520 South Michigan Avenue Associates, Ltd. v. Unite Here Local 1

760 F.3d 708, 2014 WL 3720253, 200 L.R.R.M. (BNA) 3121, 2014 U.S. App. LEXIS 14609
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 29, 2014
Docket13-1938
StatusPublished
Cited by12 cases

This text of 760 F.3d 708 (520 South Michigan Avenue Associates, Ltd. v. Unite Here Local 1) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
520 South Michigan Avenue Associates, Ltd. v. Unite Here Local 1, 760 F.3d 708, 2014 WL 3720253, 200 L.R.R.M. (BNA) 3121, 2014 U.S. App. LEXIS 14609 (7th Cir. 2014).

Opinion

TINDER, Circuit Judge.

The Congress Plaza Hotel appeals the dismissal of its lawsuit, on summary judgment, alleging that the Unite Here Local 1 Union has engaged in unfair labor practices during its historically long-running strike against the Hotel. 1 The strike began back in 2003, but apparently escalated in 2008, when the Union pursued a new and more aggressive strategy. It began engaging in secondary activity — i.e., targeting organizations that had made arrangements to reserve large blocks of rooms or space at the Hotel, in the hopes that they would cancel their plans and thus pressure the Hotel to end the strike. The Union would send delegations, consisting of striking Hotel workers and Union staff in groups of between two and ten people, to the stores and offices of these potential Hotel patrons. Delegates were instructed to impress upon the decision-makers of these organizations, both orally and through written materials, the Union’s position in the strike and its disapproval of the target organization’s plans to use the Hotel. The conduct of these delegates is the focal point of this case.

The Hotel claims that the Union delegations crossed the line into unlawful secondary labor activity, in violation of 29 U.S.C. § 187(a) and 29 U.S.C. § 158(b)(4)(ii)(B). It claims that, instead of utilizing persuasion, the Union coerced the Hotel’s customers into cancelling their agreements to book rooms at the Congress. Although the strike eventually ended on May 29, 2013, the Hotel seeks damages for past activity under Section 187(b). At the close of discovery, the district court granted the Union summary judgment, on the ground that the Union’s conduct was not coercive, and that barring it as a matter of federal labor law would raise important free speech concerns. We now reverse the district court’s decision in part, and remand for a trial regarding whether certain of the defendant’s actions were coercive, whether any such coercive conduct damaged the Hotel, and if so, to what extent.

I. Background

Because this case comes to us on summary judgment, we will recite the facts the Hotel has put into the record, resolving every reasonable factual dispute between the parties in its favor. See Griffin v. City of Milwaukee, 74 F.3d 824, 826-27 (7th Cir.1996). We do not vouch for their ultimate truth or accuracy.

A. The Alleged Secondary Activity

The Hotel has accused the Union of unfair labor practices with regards to the following potential customers. We begin with the allegations we consider most likely to be actionable:

1. American Tango Institute (ATI)

ATI contracted with the Hotel in 2010 to host its tango festival that August. According to ATI president Netza Roldan, the organization is a “very small, nonprofit organization” that uses the tango festival *712 as its “annual fundraiser event.” Union officials responded to ATI’s plans by sending Roldan a letter on May 7 requesting that he cancel ATI’s plans with the Hotel. It also began contacting him by fax, mail, and telephone. According to Roldan’s testimony, the Union left telephone messages and sent emails every ten minutes for one hour on the morning of May 11, 2010, and also made three or four calls to his personal phone. Roldan soon learned that the Union had called and emailed ATI’s artistic director, Jorge Torres, to inform him of the Union’s opposition to ATI’s booking, even though Torres played no part in that decision. Roldan sent contemporaneous emails to the Hotel complaining about the Union’s repeated contacts.

Although Roldan initially called Union officials and told them he did not want to communicate with them any further, the delegations persisted in setting up a meeting at ATI’s headquarters in Chicago. The delegation, consisting of between seven and nine people, had notified Roldan in advance that it was coming. Roldan testified that at this meeting Union delegates threatened to visit ATI affiliates “and go to their houses or companies” in order to add pressure. They also allegedly threatened to picket the tango festival itself. Roldan earlier noted that Union boycott coordinator Jessica Lawlor had registered to attend the festival on the ATI web site, and he had no reason to think she intended to be a good-faith participant. Roldan further testified that this first meeting was sufficiently heated that he told his assistant to be prepared to call the police. The Union members then left and the police were not called. 2

After this first meeting, Union delegates entered ATI’s office, which was located on the third floor of an office building that was secured by electronic lock, and left literature behind on two occasions. On a third occasion they left literature in the lobby of the building. Roldan testified that no Union representative was given permission to enter the building to drop literature. Union members also apparently posted a letter on Roldan’s office door demanding that ATI cancel its reservations with the Hotel.

About two weeks after the first meeting, Roldan arranged a second face-to-face discussion with a Union delegation, but he remained firm that he did not want to change ATI’s room reservations. He testified that the delegation threatened to “have people in [the festival] and talking to our guests” about the strike. Even after this second meeting, the Union continued to contact ATI. Roldan testified that he felt “harassed” and “pressed” to cancel the arrangements with the Hotel, and that he was concerned that the Union would picket the festival and harass its participants, along with ATI’s members, clients, sponsors and employees, such as Jorge Torres.

Roldan and ATI’s board thereafter decided to cancel the contract with the Hotel, even though the organization did not have an alternate site ready. ATI eventually moved the festival to a smaller venue in a different part of the city on short notice. Roldan testified that ATI “had to change the whole concept of the event” due to the change. The new venue was not a hotel, which meant that participants had to lodge away from the festival. This inconvenience allegedly harmed the event’s attendance. As a result, ATI lost approximately $20,000 and had to revise its marketing materials to reflect the change in hotels. Roldan estimated that ATI also lost about $40,000 in expected revenue due to a de *713 crease in participation. The organization also reportedly suffered a 60% drop in membership following the incident.

2. International Housewares Association (IHA)

IHA contracted with the Hotel for four years’ worth of room blocks, from 2008 to 2011, for its annual trade show. In early 2009, Union representative Jessica Lawlor phoned IHA vice president Mia Ramper-sad to tell her that the IHA should not book rooms at the Hotel. Rampersad testified that Union delegations entered IHA’s offices in Illinois and threatened to picket the IHA trade show, although the word “picket” may not have been used.

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760 F.3d 708, 2014 WL 3720253, 200 L.R.R.M. (BNA) 3121, 2014 U.S. App. LEXIS 14609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/520-south-michigan-avenue-associates-ltd-v-unite-here-local-1-ca7-2014.