Oil, Chemical & Atomic Workers v. Hanlin Group, Inc. (In re Hanlin Group, Inc.)

185 B.R. 703, 1995 Bankr. LEXIS 1205, 27 Bankr. Ct. Dec. (CRR) 930
United States Bankruptcy Court, D. New Jersey·Decided August 25, 1995·No. Bankruptcy Nos. 91-33872 to 91-33875; Adv. No. 92-3446TS·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION

STEPHEN A. STRIPP, Bankruptcy Judge.

I. INTRODUCTION

This shah constitute the court’s decision on debtor-defendants’1 motion to dismiss this adversary proceeding and the cross-motion of plaintiff Oil, Chemical and Atomic Workers Union (“OCAW”) to amend its complaint. The debtors contend that this adversary proceeding must be dismissed because OCAW lacks standing to present claims on behalf of its members for violation of the WARN Act. OCAW argues in opposition that it has both direct and associational standing, and alternatively that it should be permitted to amend its complaint to add its members as plaintiffs if this court determines that OCAW does not have standing.

This court has jurisdiction pursuant to 28 U.S.C. §§ 1334(b), 151 and 157(a). The controversy at issue constitutes a core proceed[705]*705ing. Id. § 157(b)(2)(A), (B) and (0). For the reasons that follow, the debtors’ motion to dismiss OCAW as plaintiff is granted. However, OCAWs cross-motion to amend its complaint to name certain of its individual members as plaintiffs is also granted.

II. FINDINGS OF FACT

OCAW commenced this adversary proceeding with the filing of its complaint on August 21,1992.2 The complaint alleges that the debtors violated the Worker Adjustment Retraining and Notification Act (‘WARN” or WARN Act”), 29 U.S.C. §§ 2101-2109 (1988), by failing to provide their employees with proper advance notice of a mass layoff of those employees at the debtors’ Mounds-ville, West Virginia plant. The complaint named OCAW, AFL-CIO-CLC and its Local Union 3-586 as plaintiff “on behalf of the members employed at Hanlin Chemical, West Virginia, Inc.” The complaint did not, however, name any individually affected worker as a plaintiff. In its prayer for relief, OCAW sought both what it described as declaratory relief and damages on behalf of OCAW members allegedly injured by the debtors’ violation of WARN.

The debtors filed their motion to dismiss for lack of standing on May 9, 1995. This court reserved decision at the conclusion of a hearing held on June 19, 1995.

III. CONCLUSIONS OF LAW

A

The debtors’ motion to dismiss relies upon United Food and Commercial Workers International Union Local 751 v. Brown Group, Inc., 50 F.3d 1426 (8th Cir.1995) (hereinafter, “UFCW, Local 751 ”) which held that a union lacked standing to assert a claim for violation of the WARN Act on behalf of its members because the union had not met the Constitutional test to assert either a direct or associational standing on behalf of its members. As in that ease, the plaintiff in this case relies upon the terms of the WARN Act, which states in pertinent part:

A person seeking to enforce such liability, including a representative of employees or a unit of local government aggrieved under paragraph (1) or (3), may sue either for such person or for other persons similarly situated, or both, in any district court of the United States for any district in which the violation is alleged to have occurred, or in which the employer transacts business.

29 U.S.C. § 2104(a)(5). A “representative” under the statute is “an exclusive representative of employees” as defined in federal labor laws. Id. § 2101(a)(4). The OCAW in this case, like the plaintiff in UFCW, Local 751, supra, is such a representative. The court held, however, that it doesn’t necessarily follow that the union has standing:

“Standing does not refer simply to a party’s capacity to appear in court,” but rather to ‘“whether the particular plaintiff is entitled to an adjudication of the particular claims asserted.’

UFCW, Local 751, 50 F.3d at 1428-29 (quoting International Primate Protection League v. Administrators of Tulane Educ. Fund, 500 U.S. 72, 77, 111 S.Ct. 1700, 1704, 114 L.Ed.2d 134 (1991)). The court then held that under applicable Supreme Court precedent, the union lacked direct standing and standing to sue on behalf of its members because individualized proofs would be required as to each member’s damages. Id. at 1430 and 1432. The OCAW argues that this court should not follow UFCW, Local 751 because it was decided incorrectly. This court disagrees.

B.

OCAW contends that it has direct standing because it suffered an injury when the debtors failed to provide OCAW with the statutorily-required WARN notice. However, a person does not meet the test for direct standing under Article III unless he suffers an injury to himself that is distinct and palpable. Warth v. Seldin, 422 U.S. 490, 501, 95 S.Ct. 2197, 2206, 45 L.Ed.2d 343 (1974); Hospital Council v. City of Pittsburgh, 949 F.2d 83, 86 (3d Cir.1986). OCAW cannot establish direct standing because it has not alleged any direct injury to itself, as a union. Declarato[706]*706ry relief and damages for OCAW members, which is all that OCAW has sought in this case, will not redress any injury OCAW might arguably have suffered by not receiving the WARN notice. See UFCW, Local 751, 50 F.3d at 1430.

C.

OCAW argues alternatively that it has as-soeiational standing to assert claims on behalf of its members. UFCW, Local 751 held, on similar facts, that the union in that case had no such standing. Id. at 1432. This court concludes that the same result must be reached here.

An association will have standing to sue in federal court on behalf of its members where:

(a) its members would otherwise have standing to sue in their own right; (b) the interests it seeks to protect are germane to the organization’s purpose; and (c) neither the claim asserted nor the relief requested requires the participation of individual members in the lawsuit.

United States v. Local 560 (I.B.T.), 974 F.2d 315, 339-40 (3d Cir.1992) (quoting Hunt v. Washington State Apple Advertising Comm’n, 432 U.S. 333, 342, 97 S.Ct. 2434, 2441, 53 L.Ed.2d 383 (1977)) (hereinafter “Hunt test”) (emphasis added). The first two elements of the Hunt

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Oil, Chemical & Atomic Workers v. Hanlin Group, Inc. (In re Hanlin Group, Inc.), 185 B.R. 703, 1995 Bankr. LEXIS 1205, 27 Bankr. Ct. Dec. (CRR) 930 (N.J. 1995).

185 B.R. 703 (Oil, Chemical & Atomic Workers v. Hanlin Group, Inc. (In re Hanlin Group, Inc.)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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