Hoffman v. Inn Credible Caterers, Ltd.

247 F.3d 360, 2001 WL 359962
CourtCourt of Appeals for the Second Circuit
DecidedApril 11, 2001
DocketDocket No. 00-6235
StatusPublished
Cited by18 cases

This text of 247 F.3d 360 (Hoffman v. Inn Credible Caterers, Ltd.) 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
Hoffman v. Inn Credible Caterers, Ltd., 247 F.3d 360, 2001 WL 359962 (2d Cir. 2001).

Opinion

OAKES, Senior Circuit Judge:

The National Labor Relations Board (“Board”) appeals from the denial of its application for an injunction under § 10(j) of the National Labor Relations Act (“NLRA” or the “Act”), 29 U.S.C. § 160© (1998), ordering Inn Credible Caterers, Ltd. (“ICC”) to bargain with the Hotel Employees and Restaurant Employees Union Local 100 (“Union”). Applying this Circuit’s two-prong § 10(j) injunction test, the United States District Court for the Southern District of New York, Richard C. Casey, Judge, found that because the proposed injunction failed to satisfy the second prong, requiring that the injunctive relief be “just and proper,” there was no need to inquire into the first prong, requiring that there be “reasonable cause” to believe that a violation of the Act was committed. We disagree with the district court’s conclusion regarding the “just and proper” prong and find that the record amply supports reasonable cause. We therefore reverse and remand for entry of the requested injunction.

BACKGROUND

This action involves a dispute between ICC and the Union over a series of incidents that occurred at the Bear Mountain Inn (the “Inn”). The Inn is a full-service hotel and restaurant with banquet facilities located in Bear Mountain State Park in Rockland County, New York. The Inn is owned by Palisades Interstate Park Commission, but it has been privately managed and operated for over twenty years by Aramark, Inc. (“Aramark”).

Aramark’s contract with the State expired on March 7, 1999. On March 8, 1999, ICC assumed responsibilities for the Inn on a short-term basis and on a regular basis about six weeks thereafter. The Union has represented the Inn’s employees for 40 years. In 1977, it was certified as the exclusive collective bargaining representative by the Board.

From the time ICC began to assume responsibilities for the Inn, it refused to recognize or to bargain with the Union. On March 3, 1999, upon learning of ICC’s probable takeover, the Union sent a letter to ICC requesting a meeting. Two days later, the Union sent a second letter. ICC did not respond to either letter. On March 8, ICC posted a notice soliciting employment applications directly from workers and stating that “[ejffective March 8, 1999,” ICC would be handling operations at the Inn. On March 12, ICC met with Union organizers but refused to bargain with them, declaring that “there is no union, there is no need to meet.”

At some point during the first week of May, an Inn employee handed the president of ICC a letter purportedly signed by a majority of Inn employees expressing their desire not to be represented by the Union.1 Nothing is known regarding the author of this letter or the circumstances surrounding its creation. The letter states:

We the employees of Bear Mountain Inn do not wish at this time to be represented by Local 100 or any other Local Union. We appreciate what you’ve done for us in the past and we know that you have worked hard for us as well. Thank you.

On May 10, 1999, the Union filed a charge with the Board alleging that ICC [364]*364committed unfair labor practices. The Regional Director then issued a complaint against ICC for refusing to bargain with the Union under § 8(a)(5) of the Act. On November 24, 1999, the Regional Director petitioned the district court for an injunction ordering ICC to bargain in good faith with the Union under 29 U.S.C. § 160(j) of the Act. On April 17, 2000, the Administrative Law Judge (“ALJ”) rendered his decision finding that ICC violated §§ 8(a)(1) and 8(a)(5) of the Act. ICC appealed the ALJ’s decision to the Board, and that appeal is currently pending. On May 30, 2000, the district court denied the Regional Director’s petition for § 10(j) injunctive relief. This appeal followed.

DISCUSSION

We note at the outset that we are bound by the district court’s findings of fact unless they are clearly erroneous and that we review fully all conclusions of law, including findings of reasonable cause. See Silverman v. J.R.L. Food Corp., 196 F.3d 334, 335-36 (2d Cir.1999) (citing Kaynard v. Mego Corp., 633 F.2d 1026, 1030 (2d Cir.1980)). We review the district court’s determination of whether relief is just and proper for abuse of discretion, see Mego Corp., 633 F.2d at 1030, bearing in mind — to use Judge Craven’s words — that a “judge’s discretion is not boundless and must be exercised within the applicable rules of law or equity.” Blackwelder Furniture Co. v. Seilig Mfg. Co., 550 F.2d 189, 193 (4th Cir.1977), referred to and quoted in Henry J. Friendly, Indiscretion About Discretion, 31 EmoRY L.J. 747, 777 (1982).

Prior to 1932, injunctions were commonly used by employers and granted by the courts to prevent union organization. In this context, they came to be perceived as a means of protecting the proprietary interests of the employers. After Congress passed the Norris LaGuardia Act in 1932 and the NLRA in 1935, both of which limited court authority to intervene in labor disputes, the labor movement grew tremendously. In 1947, Congress passed the Taft Hartley amendments to the NLRA. These amendments returned some authority to the federal courts to intervene in labor disputes by granting injunctions. Subsection 10(j) is among these amendments.

An employer has a duty under § 8(a)(5) of the Act to bargain collectively with the chosen representative of a majority of its employees. See 29 U.S.C. § 158(a)(5) (1998).2 In certain circumstances, a successor employer is also under a legal duty to bargain with the union established under the predecessor employer. See Fall River Dyeing & Finishing Corp. v. NLRB, 482 U.S. 27, 36-41, 107 S.Ct. 2225, 96 L.Ed.2d 22 (1987). In such cases, a successor employer who refuses to bargain with the predecessor union violates the Act. See id. at 41, 107 S.Ct. 2225. Pending the Board’s determination of whether a successor employer is a legal successor with a statutory duty to bargain, the Board can petition a federal district court for an injunction under § 10(j) of the Act, ordering the successor employer to bargain with the union until the Board renders its final determination. See 29 U.S.C. § 160(j).

In this Circuit, in order to issue a § 10(j) injunction, the district court must apply a two-prong test. First, the court [365]*365must find reasonable cause to believe that unfair labor practices have been committed. Second, the court must find that the requested relief is just and proper. See Hoffman v. Polycast Tech. Div. of Uniroyal Tech. Corp., 79 F.3d 331

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247 F.3d 360, 2001 WL 359962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoffman-v-inn-credible-caterers-ltd-ca2-2001.