempted from federal prohibition ‘persons ... terminating any relation of employment ... or withholding ... moneys or things of value,’ language that would permit multiemployer lockouts.” NBA v. Williams,
For these reasons, we conclude that § 4(a) of the Norris-LaGuardia Act deprives a federal court of power to issue an injunction prohibiting a party to a labor dispute from implementing a lockout of its
B.
Another portion of the injunction is not foreclosed by § 4(a). The district court enjoined not only the League’s lockout of employees, ie., players under contract, but also the League’s refusal to deal with non-employees, i.e., free agents and prospective players or “rookies.” As to these latter groups of players, § 4(a) does not apply. The refusal of the League and NFL clubs to deal with free agents and rookies is not a refusal “to remain in any relation of employment,” for there is no existing employment relationship in which “to remain.”
An injunction with respect to the League’s actions toward free agents and rookies, however, cannot be issued except in strict conformity with § 7 of the NLGA, 29 U.S.C. § 107, because this is “a case involving or growing out of a labor dispute.” Id. §§ 101, 107. The present injunction does not conform to § 7.
We disagree with the Players that the League forfeited its claim that the injunction must comply with § 7 by failing to raise the point in its brief in the district court. The district court raised the applicability of § 7 at oral argument, at which time the League argued that further procedures were required. Appellants’ App. 521-23. The district court did not treat the point as forfeited or waived, concluding only that it was unnecessary to address § 7 because the court thought the NLGA wholly inapplicable. Brady I,
Section 7 provides that a court has no authority to issue an injunction “except after hearing the testimony of witnesses in open court (with opportunity for cross-examination) in support of the allegations of a complaint made under oath, and testimony in opposition thereto.” 29 U.S.C. § 107. Although a hearing is not required where the party enjoined does not contest on appeal that the relevant facts are undisputed, Kansas City S. Transp. Co. v. Teamsters Local Union No. 41,
IV.
Given our conclusion that the preliminary injunction did not conform to the provisions of the Norris-LaGuardia Act, we need not reach the other points raised by the League on appeal. In particular, we express no view on whether the League’s nonstatutory labor exemption from the antitrust laws continues after the union’s disclaimer. The parties agree that the Act’s restrictions on equitable relief are not necessarily coextensive with the substantive rules of antitrust law, and we reach our decision on that understanding. See Burlington Northern,
The district court’s order of April 25, 2011, granting a preliminary injunction is vacated, and the case is remanded for further proceedings.
Notes
. That section provides, in relevant part: "Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several Stales, or with foreign nations, is declared to be illegal.”
. Several retired professional football players brought a similar but separate action on March 28, 2011, also seeking a preliminary injunction. The district court consolidated the two actions, and denied the retired players’ motion for a preliminary injunction as moot after issuing an injunction in the previously filed action.
. Section 5 provides that "[n]o court of the United States shall have jurisdiction to issue a restraining order or temporary or permanent injunction upon the ground that any of the persons participating or interested in a labor dispute constitute or are engaged in an unlawful combination or conspiracy because of the doing in concert of the acts enumerated in section 104 of this title.” 29 U.S.C. § 105.
. The Sixth Circuit reached the opposite conclusion, holding that § 4(a) of the NLGA prohibits an injunction in a § 301 action requiring an employer to reinstate an employee who was discharged in violation of a collective bargaining agreement. Heheman v. E.W. Scripps Co.,
. The Players also rely on Brotherhood of Locomotive Engineers v. Baltimore & Ohio Railroad Co.,
. The First Circuit in de Arroyo said that the employer’s interpretation of § 4(a) in that case "completely disregard[ed] the primary purpose behind the anti-injunction provisions,”
. The Players argue that the Senate’s rejection of an amendment that would have included “employers” in the policy statement of § 2, 75 Cong. Rec. 4766, demonstrates that "Congress had no intent to relieve employers of any liability under the antitrust laws.” Appellees' Br. 46-47 (internal quotation omitted). This bit of history does not alter our view of § 4(a). “Statements by opponents of a bill and failure to enact suggested amendments, although they have some weight, are not the most reliable indications of congressional intent.” Bryant v. Yellen,
. In Chicago Midtown Milk Distributors,
Dissenting Opinion
dissenting.
In 1914, after twenty years of judicial interference in labor conflicts on the side of the employers, Congress stepped in to protect organized labor by passing sections 6 and 20 of the Clayton Act. Section 20 of the Act generally prohibited the issuance of injunctions in cases involving or growing out of labor disputes. See 29 U.S.C. § 52. It soon became apparent, however, that what was supposed to be the “charter of liberty of labor,” Felix Frankfurter & Nathan Greene, The Labor Injunction 164 (1930) (remarks of William Howard Taft), fell short of the promise. The Lochner-era judges adopted a narrow interpretation of the Act, restricting it to “trade union activities directed against an employer by his own employees.” United States v. Hutcheson,
A. “Labor Dispute”
First, I have to disagree with the majority’s reading of the term “labor dispute.” As the majority recounts, “[t]he underlying aim of the Norris-LaGuardia Act was to restore the broad purpose which Congress thought it had formulated in the Clayton Act but which was frustrated, so Congress believed, by unduly restrictive judicial construction.” United States v. Hutcheson,
includes any controversy concerning terms or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether or not the disputants stand in the proximate relation of employer and employee.
29 U.S.C. § 113(c) (emphasis added).
However, in passing the NLGA, Congress never intended to change the well-accepted calculus of the Clayton Act as the legislation for the benefit of organized labor. The Clayton Act was always understood as an attempt to assist the organized labor movement at the time its progress was impeded by judicial misuse of injunctions. See, e.g., Hutcheson,
Like the Clayton Act, the NLGA has been consistently cited in connection with protection of unions’ rights. See Brown v. Pro Football, Inc.,
The majority attempts to diminish the significance of § 2’s emphasis on organized labor by drawing attention to the part of the section which declares that an “individual unorganized worker” shall be free from the interference of employers in “self-organization or other concerted activities for the purpose of collective bargaining or other mutual aid or protection.” The majority finds it significant that the National Labor Relations Act, which guarantees employees the right to “self-organization ... and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection,” 29 U.S.C. § 157, has been interpreted not to require the presence of the union. NLRB v. Washington Aluminum Co.,
The phrase “mutual aid or protection” in § 2 of the NLGA had a “heuristic purpose” — i.e., to inform the courts of the “considerations moving Congressional action.” Richard Michael Fischl, Self, Other, and Section 7: Mutualism and Protected Protest Activities Under the National Labor Relations Act, 89 Colum. L. Rev. 789, 847 (1989) (quoting Frankfurter & Greene, The Labor Injunction, at 212). The phrase most likely originated from the “ideology of mutualism, rooted in working-class bondings and struggles,” as contrasted with the philosophy of individualism embraced by “the prosperous and well-born.” Id. at 851(quoting D. Montgomery, The Fall of the House of Labor 2, 171 (1987)). The judicial gloss put on the terms “concerted activity” and “mutual aid and protection” years later, in the context of a different statute, cannot be used to undermine the Act’s express concern with the success of the organized labor movement.
The majority also overstates by attributing too much significance to the Supreme Court’s decision in New Negro Alliance, where the NLGA was applied in the context of a picket by an association of African Americans who, having been largely excluded from membership in the established unions, adopted the “traditional tactics of organized labor.” Kenneth W. Mack, Rethinking Civil Rights Lawyering and Politics in the Era Before Brown, 115 Yale L. J. 256, 319 (2005). Such reliance on Neiu Negro Alliance is unjustified. The decision presented a different question of whether the association had to have the employment relationship with the employer and whether the racial struggle underlying the dispute was antithetical to finding a “labor dispute” within the meaning of the NLGA. Prior to the Supreme Court’s decision, various circuits had apparently disagreed on the answers, and the lower courts’ rulings held the NLGA inapplicable on these grounds. While setting the courts on the correct path with respect to the questions raised, the Court did not discuss whether a union was a sine qua non to the NLGA’s applicability. In addition, in subsequent decisions the Court clarified, “a party seeking refuge in the statutory exemption [from antitrust liability] must be a bona fide labor organization, and not an independent contractor or entrepreneur.” H.A. Artists & Associates, Inc.,
This is not surprising. Organized labor activity serves as the necessary limiting principle circumscribing the application of the NLGA. Without such limiting principle, the Act would tie the courts’ hands in granting injunctive relief in many routine cases where parties seek to enforce various aspects of individual employment contracts. Because courts have never viewed the NLGA as an obstacle to such exercise of equity powers, see, e.g., N.I.S. Corp. v. Swindle,
B. “Involving or Growing Out”
Second, I must take issue with the majority’s conclusion as to this case not representing the outer boundary of the phrase “involving or growing out of a labor dispute.” Like the nonstatutory labor exemption, statutory exemption from antitrust liability, which rests in part on the Norris-LaGuardia Act, Connell Construction Co.,
The Supreme Court recognized as much when it explained that nonstatutory immunity from antitrust review is no longer necessary when “an agreement among employers [is] sufficiently distant in time and in circumstances from the collective-bargaining process that a rule permitting antitrust intervention would not significantly interfere with that process.” Brown,
Indeed, the League itself anticipated dissolution of antitrust remedy fetters upon disclaimer of union representation, as is evident from its concessions in previous cases. See Powell v. NFL,
At some point in the “arising out of’ spectrum, the antitrust immunities stemming from statutory and nonstatutory labor exemptions must come to an end and give way to antitrust remedies. Such point does not come a year from the union disclaimer, nor one business cycle from it, as suggested by the League’s counsel. Rather, such point comes at the moment of the union disclaimer.
II.
Although I would conclude the district court correctly determined this case does not involve or grow out of a labor dispute, thus negating any further application of the NLGA, I am compelled to write further addressing the majority’s conclusion as to § 4(a) of the NLGA protecting employers. At least three other circuit courts have reached the opposite conclusion and, for the reasons set forth below, I find their reading persuasive. In interpreting § 4(a), these courts were guided by the legislative history of the NLGA, as well as the legislative history of the Clayton Act — from which the NLGA was drawn — both of which indicate the NLGA was not intended to protect employers. Finally, the stated purpose in § 2 of the NLGA confirms the statute should be interpreted in such a manner as to protect employees, rather than employers.
I start from where the majority began its analysis, with a review of the pertinent cases discussing whether § 4(a) prohibits injunctions against employers. In de Arroyo v. Sindicato de Trabajadores Packinghouse,
De Arroyo was in line with a case decided by the Seventh Circuit eight years earlier, Brotherhood of Locomotive Engineers v. Baltimore & Ohio Railroad Co.,
The enactment of the Act, was, of course, the responsibility of Congress, and not that of this court. That Congress may have been intent upon shielding organizations of employees from injunctions rather than employers was and is a matter within its province. The same can be said of the exemption of labor organizations from the sanctions of antitrust laws. Those are matters over which the courts have no control, in the absence of a constitutional attack.
The language used clearly negatives any intention to recognize any general reciprocity of rights of capital and labor. Essentially the Act is frankly a charter of the rights of labor against capital.
Id. Given the language and history of § 4, the Seventh Circuit concluded the NLGA did not prevent the issuance of an injunction. Id.
Building upon the decisions of the First and Seventh Circuits, the Ninth Circuit issued perhaps the most comprehensive decision on the issue in Local 2750, Lumber & Sawmill Workers Union v. Cole,
While the majority acknowledges each of the above decisions, it criticizes the courts’ reasoning at the outset by focusing on one of the underlying aspects contained therein “that when employers were intended to be protected, as in section 4(b), they were specifically named.” Lumber & Sawmill Workers,
With due respect to the majority, Bridgestone/Firestone did not so hold. Bñdgestone/Firestone revolved around an injunction issued in favor of a union against an employer under an exception to the NLGA provided in Boys Markets, Inc. v. Retail Clerks Union, Local 770,
A careful reading of Bñdgestone/Firestone reveals it has no bearing on the present question of whether § 4(a) protects employers. Namely, whether the Boys Markets exception applies to employers and employees alike is an entirely different question than whether § 4(c), much less § 4(a), touches even-handedly on employers and employees. See, e.g., Aeronautical Indus. Dist. Lodge 91 of Int’l Ass’n of Machinists & Aerospace Workers v. United Techs. Corp.,
Even if Bridgestone/Firestone stands for the proposition asserted by the majority, I respectfully disagree with the majority’s subsequent statutory interpretation. The majority rejects the Players’ argument distinguishing between temporary and permanent work stoppages in the first and second clauses of § 4(a). Instead, advancing the broad scope of the term “any,” the majority construes “[rjefusing to ... remain in any relation of employment” to encompass non-permanent work stoppages “such as a strike or lockout of employees.” Ante at 677. However, the majority rejects the NFL’s counterpart argument that “the second clause should be understood as applying only to employers.” Id. at 677 (emphasis in original). In doing so, the majority concedes its interpretation is asymmetrical because “[ejmployees may refuse to perform work under the first clause, and they may refuse to remain in a relation of employment under the second.” Id.
I have considerable doubt about the majority’s interpretation of § 4(a). First, there is little basis in the text for reading § 4(a) as referring only to employees under the first clause but to both employees and employers under the second clause. Moreover, the breadth with which the majority interprets the second clause as it relates to employers ostensibly covers the employee conduct encompassed under the majority’s reading of the first clause. Stated differently, under the majority’s remarkably broad interpretation, a refusal to perform any work by employees would be tantamount to a refusal to remain in any relation of employment because “it changes the condition or character of that relationship” in some fashion. Ante at 676. Such an interpretation, which conflates the two clauses, cannot stand because it renders the first clause superfluous. See Morrison Enters., LLC v. Dravo Corp.,
Second, and perhaps more importantly, the majority’s interpretation fails to give effect to Congress’s intent in passing the NLGA. See Ortega-Marroquin v. Holder,
Attempting to remedy this inequity, the House Committee on the Judiciary explained about the NLGA, “[t]he purpose of the bill is to protect the rights of labor in the same manner the Congress intended when it enacted the Clayton Act ..., which act, by reason of its construction and application by the Federal courts is ineffectual to accomplish the congressional intent.” H.R.Rep. No. 669, 72d Cong., 1st Sess. 3 (1932). According to the Commit
Then-Professor Frankfurter, a drafter of the NLGA, wrote § 4 “provides that in cases growing out of labor disputes, no persons participating in, or affected by, such disputes shall be enjoined from striking, or from striking for the success of strikes, by customary labor union effort, short of fraud or violence.” Felix Frankfurter & Nathan Greene, The Labor Injunction 215 (1930). Professor Frankfurter explained § 4 was “a paraphrase of like language in the Clayton Act which was held to be merely declaratory of the modern common law right to strike.” Id. at 217-18; see generally Carcieri v. Salazar,
The relation of the Norris-LaGuardia Act to the Clayton Act is not that of a tightly drawn amendment to a technically phrased tax provision. The underlying aim of the Norris-LaGuardia Act was to restore the broad purpose which Congress thought it had formulated in the Clayton Act but which was frustrated, so Congress believed, by unduly restrictive judicial construction. This was authoritatively stated by the House Committee on the Judiciary.
Hutcheson,
As an assist in the interpretation of § 4(a), it is therefore helpful to look to § 20 of the Clayton Act, which prohibits injunctions against “terminating any relation of employment, or from ceasing to perform any work or labor, or from recommending, advising, or persuading others by peaceful means so to do.” 29 U.S.C. § 52. The Supreme Court construed this language as forbidding injunctions against “recommending, advising or persuading others by peaceful means to cease employment and labor.” Am. Steel Foundries,
Delving deeper into the Clayton Act, the legislative history behind the “terminating any relation of employment” clause further confirms Congress intended to protect only employees. See Lumber & Sawmill Workers,
Finally, if the legislative history left any lingering doubt about whether § 4(a) protects employers, Congress conclusively resolved any ambiguity by building the purpose into the NLGA itself via § 2. “Specifically, the Congress found that prevailing socio-political and economic conditions prevented individual workers from obtaining ‘acceptable terms and conditions of employment’ ” and thus the NLGA “sought to ensure workers the right to organize and conduct union activities ‘free from the interference, restraint, or coercion’ of employers or their agents by means of labor injunctions.” Burlington N. R.R. Co. v. United Transp. Union,
In response to the policy statement offered by Senator Norris, Senator Hebert, the author of the Senate Judiciary Committee’s minority report, proposed language to § 2 to protect “both the employer and the employee.” Id. at 152 (quoting 75 Cong. Rec. 4677 (1932)). Senator Hebert disclosed his substitute “ ‘trie[d] to afford the same degree of consideration to the employer in his relations to his employees as it does to the employee in his relations with his employer’ ” because the majority bill contained “‘very little, if any, reference to the consideration that is to be given to the employer in his relations with his employee.’ ” Id. (quoting 75 Cong. Rec. 4678). Following a colloquy, Senator Hebert’s substitute “was defeated soundly.” Id. (noting the vote was 47 to 18). “That vote ... makes it quite clear that in passing the Norris-LaGuardia Act Congress had no intent to relieve employers of any liability under the antitrust laws.” Id. at 153. Even if Congress had such intent, “the scope of such an exemption would be narrowly limited by the terms of the Act.” Id. at 154 (“[T]he only subsection in section 4 that refers to an employer’s activities is 4(b)”).
Although the majority attempts to minimize the congressional defeat of employer protections in the NLGA, there can be little doubt this legislative history provides yet more support for a reading of § 4(a) which protects only employees. See, e.g., United States v. United Steelworkers of Am.,
Viewing the legislative history of § 4(a) in its entirety, Congress did not intend to protect employers under the provision. See de Arroyo,
In the end, I find illustrative the wise words of Judge Learned Hand:
Of course it is true that the words used, even in their literal sense, are the primary, and ordinarily the most reliable, source of interpreting the meaning of any writing: be it a statute, a contract, or anything else. But it is one of the surest indexes of a mature and developed jurisprudence not to make a fortress out of the dictionary; but to remember that statutes always have some purpose or object to accomplish, whose sympathetic and imaginative discovery is the surest guide to their meaning.
Cabell v. Markham,
. Although the majority confines its analysis to the NLGA, I remain strongly convinced the other traditional injunction factors favor the Players. See Minn. Citizens Concerned for Life, Inc. v. Swanson,
