Case Information
*1 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA SCHWARZ PARTNERS PACKAGING,
LLC, doing business as Maxpak ,
Plaintiff, Civil Action No. 13-343 (BAH) v. Judge Beryl A. Howell NATIONAL LABOR RELATIONS BOARD,
et al. ,
Defendants. MEMORANDUM OPINION
This action for declaratory and injunctive relief arises out of a union election conducted at the plaintiff, Schwarz Partners Packaging, LLC’s, manufacturing facility in Lakeland, Florida. Compl. ¶ 2, ECF No. 1. The plaintiff challenges the actions of the defendant, the National Labor Relations Board (“NLRB”), in “sustaining certain objections to [the union] election” and “directing a ballot count and second election” at the plaintiff’s plant on grounds that “the Board lacked a quorum and had no authority to act.” ¶ 1. Pending before the Court are two motions: the plaintiff’s Motion for Summary Judgment (“Pl.’s Mot.”), ECF No. 12, and the defendants’ Motion to Transfer or, in the alternative, Motion to Dismiss (“Defs.’ Mot.”) for lack of subject matter jurisdiction, ECF No. 13. For the reasons stated below, the defendants’ motion to dismiss is granted. The plaintiff’s motion for summary judgment and the defendants’ motion to transfer are denied as moot.
I. BACKGROUND
The plaintiff manufactures packaging material at its Lakeland facility under the business name Maxpak and “is an employer within the meaning of section 2(2) of the National Labor Relations Act (“NLRA”).” Compl. ¶ 4; see also Decl. of Joseph A. Kennedy, Director of Human Resources, Schwarz Partners Packaging, LP (“Kennedy Decl.”) ¶ 1, ECF No. 12-1. On March 15, 2012, the NLRB held an election (the “first election”) at the plaintiff’s Lakeland facility to determine whether the United Steelworkers International Union (the “Union”) would represent certain employees. Compl. ¶ 12. More than ninety-six percent of the plaintiff’s Lakeland workforce voted in the election. Decl. of David Cohen, NLRB Regional Atty., Region 12 (“Cohen Decl.”) Ex. D at 63, ECF No. 13-1. Following the election, the Union challenged the validity of two ballots on the grounds that ineligible employees cast them. Compl. ¶ 12. Since the vote was very close, with thirty-nine votes in favor of the Union and thirty-eight votes opposed, these challenged ballots were potentially determinative.
The objections posed by the Union and the plaintiff to the conduct of the election,
including the ballot challenges, were presented to an NLRB hearing officer whose findings were
eventually reviewed by a three-member panel of the NLRB, consisting of Chairman Mark
Pearce, Member Richard Griffin and Member Sharon Block. ¶ 13;
see
Compl. Ex. 1 (NLRB
Decision and Direction in
Schwarz Partners Packaging, LLC, D/B/A/ Maxpak v. United
Steelworkers International Union
, Case No. 12-RC-073852 (N.L.R.B. Aug. 29, 2012)) (“NLRB
Decision”) at 1–2, ECF No. 1-1. The plaintiff argued to the panel that Members Griffin and
Block were not valid members of the NLRB because their “purported recess” appointments were
“unconstitutional and void and that the Board therefore lacked a quorum to act.” Compl. ¶ 13
.
*3
The panel considered and rejected this argument. NLRB Decision at 1 n.3, ECF No. 1-1 (citing
Ctr. for Social Change, Inc.
,
The NLRB panel ultimately adopted the hearing officer’s recommendation that the Union’s challenges to the two contested ballots be overruled and ordered that the ballots be counted. Id. at 1 n.2. In considering the remaining objections to the conduct of, and events leading up to, the first election, the NLRB panel determined that two of the Union’s objections “considered individually or cumulatively, would warrant setting aside the election” in its entirety. Id. at 2. In particular, the NLRB panel found no basis to overrule the hearing officer’s crediting of testimony that a supervisor told the plaintiff’s employees that a “union would make it easier for him to fire people” and also told at least one employee that “he would have already discharged [the employee] if she were represented by the Union” during the “critical period” prior to the election. at 3.
The NLRB panel ordered the contested ballots counted and provided for two potential outcomes. If the revised ballot count resulted in the Union winning the first election, the NLRB’s regional director would be “directed to issue a certification of” the Union as the employees’ bargaining representative. at 4. Alternatively, if the contested ballots showed the Union losing the first election, the regional director was instructed to “set aside the election and order a new election.” When the contested ballots were counted, the “Union lost the election 40 to 39.” Compl. ¶ 16. Consequently, the results of the first election were set aside and a second election was conducted. In this second election, ninety-nine percent of the plaintiff’s workforce voted and a strong majority—fifty-five out of seventy-six votes cast—voted for union representation. Cohen Decl. Ex. I at 110, ECF No. 13-1. On November 6, 2012, *4 the NLRB’s regional director “certified the Union as the collective bargaining representative” on behalf of the plaintiff’s employees. Compl . ¶¶ 16–17.
The plaintiff filed suit in this Court on March 15, 2013, alleging that, under binding D.C.
Circuit precedent, “the recess appointments of Ms. Block and Mr. Griffin to the [NLRB] were
unconstitutional” and, therefore, the defendants could not “legally take any action, including but
not limited to ordering, conducting, or certifying the results of any representative election”
because it lacked a quorum. ¶¶ 19–20 (citing
Noel Canning v. NLRB
,
II. LEGAL STANDARD
A motion to dismiss for lack of subject matter jurisdiction under Federal Rule of Civil
Procedure 12(b)(1) focuses a federal court on its “affirmative obligation to consider whether the
constitutional and statutory authority exist” for it to hear a case.
James Madison Ltd. by Hecht v.
Ludwig
,
The Supreme Court has explained that “the irreducible constitutional minimum of
standing contains three elements.”
Lujan v. Defenders of Wildlife
,
When a purported lack of jurisdiction stems from a lack of standing, the court “must
assume that [the plaintiff] states a valid legal claim.”
Info. Handling Servs., Inc. v. Def.
Automated Printing Servs
.,
III. DISCUSSION
The plaintiff seeks summary judgment based on the D.C. Circuit’s opinion in Noel Canning . Pl.’s Mem. Supp. Mot. Summ. J. (“Pl.’s Mem.”) at 1, ECF No. 12. Indeed, the plaintiff appears so confident that it is entitled to the relief sought that it spends a mere six paragraphs, consisting of nine sentences, on its substantive legal argument. at 4–5. [3] In doing so, the plaintiff effectively ignores the substantial jurisdictional issues in its suit, devoting one sentence of its complaint—relying upon 28 U.S.C. §§ 1331 and 1337 for subject matter jurisdiction—and no portion of its memorandum in support of its motion for summary judgment to the topic. Compl. ¶ 7; Pl.’s Mem., generally .
The defendants seek transfer of this case to the Middle District of Florida or, in the alternative, dismissal of this action under Federal Rule of Civil Procedure 12(b)(1) for lack of subject matter jurisdiction. Defs.’ Mot. at 1. [4] Since no district court has jurisdiction under the *7 NLRA to hear the plaintiff’s claims, the Court grants the alternative relief sought by the defendants. In light of this finding, the Court need not address the other arguments in support of and opposition to the plaintiff’s motion for summary judgment or the defendants’ motion to transfer. A brief explanation of the statutory scheme under which the instant challenge is raised is helpful to understand the two reasons why the plaintiff’s complaint must be dismissed.
A. Review Under The NLRA
The NLRA provides for only one method by which actions of the NLRB may be
judicially reviewed: through a challenge to a “final order of the Board . . . in any United States
court of appeals.” 29 U.S.C. § 160(f). The Supreme Court is clear that the certification of a
union, standing alone, is not a “final order of the Board” for the purposes of the NLRA, such that
it can be challenged by an employer.
See Am. Fed’n of Labor v. NLRB
(“
AFL
”),
of union certifications.
See Canadian Am. Oil Co. v. NLRB
,
The plaintiff attempts to circumvent this clear proscription against bringing the instant action in district court by averring that it “does not seek review of the merits of [the] NLRB’s Decision.” Pl.’s Opp’n Defs.’ Mot. (“Pl.’s Opp’n”) at 13, ECF No. 15; see also Compl. ¶ 23 (“The Board’s August 29, 2012 decision and the November 6, 2012 certification are both void from their inception because the Board lacked a quorum.”). Instead, the plaintiff claims it is “challeng[ing the] NLRB’s composition and statutory authority to act.” Pl.’s Opp’n at 13 .
B. The Plaintiff Lacks Article III Standing
Neither party addresses what is ultimately a fatal flaw in the plaintiff’s case, namely,
whether the plaintiff has standing to sue under Article III. The Court must address this critical
question, since “[w]hen there is doubt about a party’s constitutional standing, the court must
resolve the doubt,
sua sponte
if need be.”
Lee’s Summit, Mo. v. Surface Trans. Bd.
,
As discussed in Part II,
supra
, in order to have standing to sue in federal court, the
plaintiff must have suffered “an injury in fact.”
See Lujan
,
In the instant matter, the plaintiff declares that it “does not seek review of the merits of
[the] NLRB’s decision,” Pl.’s Opp’n at 13, and that “[t]he merits of the Decision are not before
this Court,”
id
. In doing so, the plaintiff deprives itself of standing. By removing the merits of
the NLRB Decision from consideration, the plaintiff’s contention boils down to an assertion of
standing to pursue its claim because the defendants issued an
ultra vires
order to the plaintiff
without a quorum. Compl. ¶¶ 21–23. Merely asserting that the NLRB issued an order
without a quorum in violation of federal law is insufficient to confer Article III standing, unless
the plaintiff also shows some injury, which the plaintiff has not.
See Lujan
,
The only cognizable particularized injury claimed by the plaintiff is referenced in its
claim for injunctive relief, where it asserts that it is, by virtue of the NLRB Decision, “being
required to violate the law by bargaining with and potentially entering into a contract with a
union.” Compl. ¶ 26. This is simply untrue. The mere certification of the Union does not
require the plaintiff to do anything. As the Supreme Court explained nearly seventy-five years
ago, “the certification does not itself command action.”
AFL
,
While failure to bargain with the representative of an employer’s employees may be an unfair labor practice, the NLRB’s certification of an election does not force an employer to engage in bargaining. Rather, an employer is only forced to act under the NLRA when “the Board has ordered the employer to do something predicated upon the results of an election.” Id. at 411 (quoting 79 Cong. Rec. 7658). In the instant matter, the NLRB has not yet required the plaintiff to bargain with the Union. Compl., generally . The NLRB can do so only in the context of an order to remedy an unfair labor practice, such as a failure to bargain. See AFL , 308 U.S. at 407 . Critically, in order to enter such an order, the NLRB must serve the employer with a “complaint and notice of a hearing by the Board with opportunity to file an answer and be heard.” at 406. Only after such a hearing is held can the NLRB order the plaintiff to do what the plaintiff complains of: bargain—or potentially sign a contract—with the Union. at 409. Such an order has not yet been entered against the plaintiff, thus there is no injury in fact.
A plaintiff may assert the violation of a procedural right as the basis for standing, but
only “so long as the procedures in question are designed to protect some concrete interest of his
*11
that is the ultimate basis of his standing.”
Lujan
,
This is the Catch-22 in which the plaintiff finds itself. The Supreme Court has held that if a plaintiff is the object of an illegal government action “there is ordinarily little question that the action or inaction has caused [the plaintiff] injury.” The action that allegedly caused the plaintiff injury in the instant case is the NLRB Decision ordering a new election and subsequently certifying the Union. See Compl., generally . The NLRA and Supreme Court precedent make clear, however, that such actions are not subject to review in district courts. See Part III.A, supra . To avoid this prohibition on judicial review and bring suit in this Court, the *12 plaintiff asserts that it is not challenging the NLRB Decision, but, instead, the ability of the NLRB to act without a quorum. See Pl.’s Opp’n at 13 (“[The plaintiff] challenges NLRB’s statutory power to make any decision at all.”). In doing so, the plaintiff converts its particularized grievance—that the NLRB Decision harms the plaintiff—into a generalized grievance—that the NRLB could not act because it did not have a quorum, regardless of the substance of the NLRB Decision.
The solution to this conundrum is simple: the plaintiff need only follow the procedure the
plaintiff used in
Noel Canning
, the very precedent the plaintiff asserts applies to the instant
matter.
See
Pl.’s Mem. at 4. In that case, the plaintiff initiated “a routine review of a decision of
the National Labor Relations Board” that the plaintiff had engaged in an unfair labor practice,
“over which [the D.C. Circuit has] jurisdiction under 29 U.S.C. § 160(e) and (f).”
Noel Canning
,
In attempting to circumvent the procedure outlined in the NLRA for judicial review, the plaintiff has converted what is, in all likelihood, a sufficiently particularized grievance upon which standing could be based before a court of appeals in a challenge to a final NLRB Order, into a generalized grievance on which standing cannot be sustained. As such, this Court lacks subject matter jurisdiction over the plaintiff’s claims and the complaint must be dismissed.
C. This Court Has No Jurisdiction Under The NLRA Assuming, arguendo , that the plaintiff has pleaded a sufficiently particularized grievance, neither this Court nor any other district court may hear its challenge to the representation decision of the NLRB. As explained in Part III.A, supra, Congress has barred, in the NLRA, judicial review of such decisions. The plaintiff attempts to avoid this conclusion by invoking a seldom-used exception to this presumption of non-reviewability. The plaintiff’s efforts are unavailing.
The plaintiff implicitly acknowledges that it could not ordinarily bring its claim for relief
from the NLRB Decision before a district court but nonetheless asserts that this Court has
subject matter jurisdiction under
Leedom v. Kyne
,
Leedom
was that rare case. There, the NLRB refused “to take a vote among the
professional employees [in a potential bargaining unit] to determine whether a majority of them
would ‘vote for inclusion in such unit,’ [and] included both professional and nonprofessional
employees in the bargaining unit that it found appropriate.”
Leedom
,
The D.C. Circuit has held that “invocation of
Leedom
jurisdiction . . . is extraordinary; to
justify such jurisdiction, there must be a specific provision of the Act which, although it is clear
and mandatory, was nevertheless violated by the [agency].”
Ass’n of Civilian Technicians, Inc.
v. Fed. Labor Relations Auth.
,
The D.C. Circuit reasoned that employers were generally outside the scope of
Leedom
because employers’ concerns could be “judicially reviewed . . . in a subsequent unfair labor
practice proceeding. While this procedure is available to an aggrieved employer (by refusing to
bargain with a certified representative) . . . it is practically unavailable to an unsuccessful union,”
as was the case in
Leedom
.
Id.
Since an unfair labor practice charge is required to initiate the
indirect review of NLRB certification decisions, an employer’s refusal to bargain with a certified
union will typically lead to such review, since a union has a vested interest in filing such a
charge. The same is not true of a union; a union that refused to bargain with an employer
would likely lose the support of its members and, in that circumstance, an employer would be
highly unlikely to file an unfair labor practice charge against the union for refusal to bargain.
Moreover, in light of the statutory bar to judicial review of representation decisions, the D.C.
Circuit observed that “an unsuccessful union in a certification proceeding before the [NLRB] has
no adequate remedy by review.” (quoting
Cox v. McCulloch
,
At the same time, due to the statutory constraints on judicial review, including a bar on
judicial review of NLRB representation decisions and exclusive authority vested in the courts of
appeal to review final orders, the D.C. Circuit has cautioned that the extraordinary nature of
Leedom
relief “cannot be overstated, because . . .
Leedom
jurisdiction is extremely narrow in
scope.”
Nat’l Air Traffic Controllers Ass’n AFL-CIO v. Fed. Serv. Impasses Panel
(“
Air Traffic
Controllers
”),
The cases cited by the plaintiff in support of its contention that the instant case constitutes
“extraordinary circumstances” warranting the exercise of
Leedom
jurisdiction are unpersuasive.
At the outset, two of the cases on which the plaintiff places particular reliance,
Railway Labor
Executives’ Ass’n v. National Mediation Board
(“
RLEA
”),
For instance, instead of the virtual
carte blanche
the NLRB has in certification
procedures—by virtue of such certifications not constituting “final orders”— the RLA provision
at issue in
RLEA
, 45 U.S.C. § 152 Ninth, strictly circumscribed the pertinent agency’s review
power.
RLEA
,
Unlike the situation in Leedom , the NLRA provides a readily available avenue for judicial review of the NLRB Decision in the instant matter, so long as the plaintiff follows the indirect review procedure confirmed over more than seventy years of NLRA jurisprudence. Thus, the RLEA court, in finding jurisdiction where there was no other avenue to obtain judicial review, undercuts the plaintiff’s position that such jurisdiction is appropriate here where an alternative method of judicial review is readily available.
The plaintiff’s reliance on
Dart v. United States
,
Unlike the action in
Dart
, where the government official did not have the authority to
reverse an administrative law judge’s decision under the statute, the NLRB has the authority
under the NLRA to certify union elections and, furthermore, district courts may not hear
challenges to those decisions. Also unlike in
Dart
, where the plaintiff had no opportunity for
judicial review,
see Dart
,
As for the plaintiff’s arguments that applies because of the constitutional nature
of the alleged violation, the plaintiff’s argument is belied by the very cases on which the plaintiff
relies for support. In
Lawrence Typographical Union v. McCulloch
,
McCulloch v. Libbey-Owens-Ford Glass Co.
,
Finally,
Free Enterprise Fund v. Public Co. Accounting Oversight Board
, 130 S. Ct.
3138, 3150 (2010), another case on which the plaintiff relies for the proposition that objections
“collateral to any . . . orders or rules from which review might be sought” are reviewable in
*21
district court, Pl.’s Opp’n at 18, is likewise distinguishable. In
Free Enterprise Fund
, the
Supreme Court considered whether a statute conferring jurisdiction on the Securities and
Exchange Commission over actions of the Public Company Accounting Oversight Board was
“an exclusive route to review” of the Board’s decisions, thus precluding district court review.
Free Enterprise Fund
,
* * * In sum, by avoiding any challenge to the merits of the NLRB’s certification, the plaintiff has deprived itself of Article III standing. Even if the plaintiff had attacked that certification directly, neither this Court nor any other district court has subject matter jurisdiction over the plaintiff’s claims because of the exclusive review provision of the NLRA, which vests jurisdiction in the courts of appeal after a final board action. jurisdiction is unavailable *22 because of this meaningful opportunity for judicial review. Consequently, the plaintiff’s claims are dismissed.
IV. CONCLUSION
For the aforementioned reasons, the defendants’ motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1) is granted. The plaintiff’s motion for summary judgment and the defendants’ motion to transfer are denied as moot.
An appropriate Order accompanies this Memorandum Opinion.
Date: January 28, 2014
__________________________ BERYL A. HOWELL United States District Judge
Notes
[1] The NLRB’s Acting General Counsel is also named as a defendant for the purposes of injunctive relief only, see Compl. ¶ 6, and not because he is alleged to have been involved in any of the conduct at issue, see id. , generally (seeking injunction against Defendant Acting General Counsel to prevent the filing of unfair labor practice charge against plaintiff). The plaintiff is not challenging the Acting General Counsel’s appointment or the potential validity of his actions. , generally ; see also Defs.’ Mem. Supp. Mot. Transfer or Mot. Dismiss (“Defs.’ Mem.”) at 6 n.3, ECF No. 13. Unless otherwise mentioned, reference to actions of “the defendants” in this memorandum opinion refers to the actions of defendant NLRB.
[2] The facts discussed are taken from the Complaint, the plaintiff’s declaration in support of its Motion for Summary Judgment, and the declarations filed in support of the defendants’ Motion to Dismiss.
[3] Even if this Court had jurisdiction over the instant matter, which it does not, the Court would be inclined to stay its decision until the Supreme Court issues a decision in NLRB v. Noel Canning , which was argued in January 2014.
[4] Although ultimately irrelevant to the resolution of the pending motions, the Court notes that all of the election events at issue occurred in the Middle District of Florida; most, if not all of the witnesses likely to be called in this
[6] The plaintiff’s conclusory assertion that this Court has jurisdiction over its claims by virtue of 28 U.S.C. §§ 1331
and 1337 is unavailing. Both are general federal jurisdiction statutes and “[t]he courts uniformly hold that statutory
review in the agency’s specially designated forum”—here, the courts of appeal—“prevails over general federal
question jurisdiction in the district courts.”
Media Access Project v. FCC
,
[7] The instant matter resembles that resolved by the D.C. Circuit in
National Association of Home Builders
. In that
case, the plaintiffs sought to challenge an EPA determination that a particular river was subject to Clean Water Act
jurisdiction, a determination that could, in the future, cause the plaintiffs to need to acquire permits to develop their
properties.
See NAHB
,
[8] The plaintiff challenges this assertion by citing to a forty-eight year old district court case,
Bullard Co. v. NLRB
,
[9] Indeed, the evaluation of constitutional challenges in the RLA context is wholly different from challenges to the
NLRA.
See U.S. Airways, Inc.
,
[10] In his concurrence in
RLEA
, Judge Randolph characterized this policy change as a new “rule” within the meaning
of the Administrative Procedures Act (“APA”).
[11] The plaintiff is correct that the D.C. Circuit held that the question at issue in
RLEA
was that of the National
Mediation “Board’s very jurisdiction—a question that is analytically distinct from and
antecedent
to the issue of
whether the Board correctly found the ‘fact’ of representation.”
RLEA
,
[12] The defendants argue that the plaintiff’s Count II, for injunctive relief, has been “abandoned” as a result of the plaintiff ignoring this claim in its Motion for Summary Judgment. Defs.’ Mem. at 21. The Court disagrees. While Count II is not abandoned, the plaintiff concedes “that Count II would not survive independently from Count I,” Pl.’s Opp’n at 21, and since the plaintiff lacks standing for Count II in the same way as for Count I, both claims must be dismissed.
