Hannam Chain USA, Inc. v. National Labor Relations Board

District Court, District of Columbia·Decided November 17, 2025·No. Civil Action No. 2025-2896·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

HANNAM CHAIN USA, INC., Plaintiff,

v.

Civil Action No. 25-2896 (TJK)

NATIONAL LABOR RELATIONS BOARD et al.,

Defendants.

MEMORANDUM OPINION

Hannam Chain USA, Inc., a California-based Korean grocery chain, sued the National La-

bor Relations Board and several of its officers, alleging that the NLRB’s pending unfair labor practices proceeding against it is unlawful. Hannam Chain seeks preliminary relief enjoining the proceeding, which was set to begin on October 28, 2025, but was postponed because of the recent lapse in appropriations. Still, for the reasons explained below, the Court will deny the motion because under the Norris-LaGuardia Act, it lacks jurisdiction to order a preliminary injunction. I. Background A. Statutory Framework The National Labor Relations Act (“NLRA”) protects the rights of employees to engage in certain “concerted activities for the purpose of collective bargaining or other mutual aid and pro- tection.” 29 U.S.C. § 157. To safeguard these rights, Congress created the National Labor Rela- tions Board (“NLRB”). Among its powers, the agency oversees union elections, 29 U.S.C. § 159(c), and investigates unfair labor practice claims against employers and unions, id. § 160. If the agency determines that a claim has merit, an NLRB regional office issues a complaint detailing the charges and setting a hearing before an Administrative Law Judge (“ALJ”). Id. § 160(b). After

the hearing, the ALJ submits a report and recommendation to the agency’s Board, which may dismiss the case or order the respondent to “cease and desist from such unfair labor practice” and take other “affirmative action including reinstatement of employees with or without back pay.” Id. § 160(c). The NLRB has also determined that it has the power to order “compensation for direct or foreseeable pecuniary harms” that “result from a respondent’s unfair labor practice.” Thryv, Inc., 372 NLRB No. 22, 14 (Dec. 13, 2022), vacated in part by Thryv, Inc. v. NLRB, 102 F.4th 727 (5th Cir. 2024). A party “aggrieved by a final order of the [NLRB] may obtain a review . . . in any United States court of appeals in the circuit wherein the unfair labor practice in question was alleged to have been engaged in or wherein such [party] resides or transacts business,” or in the D.C. Circuit, 29 U.S.C. § 160(f), but “[n]o objection that has not been urged before the [agency] . . . shall be considered by the court” unless the failure to raise the objection is excused by “ex- traordinary circumstances,” id. § 160(e).

The NLRB executes its powers and performs its duties through various officers, including its General Counsel, ALJs, and the multimember Board itself, which a chairman heads. The NLRB’s General Counsel—who is “appointed by the President, by and with the advice and consent of the Senate” for a four-year term—retains “final authority” over unfair labor practices investiga- tions and prosecutions. 29 U.S.C. § 153(d). At least three circuit courts have held that the Presi- dent can remove the agency’s General Counsel at will, noting the lack of any statutory provision restricting that authority, and no party here suggests otherwise. See generally Rieth-Riley Constr. Co. v. NLRB, 114 F.4th 519, 531 (6th Cir. 2024), cert. denied, 145 S. Ct. 1429 (2025); NLRB v. Aakash, Inc., 58 F.4th 1099, 1104–06 (9th Cir. 2023); Exela Enter. Sols., Inc. v. NLRB, 32 F.4th 436, 443–45 (5th Cir. 2022).

Unlike the General Counsel, the agency’s ALJs and Board Members are ostensibly

insulated from at-will removal by statute. Specifically, under the Administrative Procedure Act (“APA”), ALJs can be removed by the President only “for good cause established and determined by” the Merit Systems Protection Board (“MSPB”) “on the record after opportunity for hearing before the [MSPB],” 5 U.S.C. § 7521(a), while Board Members, under the NLRA, can be removed only “for neglect of duty or malfeasance in office, but for no other cause,” 29 U.S.C. § 153(a). That said, courts have cast grave doubt on the constitutionality of the ALJs and Board Members’ statutory for-cause removal restrictions. The government recently argued in another case that Board Members are removable at will, and at its request the Supreme Court stayed an order en- joining the President’s at-will removal of a Board Member, emphasizing that “the Constitution vests the . . . President” with the power to “remove without cause executive officers who exercise that power on his behalf.” Trump v. Wilcox, 145 S. Ct. 1415 (2025). Similarly, a court in this district held that the ALJs’ dual for-cause removal protections unconstitutionally “choke off ac- countability to the President” in violation of Article II. VHS Acquisition Subsidiary No. 7 v. NLRB, 759 F. Supp. 3d 88, 100 (D.D.C. 2024). There, the court severed from the APA language permit- ting the ALJs’ removal “only for good cause established and determined by the [MSPB] on the record after opportunity for hearing before the Board.” Id. at 101 (quoting 5 U.S.C. § 7521(a)); see also Space Expl. Techs. Corp. v. NLRB (“SpaceX”), 151 F.4th 761, 775 (5th Cir. 2025) (holding that the NLRB ALJs’ two-layered for-cause removal restrictions are unconstitutional).

B. Hannam Chain’s Labor Dispute & the NLRB Complaint Between June 2022 and September 2023, the California Restaurant and Retail Workers Union (“CRRWU”), a labor union seeking to represent Hannam Chain’s employees—joined by an individual complainant—filed four unfair labor practices charges against Hannam Chain with the NLRB. ECF No. 5 (“Am. Compl.”) ¶¶ 12–15; ECF No. 11-2 (“NLRB Compl.”). In February

2023, CRRWU petitioned to represent employees at a particular Hannam Chain location and, in October that year, an election ensued. ECF No. 11-1 ¶¶ 5–7. In December 2023, the NLRB de- termined that CRRWU had lost the election. Id. ¶ 7.

In May 2025, the NLRB filed an administrative complaint against Hannam Chain, alleging that the company had threatened and retaliated against its employees for supporting union activi- ties and advocating for better pay, hours, and working conditions in violation of Section 8(a)(1) and (3) of the NLRA. ECF No. 11-1 ¶ 11; NLRB Compl. At that time, William B. Cowen, who had been appointed by President Trump in early February 2025, was serving as the agency’s Act- ing General Counsel. Am. Compl. ¶¶ 30–31. As relief, the complaint seeks “payment for lost hours and/or restoration of leave/vacation taken as a result of the Respondent’s unlawful conduct” and “all other relief as may be just and proper to remedy the unfair labor practices alleged.” NLRB Compl. ¶¶ 18(iii)–(iv). The complaint also set the related administrative hearing on October 28, 2025, and “consecutive days thereafter until concluded.” Id. ¶ 26. Plaintiff answered the com- plaint in June 2025. ECF No. 11-3.

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