Kourosh Hamidi v. Service Employees International Union Local 1000

231 F. Supp. 3d 624, 2017 WL 531861, 208 L.R.R.M. (BNA) 3291, 2017 U.S. Dist. LEXIS 18153
CourtDistrict Court, E.D. California
DecidedFebruary 8, 2017
DocketCIV. NO. 2:14-cv-319 WBS KJN
StatusPublished

This text of 231 F. Supp. 3d 624 (Kourosh Hamidi v. Service Employees International Union Local 1000) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kourosh Hamidi v. Service Employees International Union Local 1000, 231 F. Supp. 3d 624, 2017 WL 531861, 208 L.R.R.M. (BNA) 3291, 2017 U.S. Dist. LEXIS 18153 (E.D. Cal. 2017).

Opinion

MEMORANDUM AND ORDER RE: MOTION FOR SUMMARY JUDGMENT AND CROSS-MOTIONS FOR PARTIAL SUMMARY JUDGMENT AND SUMMARY JUDGMENT

WILLIAM B. SHUBB, UNITED STATES DISTRICT JUDGE

Fifteen employees of the state of California (“plaintiffs”)1 brought this class action against defendants Service Employees International Union Local 1000 (“Local 1000”) and the California state controller,2 alleging that defendants’ ‘opt-out’ system for collecting optional union fees violates the First Amendment. (Compl. (Docket No. 1).) Plaintiffs now move for summary judgment against defendants. (Pis.’ Mot. (Docket No. 64).) Local 1000 cross-moves for summary judgment, and the state controller cross-moves for partial summary judgment, against plaintiffs. (Local 1000’s Cross-Mot. (Docket No. 67); State Controller’s Cross-Mot. (Docket No. 74).)

I. Factual and Procedural History

Plaintiffs are employees of the state of California. (Compl. ¶ 6.3) California recognizes Local 1000 as the exclusive collective bargaining representative of plaintiffs and other state employees. (Id. ¶ 19.) Employees represented by Local 1000 may, but are not required to, join Local 1000 as dues-paying members. (Id. ¶ 250.) [627]*627Plaintiffs have not joined Local 1000 as dues-paying members. (Id. ¶ 6.)

Employees represented by, but not dues-paying members of, Local 1000 (“nonmembers”) must, pursuant to a series of ‘agency shop’ agreements between Local 1000 and the state, pay Local 1000 a ‘fair share’ fee. (Id. ¶ 20.) Nonmembers may choose to pay the “full” fair share fee, which Local 1000 uses to fund expenditures both germane and not germane to collective bargaining, or a “reduced” fair share fee, which is used to fund only expenditures that are germane to collective bargaining.4(See id. ¶¶ 20-21; Decl. of Brian Caldeira (“Caldeira Decl.”) ¶ 3 (Docket No. 37).) Non-“germane” expenditures include contributions to political causes. (Compl. ¶ 21.)

In deciding whether to charge nonmembers the full or reduced fair share fee, Local 1000 has, with the state’s authorization and assistance, implemented an ‘opt-out’ system. See (id. ¶ 26); Cal. Gov’t Code § 3515.8 (providing “refund” procedure whereby state employees may “demand ... return of any part of [a fair share] fee ... [designated to] aid ... activities or causes of a partisan political or ideological nature”); id. § 3515.7 (requiring that “state employer ... deduct the amount specified by the [collective bargaining representative] from the salary or wages of every employee” and “remit[ ]” such funds to the representative each month).

Under that system, Local 1000 sends nonmembers, prior to each annual fee cycle, a notice (“Hudson notice”) informing them that they will be charged the full fair share fee for the upcoming cycle unless they opt out by sending back a written statement stating that they wish to be charged only the reduced fair share fee. (See Compl. ¶¶ 12, 26a-c.) The opt-out statement must include the objector’s name, signature, address, department, and unit, and, per Local 1000’s instructions, “should include, for identification purposes, [the objector’s] social security number.” (Id. Ex. A, Hudson Notice at 3'(Docket No. 1-1).) The statement must be sent by postal mail within a specified period, and employees must renew their objections each year. (Compl. ¶ 26g.) Nonmembers who do not opt out pursuant to the above procedure are charged the full fair share fee, (id. ¶ 26a), which the state controller deducts from their paychecks and forwards to Local 1000, Cal. Gov’t Code ¶ 3515.7.

On January 31, 2014, plaintiffs filed this action against defendants. (Compl. at 15.) Plaintiffs’ sole cause of action, brought under 42 U.S.C. § 1983, alleges that Local 1000’s fee collection system violates the First Amendment by “requiring] that individuals pay agency fees ... [that] subsidize Local 1000’s] political and other non-bargaining activities, absent their affirmative consent.” (Id. ¶ 31.) Plaintiffs also allege, under the same cause of action, that Local 1000’s opt-out procedure — which requires nonmembers to renew their objections each year, send their objections by [628]*628postal mail, and disclose their social security numbers in their objections — fails to meet the constitutional standard set forth in Chicago Teachers Union, Local No. 1 v. Hudson, 475 U.S. 292, 106 S.Ct. 1066, 89 L.Ed.2d 232 (1986). (See id. ¶ 32; Pls.’ Mot., Mem. (“Pls.’ Mem.”) at 18-19 (Docket No. 64-2).)

The court has certified plaintiffs’ cause of action for class treatment to the extent it is brought as a facial challenge upon the constitutionality of Local 1000’s opt-out requirement and procedure. (See May 22, 2015 Order at 3 n.3, 20 (Docket No. 53).) Plaintiffs have not, to date, raised any arguments pertaining to any as-applied challenges they might bring as individuals in this action, and appear to have waived those challenges in their Opposition to Local 1000’s Cross-Motion.5 The only challenge pending in this action, therefore, is plaintiffs’ facial challenge.

Plaintiffs and Local 1000 now move for summary judgment with respect to plaintiffs’ facial challenge. Plaintiffs seek judgment declaring Local 1000’s opt-out system unconstitutional, permanently enjoining defendants from enforcing the system, and ordering that defendants pay plaintiffs and the nonmember class compensatory damages for fees “exceeding constitutionally-chargeable costs” (“non-‘germane’ fees”) collected pursuant the system. (Pis.’ Proposed Order at 2-3 (Docket No. 83).) Local 1000 seeks judgment denying plaintiffs’ challenge and dismissing this action with prejudice. (Local 1000’s Proposed Order at 5 (Docket No. 73).)

The state controller separately moves for partial summary judgment denying plaintiffs’ challenge to the extent it seeks monetary damages against her. (State Controller’s Cross-Mot. at 2.) Plaintiffs have conceded that they are barred from recovering monetary damages against the state controller under the doctrine of sovereign immunity. (Pl.’s Opp’n at 2 (Docket No. 87)); see also Will v. Michigan Dep’t of State Police, 491 U.S. 58, 71, 109 S.Ct. 2304, 105 L.Ed.2d 45 (1989). Accordingly, the court will grant judgment to the state controller to the extent plaintiffs seek monetary damages against her, and decide plaintiffs’ claim for declaratory and injunc-tive relief against her together with their claim for the same relief against Local 1000.6

[629]*629II. Legal Standard

Summary judgment is proper “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A material fact is one that could affect the outcome of the suit, and a genuine issue is one that could permit a reasonable jury to enter a verdict in the non-moving party’s favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

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231 F. Supp. 3d 624, 2017 WL 531861, 208 L.R.R.M. (BNA) 3291, 2017 U.S. Dist. LEXIS 18153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kourosh-hamidi-v-service-employees-international-union-local-1000-caed-2017.