National Labor Relations Board v. Castaways Management, Inc.

870 F.2d 1539, 131 L.R.R.M. (BNA) 2142, 1989 U.S. App. LEXIS 5366
CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 24, 1989
Docket88-5349
StatusPublished
Cited by4 cases

This text of 870 F.2d 1539 (National Labor Relations Board v. Castaways Management, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh 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. Castaways Management, Inc., 870 F.2d 1539, 131 L.R.R.M. (BNA) 2142, 1989 U.S. App. LEXIS 5366 (11th Cir. 1989).

Opinion

HATCHETT, Circuit Judge:

In this labor case, we find the evidence sufficient to support the National Labor Relations Board’s order and enforce that order even though the employer’s place of business no longer exists. Enforced.

I. FACTS

In June, 1979, Castaways Management, Inc. (“Castaways”) purchased the Castaways Motel at Miami Beach, Florida. In July, 1979, Castaways named Charles Ro-sen as the motel’s general manager. At the time of purchase, the company employed 200 persons. The Hotel, Motel Restaurant and Hi-Rise Employees and Bartenders Union, Local 355, AFL-CIO (local 355), sought negotiations with Rosen, but Rosen did not respond to Local 355’s requests. Shortly thereafter, Castaways stopped deducting Local 355 union dues from employees’ paychecks.

In September, 1979, the Hotel, Resort Service Unions, Local 3, began soliciting Castaways’s employees. Local 3 representatives spoke with motel employees and motel employee, Maximino Gil, distributed Local 3 literature and asked fellow employees to sign Local 3 authorization cards. Simultaneously, Rosen and Castaways’s security chief, Dennis Keane, asked Local 355 representatives to stay off motel premises. On October 1, 1979, Local 3 petitioned the National Labor Relations Board (NLRB) for a representation election.

In early October, 1979, Rosen instituted plans to support Local 3. He enlisted James Donnelly, the motel’s head bartender, as his primary ally. 1 Rosen conducted several strategy meetings with Donnelly, Keane, and Castaways’s public relations manager, Larry Cliff. He instructed them to encourage employees to vote for Local 3 to improve working conditions. According to Donnelly, Rosen stated that if Local 3 won, “he could sign his own ticket because *1541 the man who was president of Local 3 was a personal friend.”

Beginning in December, 1979, Donnelly reported to Rosen daily. At Rosen’s request, Donnelly discussed employees’ union sympathies and supplied information that could be used to fire Local 355 supporters. Rosen instructed Donnelly to tell pro-Local 355 employees that voting for 355 could cost them their jobs. Rosen maintained a list, marking “355” or “X” next to the names of Local 355 supporters. At the same time, however, Donnelly helped Local 355’s business agent, Buck Timperio, solicit authorization cards. Donnelly testified that he assisted Timperio to gain his confidence and to discover the identity of pro-Local 355 employees. Rosen approved of his actions.

In late December, 1979, Donnelly and Rosen began firing Local 355 supporters for asserted non-union related reasons. In early January, 1980, Rosen, without consulting Local 355, informed employees in the motel’s bar (Wreck Bar) that they would receive a commission of fifteen cents on every drink sold. Donnelly told the bar waitresses that Rosen would revoke the commission if Local 355 won the election.

The National Labor Relations Board’s Regional Director scheduled the election for January 31, 1980. In mid-January, 1980, Donnelly and Rosen increased pressure on motel employees by threatening them with demotions, pay reductions, working hour reductions, and possible transfers if they failed to vote for Local 3, or refused to vote on election day. Donnelly and Ro-sen became particularly concerned with a “clique” of pro-355 employees in the bar. On January 25, 1980, Local 355 filed a charge with the Regional Director of NLRB claiming that Castaways was improperly assisting Local 3. On January 29, 1980, the Regional Director postponed the election. In February, 1980, Donnelly and Rosen fired all. the bar clique members except one for non-union related reasons.

In March, 1980, instead of supporting Local 3, Rosen decided to persuade employees to vote against both locals. On March 21; 1980, Rosen fired Local 3 organizer Maximino Gil. This led to a stormy meeting between Rosen and Local 3 officer Armando Vazquez. 2

One day before the election, Rosen told Donnelly to stop campaigning for Local 3 and to tell employees to vote against both locals. Donnelly complied with Rosen’s request. On March 27, 1980, the employees voted. Thirty-nine employees voted for Local 355; three employees voted for Local 3; and fifty-two employees cast votes against representation by either union. Both unions filed unfair labor practice charges against Castaways.

II. PROCEDURAL HISTORY

In November, 1980, the NLRB’s General Counsel issued a complaint against Castaways based on violations of the following sections of the National Labor Relations Act (“the Act”): section 8(a)(1), 29 U.S.C.A. § 158(a)(1) (West 1973) (actions intended to dissuade employees from voting for Local 355); section 8(a)(1) and section 8(a)(2), 29 U.S.C.A. § 158(a)(2) (West 1973) (unlawfully supporting Local 3); section 8(a)(1) and section 8(a)(3), 29 U.S.C.A. § 158(a)(3) (West 1973) (discharging employees because of union activities); and section 8(a)(1) and section 8(a)(5), 29 U.S.C.A. § 158(a)(5) (West 1973) (granting employees a wage increase without bargaining with Local 355).

In August and November, 1981, an administrative law judge (“AU”) tried the case. In September, 1982, the AU issued an order finding that Castaways illegally discharged eleven employees. Consequently, the AU ordered Castaways to reinstate the employees, award them backpay with *1542 interest, conduct a new election, and post notice of their violations on motel premises. In reaching the decision, the AU credited Donnelly’s testimony and discredited Ro-sen’s testimony. 3

A three-member panel of the NLRB affirmed the AU’s decision with modifications, finding nine illegal discharges instead of eleven. The NLRB panel found no basis for reversing the AU’s credibility findings. Castaways Management, Inc., 285 N.L.R.B. 121 (1987).

Several years ago, the Castaways Motel was demolished. No evidence exists, however, that Castaways is out of business. At oral argument, Castaways’s counsel stated that he represented the company.

III.CONTENTIONS OF THE PARTIES

Castaways contends that insufficient evidence exists to support the NLRB panel’s conclusion that Castaways improperly discharged employees. Castaways supports this contention by arguing that the AU and the panel improperly credited Donnelly’s testimony over that of Rosen. Castaways also contends the motel’s destruction moots the panel’s order.

The NLRB argues that this court should uphold the AU’s and the panel’s conclusions and credibility determinations because they are neither inherently unreasonable nor self-contradictory. The NLRB also contends that the panel’s order is not moot because Castaways exists as a business entity.

IV.ISSUES

The issues presented on appeal are: (1) whether sufficient evidence supports the NLRB panel’s conclusion that Castaways violated sections 8(a)(1) and 8(a)(3) of the Act by discharging employees for union activity; and (2) whether demolition of the Castaways Motel renders the NLRB panel’s order moot.

V.DISCUSSION

A. Sufficiency of the Evidence

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870 F.2d 1539, 131 L.R.R.M. (BNA) 2142, 1989 U.S. App. LEXIS 5366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-castaways-management-inc-ca11-1989.