PATRICK DOUGHTY; RANDY SEVERANCE, Plaintiffs, Appellants, v. STATE EMPLOYEES’ ASSOCIATION OF NEW HAMPSHIRE, SEIU LOCAL 1984, CTW, CLC, Defendant, Appellee.
No. 19-1636
United States Court of Appeals For the First Circuit
November 30, 2020
APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE
[Hon. Paul J. Barbadoro, U.S. District Judge]
Before Howard, Chief Judge, Thompson and Barron, Circuit Judges.
Frank D. Garrison, with whom Milton L. Chappell, National Right to Work Legal Defense Foundation, Inc., Bryan K. Gould, Cooley Ann Arroyo, and Cleveland, Waters & Bass, P.A., were on brief, for appellants.
Leon Dayan, with whom Ramya Ravindran was on brief, for appellee.
I.
A.
New Hampshire state law imposes on unions that serve as the exclusive representative of a bargaining unit for state or local government employees a duty of fair representation to the unit‘s non-union employees during the collective bargaining process. See Nashua Tchrs. Union v. Nashua Sch. Dist., 707 A.2d 448, 451 (N.H. 1998) (citing
The New Hampshire Supreme Court explained that collective bargaining agreements are contracts forged between the employer and the union that serves as the exclusive bargaining representative for the relevant bargaining unit. Id. at 451. It
B.
On January 14, 2019, following Janus, Doughty and Severance filed suit in the United States District Court for the District of New Hampshire against the Union under
By the time that Doughty and Severance filed their suit, the Union had ceased collecting agency fees, as deductions from the employees’ paychecks to pay those fees ended in Janus‘s wake. Their complaint nevertheless requested, based on Janus‘s retroactive application, that the District Court certify a class of “all individuals employed by the State, and other public employers, who, as a condition of employment, were forced to pay union fees to [the Union], which distributed some of the fees to its affiliates, any time during the limitations period.” Doughty and Severance further claimed that the members of this class were entitled, pursuant to
C.
On March 18, 2019, the Union moved to dismiss the plaintiffs’ complaint for failure to state a claim on which relief could be granted under Federal Rule of Civil Procedure 12(b)(6). The District Court held a hearing on that motion on May 30, 2019 and granted it that same day.
The District Court proceeded on the understanding -- which the Union did not contest -- that, due to Janus‘s retroactive application, the state employеrs’ requirement that the agency fees be paid as a condition of Doughty‘s and Severance‘s employment violated the First Amendment. The District Court also assumed -- and, again, without dispute -- that the Union, although a private entity, was a proper defendant under
Nevertheless, the District Court expressed skepticism that
Union to go forward, given their claim‘s exclusive focus on agency-fee payments made prior to Janus. In that connection, the District Court asked the plaintiffs’ counsel at the hearing on the motion to dismiss to “step back for a second” and explain “how in any version of the world” it would be “right to require [the Union] to pay damages for acting consistent with the requirements of state law and . . . [S]uprеme [C]ourt precedent.” The District Court emphasized that the Union‘s “behavior was entirely constitutional at the time they engaged in it,” and that it is an unusual situation where the Supreme Court “decides to flatly overturn its prior precedent.” Because, as a general matter, “[o]ne of the reasons that judges express their views in written opinions is so that people can rely on” them, the District Court explained, it would be “arrogant in the extreme” to allow individuals who had so relied to be “subjected to suits for damages” in the rare cases where “judges flip 180 degrees on the law.” The District Court added that it was “incomprehensible” that “damage[s] actions [could] be maintained under” the “unique circumstances” of this case.
The District Court then granted the Union‘s motion to dismiss Doughty and Severance‘s complaint based on two independent grounds. First, the District Court ruled that “a good faith defense must be available to protect defendants under these kinds of circumstances” (emphasis added), and that Doughty and Severance could not overcome that defense. Second, the District Court held thаt Doughty and Severance‘s
D.
Following the District Court‘s ruling, Doughty and Severance timely filed this appeal on June 21, 2019, in which they challenge the District Court‘s grant of the Union‘s 12(b)(6)
motion. We have jurisdiction under
II.
As to the claim for damages, Doughty and Severance ask us to focus on
The District Court rightly emphasized, however, that the plaintiffs are seeking damages for a private party‘s role in imposing a payment requirement on them during a period of time in which the nation‘s highest court had expressly held that the requirement did not give rise to the First Amendment violation on which their damages claim under
In attending to that concern, we do not еmbark on a free-wheeling assessment of whether to import into
A number of our sister circuits have followed this approach to assessing the viability of similar retroactive Janus-based damages claims under
The Union urges us to follow that same logic here, and thus to find that the District Court correctly held that Doughty and Severance‘s damages claim fails. In support of our doing so, moreover, the Union points to a substantial body of
Notably, Doughty and Severance do not argue that we must reject this line of
We do not dispute that Doughty and Severance are right that their claim under
Finally, while Doughty and Severance are right that their Janus-based
We suppose the distinctions that Doughty and Severance point to between their
As an initial matter, Doughty and Severance provide no support for their implicit premise that a claim for conversion could have been brought at common law for the recovery of a plaintiff‘s payment of a required fee when the funds used to pay it were comingled with the defendant‘s other funds following its collection. See 7 Am. Law of Torts § 24:7 (explaining that “before there can be a conversion” of money, there is a “requirement that there be ‘ear-marked money or specific money capable of identification‘“); 44 A.L.R.2d 927 (1955) (“Money can be the subject of conversion and a conversion action only when it can be described, identified, or segregated in the manner that a specific chattel can be . . . .“). Nor do they identify a single case in which a claim for conversion was successfully brought at common law for damages arising from the defendant‘s collection of money payments revealed to have been made pursuant to an illegal requirement оnly in retrospect, and then only due to the subsequent overruling of a prior Supreme Court precedent under which the requirement was lawful at the time that it was imposed. Their failure on that score is especially conspicuous given how common-law claims for recovering licensing fees and taxes based on the retroactive application
From this review, then, we see no support for concluding that the common law was as indifferent as Doughty and Severance impliedly suggest that it was to the threat to reliance interests posed by affording a damages remedy for a private defendant‘s acquisition of payments via the invocation of then-lawful state processes that -- due only to a subsequent change in the law -- retroactively are revealed to have been unlawful. And, because the Court has reminded us in connection with
That said, we do recognize that “[t]he purpose of
But, although Doughty and Severance assert that their claim for damages seeks to vindicate their First Amendment right against compelled speech and association and that this right provides protection from harm that the common law itself did not, they ignore the unusual nature of their attempt to secure relief for the violation of that constitutional right. They thus develop no argument -- nor does any occur to us -- why close attention to the values and purposes of the First Amendment right against compelled speech and association supports the conclusion that the Congress that enacted
Nor are we persuaded by Doughty and Severance‘s contention that we must rule in their favor based on Harper v. Virginia Department of Taxation, 509 U.S. 86 (1993), in which the Court held that when it applies a rule of federal law to the parties before it that rule “must be given full retroactive effect in all cases still . . . on direct review.” Id. at 97. Insofar as the agency fees at issue here may be analogized to the taxes collected in Harper -- itself a debatable proposition -- Doughty and Severance make no argument that they were precluded from bringing a pre-collection claim challenging the lawfulness of the required payment of agency fees on the ground that Abood should be overruled. As a result, they do not explain how the Supreme Court‘s retroactivity jurisprudence provides any support for the conclusion that
III.
Doughty and Severance do separately make a demand for restitution, which is an equitable rather than a legal remedy. And it is true that
IV.
The judgment of the District Court is affirmed.
