Hob Nob Hill Restaurant v. Hotel Employees & Restaurant Employees International Union

660 F. Supp. 1266, 126 L.R.R.M. (BNA) 3204, 1987 U.S. Dist. LEXIS 6628
CourtDistrict Court, S.D. California
DecidedApril 30, 1987
DocketCiv. No. 85-2095-G(M)
StatusPublished
Cited by1 cases

This text of 660 F. Supp. 1266 (Hob Nob Hill Restaurant v. Hotel Employees & Restaurant Employees International Union) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hob Nob Hill Restaurant v. Hotel Employees & Restaurant Employees International Union, 660 F. Supp. 1266, 126 L.R.R.M. (BNA) 3204, 1987 U.S. Dist. LEXIS 6628 (S.D. Cal. 1987).

Opinion

[1267]*1267MEMORANDUM OPINION AND ORDER

GILLIAM, District Judge.

The Honorable Earl B. Gilliam heard defendants’ motion to dismiss causes of action one through four of plaintiffs’ complaint on February 23,1987. Richard Freeman and Guy Halgren of Sheppard, Mullin, Richter & Hampton appeared for plaintiffs. Elizabeth Lishner of Pappy & Davis and Thomas Tosdal of Georgiou & Tosdal appeared for defendants. After careful consideration of the briefs, the oral arguments and the written answers to supplemental questions asked by the court, this court grants defendants’ motion to dismiss causes of action one through four.

I. FACTUAL BACKGROUND

The plaintiffs in this action are Hob Nob Hill Restaurant [hereinafter “the Restaurant”] and its president, Harold Hoersch. The defendants are the Hotel Employees and Restaurant Employees International Union, its Local Number 30 [together hereinafter “the Union”], Herbert Schiffman, an organizer of Local 30, and Sherry Cook and Janet Schart, union members and waitresses at the restaurant. The Restaurant and the Union are parties to a collective bargaining agreement.

The Restaurant has employed a tip pooling system in which all tips left during the morning shift are collected and split evenly among the waitresses on that shift. In March of 1982, the Union filed a grievance against the Restaurant, claiming that tip pooling violated California Labor Code § 351 and the collective bargaining agreement. The California Department of Industrial Relations Conciliation Service conducted a secret ballot election and a majority of the Restaurant’s employees voted to retain tip pooling.

In March of 1984, the Restaurant decided to employ tip pooling on a trial basis for the afternoon and evening shifts as well. The Union again filed a grievance, charging that the Restaurant’s tip pooling program violated California Labor Law Code § 351 and the collective bargaining agreement. In June of 1984, an impartial arbitrator determined that tip pooling violated neither California law nor the collective bargaining agreement.

Plaintiffs allege that in March and June 1984, defendants disseminated several letters critical of plaintiff Hoersch. The letters allegedly accused Hoersch of promoting communism, of theft and of possessing two sets of business books. The letters also charged that most Restaurant employees were unhappy and encouraged the remaining waitresses to quit their jobs.

Plaintiffs further allege that in April of 1984 defendants induced, through false representations, the California Labor Commissioner’s Office to issue a Notice to Discontinue Labor Law Violations to the Restaurant. In addition, plaintiffs allege that in January of 1985, the defendants caused the San Diego City Attorney’s Office to file a criminal complaint against the plaintiffs. The criminal complaint charged plaintiffs with violating California Labor Code § 351 by collecting tips earned by defendants Cook and Schart. In April of 1985, the City Attorney’s Office dismissed the charge.

Plaintiffs’ third amended complaint advances nine causes of action. Causes of action one and two allege malicious prosecution and abuse of process in connection with the defendants’ alleged efforts to induce the City Attorney’s Office to file criminal charges against the plaintiffs. Causes of action three and four allege intentional and negligent infliction of emotional distress stemming from the dissemination of the letters and the filing of the criminal charges. Causes of action five through nine are RICO claims and are not at issue in this motion.

Defendants now move to dismiss causes of action one through four for lack of subject matter jurisdiction on the ground that the National Labor Relations Act (NLRA) preempts federal court jurisdiction over these four state law based causes of action.

II. PREEMPTION DOCTRINE

Two separate, although often connected, grounds for preemption should be distin[1268]*1268guished: “primary jurisdiction” preemption and “substantive” preemption. See Brown v. Hotel and Restaurant Employees, 468 U.S. 491, 502-03, 104 S.Ct. 3179, 3185, 82 L.Ed.2d 373 (1984); Brotherhood Railroad Trainmen v. Jacksonville Terminal Co., 394 U.S. 369, 383 n. 19, 89 S.Ct. 1109, 1114 n. 19, 22 L.Ed.2d 344 (1969). The former doctrine vests primary jurisdiction to interpret federal labor law with the National Labor Relations Board (NLRB) to avoid jurisdictional conflict with state and federal courts. The latter doctrine preempts federal or state jurisdiction over resolving substantive conflicts between state law and federal labor law, essentially on Supremacy Clause grounds.

The key case on primary jurisdiction preemption remains San Diego Building Trades Council v. Garmon, 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed.2d 775 (1959). In Garmon, the Court developed a test designed to reconcile the potential conflict inherent in concurrent regulation of labor activity by state and federal courts applying state laws and by the NLRB applying federal labor standards. Recognizing the dominant interest in centralized administration of national labor policy clearly reflected in the NLRA, the Court adopted a rule broadly preempting the states’ role in regulating labor activity. The Court held that when labor activity is either an arguably protected “concerted activity” under § 7 of the NLRA,1 or an arguably prohibited unfair labor practice under § 8 of the Act,2 state and federal courts lack subject matter jurisdiction to adjudicate claims arising from such activity and must defer to the exclusive primary jurisdiction of the NLRB.3 Id. at 245, 79 S.Ct. at 779. See also International Longshoremen’s Ass’n. v. Davis, — U.S. —, 106 S.Ct. 1904, 1912-13, 90 L.Ed.2d 389 (1986) (reaffirming Garmon preemption standard); Wisconsin Department of Industry, Labor and Human Relations v. Gould, Inc., 475 U.S. 282, 106 S.Ct. 1057, 1061, 89 L.Ed.2d 223 (1986) (same).

The Garmon Court itself, however, established two exceptions to this sweeping preemption standard. First, state regulation of labor activity is permitted when the activity involved is of “peripheral” concern to federal labor law. Garmon, 359 U.S. at 243, 79 S.Ct. at 779. Second, states may regulate conduct which touches “interests ... deeply rooted in local feeling and responsibility”. Id. at 244, 79 S.Ct. at 779. The Court has also declined to find preemption where “the particular rule of law sought to be invoked before another tribunal is so structured and administered that it is safe to presume that judicial supervision will not disserve interests promoted by federal labor statutes.” Motor Coach Employees v. Lockridge, 403 U.S. 274, 297-98, 91 S.Ct. 1909, 1923, 29 L.Ed.2d 473 (1971)4.

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Bluebook (online)
660 F. Supp. 1266, 126 L.R.R.M. (BNA) 3204, 1987 U.S. Dist. LEXIS 6628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hob-nob-hill-restaurant-v-hotel-employees-restaurant-employees-casd-1987.