Lead Opinion
The Regional Director of the Eighteenth Region of the National Labor Relations Board (respectively, “Director” and “Board”) requested an injunction under section 10(j) of the Labor Management Relations Act, 1947, 29 U.S.C. § 160®. The district court granted the injunction. Whitesell Corporation appeals. Having jurisdiction under 28 U.S.C. § 1292(a)(1), this court vacates and remands.
I.
In 2005, Whitesell purchased a manufacturing facility in Washington, Iowa. Its production and maintenance employees were represented by the Glass, Molders, Pottery, Plastics and Allied Workers In-’ ternational Union Local 359. Whitesell agreed to abide by the collective bargaining agreement scheduled to expire on June 12, 2006.
In May 2006, Whitesell and the Union began negotiations. After eight bargaining sessions, Whitesell declared an impasse and unilaterally implemented its final offer. The Union filed unfair labor practice charges. The Director filed an administrative complaint charging that Whitesell had prematurely declared impasse, in violation of 29 U.S.C. § 158(a)(1) and (a)(5). With the Board’s authorization, the Director also sued under § 10® to enjoin Whitesell’s alleged unfair labor practices until the Board resolved the complaint. The district court granted a temporary injunction, requiring Whitesell to rescind the implemented employment terms and to bargain in good faith. Whitesell did not appeal that injunction, and the Board continued processing the charges. After initially denying enforcement, this court is considering the Board’s final order in a separately-docketed case. See NLRB v. Whitesell Corp., No. 10-2934 (8th Cir. filed Aug. 30, 2010); NLRB v. Whitesell Corp.,
The parties continued bargaining, unsuccessfully, throughout 2007. As the end of 2007 approached, the Board had four members and one vacancy. The recess appointments of two members were set to expire at the end of the year, leaving the Board with only two members — one short of a quorum. See 29 U.S.C. § 153(b); New Process Steel, L.P. v. NLRB, - U.S. -,
II.
Whitesell disputes the district court’s subject matter jurisdiction, asserting that the General Counsel may not sue under § 10(j). This court reviews the issue de novo. Borntrager v. Cent. States Se. & Sw. Areas Pension Fund,
First, Whitesell argues that the Board may not delegate § 10(j) authority. For more than sixty years, district courts have upheld such delegations. See Kentov v. Point Blank Body Armor, Inc.,
Second, Whitesell contends that the delegation lapsed when the Board lost its quorum. The District of Columbia Circuit took this view. Laurel Baye Healthcare of Lake Lanier, Inc. v. NLRB,
The district court had subject matter jurisdiction.
III.
Turning to the merits, this court “review[s] the District Court’s, material factual findings for clear error, its legal conclusions de novo, and the court’s equitable judgment — the ultimate decision to grant the injunction — for an abuse of discretion.” Heartland Acad. Cmty. Church v. Waddle,
In granting or refusing an injunction, “the judge need only make brief, definite, pertinent findings and conclusions upon the contested matters; there is no necessity for over-elaboration of detail or particularization of facts.” Fed.R.Civ.P. 52 advisory committee’s note (1946) (citations omitted). “Merely indicating the factual basis for the ultimate conclusion will suffice in most cases.” SquirtCo v. Seven-Up Co.,
Here, however, minimal requirements were not met. The district court’s brief document, labeled “Findings of Fact and Conclusions of Law Supporting Temporary Injunction,” presents the alleged unfair labor practices cryptically. See Appendix A to this opinion. It does not specially find facts or explain how the Director meets the requirements for an injunction. “[T]he court must find the facts specially....” Fed.R.Civ.P. 52(a)(1). “In granting or refusing an interlocutory injunction, the court must similarly state the findings ... that support its action.” Fed. R.Civ.P. 52(a)(2). This court has disapproved a similar order that, while shorter, discussed more directly how the plaintiff satisfied the injunction factors. See James River Flood Control Ass’n v. Watt,
This court vacates the district court’s order granting the § 10(j) injunction. On remand, the district court should specially make factual findings, detailing specific actions in the bargaining process and the facts underlying each element of the four-factor injunction test.
% # # # * #
The order of the district court is vacated and the case remanded for further proceedings consistent with this opinion.
Notes
. The Board had also temporarily delegated its § 10(j) power in 1947, 1993, and 2001. See Overstreet v. El Paso Disposal, L.P.,
Concurrence Opinion
concurring.
As the opinion of the court observes, federal courts have ruled consistently for more than sixty years that the National Labor Relations Board may delegate its authority to seek an injunction under Section 10(j) of the Labor Management Relations Act (“LMRA”), 29 U.S.C. § 1600'), to the General Counsel of the Board. See Overstreet v. El Paso Disposal, L.P.,
The Board first delegated its Section 10(j) authority in 1947. The Board assigned this authority to its regional directors, pursuant to the Board’s rulemaking authority, see 29 U.S.C. § 156; 29 C.F.R. § 202.35 (Supp.1947), and also entered into a memorandum of understanding with the General Counsel giving him full authority to initiate and prosecute injunction proceedings under Section 10(j). See 13 Fed.Reg. 654, 655 (Feb. 13, 1948); see also Evans,
When evaluating an agency’s interpretation of a statute, the Supreme Court has instructed that “the interstitial nature of the legal question, the related expertise of the Agency, the importance of the question to administration of the statute, the complexity of that administration, and the careful consideration the Agency has given the question over a long period of time” all are factors that weigh in favor of deferring to the agency’s interpretation under the doctrine of Chevron, U.S.A., Inc. v. Natural Resources Defense Council,
The textual argument advanced by Whitesell does not establish that the Board’s interpretation is unreasonable. To be sure, there may be a distinction between the terms “power” and “duty” when applied to a single officer or entity, on the view that “power” is the privilege to take an action and “duty” is an obligation to take an action. See Black’s Law Dictionary 1288 (9th ed. 2009) (defining “power” as “[t]he legal right or authorization to act or not act”); id. at 580 (defining “duty” as a “legal obligation”); cf. U.S. Const. art. II, § 1, cl. 6 (referring to the “Powers and Duties” of the President); id. amend. XXV, §§ 3, 4 (same). But “duty” also means, inter alia, “conduct due ... superiors,” Webster’s Third New International Dictionary 705 (2002), and it is not logically inconsistent for Congress to say that a
The text of the LMRA itself indicates that Congress contemplated that the Board could delegate its statutory “power” to the General Counsel. The statute provides that the General Counsel “shall have final authority, on behalf of the Board, in respect of the investigation of charges and issuance of complaints under section 160 of this title, and in respect of the prosecution of such complaints before the Board, and shall have such other duties as the Board may prescribe or as may be provided by law.” 29 U.S.C. § 153(d) (emphasis added). The phrase “other duties” (as opposed to “duties” alone) in the final clause of this sentence implies that the authority described in the first part of the sentence is also a “duty” of the General Counsel. Yet the authority to act “in respect of the investigation of charges and issuance of complaints under section 160” allows the General Counsel to exercise delegated “power” of the Board. Section 160(b) provides that whenever it is charged that a person has engaged in an unfair labor practice, the Board “shall have power to issue and cause to be served upon such person a complaint stating the charges in that respect.” Id. § 160(b) (emphases added). As § 153(d) contemplates that one of the General Counsel’s “duties” is to exercise the Board’s “power” to issue complaints, the statute does not unambiguously preclude the Board from delegating other “power” when it prescribes the General Counsel’s “other duties” under the same provision. Cf. NLRB v. C & C Roofing Supply, Inc.,
Other provisions of the United States Code show that Congress has used the term “duty” to refer to a delegated “power.” In 28 U.S.C. § 547, Congress defined the “duties” of the United States Attorney, which involve the exercise of delegated “executive Power” granted to the President by Article II, Section 1 of the Constitution. In § 7803(b) of the Internal Revenue Code, Congress directed that the Chief Counsel of the IRS “shall perform such duties as may be prescribed by the Secretary,” including “the duty ” to do each thing described in subparagraphs (A) through (E) of the section. 26 U.S.C. § 7803(b) (emphases added). Congress further provided, however, that “[i]f the Secretary determines not to delegate a power specified in subparagraph (A), (B), (C), (D), or (E),” such determination may not take effect until a 30-day waiting period expires. Id. (emphasis added). Under § 7803(b), therefore, Congress contemplated that a “power” of the Secretary could be delegated as one of the “duties” of the Chief Counsel. See also 12 U.S.C. § 2160(b) (defining “Duties” of the Federal Farm Credit Banks Funding Corporation as including the “exercise [of] such other powers as were provided to the predecessor Federal Farm Credit Banks Funding Corporation”) (emphasis added).
The statutory text thus does not forbid the Board to delegate its power to seek injunctions under Section 10(j). The Board’s interpretation of the statute is not otherwise unreasonable. Some courts have reasoned that the Board may not delegate its “adjudicatory” power to the General Counsel, see Evans,
With these additional views, I join the opinion of the court.
Concurrence Opinion
concurring in part and dissenting in part.
I. INJUNCTION
I agree the district court’s factual findings and conclusions of law are insufficiently specific to support its section 10(j) injunction. See Fed.R.Civ.P. 52(a), 65(d)(1). Section 10(j) injunctions are reserved for “serious and extraordinary” moments when “the remedial purpose of the Act would be frustrated unless immediate action is taken.” Sharp v. Parents in Cmty. Action, Inc.,
The majority correctly requires the district court on remand to “specially make factual findings, detailing specific actions in the bargaining process and the facts underlying each element of the four-factor injunction test.” Ante at 845. The district court’s section 10(j) injunction was too broad for several reasons. First, the district court micro-managed the collective bargaining process despite our prior admonition that a section 10(j) injunction is “necessary either to preserve the status quo or prevent frustration of the basic remedial purposes of the Act.” Sharp,
II. DELEGATION OF AUTHORITY
Though I agree with the majority’s view the district court’s section 10(j) injunction is fatally flawed, I write separately to express my disagreement with the majority’s conclusion that “[t]he Board may delegate § 10(j) authority to the General Counsel.” Ante at 844. The majority ignores the statutory language at issue and offers no analysis for its decision in this regard, except to point out that a handful of other courts over the years have upheld the Board’s delegations to the General Counsel. Id. at 844. The majority characterizes these courts’ opinions as constituting a “long-established interpretation” of the Act. Id. at 844. To the contrary, the Board’s eleventh-hour delegation of its section 10(j) power to the General Counsel was an integral part of a recently discredited attempt by the Board “to keep its doors open despite vacancies.” New Process Steel, L.P. v. NLRB, - U.S. -,
We have an independent obligation to consider the important issue of statutory construction before us. See Furrer v. Brown,
Section 10(j) provides, “The Board shall have power, upon issuance of a complaint ... charging that any person has engaged in or is engaging in an unfair labor practice, to petition any United States district court ... for appropriate temporary relief or restraining order.” 29 U.S.C. § 160(j) (emphasis added).
Congress specifically authorized the Board to delegate its statutory powers in
Congress gave the Board power, and the General Counsel acting on behalf of the Board the authority, to issue complaints alleging unfair labor practices:
Whenever it is charged that any person has engaged in or is engaging in any such unfair labor practice, the Board, or any agent or agency designated by the Board for such purposes, shall have power to issue and cause to be served upon such person a complaint.
§ 160(b).
[The General Counsel] shall have final authority, on behalf of the Board, in respect of the investigation of charges and issuance of complaints under section 160 of this title, and in respect of the prosecution of such complaints before the Board, and shall have such other duties as the Board may prescribe or as may be provided by law.
§ 153(d).
Congress specified the powers held by the Board, and the authority and duties of the General Counsel. Congress also specified when the Board may delegate certain powers. Congress plainly did not provide for the Board to delegate its section 10(j) injunctive power to the General Counsel.
The Director argues section 3(d)’s “other duties as the Board may prescribe” clause allows the Board to delegate its section 10(j) power to the General Counsel. See § 153(d) (emphasis added). The plain language of the statute refutes the Director’s argument. Congress says the Board’s ability to seek section 10(j) relief is a “power,” not a “duty.” § 160(j). “Where,” as here, “Congress includes particular language in one section of a statute but omits it in another section of the same [statute], it is generally presumed that Congress acts intentionally and purposely in the disparate inclusion or exclusion.” Russello v. United States,
Where Congress wanted to give the General Counsel, through the regional directors, the authority to seek injunctive relief in the district court, it did so expressly. A companion section, section 10(i), provides that when the unfair labor practice charged is a secondary boycott or certain strikes, the officer or regional attorney “shall, on behalf of the Board, petition [the] district court ... for appropriate injunctive relief pending the final adjudication of the Board with respect to such matter.” § 160(i). Section 10(i) thus requires the regional director to petition the district court when specific types of unfair labor practices are alleged. In contrast, section 10(j) gives the power to seek an injunction only to the Board when other types of unfair labor practices are alleged. See Gottfried v. Frankel,
As discussed in Part I above, “§ 10(j) is a limited exception to the federal policy against labor injunctions,” and “is reserved for ‘serious and extraordinary’ cases when ‘the remedial purpose of the Act would be frustrated unless immediate action is taken.’ ” Sharp,
Instead of grappling with the relevant statutory language, the majority stresses
In Evans v. Int’l Typographical Union,
The court in Evans also concluded that the power to seek injunctive relief under section 10(j) was delegable because “[i]t is not unreasonable to assume that Congress intended that the Board might delegate to the General Counsel duties equal in importance” with the General Counsel’s statutory authority to issue and prosecute complaints. Id. This statement equates the terms “powers” and “duties,” contradicting the different words Congress expressly used. Further, the General Counsel’s power to prosecute complaints is “before the Board.” § 153(d). Conversely, the power to seek temporary injunctive relief is before the district court, and is therefore not so analogous that a court should assume they go hand-in-hand.
Finally, the Evans court stated the Board could not “properly delegate its functions of a judicial nature,” because that would undermine “the purpose and policy of Congress to separate the judicial functions of the Board from any prosecutive or investigative function.” Evans,
In Muffley v. Spartan Mining Co.,
As Whitesell suggests, the “central question is whether Congress authorized the Board to delegate its powers under
Section 10(j) was enacted as part of the Labor Management Relations Act of 1947 (LMRA), the “Tafi>-Hartley” Act. See Muniz v. Hoffman,
The Director also argues that Congress expressed its intent to allow section 10(j) relief to be delegated to the General Counsel by not amending the language in section 3(d) despite the courts approving such delegation. See Lorillard v. Pons,
The Board and General Counsel are creatures of statute, and ours is a nation of laws not bureaucrats. Because Congress gave section 10(j) power only to the Board, the General Counsel cannot exercise this power unless Congress provides for its delegation. “The judiciary is the final authority on issues of statutory construction and must reject administrative constructions which are contrary to clear congressional intent.” Chevron U.S.A., Inc. v. Natural Res. Def. Council, Inc.,
III. LOSS OF QUORUM
Even if the Board could lawfully delegate its section 10(j) power to the General
I respectfully disagree with the majority’s choice of sides in the circuit split and would join the D.C. Circuit’s decision in Laurel Baye. By its terms, New Process Steel “does not address” whether the Board’s loss of a quorum precludes the General Counsel from seeking a section lOQ) injunction if a prior delegation by the Board is otherwise valid. New Process Steel,
The Fifth Circuit’s conclusion that “[t]he fact that Board membership subsequently dipped below a quorum does not retroactively invalidate the Board’s prior delegation,” El Paso Disposal,
When the issue is properly framed, the Fifth Circuit’s conclusion is inconsistent with well-settled principles of agency law. As the D.C. Circuit explained in Laurel Baye,
an agent’s delegated authority terminates when the powers belonging to the entity that bestowed the authority are suspended. Restatement (Third) of Agency § 3.07(4) (2006). An agent’s delegated authority is also deemed to cease upon the resignation or termination of the delegating authority. 2 William Meade Fletcher, Fletcher Cyclopedia of the Law of Corporations § 504 (2008); see Emerson v. Fisher,246 F. 642 , 648 (1st Cir.1918) (holding that a corporate treasurer’s resignation terminated any authority delegated by the treasurer to other individuals). Moreover, as Fletcher notes, a delegating board of directors’s powers are suspended whenever the board’s membership falls below a quorum. See 2 Fletcher Cyclopedia of the Law of Corporations § 421 (“If there are fewer than the minimum number of directors required by statute, [the remaining directors] cannot act as a board.”). In the context of a board-like entity, a delegee’s authority therefore ceases the moment that vacancies or disqualifications on the board reduce the board’s membership below a quorum. It must be remembered that the delegee committee does not act on its own behalf.
Laurel Baye,
Because the General Counsel lacked power to petition the district court for the section 10(j) injunction once the Board lost its quorum, the district court’s injunction must be vacated. Contravening the spirit, if not the letter, of New Process Steel,
IV. CONCLUSION
I concur in part and dissent in part. I agree the district court’s factual findings and conclusions of law are insufficiently specific to support its section 10(j) injunction. I disagree that the General Counsel possessed the power to petition the district court for a section 10(j) injunction. The Board’s creative attempt to expand its power through the General Counsel should be rejected. See New Process Steel,
APPENDIX A
FINDINGS OF FACT AND CONCLUSIONS OF LAW SUPPORTING TEMPORARY INJUNCTION
On August 5, 2009, the court received the Administrative Record, stipulated by the parties, and oral argument on the Petitioner NLRB’s motion for injunctive relief, resisted by Respondent Whitesell Corporation (Whitesell). The NLRB seeks an order requiring Whitesell pursuant to section 10(j) of the National Labor Relations Act (Act) to cease engaging in unfair labor practice activities.
About two and one-half years ago, this court after a hearing enjoined Whitesell from engaging in the unfair labor practices that were heard by Administrative Law Judge (ALJ) Bruce D. Rosenstein.
Now before the court is the record made before ALJ Paul Bogas in Des Moines on June 1-4, 2009. Three complaints were consolidated for hearing, but several other complaints asserted by the union did not survive the Regional Director’s scrutiny. Based on the record before me and the oral and written arguments of counsel, the court now concludes that the evidence proves Whitesell has engaged in acts and conduct that violates section 8(a)(1) and (5) of the Act; this affects commerce; and Whitesell will likely repeat this conduct unless it is enjoined. This is an extraordinary case where the delay inherent in completing the adjudicatory process will frustrate the NLRB’s ability to remedy Whitesell’s unfair labor practices. See Sharp v. Parents in Community Action, Inc.,
The court finds Whitesell prematurely declared an impasse in negotiations, en
Whitesell’s plea that adverse market conditions and loss of a major customer drove its actions is not credible. White-sell’s accusations about union representatives’ bad faith bargaining are also not supported in this large record concerning the more recent Whitesell conduct during and after bargaining sessions that have adversely affected the employees and the union.
Applying the four factor test articulated in Dataphase Systems, Inc. v. C L Systems, Inc.,
Therefore the court now enters its ORDER GRANTING INJUNCTION, filed herewith.
IT IS SO ORDERED.
Dated this 11th day of September, 2009.
APPENDIX B
James River Flood Control Ass’n et al. v. Watt et al.
Civil No. 81-1012 (D.S.D. May 18, 1982)
ORDER
Upon all the evidence presented at trial, the Court finds
(1) that there is a very substantial question of law present in this case, and a substantial likelihood of success on the merits on both of plaintiffs’ causes of action;
(2) that there is a substantial probability that if the challenged project is allowed to go forward, plaintiffs’ present interests in the proper compliance by defendants with the provisions of the National Environmental Policy Act (NEPA) will be irreparably harmed by construction of a project which is likely in violation of NEPA;
(3) that the public interest will also be severely harmed if construction of the challenged project proceeds in spite of defendants’ likely violations of NEPA and other federal statutes in that any funds spent by defendants on the prosecution of an illegal project will be irretrievably lost;
(4) that in view of the probability of harm to plaintiffs’ interests and the public interest, any injury accruing to defendants by the enjoining of the project during the pendency of this case is outweighed by the probability of harm to the plaintiffs and to the public interest, it is therefore
ORDERED that defendants are hereby enjoined from any acquisition of land and construction in the West Oakes area, initial stage of the Garrison Diversion Unit, during the pendency of this action or until further Order of this Court.
Dated May 18,1982.
. The NLRB decision based on that ALJ's findings and conclusions presently is before the United States Court of Appeals for the Eighth Circuit, but no decision has been issued yet.
