National Labor Relations Board v. Allied Mechanical Services, Inc.

734 F.3d 486, 2013 WL 5811585, 197 L.R.R.M. (BNA) 2337, 2013 U.S. App. LEXIS 22060
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 30, 2013
Docket12-1235, 12-1351
StatusPublished
Cited by1 cases

This text of 734 F.3d 486 (National Labor Relations Board v. Allied Mechanical Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. Allied Mechanical Services, Inc., 734 F.3d 486, 2013 WL 5811585, 197 L.R.R.M. (BNA) 2337, 2013 U.S. App. LEXIS 22060 (6th Cir. 2013).

Opinions

ROGERS, J., delivered the opinion of the court, in which McKEAGUE, J. joined. DAUGHTREY, J. (pp. 495-503), delivered a separate dissenting opinion.

OPINION

ROGERS, Circuit Judge.

Allied Mechanical Services, a union contractor, filed suit against employee unions and their affiliates claiming that the unions improperly interfered with benefits promised to Allied in an agreement with one of the unions. Allied alleged breach of the collective bargaining agreement and violations under the section of the National Labor Relations Act (NLRA) used to punish so-called secondary boycotts. The district court dismissed Allied’s suit for failure to state any claim upon which relief could be granted, and the National Labor Relations Board (NLRB) later determined that the bringing of the federal suit constituted an unfair labor practice. Applying the substantial evidence test in a way that takes into account this court’s expertise in both the First Amendment and federal litigation, that test is not met. Important First Amendment considerations keep us from upholding the Board’s order in this case.

This suit appears before this court following two related administrative decisions, which concluded that Allied violated § 8(a)(1) of the National Labor Relations Act by bringing a federal suit against a number of local and national labor union entities. An Administrative Law Judge (ALJ), and later the full National Labor Relations Board, concluded that the suit was an unfair labor practice in that it “interfere^] with, restrained], or coerce[d] employees in the exercise of’ their rights to organize and engage in collective bargaining and related activities. See Allied Mech. Servs., Inc., 357 NLRB No. 101, 2011 WL 5374170 (Oct. 25, 2011); 29 U.S.C. §§ 157-58.

Allied Mechanical Services, a Michigan manufacturer and installer of heating, ventilation, and air-conditioning systems, brought the underlying federal lawsuit against several defendants. These included:

• Local 357 of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry— the local chapter of plumbers and pipe-fitters, with which Allied had in the past had a tumultuous relationship;
• Local 7 of the Sheet Metal Workers’ International Association — the local chapter of sheet metal workers, with which Allied had not had prior problems; and
• the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada, AFL-CIO — Local 357’s umbrella organization, with which Allied had not historically dealt directly.

Allied argued that the two local unions colluded to withhold otherwise available job-targeting funds from Allied. The job-targeting-fund program provided union contractors with money that would enable the employers to lower bids on certain jobs so that union contractors could achieve a competitive advantage over non-union contractors. Under the program, Local 7 collected dues from its members, including Allied employees, and used those dues in part to subsidize union contractors who chose to be part of the program.

In February of 1998, Local 7 made job-targeting funds available for a job for the Kalamazoo Red Cross. However, although Allied had previously received job-targeting funds from Local 7, the union [489]*489did not allow Allied to receive funds for the Red Cross job. Allied claimed that following the Red Cross job, Local 7 denied it job-targeting funds for several other projects, while other union contractors continued to benefit from the program. According to Allied, Local 7’s business agent informed Allied that it would not be eligible for funds on the Red Cross job because Allied had not signed a collective-bargaining agreement with the plumbers and pipe-fitters union (Local 3571).

Allied’s history with Local 357 was characterized by labor disputes,2 and the two had consistently failed to reach a collective-bargaining agreement despite years of negotiations. Based on the information from Local 7’s business manager and on the company’s history with Local 357, Allied concluded that the two local unions and their national counterparts were responsible for illegally keeping Allied from getting the job-targeting funds.

Allied’s complaint, which it filed in the federal district court for the Western District of Michigan, named the two local unions and the national unions. Count 1 alleged that the plumbers and pipe-fitters violated § 8(b)(4) of the NLRA by causing Local 7 to deny job-targeting funds for the jobs. Count 2 alleged that the same provision of the NLRA was violated because the plumbers and pipe-fitters denied Allied the use of the funds and thereby created a “barrier” that “restrain[ed]” it from doing business with potential customers. Count 3 alleged that the local and national sheet metal unions violated § 301 of the NLRA by breaching Local 7’s collective-bargaining agreement with Allied. Finally, Count 4 alleged that the plumbers and pipe-fitters (local and national) “threatened, coerced, or otherwise restrained” Allied’s plumbing and pipe-fitting employees by preventing Local 7 from awarding Allied job-targeting funds, also in violation of § 8(b)(4) of the NLRA.

In a lengthy opinion, the district court dismissed Allied’s complaint in its entirety. A panel of this court affirmed in a per curiam opinion. Allied Mech. Servs., Inc. v. Local 337, 221 F.3d 1333, 2000 WL 924594 (6th Cir.2000). Three of Allied’s claims — the ones pertaining to § 8(b)(4)— alleged, in essence, that the unions violated the so-called “secondary boycott” provisions of the Act, which prohibit any act “whose sanctions bear, not upon the employer who alone is a party to the dispute, but upon some third party who has no concern in it.” Local 761, Int'l Union of Elec., Radio & Mach. Workers v. NLRB, 366 U.S. 667, 672, 81 S.Ct. 1285, 6 L.Ed.2d 592 (1961) (internal quotation marks removed). On de novo review, this court agreed with the district court that any influence exerted by the plumbers and pipe-fitters over Local 7’s use of its job-targeting funds was not sufficient to trigger the protections of the secondary-boycott provisions of the NLRA. Allied Mech. Servs., Inc., 2000 WL 924594, at *4-5. Finally, this court affirmed the district court’s conclusion that Allied’s breach-of-contract claim was not subject to review because an arbitrator had already reached a final and binding decision on the matter within his decision-making authority, under the terms of the CBA. On this claim, our court noted that “[w]ere we free to interpret the contract, or review the claims of factual or legal error, ... we would be [490]*490inclined to view this claim differently than the [arbitral board].” Id. at *7.

After the litigation concluded, the unions brought an unfair-labor-practice claim before the NLRB, claiming that Allied violated the NLRA by filing the federal suit. On February 21, 2001, an ALJ agreed with the unions and decided that the unions must be reimbursed for their expenses in litigating the federal suit, but denied “the extraordinary remedy of reimbursement to the government and the Charging Parties for their costs in litigating the ... unfair labor practice.” Allied Mech.

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734 F.3d 486, 2013 WL 5811585, 197 L.R.R.M. (BNA) 2337, 2013 U.S. App. LEXIS 22060, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-allied-mechanical-services-inc-ca6-2013.