DHSC, LLC v. California Nurses Ass'n/National Nurses Organizing Committee

700 F. App'x 466
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 3, 2017
Docket16-3737
StatusUnpublished
Cited by5 cases

This text of 700 F. App'x 466 (DHSC, LLC v. California Nurses Ass'n/National Nurses Organizing Committee) 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
DHSC, LLC v. California Nurses Ass'n/National Nurses Organizing Committee, 700 F. App'x 466 (6th Cir. 2017).

Opinion

MERRITT, Circuit Judge.

In this case brought under the Labor Management Relations Act by plaintiff DHSC, LLC, d/b/a Affinity Medical Center (“Affinity”), against the California Nurses Association/National Nurses Organizing Committee, AFL-CIO (“Union”), Affinity claims that the Union violated a so-called “implied” agreement to arbitrate election disputes by filing charges with the National Labor Relations Board (“Board”). The district court dismissed Affinity’s complaint for lack of subject-matter jurisdiction because federal case law holds that it cannot exercise jurisdiction over “primarily representational” claims that have been decided by the Board. On appeal, Affinity argues that its claim is not primarily representational, but is instead a matter of contract interpretation within federal court jurisdiction.

We agree with the district court that this case has been decided by the National Labor Relations Board. Although Affinity characterizes its complaint as presenting a contract interpretation issue, this case is fundamentally about whether the Union was properly elected and certified as the bargaining representative of Affinity’s employees. The Board expressly rejected Affinity’s argument that relies on the alleged existence of an implied agreement to arbitrate representational disputes. That decision is now on appeal to the D.C. Circuit as part of the Union’s unfair labor practices claim against Affinity.

Alternatively, we find that Affinity signed an express agreement recognizing the Board’s authority over representational disputes, and this agreement makes it clear that no implied agreement to arbitrate representational disputes exists. Accordingly, we affirm the judgment of the district court.

I. Factual and Procedural Background

Affinity Medical Center is a medical facility in Massillon, Ohio that employs registered nurses. In early 2012, the nurses explored joining a labor union, the California Nurses Association. During that time, the Union and Affinity negotiated a “Labor Relations Agreement” to govern the organization efforts of the nurses. The Labor Relations Agreement provided that “[t]he Parties agree to submit any unresolved disputes about [the Agreement] to final and binding arbitration!.]” The Labor Relations Agreement also incorporated a document called the “Election Procedure Agreement” that stated, “[i]f the parties are unable to resolve a dispute, either party may ... submit the unresolved dispute about [the election procedures] for final and binding resolution by .the permanent Arbitrator!.]’’ But neither the Labor Relations Agreement nor the Election Procedure Agreement was ever signed or executed by the parties.

Subsequently, the initial negotiations between the parties soured. On August 20, 2012, the Union directly petitioned the Na *468 tional Labor Relations Board to represent the nurses as their exclusive bargaining representative in the negotiations with Affinity. Two days later, both Affinity and the Union signed a “Consent Election Agreement” using the Board’s standard form, which the Board’s Regional Director approved. This agreement recognized the Regional Director, not an arbitrator, as the final authority over representational disputes. Paragraph 12 of the Consent Election Agreement states:

Objections to the conduct of the election or conduct affecting the results of the election, or to a determination of representation based on the results of the election, may be filed with the Regional Director within 7 days after the tally of ballots has been prepared and made available to the parties.... The method of investigation of objections and challenges, including whether to hold a hearing, shall be determined by the Regional Director, whose decision shall be final.

(emphasis added). At the time of the agreement’s signing, neither party informed the Regional Director of any prior agreements governing election disputes.

On August 29, 2012, the Board’s Regional Office conducted an election to determine whether the Union would represent the nurses. The Union received one hundred votes, while ninety-six votes were cast against it. Although the Union won the election to represent the nurses, Affinity challenged the legitimacy of seven of the ballots. Since seven ballots could have swung the vote, the Board’s Regional Director launched an investigation into the election. On September 7, 2012, the Regional Director requested that Affinity provide supporting evidence for its objections regarding the election, warning that a failure to do so “will result in [Affinity’s] objections being overruled without further investigation.” Despite the warning, Affinity provided no evidence to support its objections, nor did it request a time extension to submit evidence. On September 21, 2012, the Regional Director issued a “Report on Challenged Ballots and Objections,” recommending that Affinity’s objections be overruled because it did not submit any evidence. The Report allowed four of the seven challenged ballots to be counted, which did not change the outcome of the election. Accordingly, a majority of the voters were still in favor of unionizing, and, on October 5, 2012, the Regional Director certified the Union as the National Labor Relations Act Section 9(a) representative of the Affinity nurses. 29 U.S.C. § 159(a). 1

The Union, in its capacity as the nurses’ representative, attempted to begin bargaining with Affinity. Affinity allegedly refused to bargain with the Union and denied the Union representatives access to Affinity’s facilities. Affinity also allegedly took adverse actions against nurses who had been associated with organizing activities. The Union consequently filed charges with the National Labor Relations Board, alleging that Affinity’s actions amounted to unfair labor practices. Responding to the charges, the National Labor Relations Board’s Office of General Counsel investigated and issued a complaint on March 29, 2013, alleging that Affinity had violated the National Labor Relations Act. Among Affinity’s defenses to the General Counsel’s complaint was the argument that the Board’s certification of the Union was un *469 enforceable because “the election was conducted pursuant to ... an oral ‘ad hoc’ agreement by which the parties gave exclusive jurisdiction to determine challenged ballots and objections to an arbitrator!;.]” DHSC, LLC, 2015 WL 1956191, at *5, 2013 NLRB LEXIS 483, at *7 (April 30, 2015). Affinity claimed that the prior negotiations between the parties had implied the existence of a binding agreement to arbitrate election disputes despite the failure to execute any such agreement.

On July 1, 2013, an Administrative Law Judge assigned to the case rejected all of Affinity’s defenses, finding that Affinity had violated multiple provisions of the National Labor Relations Act through its conduct toward the Union and Affinity’s own employees. Id. at -, 2013 NLRB LEXIS 483, at *82-83.

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Bluebook (online)
700 F. App'x 466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dhsc-llc-v-california-nurses-assnnational-nurses-organizing-committee-ca6-2017.