Autonation, Inc. v. National Labor Relations Board

801 F.3d 767, 204 L.R.R.M. (BNA) 3177, 2015 U.S. App. LEXIS 15771, 2015 WL 5166349
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 4, 2015
Docket14-2991, 14-3361
StatusPublished
Cited by7 cases

This text of 801 F.3d 767 (Autonation, Inc. v. National Labor Relations Board) 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
Autonation, Inc. v. National Labor Relations Board, 801 F.3d 767, 204 L.R.R.M. (BNA) 3177, 2015 U.S. App. LEXIS 15771, 2015 WL 5166349 (7th Cir. 2015).

Opinion

WOOD, Chief Judge.

Union activity was afoot at Libertyville Toyota late in the summer of 2011. When rumors to this effect reached it, Liberty-ville’s owner, a company called AutoNation, held a series of meetings with the affected staff. An employee surreptitiously recorded the last of these meetings, a lengthy affair conducted largely by two *769 AutoNation executives. Around the same time, Libertyville suspended one of its employees, an automotive painter named Jose Huerta. The dealership’s manager had received an anonymous voicemail accusing Huerta of promoting the- union cause and of receiving a charge of driving under the influence. Once suspended, Huerta did not return to Libertyville. It ultimately fired him, but the parties disagree on when that happened and for what reasons. Both sides concur, however, that Huerta received a computer-generated letter from a third party vendor to AutoNation indicating that Huerta’s employment would not be continued.

A local chapter of the International Association of Machinists and Aerospace Workers (the Union) filed charges against AutoNation and Village Motors, LLC (which did business as Libertyville Toyota — we refer to them in the singular as AutoNation) with the National Labor Relations Board in 2011. An administrative law judge (ALJ) concluded that certain comments by the AutoNation executives at the recorded meeting violated the National Labor Relations Act (the Act) in multiple ways. He did not, however, uphold the accusation that AutoNation had unlawfully suspended and discharged Huerta because of his union activity. A three-member panel of the Board, with one member dissenting on two points, affirmed the judge’s conclusions about the meeting but reversed as to Huerta’s discharge. AutoNation has filed a petition for review of the Board’s rulings, and the Board has cross-applied for enforcement. Although we do not endorse all of the Board’s language in its opinion, we conclude that substantial evidence supports its findings and that its decision is entitled to enforcement.

I

Libertyville Toyota is a 140-employee car dealership in the Village of Liberty-ville, Illinois. Its service department has 80 employees engaged in tasks such as fixing vehicles, painting them, and performing shipping and receiving. In August 2011, dealership management learned of discussions among technicians about unionizing. Not long afterward, Libertyville’s general manager, Taso Theodorou, held a few brief meetings with workers in the service department to discuss the topic of unionization. On August 23, two members of AutoNation’s corporate team joined Theodorou for another such meeting. We know what was said at this last meeting because a dealership employee secretly recorded it; the tape was subsequently transcribed; and the ALJ relied on it.

Theodorou opened the August 23 meeting and then turned it over to AutoNation vice president and associate general counsel Brian Davis. Davis was joined by Jonathan Andrews, one of the company’s regional human resources directors. The transcript of the discussion among these men and the dealership’s workers runs 111 pages; we focus here on those excerpts that concerned the Board and that are pertinent to the petitions before us.

On the same day as the meeting among Davis, Andrews, Theodorou, and the Lib-ertyville employees, Theodorou received a voicemail at the dealership. The caller stated that she was “calling on behalf of the spouse of one of your employees,” but she refused to identify herself because her husband was “afraid that if they find out that we’re the ones who said anything, that they will retaliate.” The caller accused two employees, Jose Huerta and Herme-negildo Tellez, of “trying to stir up this whole union and create issues.” Tellez and Huerta were having arguments with other employees, she said, and worse, they had “questionable” moral standards. In particular; she noted that Huerta “doesn’t even have a license” and “had a DUI.” The caller finished by opining that the situation *770 with Huerta and Tellez was “definitely something that needs to be addressed.”

After receiving the voicemail, Theodorou contacted Andrews to acquire a motor vehicle report on Huerta. When it arrived, the report showed that Huerta had a suspended driver’s license. This was a problem, because Huerta was classified as a driving employee at Libertyville. He had signed copies of a dealership policy that required employees both to possess a valid license and to inform superiors of changes to their driving privileges. Davis admitted that Theodorou consulted him on how to proceed with Huerta. The ALJ found that Davis “advised Theodorou how to proceed, with a view toward protecting both Huerta and the Company.” Theodorou told Huerta’s immediate supervisor, service department director David Borre, to suspend Huerta. On August 26, 2011, Borre called Huerta in for a meeting during which Huerta admitted that he had received the DUI charge and that his driver’s license was suspended. Borre told Huerta he was suspended until September 14 and asked him “to try to get his driver’s license situation corrected.” (Huerta’s court hearing on his DUI charge was scheduled for September 13.)

One day after meeting with Borre, Huerta received a letter signed “2280-Lib-ertyville Toyota.” The letter informed Huerta “that information contained in a consumer report, if accurate, would prevent 2280-Libertyville Toyota from extending an employment offer, continuing your current employment or granting a promotion to you at this time” (emphasis added). The letter, dated August 25, 2011, invited Huerta to “contact Sterling within 5 business days” if he thought the attached background screening report was inaccurate. Although the letter itself gave no indication of who “Sterling” was, the attached report indicated that it had been prepared by a company called Sterling In-fosystems. AutoNation contracted with Sterling to furnish motor vehicle reports on its employees, and Sterling automatically sent a letter when it found an adverse notation in an employee’s driving record. On September 3, Huerta received another letter (dated September 1), also signed by “2280-Libertyville Toyota” but prepared by Sterling. This letter told Huerta “that an offer of employment, a continuation of current employment or the granting of a promotion will not be made at this time ” (emphasis added). Not long after receiving this letter, Huerta applied for unemployment benefits with the State of Illinois. The Illinois Department of Employment Security promptly informed AutoNation about Huerta’s filing, and Theodorou responded that Huerta had been suspended and not terminated. (There is no indication that he ever passed this news along to Huerta.) Huerta did not return to work, and Theodorou sacked him on September 21 for “job abandonment.”

At the end of August 2011, the Union filed an unfair labor charge against Auto-Nation with the Board alleging that Liber-tyville had suspended Huerta because of his union activity. Three months later, the Union amended this charge to add a claim about Huerta’s firing and to raise several new unfair labor claims against AutoNation. In December 2011, the Board’s general counsel filed a complaint against Village Motors (later adding AutoNation) raising claims about AutoNation employees’ statements at the August 23, 2011, meeting and about Huerta’s suspension and firing.

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801 F.3d 767, 204 L.R.R.M. (BNA) 3177, 2015 U.S. App. LEXIS 15771, 2015 WL 5166349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/autonation-inc-v-national-labor-relations-board-ca7-2015.