National Star Route Mail Contractors Association, Inc. v. United States Postal Service

223 F. Supp. 3d 14, 2016 U.S. Dist. LEXIS 174911, 2016 WL 7350177
CourtDistrict Court, District of Columbia
DecidedDecember 19, 2016
DocketCivil Action No. 2016-2350
StatusPublished
Cited by3 cases

This text of 223 F. Supp. 3d 14 (National Star Route Mail Contractors Association, Inc. v. United States Postal Service) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Star Route Mail Contractors Association, Inc. v. United States Postal Service, 223 F. Supp. 3d 14, 2016 U.S. Dist. LEXIS 174911, 2016 WL 7350177 (D.D.C. 2016).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, United States District Judge

This case arises out of the U.S. Postal Service’s incipient efforts to comply with an arbitration decision and award that resolved a grievance by the American Postal Workers Union relating to the Postal Service’s award of private contracts for transport of the mail without prior notice to the Union. Having found that the Postal Service had engaged in willful, “wholesale.and repeated violations of its obligations” to the Union under the Collective Bargaining Agreement, the arbitrator ordered the Postal Service to convert the 110 disputed routes (or other routes as agreed to with the Union) to routes to be staffed by Union members; the arbitration award allows the Postal Service six months, or until February 18, 2017, which can be extended by agreement, to complete this conversion. U.S. Postal Serv. v. Am. Postal Workers Union, AFL-CIO, Case No. Q06C-4Q-C 11182451, at *16, 20 (Aug. 18, 2016) (Das, Arb.) (“Arbitration Award”). 1

Among the contracts addressed in the Arbitration Award are those held by members of the National Star Route Mail Contractors Association (“Plaintiff’ or “Plaintiff Association”). On November 30, 2016, Plaintiff initiated this action-and on *20 December 2, 2016, requested expedited hearing upon its Motion for Temporary Restraining Order and Preliminary Injunction. Plaintiff seeks declaratory and injunctive relief to prevent the Postal Service “from taking any action to implement the portion of the August 18, 2016[,] arbitration award that directs the Postal Service to Terminate up to 110 highway mail transportation routes currently served by contractors so that the routes may be served by Postal Service employees.” PI. Mot. for TRO & PI at 1.

Before the Court are Plaintiffs [6] Motion for Temporary Restraining Order and Preliminary Injunction and the [14] Motion to Dismiss by Defendant United States Postal Service (“USPS” or “Postal Service”), in which [15] Intervenor American Postal Workers Union AFL-CIO (“APWU” or “Union”) joins. Defendant Postal Service has submitted its Motion to Dismiss simultaneously with its [13] Opposition to Plaintiffs Motion for Temporary Restraining Order and Preliminary Injunction and relies on the same Memorandum of Points and Authorities to support both its Opposition and its Motion to Dismiss. Intervenor APWU similarly relies on the same arguments and authorities in support of its joinder in Defendant Postal Service’s Motion to Dismiss as in its [11] Opposition to Plaintiffs Motion. Also before the Court is Plaintiffs [16] Reply in support of its Motion for Temporary Restraining Order and Preliminary Injunction. While captioned by Plaintiff solely as a “reply,” the Court also considers it as Plaintiffs opposition to Defendant’s Motion to Dismiss; Plaintiff addresses the jurisdictional and other substantive arguments that Defendant and Intervenor submit in support of their Motion to Dismiss, and the Court further notes that during the Status Hearing held by teleconference on December 5, 2016, the Court also raised jurisdictional questions and requested, in particular, that the parties address the justiciability questions of standing and ripeness in their briefing. The Court, in an exercise of its discretion, does not find it necessary to call for a reply from Defendant or Intervenor in further support of Defendant’s Motion to Dismiss and deems both Plaintiffs Motion for Temporary Restraining Order and Preliminary Injunction and Defendant’s Motion to Dismiss and Intervenor’s joinder therein fully briefed and ripe for adjudication.

Upon consideration of the pleadings, 2 the relevant legal authorities, and the record as a whole, the Court GRANTS Defendant’s [14] and Intervenor’s [15] Motion to Dismiss and DENIES Plaintiffs [6] Mo *21 tion for Temporary Restraining Order and Preliminary Injunction. The Court finds that it lacks subject matter jurisdiction over this matter. First, Plaintiff lacks standing to bring these claims, which are not yet ripe for adjudication. Additionally, to the extent that these claims may be brought at some future time, jurisdiction is vested in the United States Court of Federal Claims. Lacking jurisdiction over the matter, the Court does not address Plaintiffs Motion for Temporary Restraining Order and Preliminary Injunction on the merits, as it lacks the authority to grant such relief.

Accordingly, the Court shall DISMISS this action in its entirety as follows: Plaintiffs claims are hereby dismissed WITH PREJUDICE in this court for lack of subject matter jurisdiction under the Contract Disputes Act; on this record, Plaintiffs claims as to contracts held by contractors who are not members of Plaintiff Association are dismissed WITH PREJUDICE for lack of standing; Plaintiffs claims, however, are dismissed WITHOUT PREJUDICE, insofar as Plaintiff shall not be barred by this Order from seeking relief in the proper forum should Plaintiff be able to establish standing in the future if its claims become ripe for adjudication; and finally the Court shall DENY WITH PREJUDICE in this court Plaintiff’s Motion for Temporary Restraining Order and Preliminary Injunction, but Plaintiff shall not be barred by this Order from seeking such relief in the appropriate forum.

I. BACKGROUND

Because Plaintiffs claims arise out of the Postal Service’s initial considerations of how it will implement the Arbitration Award, the Court shall only briefly set out the history that led up to the Arbitration Award. It is important, nonetheless, to begin with the general framework of the Postal Service’s relationship with the two separate groups that provide mail transportation services, background facts upon which both parties agree.

Throughout its history, the Postal Service has relied upon both private contractors and postal employees to fulfill its mission of delivering the mail. Routes serviced by private contractors are called Highway Contract Routes (“HCR”), and Plaintiff is an association that represents certain HCR contract holders. Corr. Compl. ¶¶ 4, 11. Routes serviced by postal employees are referred to as Postal Vehicle Service (“PVS”) routes. Corr. Compl. ¶ 12. The Postal Reorganization Act (“PRA” or “Act”) specifically provides for HCR contracts, authorizing the Postal Service to obtain mail transportation services “by contract from any person or carrier ... under such terms and conditions as it deems appropriate.” 39 U.S.C. § 5005(a)(3). The Act further provides that such HCR contracts are to be awarded for a term no longer than four years (unless deemed “advisable or appropriate” by the Postal Service) and only “after advertising a sufficient time previously for proposals” to allow for a competitive bidding process. Id. at § 5005(b)(1). Furthermore, in determining whether to service a particular route by HCR or PVS, the Postal Service “shall use the mode of transportation which best serves the public interest, due consideration being given to the cost of the transportation service under each mode.” Id. at § 5005(c).

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223 F. Supp. 3d 14, 2016 U.S. Dist. LEXIS 174911, 2016 WL 7350177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-star-route-mail-contractors-association-inc-v-united-states-dcd-2016.