Drabinsky v. Actors' Equity Association

106 F.4th 206
CourtCourt of Appeals for the Second Circuit
DecidedJuly 2, 2024
Docket23-795
StatusPublished
Cited by5 cases

This text of 106 F.4th 206 (Drabinsky v. Actors' Equity Association) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Drabinsky v. Actors' Equity Association, 106 F.4th 206 (2d Cir. 2024).

Opinion

23-795-cv Drabinsky v. Actors’ Equity Association

United States Court of Appeals For the Second Circuit August Term, 2023

(Argued: December 5, 2023 Decided: July 2, 2024)

Docket No. 23-795-cv _____________________________________

GARTH DRABINSKY,

Plaintiff-Appellant,

v.

ACTORS’ EQUITY ASSOCIATION,

Defendant-Appellee. _____________________________________ Before:

SACK, LOHIER, and KAHN, Circuit Judges.

Broadway producer Garth Drabinsky alleges that the union representing theater actors and state managers unlawfully boycotted, defamed, and harassed him during his production of the musical Paradise Square. Drabinsky brought antitrust claims and New York state tort claims against the union. The United States District Court for the Southern District of New York (Schofield, J.) held that Drabinsky’s antitrust claims were barred by the statutory labor exemption derived from the Clayton Antitrust Act of 1914 and the Norris-LaGuardia Act of 1932, and that his tort claims were barred under Martin v. Curran, 303 N.Y. 276 (1951). We AFFIRM. LUKE HASSKAMP, Bona Law PC (Jarod Bona, Bona Law PC, La Jolla, CA; Molly Donovan, Bona Law PC, New York, NY; Aaron Gott, Bona Law PC, Minneapolis, MN; Richard Alan Roth, The Roth Law Firm, PLLC, New York, NY; Joshua D. Wright, Lodestar Law & Economics, PLLC, McLean, VA, on the brief), La Jolla, CA, for Plaintiff-Appellant.

JEFFREY L. KESSLER, Winston & Strawn LLP (David L. Greenspan, Winston & Strawn LLP, New York, NY; Evan Hudson-Plush, Cohen, Weiss and Simon LLP, New York, NY, on the brief), New York, NY, for Defendant-Appellee.

Andrew Lyubarsky, Matthew Ginsburg, American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), Washington, DC, for Amicus Curiae AFL-CIO in support of Defendant-Appellee.

LOHIER, Circuit Judge:

The Sherman Antitrust Act of 1890 prohibits contracts, combinations, and

conspiracies “in restraint of trade,” as well as monopolies over trade. 15 U.S.C.

§§ 1, 2. In the years following the Act’s passage, the Supreme Court repeatedly

enjoined union activity as an unlawful restraint of trade. See, e.g., Loewe v. Lawlor,

208 U.S. 274, 304–05 (1908); see also Duplex Printing Press Co. v. Deering, 254 U.S.

443, 484–85 (1921) (Brandeis, J., dissenting). Prompted by labor unions to

respond, Congress enacted the Clayton Antitrust Act in 1914 and the Norris-

2 LaGuardia Act in 1932 “to immunize labor unions and labor disputes from

challenge under the Sherman Act” and exempt them from sure ruin under the

guise of antitrust law enforcement. H.A. Artists & Assocs. v. Actors’ Equity Ass’n,

451 U.S. 704, 713 (1981). The principal and until now unresolved question in this

appeal is whether an antitrust plaintiff suing a union bears the burden of proving

that the statutory labor exemption does not apply, or whether the union must

raise the exemption as an affirmative defense. We conclude that the plaintiff

bears the burden of proving (and therefore must plead) that the exemption does

not apply.

The union in this case, Actors’ Equity Association (“Equity”), represents

over 50,000 theater actors and stage managers. The plaintiff, Broadway producer

Garth Drabinsky, alleges that Equity organized an illegal boycott that ousted him

from the business of producing live shows. Drabinsky claims that Equity

violated the Sherman Act and various state laws, including defamation. The

United States District Court for the Southern District of New York (Schofield, J.)

dismissed Drabinsky’s complaint (the “Complaint”) under Federal Rule of Civil

Procedure 12(b)(6). As most relevant to this appeal, it held that Equity’s conduct

3 was exempt from antitrust liability under the Sherman Act. We agree and

therefore affirm.

BACKGROUND 1

Paradise Square, a Broadway musical, explores racial conflict and the

calamitous 1863 Civil War race riots in New York City. The show, originally

conceived a decade ago, was produced by Drabinsky, a Tony Award-winning

producer whose previous hits include Ragtime and a 1994 revival of Show Boat.

From the start, Drabinsky’s Paradise Square production was marred by conflict.

Cast members complained bitterly about Drabinsky’s management, his repeated

displays of racial insensitivity, unpaid wages, and safety concerns on the set.

Equity, which represents the cast members, responded by spreading rumors

about Drabinsky to its members and to the Broadway League, the trade

association for theater producers. Equity also instituted a one-day work

stoppage, exposing Drabinsky to even more negative attention and press. Equity

ultimately placed Drabinsky on its “Do Not Work” list in order to discourage

1The following facts are drawn from the Complaint and assumed to be true for purposes of our de novo review of the District Court’s judgment dismissing the Complaint for failure to state a claim upon which relief can be granted. Schlosser v. Kwak, 16 F.4th 1078, 1080 (2d Cir. 2021). 4 Equity’s members and members of its four “sister” unions (representing

television, radio, concert, and film performers) from working with him.

Drabinsky originally sued Equity in federal court under state law based on

diversity jurisdiction, claiming that the union engaged in an unlawful campaign

of defamation and harassment. Equity countered that the District Court lacked

subject-matter jurisdiction over the case under 28 U.S.C. § 1332 because complete

diversity between the parties was lacking. Drabinsky amended his complaint to

add federal antitrust claims, which he now acknowledges were intended to

invoke the District Court’s federal-question jurisdiction. Equity moved to

dismiss the amended complaint for failure to state a claim. The District Court

granted the motion with prejudice, holding that Equity’s conduct was exempt

from antitrust liability under the statutory labor exemption derived from the

Clayton and Norris-LaGuardia Acts. And Drabinsky’s state claims, the District

Court determined, were barred under New York law because he failed to allege

that Equity’s members had individually ratified Equity’s allegedly unlawful

conduct.

This appeal followed. The American Federation of Labor and Congress of

Industrial Organizations (popularly known as the “AFL-CIO”) filed an amicus

5 brief in support of Equity, urging affirmance of the District Court’s holding that

the statutory labor exemption bars Drabinsky’s antitrust claims.

DISCUSSION

I. Federal Antitrust Claims

The Sherman Antitrust Act declares illegal “[e]very contract, combination

. . . , or conspiracy, in restraint of trade.” 15 U.S.C. § 1. It also penalizes those

who “monopolize, or attempt to monopolize, or combine or conspire . . . to

monopolize any part of . . . trade.” 15 U.S.C. § 2. The Act “was largely directed

at business monopolies and trade restraints, but it was almost immediately

invoked against unions.” Conn. Ironworkers Emps. Ass’n v. New Eng. Reg’l Council

of Carpenters, 869 F.3d 92, 100 (2d Cir. 2017).

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Bluebook (online)
106 F.4th 206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drabinsky-v-actors-equity-association-ca2-2024.