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Vic Tanny International, Inc. v. National Labor Relations Board
622 F.2d 237
6th Cir.
1980
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*1 237 1979) (no However, implied private right of law is affirmed. action securities eral order stays plain- Bankruptcy of the which part prevent under Act to credi- using under fraud claims informal Commodity tors methods to collect tiffs’ debts). Exchange Act is reversed and remanded for proceedings court consistent district in the deci- concurring Rehnquist, Justice opinion. v. of University Chicago, sion of Cannon 718, 677, 99 60 U.S. S.Ct. 441 PHILLIPS, HARRY Senior Circuit (1979), 560 stated what I believe to (Concurring part Judge. dissenting guiding principle: be the part.) “far Congress better” for only is Not holding dissent of respectfully I from the when it private specify intends liti- so majority implied private right action, cause of but for gants under the Commodity action exists Ex- very of reason this in the Court future change exception, Act. With this concur extremely reluctant to imply a should opinion. majority of action specificity absent such on cause Legislative Branch. implied right of action My dissent hold the plaintiffs implied I would have no Congress, on the failure of issue is based right of action under the amended 1974, private specify the Act in it amended when Commodity Exchange Act. See Fischer v. private it intended to continue to allow Co., (N.D.Tex. F.Supp. 481 53 damage despite its creation Rosenthal actions of an reparations proce- administrative elaborate Mortgage Transamerica Advis- See

dure. Lewis,-U.S.-, 100 S.Ct.

ors, v. Inc. (1979) (Congress’ ex-

242, 146 62 L.Ed.2d of alternative provision means to en-

press 206 the Investment Advisors Act §

force precludes implication private of a

damage remedy thereunder); Securities In- Corp. Barbour, Protection v.

vestor U.S. INTERNATIONAL, 1733, 412, (1975) (Secu- 44 L.Ed. 263 95 S.Ct. VIC TANNY INC., Petitioner, assignment Investor Protection rities Act’s “plenary authority” super- SEC v. failing precludes vise the SIPC customers RELATIONS NATIONAL LABOR from maintaining private broker-dealers BOARD, Respondent. compel SIPC to act for their suits bene- No. 77-1709. fit); Passenger Corp. National Railroad v. Association of Railroad National Passen- Appeals, Court of States United 453, 690, U.S. S.Ct. 38 L.Ed.2d gers, Circuit. Sixth (§ 307(a) of the Rail Passenger 1970, Argued Act which allows the Attor- Feb. Service file suits to force ney General railroads Decided comply negates any private compliance). of action to enforce Cf. cause Ross & Co. v. Redington,

Touche 442 U.S. (1979) (no L.Ed.2d 82

implied private damage remedy under 17(a) Exchange of the Securities Act of

§

1934); v. Taylor Brighton Corp., 616 F.2d 1980) (no (6th private Cir. implied dam- 11(c) OSHA); remedy

age Ryan § Co., 611 F.2d 1170 Edison

v. Ohio

EDWARDS, Judge. Chief International, Inc., Vic Tanny Petitioner court’s and the vacation of review seeks order, Labor Relations Board a National (1977). at 232 N.L.R.B. No. reported for enforce- cross-petition filed The upon which order. The facts of its ment any substan- turns are not decision be drawn but the inferences to dispute, tial application of law there- therefrom certainly are. Tanny operates health one of its 10 Vic Detroit City area in the spas Livonia, Michigan. In four fe- spa at the Livonia became instructors male dispute in a with John man- involved dispute Livonia club. The ulti- ager led to of the four instructors mately discharged. It is being refused to certain four premises togeth- and left the work assigned carry their over this issue er to manager who located at the area Tanny area office in Dearborn. Vic hearing before an Administrative After Judge, the ALJ that the three found discharged employees were fired for “insub- walk- preceding and that their ordination” motivating no role in dis- played unanimously The NLRB conclud- charges. the ALJ erred in his conclusion ed concerning discharges motivation of “at that the were motivated held part by employees’ participation least 24May walkout.” The Board’s decision the essential facts our consider- presents follows: as ation fit- operates “Respondent physical metropolitan in the Detroit clubs ness herein occurred at its events area. Hooth, Youngblood, L. Cox William Livonia, Michigan. May On facility in Mich., respon- Perry, Troy, B. James Rochelle instructor-employees dent. Szabo, Mitchell, Linda Reagan, jobs Janet walked off Moore, Deputy Patrick Szymanski, Elliott protest against Respondent’s allegedly Counsel, B., Wash- Gen. R. Associate pick up them to require pay- decision Director, C., Gottfried, Bernard ington, D. headquar- its supplies at checks roll N.L.R.B., Detroit, Mich., peti- Region Dearborn, Michigan, 14 miles ters tioner. Thereafter, Szabo, away. discharged. Lange were Judge, and EDWARDS, Chief Before BROWN JONES, Circuit Judges. [*] [*] [*] [*] [*] [*] outcome of her discussion above, disclosed the Respondent’s Dear- “As noted facility served as head- to her It born, Michigan, fellow instructors. Detroit for all clubs quarters Monday jobs area. On of each

metropolitan off to Dear- go walk would one week, facility designate each an effort conflict resolve the born headquarters travel in or- superior, Supervisor Baker’s Area *3 supplies paychecks. and up pick to der McDowell. William of an selection to Prior Dearborn, met the “At the trip Dearborn at for the employee and aired grievance. McDowell with strictly a facility was made on Livonia were they advised McDowell them that trip was not a basis. voluntary out wrong to walk and that their action employ- assignment and the sought-after subject He discharge. rendered vol- general a displayed reluctance ees they that return to Livonia recommended trip though it even meant for the unteer straighten attempt the matter and half hour’s pay. an additional receiving Baker, Baker. also told McDowell with Szabo, Lange were Indeed, Reagan, telephone, subject that they were all that arrangement dissatisfied so up and action was to Bak- termination up Mitchell ended mak- employee discretion. er’s fairly regular basis. on a trip the ing club, return to “Upon their Livonia the Mana- Livonia Club opinion “In the Reagan speak girls asked Baker to Baker, primary the reason for ger John Baker he group. responded that aas lay dissatisfaction the the speak with them but on an individ- would assign- nature of voluntary Dearborn the During Baker’s conversation basis. ual Accordingly, in order to remedy ment. read Reagan produced and with situation, assign Baker decided to grievances which included list of a trip on a ro- the Dearborn sup- to Dearborn and the the both basis, tating with each travel- Reagan duties. When plemental every once weeks. Allowances ing either perform to refuse to continued special for be made unforeseen cir- functions, two Baker her informed these cumstances. discharged. was likewise she Szabo that a “On Baker conducted perform either and as function refused meeting explained the rotating Lange agreed was terminated. result employees. the They vocifer- schedule Dearborn but refused to en- to travel decision, protested the ously but to no cleaning informed work. Baker gage appears that the issue of avail. position he would consider her that her instructor-employees assisting in these then advise her of his La- decision. when the maids were absent cleanup duty evening, Lange that Baker contacted ter was debated. her notified that he could not retain 24,May Monday, the roster for the “On the proposed conditions she her trip posted was and Assistant Dearborn she was terminated. therefore that Kopka Mary Reagan informed Manger Mitchell both functions responsible making she was the retained. The re- and was termination Reagan day. go, refused to trip that indicate ports and Szabo Kopka whereupon requested that she dis- insub- the result of During matter with Baker. cuss they, respectively, and because ordination ensuing Reagan conversation ” job.’ ‘walked out ‘walked out’ in her go adamant refusal to remained omitted). (Footnotes thereto, response In Dearborn. reciting facts, Board rea- Reagan for the remainder suspended After as follows: day. soned discussion, above, before Reagan the issues “Following “In view (1) pro- coffee the May the club’s room and there 24 walkout went to us are: so, pay whole for activity; any if ment and made loss of tected Respondent’s discharging conduct in 8(a)(1) had suffered as a result employees motivated the walkout. violation.1 questions are answered in the If both that the contends Tanny Petitioner Vic affirmative, then must be violation of the four con- instructors did not walkout found. protected activity within stitute “The Counsel General contends meaning of 7 of the National Law Judge the Administrative should Act, 29 151-168 Labor Relations U.S.C. §§ that the pro- concluded walkout was no evi- that there is substantial (1976), and agree. We tected finding Board’s dence case, the circumstance of this Under engag- instructors were banding together spontaneous emphasis walkout. The in a ing stoppage the form of a work as a ees upon is petitioner of their disagreement manifestation *4 1976, in this record that on May shown employer’s clearly pro- conduct is their discharged em- employees, plus the R. B. v. Wash- tected to Mitchell, Debbie did refuse indeed ployee Inc., Company, Aluminum ington specific given by orders carry out 1099, 8 U S.Ct. 298] .S. [82 petitioner’s earnest Manager Baker. It is Center, Inc., General Nutrition (1962); insubordi- that such refusal was contention (1975). 221 NLRB nation, which was the sole of their cause the “We also find evidence to discharges. dis- Counsel’scontention that the General motivated, part, in charges were at least of7 the National Relations Labor Section in the employees’ participation by the as follows: reads Act First, of- Respondent’s 24 walkout. Employees to self- right shall have the the laid employees that commented ficials form, to join, organization, or assist labor discharge walking to open for themselves to bargain collectively organizations, Second, the job. information set the off of through representatives their own reports for both in the termination forth in engage other concert- to choosing, and reveals that their dis- and Szabo purpose the of collective ed activities result of were the both insubordi- charges other bargaining protec- or mutual or aid having job. the walked off nation tion, and shall also have right the notations sufficient to es- such findWe any or all of such activities refrain that the walkout—a tablish extent may that except right to the such activity precipitated concerted — by agreement requiring affected Therefore, discharges. we find that the membership organization in labor aas 8(a)(1) violated Section of the Respondent employment in as authorized condition discharging Reagan, by Lange, and Act 158(a)(3) of this title. U.S.C. section rights for exercising in their Szabo (1976). § under Section 7 the Act.” guaranteed omitted). (Footnotes appears It clear to that this court employees who were the thereupon Board concluded that the The had undertaken in concert Reagan, Lange discharges, Szabo grievances several regarding discuss discharge em- threat made to those working Mitchell, employer. conditions with their ployees weekly pertained grievances practices, labor in violation of Sec- These unfair objected trip of the Dearborn to which each 8(a)(1) tion ordered employees requirement be offered full reinstate- substitute with, restrain, (a) practice shall be an unfair labor interfere em- It for an or coerce rights guaranteed employer— in ployees the exercise title; . 157 of in section (1976). § 29 U.S.C. (1962); 8 L.Ed. 298 NLRB v. when cleaning up premises maid Co., Inc., Arts appears was absent. clear Metal Leslie F.2d 811 Reagan suspended when to us that We see no distinction in- refusal to follow Baker’s her individual in the remedies or available under the Act trip she make the Dear- struction employees organized a un- between Act employees affected born, four of the all unorganized who, employees none- ion leave their work in order agreed to theless, concert joined actions to deal company higher carry grievances. with their We do not see in Dearborn. how authority not, employer in such a is how- case regard pro- this as could fail ever, helpless employ- left the Act. The activity or “other mutual tected here would have been entitled to refuse er meaning within the protection” or aid or who left work pay duties, as just assigned refused conclusions, course, do not ter- These refuse to economic strikers pay he could case, of this our consideration be- minate of a union. strike led a labor the instance fact, none of the four cause likewise replaced He could subjected out were to immedi- walked who words, with other workers. In other ees Manager discipline. or Club ate case, employer faced with a individually to them talked walkout by unorganized employ- day, upon reiterated his insistence same a condition of employment, over had the ees to Dearborn and performance options available to him that would same *5 duties, substitute employer available an been faced Reagan, Szabo when each refus- by strike economic unionized em- perform the work concerned. Em- ed prohibited the law What Vic Tan- ployees. Mitchell, at Baker’s insistence and on ployee doing discharge was to from ny —or discharge, agreed perform penalty discharge employees threaten —these both the involved Dearborn work part they engaged or because whole maid duties and the substitute was activity. Packing NLRB v. Gissel concerted retained. Co., U.S. 23 matter, Congress As we see the (1969); Capitol Broadcasting drafting clearly pro Section intended NLRB, (6th 1973). 479 F.2d 329 v. Cir. Co. only activity tect not issue conclusion leads us to the next This union, of a labor but also concerted sanction case, namely, whether there is sub- in this engaged by of the same nature activity support evidence to the Board’s stantial unorganized employees. 7 of the Section finding employees the three were dis- guarantees employees right NLRA part least in because of the charged at organize engage in unions and in collective 24 walkout. guarantees unorganized bargaining. wrote Regardless employer what engage right “in other employees discharge slips, we believe that purpose activities of . on the be substantial evidence Thus, there protection.” unorgan aid or mutual conclu the Board’s record whole jointly who employees participate in a ized “at were motivated sion present in the instant case —to walkout —as by part” employees’ protected least management related are job necessary “It is not activity protected in concerted by engaged discharge] reason be the regardless prohibited of whether or not the a [for Section discharge If the is motivated in are members one. of a union. An sole employees activities 8(a)(1) by violates dis the National employer Section threatening or Relations is a violation of charging em Labor 8(a)(1).” NLRB v. for such walkout. NLRB v. Elias Bros. Res ployees taurants, Co., 1165, 1167 Aluminum F.2d Washington 370 U.S. fact that of the three

The additional two discharge slips recited “walk- RELATIONS NATIONAL LABOR on the job” as reasons and “walkout out” BOARD, Petitioner, dismissal, while obvi- for their v. activity, leader of the concerted ous discharge slip attitude” saying “bad given KATZ, d/b/a American P. Samuel represent greater sup- to us to even seems (Plant Respondent. 2), Mailers # for the Board’s port conclusion that 78-1001. No. unlawfully penalized 7 of exercising rights guaranteed by Section Appeals, States Court of United the NLRA. Circuit. Sixth will be The Board’s order enforced. April Argued BROWN, Judge, dis- BAILEY Circuit Decided senting. respectfully dissent. following dissent is based on the My by the were found Administrative and, without importantly, more are

Judge After these four had

dispute. after had returned

walked and their Dearborn conference with they were supervisor, separately inter- manager, and each of by the

viewed that if make was advised she would trips to pick up payroll

her share cleanup work do when the maid

cheeks ill, she would retained as an Reagan and Szabo refused to

ee. *6 task were thereupon discharged.

either agreed to make but refused help her cleanup; Baker advised he think it later that over but her. to do discharged Mitchell

day tasks was retained as an

both

ee. foregoing without dis- are

Since how see said that

pute, cannot can be (overruling decision of the Board Judge) to the effect

Administrative walkout) activity (the the concerted part” played

“at least the decision sup- these three employees is Moore, Winer, Deputy Michael S. Elliott con- ported by substantial evidence. the On Counsel, B., L. Gen. N. R. Susan Associate absolutely clear trary, it is that these C.,D. Washington, Papadopoulos, Tepper refusal employees were for their Director, Gottfried, Region Bernard is, work, do insubordination. Detroit, B., Mich., petitioner. R. Accordingly, in view of these Levin, Finkel, Levin, J. Garvett Robert facts, opinion my decision Mich., Adelson, Southfield, Dill, S. Glenn supported by evi- is not substantial respondent. dence.

Case Details

Case Name: Vic Tanny International, Inc. v. National Labor Relations Board
Court Name: Court of Appeals for the Sixth Circuit
Date Published: May 16, 1980
Citation: 622 F.2d 237
Docket Number: 77-1709
Court Abbreviation: 6th Cir.
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