Newspaper Newsprint Magazine a v. PG Publishing Co

CourtCourt of Appeals for the Third Circuit
DecidedMarch 25, 2020
Docket19-3966
StatusUnpublished

This text of Newspaper Newsprint Magazine a v. PG Publishing Co (Newspaper Newsprint Magazine a v. PG Publishing Co) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newspaper Newsprint Magazine a v. PG Publishing Co, (3d Cir. 2020).

Opinion

NOT PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT _____________

No. 19-3966 _____________

NEWSPAPER, NEWSPRINT, MAGAZINE AND FILM DELIVERY DRIVERS, HELPERS AND HANDLERS, INTERNATIONAL BROTHERHOOD OF TEAMSTERS, LOCAL UNION NO. 211

v.

PG PUBLISHING CO, INC., doing business as PITTSBURGH POST-GAZETTE, Appellant ______________

On Appeal from the United States District Court for the Western District of Pennsylvania (D.C. Civil No. 2-19-cv-01472) District Judge: Honorable J. Nicholas Ranjan ______________

Argued March 3, 2020 ______________

Before: GREENAWAY, JR., SHWARTZ, and MATEY Circuit Judges.

(Opinion Filed: March 25, 2020) Terrence H. Murphy [ARGUED] Brian M. Hentosz Littler Mendelson 625 Liberty Avenue EQT Plaza, 26th Floor Pittsburgh, PA 15222 Attorneys for Appellant

Patrick K. Lemon [ARGUED] Joseph J. Pass Jubelirer Pass & Intrieri 219 Fort Pitt Boulevard 1st Floor Pittsburgh, PA 15222 Attorneys for Appellee

______________

OPINION ∗ ______________

GREENAWAY, JR., Circuit Judge.

The labor/management divide has a long history in the annals of American

business. As a result, there is a very particular process necessary for either fixture in the

divide to extricate itself from the other. Specificity with regard to that extrication,

though, is not just advisable it is mandatory. This case arises from the District Court’s

grant of a preliminary injunction enjoining and restraining the employer-party—

Appellant-Defendant PG Publishing Co., Inc., d/b/a Pittsburgh Post-Gazette (the “Post-

Gazette”)—to a collective bargaining agreement (“CBA”) with the union-party—

Appellee-Plaintiff Newspaper, Newsprint, Magazine and Film Delivery Drivers, Helpers,

and Handlers, International Brotherhood of Teamsters, Local Union No. 211 (the

“Union”)—from refusing to maintain the status quo under an expired and disavowed

CBA while a grievance procedure occurred. Of primary importance, over two months

before the CBA was set to expire, the Post-Gazette, a newspaper company, notified the

Union, via letter, of its intent to disavow the CBA after expiration. Because this letter

achieved the requisite specificity necessary for extrication, and indeed manifested a clear,

∗ This disposition is not an opinion of the full Court and pursuant to I.O.P. 5.7 does not constitute binding precedent.

2 particularized disavowal of the CBA, there was no implied-in-fact contract between the

parties after the CBA expired. See Luden’s Inc. v. Local Union No. 6 of the Bakery,

Confectionary and Tobacco Workers’ Int’l Union of Am., 28 F.3d 347, 360–61 (3d Cir.

1994) (holding that an implied-in-fact CBA will not continue to exist after the CBA

terminates if there was a “clear, particularized intent to disavow [the CBA’s] terms.”).

As such, it was error for the District Court to find an implied-in-fact contract existed and

to issue a preliminary injunction maintaining the status quo regarding the CBA. For the

reasons discussed below, we will reverse the District Court’s Order granting the

preliminary injunction and remand this case with instructions to vacate the preliminary

injunction.

I. FACTUAL AND PROCEDURAL BACKGROUND

A. Factual Background

The Post-Gazette and the Union entered into a CBA that commenced on

November 7, 2014 and was set to expire on March 31, 2017. As explained by the District

Court:

The CBA . . . establishes an extensive dispute resolution procedure that governs any “dispute over an alleged violation of this agreement.” This procedure includes the option for either side to initiate arbitration to finally resolve the dispute.

Significantly, the dispute resolution provision also states that, with limited exceptions not relevant to this case, the parties must maintain the status quo while the parties attempt to resolve a grievance.

3 Newspaper, Newsprint, Magazine & Film Delivery Drivers, Helpers, & Handlers v. PG

Publ’g Co., No. 2:19-CV-1472-NR, 2019 WL 6338466, at *1 (W.D. Pa. Nov. 27, 2019)

(internal citations omitted).

On January 9, 2017, more than two months before the CBA was set to expire, the

Post-Gazette sent the Union a letter (the “Letter”) stating in part:

This letter is to notify [the Union] of the desire of [the Post-Gazette] to negotiate a new contract and that the [Post-Gazette] intends to terminate its [CBA] with [the Union] effective March 31, 2017. The current agreement expires on March 31, 2017. At that time, all contractual obligations of the current [CBA] shall expire.

The [Post-Gazette] will continue to observe all established wages, hours and terms and conditions of employment as required by law, except those recognized by law as strictly contractual, after the [CBA] expires. With respect to arbitration, the [Post-Gazette] will decide its obligation to arbitrate grievances on a case-by-case basis.

A143.

After the CBA expired, the parties began bargaining for a new agreement. A new

agreement was not reached, and by October 9, 2019, the Post-Gazette sent the Union an

“Effects Bargaining Summary” by email. 1 By mid-October 2019, the Post-Gazette stated

its intention to implement the changes it had proposed. Certain changes to work

schedules, health benefits, and wages, then began to take place. According to an affidavit

1 In short, this was a summary of the issues that the parties discussed at a prior effects bargaining meeting. For example, the Union proposed “1 weeks’ pay for each completed year of service with a maximum of 20 weeks’ severance pay” and the Post- Gazette responded by rejecting “the Union’s proposal as an economic concession it was not willing to make. The [Post-Gazette] believes six (6) weeks’ severance pay for a layoff by seniority is fair.” A119.

4 submitted by the Union, after the expiration of the CBA, the Post-Gazette continued to

comply with the dues check-off and union security provisions of the CBA.

B. Procedural Background

On November 4, 2019, the Union filed a grievance asserting violations of the CBA

and requesting that until the grievance was resolved the status quo be maintained per

Section I(10) of the CBA.

On November 12, 2019, the Union filed a suit in federal court alleging a violation

of Section 301(a) of the Labor Management Relations Act (“LMRA”), seeking to enjoin

the Post-Gazette from any interruption of the status quo until the November 4th grievance

was resolved and to enforce the CBA’s grievance procedure. The Union then moved for

a preliminary injunction on November 13, 2019, to “maintain the status quo regarding

health care coverage, manpower, shift scheduling, wages and layoffs as required

contractually by the CBA pending the outcome of the contractual grievance process,” and

the Post-Gazette countered with a motion to dismiss on November 22, 2019. A130–131.

On November 27, 2019, the District Court granted the preliminary injunction—

“enjoin[ing] and restrain[ing] [the Post-Gazette] from refusing to maintain the status quo

under the CBA regarding healthcare coverage, manpower, shift scheduling, wages and

layoffs pending the outcome of the contractual grievance process”—and denied the

motion to dismiss. A4–5. The District Court found that while the CBA had expired, the

parties were operating under an implied-in-fact contract under Luden’s because there was

no clear, particularized disavowal of the CBA. The District Court also found an implied-

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Newspaper Newsprint Magazine a v. PG Publishing Co, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newspaper-newsprint-magazine-a-v-pg-publishing-co-ca3-2020.