BE&K Construction Co. v. National Labor Relations Board

246 F.3d 619, 166 L.R.R.M. (BNA) 2971, 2001 U.S. App. LEXIS 6013
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 9, 2001
DocketNos. 99-6469, 00-5012
StatusPublished
Cited by1 cases

This text of 246 F.3d 619 (BE&K Construction Co. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BE&K Construction Co. v. National Labor Relations Board, 246 F.3d 619, 166 L.R.R.M. (BNA) 2971, 2001 U.S. App. LEXIS 6013 (6th Cir. 2001).

Opinion

OPINION

DAUGHTREY, Circuit Judge.

In the midst of a contentious labor dispute, the petitioner, BE&K Construction Company, filed suit in federal court in California against numerous labor organizations. The purpose of the lawsuit was to squelch certain concerted activity in which the unions were engaging on behalf of members who were on the BE&K construction site as employees of various subcontractors and to ensure safe working conditions on the job-site. When the district court denied the requested relief, the unions filed complaints with the National Labor Relations Board, alleging that BE&K’s court filings constituted an unfair labor practice. Based on the Supreme Court’s ruling in Bill Johnson’s Restaurants v. NLRB, 461 U.S. 731, 103 S.Ct. 2161, 76 L.Ed.2d 277 (1983), the Board agreed with the unions and ordered the petitioner to cease and desist from its illegal activities and, additionally, ordered the company to reimburse the unions for their attorneys’ fees and costs. From that decision, the petitioner seeks review, contending (1) that the opinion in Bill Johnson’s does not apply to non-employee unions; (2) that the district court suit in California did not constitute an unfair labor practice because it did not completely lack a reasonable basis; (3) that there was not substantial evidence to support the Board’s ruling that the California litigation was retaliatory; and (4) that the Board was not justified in awarding costs and fees against the petitioner. Also before this court is the Board’s related petition for enforcement of its order. For the reasons detailed in this opinion, we conclude that BE&K’s petition for review should be denied and the Board’s petition for enforcement granted.

FACTUAL AND PROCEDURAL BACKGROUND

In late 1986 or early 1987, BE&K, an industrial general contractor operating throughout the United States, contracted with USS-POSCO Industries, Inc., to modernize a steel mill in Pittsburg, California. BE&K then formed a joint venture with Eiehleay Constructors, Inc., to perform the contract work. According to BE&K, various union groups objected to the BE&K agreement with USS-POSCO because BE&K maintained no collective bargaining relationship or agreement with the unions. BE&K contends that in retaliation for USS-POSCO awarding the modernization contract to a non-union contractor, the unions engaged in various activities to delay the project. Specifically, BE&K maintains that the unions: advocated the adoption and enforcement of a toxic waste emission standard for the construction project, even though the labor groups had no genuine concern that the modernization of the steel mill would be environmentally harmful; picketed and hand-billed at BE&K’s premises without disclosing the nature of their disagreement with the company and encouraged employees of subcontractors to engage in a strike at the project; filed a civil action in California state court, Piledrivers, Divers, Bridge Wharf & Dock Builders Union Local 34 AFL-CIO, et al. v. USS-[622]*622POSCO Indus., Inc., et al., alleging, among other things, violations of California’s Health and Safety Code in an effort to delay the modernization project and increase costs; and initiated contract grievances against Eichleay Constructors, BE&K’s joint venturer, under collective bargaining agreements that did not apply to Eichleay.

In response to what BE&K pejoratively terms the unions’ “corporate campaign,” USS-POSCO and BE&K filed suit in district court in California against numerous labor organizations pursuant to § 303 of the National Labor Relations Act, 29 U.S.C. § 187, seeking damages for the allegedly unfair tactics. The union defendants filed motions for summary judgment with the court, arguing that “the activities challenged in the first and third claims (legislative lobbying and filing lawsuits, respectively) are protected by the First Amendment,” and that “because contractual grievance and arbitration proceedings are the preferred method of resolving labor disputes under federal labor policy,” the fourth claim regarding initiation of grievance proceedings cannot result in labor law liability. See USS-POSCO Indus. v. Contra Costa County Bldg. & Constr. Trades Council, AFL-CIO, 692 F.Supp. 1166, 1168 (N.D.Cal.1988).

Relying upon the rationale adopted by the United States Supreme Court in Bill Johnson’s Restaurants, Inc. v. NLRB, 461 U.S. 731, 103 S.Ct. 2161, 76 L.Ed.2d 277 (1983), the district court granted summary judgment to the union defendants on the companies’ legislative lobbying claim (Claim 1). As noted by the district court:

The lobbying of state and local legislative bodies implicates the same First Amendment and federalism concerns at issue in Bill Johnson’s Restaurants. The right to petition a legislative body falls squarely under the “umbrella of ‘political expression’.” As for federalism concerns, this Court will not lightly infer a Congressional intent to “ignore the substantial state interest in protecting the health and well-being of its citizens.” Such an interest is clearly at stake when a toxic waste law is under consideration by a local legislative body.

USS-POSCO Indus., 692 F.Supp. at 1169-70 (citations omitted).

Summary judgment was also granted to the defendants on Claim 4 (initiating collective bargaining grievances). In so ruling, the district court relied upon the fact that even USS-POSCO’s and BE&K’s own exhibits indicated that the challenged grievances had been successful and, “[a]s with well-founded state lawsuits, successful grievances to enforce lawful provisions of a collective bargaining agreement cannot constitute unfair labor practices.... ” Id. at 1170.

Finally, summary judgment was denied, without prejudice, on the claim that the unions improperly filed a state court action against the companies. In making that ruling, the district judge noted that, while the right of access to the courts is a protected Frist Amendment right, a baseless state suit receives no such protection. The court thus allowed the parties additional time for discovery in order to ascertain whether the unions’ state court lawsuit was indeed baseless. See id. at 1170.

Subsequently, after the dismissal of two of USS-POSCO’s and BE&K’s claims against the defendant unions, USS-POS-CO and BE&K filed an amended complaint that not only included some claims similar to those upon which the court had previously granted summary judgment, but also a claim that alleged, for the first time, violations of §§ 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1 and 1px solid var(--green-border)">2. In response to dispositive motions filed by the union defendants, the district court dismissed the [623]

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246 F.3d 619, 166 L.R.R.M. (BNA) 2971, 2001 U.S. App. LEXIS 6013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bek-construction-co-v-national-labor-relations-board-ca6-2001.