Kerwin v. Starbucks Corporation

CourtDistrict Court, E.D. Michigan
DecidedFebruary 23, 2023
Docket2:22-cv-12761
StatusUnknown

This text of Kerwin v. Starbucks Corporation (Kerwin v. Starbucks Corporation) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kerwin v. Starbucks Corporation, (E.D. Mich. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

ELIZABETH KERWIN,

Petitioner, Civil Action No. 22-cv-12761

v. HON. MARK A. GOLDSMITH

STARBUCKS CORPORATION,

Respondent. __________________________________/

OPINION & ORDER (1) GRANTING IN PART AND DENYING IN PART PETITIONER’S PETITION FOR PRELIMINARY INJUNCTION (Dkt. 1), (2) DENYING RESPONDENT’S MOTION FOR ORDER TO SHOW CAUSE WHY PETITION FOR PRELIMINARY INJUNCTION SHOULD NOT BE DISMISSED (Dkt. 25), AND (3) GRANTING PETITIONER’S MOTION TO SUPPLEMENT RECORD (Dkt. 29)

Petitioner Elizabeth R. Kerwin—Regional Director for the Seventh Region of the National Labor Relations Board (NLRB or Board)—seeks injunctive relief under § 10(j) of the National Labor Relations Act (NLRA), 29 U.S.C. § 160(j), in relation to an ongoing Board proceeding against Respondent Starbucks Corporation (Dkt. 1). Starbucks moves for an order to show cause why the petition should not be dismissed (Dkt. 25). For the reasons that follow, the Court grants in part and denies in part Kerwin’s petition and denies Starbucks’s show-cause motion.1 The Court will enter a separate order specifying the relief granted.

1 The Court held a hearing on the pending motions on February 7, 2023. In addition to the petition and show-cause motion, the briefing includes Starbucks’s answer to the petition (Dkt. 21), Kerwin’s reply (Dkt. 22), and Kerwin’s response to the show cause motion (Dkt. 28). The Court also grants Kerwin’s motion to supplement the record with exhibits admitted into evidence as part of the Board proceeding (Dkt. 29). I. BACKGROUND This case arises out of Starbucks’s termination of an employee in alleged violation of the NLRA’s protections. Having received a favorable finding from an administrative law judge (ALJ) in the ongoing Board proceeding, Kerwin seeks interim injunctive relief from this Court while the Board’s review of the parties’ exceptions is pending. Starbucks argues that injunctive relief is not

appropriate, especially because it has recently offered to reinstate the discharged employee. A. Union Campaign and Termination of Starbucks Employee Kerwin submits that, beginning in 2021, the Workers United union commenced a “highly publicized campaign to organize Starbucks employees across the country.” Mem. in Supp. Pet. at 3. Hannah Whitbeck was a Starbucks employee working as a shift supervisor at a store located on Main Street in Ann Arbor, Michigan. See Answer at 5. Kerwin characterizes Whitbeck as the “face of the Michigan campaign,” including “in the media.” Mem. in Supp. Pet. at 3. (capitalization modified). On or about April 11, 2022, Starbucks terminated Whitbeck’s employment. See Pet. at 4.

Kerwin contends that the termination was motivated by Whitbeck’s labor-related activities. Starbucks, in contrast, submits that the discharge arose from Whitbeck’s decision to leave work early on one occasion, which violated Starbucks’s “two-partner” rule by forcing another employee to manage the store alone for about twenty to thirty minutes. Answer at 7–10. B. Proceedings before NLRB On April 11, 2022, the Workers United union filed charges against Starbucks, alleging that Starbucks unlawfully interfered with Whitbeck’s rights under § 7 of the NLRA and violated §§ 8(a)(1), (3), and (4) of the NLRA (Dkt. 1-2). The Board investigated and then filed a consolidated complaint and notice of hearing against Starbucks on July 27, 2022. NLRB Compl. (Dkt. 1-3). ALJ Geoffrey Carter conducted a four-day hearing in August 2022 and then issued a decision finding that Starbucks had violated §§ 8(a)(3) and (1) of the NLRA by discharging Whitbeck because she engaged in activities protected by the NLRA. See ALJ Decision at 31 (Dkt. 1-4). The Board’s review is not complete; both parties filed exceptions to the ALJ’s decision with the NLRA (Dkts. 21-4, 21-6), which are currently pending.

C. Issues Before This Court Kerwin seeks relief under § 10(j) of the NLRA, which allows the Board—“upon issuance of a complaint . . . charging that any person has engaged in or is engaging in an unfair labor practice”—to petition a district court “for appropriate temporary relief or restraining order.” 29 U.S.C. § 160(j). The court may grant this relief “as it deems just and proper.” Id.; see also McKinney v. Ozburn-Hessey Logistics, LLC, 875 F.3d 333, 338–339 (6th Cir. 2017) (explaining that district court had jurisdiction to consider Board’s § 10(j) petition while “the Board [was] currently reviewing the case” after NLRB regional director had filed exceptions to ALJ findings). Kerwin’s petition requests the following injunctive relief:

 Starbucks is enjoined from “discharging employees” for supporting a labor organization— or from otherwise “interfering with, restraining, or coercing employees in the exercise of their rights” under Section 7 of the NLRA—at any Starbucks’s store in the United States or its territories, Pet. at 6;  Starbucks is directed to offer Whitbeck “interim reinstatement to her former position, or if that position no longer exists, to a substantially equivalent position, without prejudice to her seniority or any other rights and privileges previously enjoyed,” id. at 7;  Starbucks is directed to post physical copies of this Court’s order at all of Starbucks’s stores in the United States and its territories, as well as translations, in “all [] places where [it] typically posts notices to its employees”; and to distribute electronic copies and translations of the same to all employees, id.; and  Starbucks is directed to “convene one or more mandatory meetings” at the Ann Arbor, Michigan store, during which the District Court’s Order will be read to the bargaining unit employees, id. at 7–8. In its show cause motion, Starbucks submits that, on January 30, 2023, it “sent a letter to [Whitbeck] offering unconditional interim reinstatement to her former position without prejudice to her seniority or any other rights or privileges previously enjoyed—the exact relief Petitioner seeks.” Mot. at 5. Starbucks argues that, “[i]n light of these changed circumstances, there is no basis to grant an injunction pursuant to Section 10(j) and Respondent respectfully requests that the

Court order a show cause hearing as to why the Petition should not be dismissed.” Id. Kerwin, conversely, maintains that “[t]he complete panoply of interim relief sought by the Petitioner is necessary . . . .” Resp. at 11. II. ANALYSIS “Section 10(j) reflects Congress’[s] view that interim injunctive relief to restore and preserve the status quo, pending final Board adjudication, may be required to avoid frustration of the basic remedial purposes of the Act and possible harm to the public interest.” Fleischut v. Nixon Detroit Diesel, Inc., 859 F.2d 26, 28–29 (6th Cir. 1988); see also Ozburn-Hessey, 875 F.3d at 342 (discussing appropriateness of injunctive relief to “restore . . . status quo”). To resolve a § 10(j)

petition, a district court considers two issues: whether there is “reasonable cause to believe” that a respondent has violated the NLRA and whether temporary injunctive relief is “just and proper.” Ahearn v. Jackson Hosp. Corp., 351 F.3d 226, 234–235 (6th Cir. 2003).2 A. Reasonable Cause to Believe Starbucks Violated the NLRA The United States Court of Appeals for the Sixth Circuit has explained: The Board’s burden in establishing reasonable cause is relatively insubstantial. . . .

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Kerwin v. Starbucks Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerwin-v-starbucks-corporation-mied-2023.