Lead Opinion
This is an appeal by the National Football League and 32 separately-owned NFL teams (collectively the “NFL” or the “League”) from an order of the district court issuing an injunction that prohibits the League from continuing to impose a “lockout” of NFL players. Brady v. NFL, No. 11-639, — F.Supp.2d -,
The League filed a notice of appeal, moved in this court for a stay of the district court’s order pending appeal, and sought expedited hearing of the appeal. On April 29, 2011, we granted a temporary administrative stay of the district court’s order to allow the court sufficient opportunity to consider the merits of the motion for stay pending appeal. On May 3, 2011, we granted the League’s motion to expedite the appeal, established a briefing schedule, and designated June 3, 2011, as the date for oral argument and submission of the case. For the reasons that follow, we now grant the League’s motion for stay pending appeal.
I.
There is a long history of litigation between the NFL and professional football players, much of which is described in prior opinions of this court and the district court. See, e.g., White v. NFL,
For two years prior to the expiration of the agreements, the Players and the League engaged in negotiations over a new collective bargaining agreement, but they did not resolve their differences. As the expiration date approached, the League indicated that it might use a lockout of the players as a tactic in the bargaining process. See Am. Ship Bldg. Co. v. NLRB,
Also on March 11, the Players filed their complaint in this action, alleging that the lockout threatened by the League would violate the federal antitrust laws and state contract and tort law. Among other relief, the Players sought a preliminary injunction that would prohibit the League from imposing or continuing the lockout.
On March 12, the League imposed a lockout of the Players. At that point, the League notified players under contract that, among other things, they were not permitted to enter team facilities except in connection with a non-team event or a charitable event, they would not receive compensation or health insurance benefits from their teams, and they were not permitted to play, practice, workout, attend meetings, or consult with team medical or training staff at team facilities. The League also filed an amended unfair labor practice charge with the National Labor Relations Board 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 League had filed a previous charge in February 2011, alleging that the union failed to confer in good faith during negotiations over a new collective bargaining agreement.
After receiving briefs and affidavits from the parties and hearing oral argument from counsel, the district court entered an order that enjoined the lockout. The court rejected the League’s argument that a federal statute, the Norris-LaGuardia Act, 29 U.S.C. § 101, et seq., deprived the court of jurisdiction to grant injunctive relief, because the court concluded that this is not a case “involving or growing out of a labor dispute” as defined by the Act. The court also rejected the League’s position that it should stay the case, under the doctrine of primary jurisdiction, see Reiter v. Cooper,
II.
Federal Rule of Appellate Procedure 8(a) governs the power of a court of appeals to stay an order of a district court pending appeal. Under that Rule, we consider four factors in determining whether to issue a stay: “(1) whether the stay applicant has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) where the public interest lies.” Hilton v. Braunskill,
We consider first the League’s likelihood of success on the merits. We do not make a final determination on the merits, but consideration of likely success is unavoidable, for the governing standard “compels us to embark upon such an exercise.” Fargo Women’s Health Org.,
The Norris-LaGuardia Act limits the jurisdiction of a district court to issue an injunction “in a case involving or growing out of a labor dispute.” 29 U.S.C. § 101. The district court ruled that the Act does not apply here and that it had jurisdiction to enjoin the lockout.
Congress wrote the Act in broad language, in order to take the federal courts “ ‘out of the labor injunction busi
Congress’s definition of a “labor dispute” is expansive: “The term ‘labor dispute’ includes any controversy concerning terms or conditions of employment, or concerning the association or representation of persons in ... 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). “Congress made the definition broad because it wanted it to be broad.” Order of R.R. Telegraphers v. Chi. & N.W. R.R. Co.,
Congress also explicitly stated the meaning of “involving or growing out of’ a labor dispute. “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). Congress described categories of such disputes in sweeping terms: “[Wjhether such dispute is (1) between one or more employers or associations of employers and one or more employees or associations of employees; ... or when the case involves any conflicting or competing interests in a ‘labor dispute’ [as defined in section 113(c) quoted above] of ‘persons participating or interested’ therein.” Id. A person or association is
participating or interested in a labor dispute if relief is sought against him or it, and if he or it ... is a member ... of any association composed in whole or in part of employers or employees engaged in [the same] industry, trade, craft, or occupation [in which such dispute occurs].
29 U.S.C. § 113(b).
The district court apparently did not question that this case is a “controversy concerning the terms and conditions of employment.” 29 U.S.C. § 113(c). The complaint seeks relief concerning such terms and conditions, and the lawsuit was filed on the same day that the Players’ union discontinued long-term collective bargaining over terms and conditions of employment. The Players argued in the district court that the Norris-LaGuardia Act does not preclude a court from enjoining a group boycott, citing Boise Cascade International, Inc. v. Northern Minnesota Pulpwood Producers Ass’n,
The district court reasoned that this case does not involve or grow out of a labor dispute because the Players no long
The Supreme Court decision most closely on point did not limit the Act to disputes involving a union. In New Negro Alliance v. Sanitary Grocery Co.,
The Supreme Court reversed. Although no labor organization was involved in the dispute, the Court ruled that the definitions in the Act “plainly embrace the controversy which gave rise to the instant suit and classify it as one arising out of a dispute defined as a labor dispute.”
The Act’s prohibition on injunctions, moreover, is not limited to cases “involving” a labor dispute. The Act’s prohibition also covers cases “growing out of’ a labor dispute. For several years, through March 11, 2011, the League and the Players’ union were parties to a collective bargaining agreement. See id. at -,
The Players defend the district court’s decision on an alternative ground that the Norris-LaGuardia Act does not prohibit injunctions against a lockout by an employer. The most apposite authorities support the view that the Act bars injunctions against lockouts by employers. See Chi. Midtown Milk Distribs., Inc. v. Dean Foods Co.,
The Players suggest that section 104(a) — forbidding a district court to enjoin any person from “refusing ... to remain in any relation of employment”— applies only to injunctions against workers, and exists only to clarify that the Act covers both temporary strikes and permanent cessations of employment. The Players note that the quoted phrase was drawn from Section 20 of the Clayton Act, which “was specifically intended ... ‘to guard the right of workingmen to act together in terminating, if they desire, any relation of employment.’” Local 2750, Lumber & Sawmill Workers Union v. Cole,
Our present view is that this interpretation of the Act is unlikely to prevail. As both the D.C. Circuit and the Second Circuit have observed, although Congress “ ‘was largely concerned with the effect of [federal court] interference on unions, the [Clayton Act] was phrased in an evenhanded fashion to protect employer conduct in labor disputes as well as that of unions.’ ” Brown v. Pro Football Inc.,
In sum, we have serious doubts that the district court had jurisdiction to enjoin the League’s lockout, and accordingly conclude that the League has made a strong showing that it is likely to succeed on the merits.
We next consider what injury to the parties is likely to arise from this court’s grant or denial of the motion for a stay, and how the public interest would be affected by this court’s decision on the motion. The Players argue that they are suffering irreparable harm as a result of the lockout, and that the grant of a stay pending appeal would subject them to continuing injury. They contend that even if the court decides this case during the NFL off-season, they are injured irrepara
The League contends that it is irreparably harmed by the district court’s injunction, because its ability to maintain the lockout is essential to the League’s negotiating position in an ongoing dispute with the Players, and that there is no way to measure and compensate the League for its loss of leverage and consequent delay if the injunction is not stayed. See Int’l Ass’n of Bridge, Structural & Ornamental Iron Workers v. Pauly Jail Bldg. Co.,
Both sides raise valid points, and this is a case in which one party or the other likely will suffer some degree of irreparable harm no matter how this court resolves the motion for a stay pending appeal. We do not agree, however, with the district court’s apparent view that the balance of the equities tilts heavily in favor of the Players. The district court gave little or no weight to the harm caused to the League by an injunction issued in the midst of an ongoing dispute over terms and conditions of employment. The court found irreparable harm to the Players because the lockout prevents free agents from negotiating contracts with any team, but gave no weight to harm that would be caused to the League by player transactions that would occur only with an injunction against the lockout. The court gave full weight to affidavit evidence submitted by the Players, although that proof was untested by cross-examination at a hearing. Cf. 29 U.S.C. § 107. The district court’s analysis was conducted without the benefit of knowledge that this appeal will be submitted for decision on a highly expedited schedule — a circumstance that should minimize harm to the Players during the off-season and allow the case to be resolved well before the scheduled beginning of the 2011 season.
For these reasons, the district court’s order of April 25, 2011, is stayed pending the final disposition of this expedited appeal. The temporary stay imposed by our order of April 29, 2011, is dissolved, and it is replaced by the stay imposed by the terms of this order.
Notes
We further observe that even if section 104(a) of the Act were construed to permit an injunction against an employer lockout, there is a serious question whether the district court complied with the procedural requirements of the Act — including to hold a hearing in open court with opportunity for cross-examination — before issuing an injunction. See 29 U.S.C. § 107; cf. Mackey,
Dissenting Opinion
dissenting.
I respectfully dissent from the majority’s decision to grant the NFL’s motion for a stay pending appeal. “A stay is an intrusion into the ordinary processes of administration and judicial review, ... and accordingly is not a matter of right, even if irreparable injury might otherwise result to the appellant.” Nken v. Holder, — U.S. -,
My analysis is guided by the four factors we consider in determining whether to grant a stay:
(1) whether the stay applicant has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) where the public interest lies.
Id. at 1756 (internal quotation marks and citation omitted); see also Reserve Mining Co. v. United States,
First, in analyzing the above factors, this court has recognized that “[rjegardless of the strength of its claim on the merits, a movant for a [stay pending appeal] should show a threat of irreparable harm.” Cf. Rogers Group, Inc. v. City of Fayetteville, Ark.,
“In order to demonstrate irreparable harm, a party must show that the harm is certain and great and of such imminence that there is a clear and present need for equitable relief.” Iowa Utils. Bd. v. FCC,
As an initial matter, it is difficult to discern which of the NFL’s allegations of irreparable harm the majority relied upon in its decision. After setting forth the parties’ arguments, the majority confined its analysis on this point to acknowledging, “[b]oth sides raise valid points.” Ante at 793. The majority also faulted the district court for giving “little or no weight to the harm caused to the League by an injunction issued in the midst of an ongoing dispute over terms and conditions of employment,” although it once again did not speak to what harm it was referring. Moreover, the majority’s allusion to “an injunction issued in the midst of an ongoing dispute over terms and conditions of employment” ignores the context of the parties’ current collective bargaining disposition and treats the disclaimer of the union as if it never happened. See Stay Order at 9 (“This contention assumes that both parties view the negotiations as being at impasse in the collective bargaining process. But the Players do not believe there is a collective bargaining process in place.”).
Notwithstanding the majority’s analysis, the NFL has not persuaded me it will suffer irreparable harm during the pendency of this expedited appeal. First, the NFL contends the injunction issued by the district court deprives the NFL of its labor law right to lock out the Players. The resulting effect of this, according to the NFL, is to skew the collective bargaining process in the Players’ favor. As will be discussed more fully below, it is doubtful the NFL enjoys its alleged “labor law right to impose a work stoppage” under the present circumstances where the parties are no longer engaged in the collective bargaining process. In any event, there will not be any shift in the “balance of power” until the appeal is resolved. Indeed, the NFL itself acknowledges, “[a]ll that is relevant here is the injury, if any, that the [parties] would suffer in the time necessary for this Court to consider a highly expedited appeal during the offseason.” Appellant’s Brief at 20. Given that the parties will not likely return to the bargaining table prior to our resolution of this expedited appeal, at which point we will determine whether the district court properly enjoined the lockout, the NFL’s claim that it will suffer a loss of bargaining power in this interim period does not amount to “proof indicating that the harm is certain to occur in the near future” for purposes of a stay pending appeal. Id.
Next, the NFL asserts it will be unable to “unscramble the egg” of player transactions occurring in the absence of a stay. The NFL also argues, in the absence of a stay, its clubs will be required to “produce their inherently joint and collective product,” which in turn will subject the League to further antitrust claims by the Players. Each of these arguments is questionable given the current juncture of affairs. The preliminary injunction does not dictate the NFL’s free agency rules, or any other conduct in general, outside of the lockout. Moreover, the fact the NFL must comply with the law, i.e., the Sherman Act, does not constitute irreparable harm — it is the absolute minimum that could be expected of the League.
Whatever harm may be said to befall the NFL during the pendency of the expedited
Similarly, the veteran players are subject to the demands of constantly proving their worth in the NFL. Declaration of Frank Bauer at 5 (“The virtually constant need for NFL players to prove their skill and value on both the game and practice fields makes a ‘lockout’ especially problematic.”). It is of little surprise that professional athletes must undergo rigorous off-season workouts, study playbooks, and meet with coaches and team officials to assiduously prepare for the upcoming season. See Supplemental Declaration of Richard A. Berthelsen at 14 (“[T]he off-season would normally be comprised of up to 14 weeks of practice activity as well as classroom sessions where players spend valuable time with their coaches learning their club’s offensive and defensive systems. Players are constantly working out at club facilities, under the supervision of club personnel who are constantly evaluating players. Players also undergo club supervised medical procedures and evaluations during the off-season.”). It follows that even the abbreviated harm fashioned by the stay will obviate the Players’ opportunities to engage in any of these off-season necessities, which could have dramatic repercussions to the Players’ careers in the long term. Further, none of this harm can be adequately compensated by monetary damages. See Rogers Group, Inc.,
Due to the irreparable harm presently incurred by the Players, compared with the limited harm, if any, suffered by the NFL, I believe the balance of harms weighs heavily in the Players’ favor. Consequently, I would require the NFL to satisfy a heavier burden of showing it is likely to prevail on the merits. See Dataphase Sys., Inc. v. C L Sys., Inc.,
In analyzing the merits, it becomes readily apparent that the NFL fails to satisfy its burden. I disagree with the majority’s assessment of the merits of the NFL’s position concerning the applicability of the Norris-LaGuardia Act. It is true the Act deprives federal courts of jurisdiction to grant injunctive relief in “ease[s] involving or growing out of a labor dispute,” 29 U.S.C. § 101, and specifically prevents injunctions prohibiting “[cjeasing or refusing to perform any work or to remain in any relation of employment,” 29 U.S.C. § 104(a). It is also true the Act is phrased in intentionally broad terms, Jacksonville Bulk Terminals, Inc. v. ILA, 457 U.S. 702, 708,
The legislative history of the Act reveals that Congress enacted it in response to the Supreme Court’s decision in Duplex Printing Press Co. v. Deering,
Evaluated against this backdrop, the Act must be understood to apply to an increasingly broad number of actors in a labor dispute. For example, the language of the Act making it applicable to “case[sj involving or growing out of a labor dispute” ensures that courts do not enjoin secondary activity related to collective bargaining, even if the secondary employer is not substantially aligned with the primary employer. See Burlington Northern Rail
Yet, despite the widening circle of actors eligible for protection under the Act, the law remains focused on safeguarding the collective bargaining process. Recognizing that unions are, by their very nature, groups of people acting together in restraint of free competition and trade, see Pennington,
In my opinion, the answer to this question lies in the Supreme Court’s decision in Brown v. Pro Football, Inc.,
Since the statutory and the nonstatutory labor exemptions are actuated by the same policies concerning the antitrust-labor balance, the Court’s language in Brown is indicative of the outer limits of their application. It would be illogical to reject the nonstatutory labor exemption upon union disclaimer, yet prohibit the court from remedying antitrust violations through injunctive relief. Brown suggests that, with the collapse of the union, labor laws are no longer in force and the preexisting antitrust rights apply. By disassociating themselves from the union, the players make a choice in favor of the antitrust framework at the expense of foregoing the protections of labor laws. Brown,
In support of its argument that existence of a labor union is irrelevant for the purpose of the Norris-LaGuardia Act, the majority cites the 1938 decision of the Supreme Court in New Negro Alliance v. Sanitary Grocery Co., where the Court applied the Act to lift an injunction against a civil rights organization protesting discriminatory policies of the employer. Carefully read, however, the case does not stand for the proposition for which the majority cites it. To begin with, New Negro Alliance did not answer the precise question at issue before this court — -the applicability of the Norris-LaGuardia Act post-disclaimer. Rather, the issue there was whether the terms and conditions of employment had to be economic in nature, or could also relate to the employer’s non-economic policies. Jacksonville Bulk Terminals, Inc.,
Indeed, New Negro Alliance does not mention the existence of any collective bargaining relationship whatsoever. By logical extension, then, the majority would jettison the requirement of having any connection to the collective bargaining process altogether and thereby extend the Act’s strictures to virtually any employment discrimination dispute. Such result is demonstrably untenable. See Stearns v. NCR Corp.,
In sum, because I believe the NorrisLaGuardia Act does not apply in a situation where the Players are no longer represented by the union, I would conclude the NFL did not make the necessary strong showing of likelihood of success on the merits. Moreover, as it relates to the fourth factor, the NFL’s failure to make the necessary showing on the merits detracts from the NFL’s argument that the public interest favors the application of labor laws in the current context. At best, when considering the public interest in having a 2011 NFL season and, by extension, continuing with normal operations necessary for that objective, the public interest factor is a wash. Taken in conjunction with the balance of harms, which clearly favors the Players during the pendency of the expedited appeal, I would deny the NFL’s motion for a stay.
I respectfully dissent.
