Penasquitos Village, Inc., Penasquitos Gardens, Inc., Penasquitos Hills, Inc., and San Diego Leisure Life Village v. National Labor Relations Board

565 F.2d 1074, 97 L.R.R.M. (BNA) 2244, 1977 U.S. App. LEXIS 5836
CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 30, 1977
Docket75-2173
StatusPublished
Cited by171 cases

This text of 565 F.2d 1074 (Penasquitos Village, Inc., Penasquitos Gardens, Inc., Penasquitos Hills, Inc., and San Diego Leisure Life Village v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Penasquitos Village, Inc., Penasquitos Gardens, Inc., Penasquitos Hills, Inc., and San Diego Leisure Life Village v. National Labor Relations Board, 565 F.2d 1074, 97 L.R.R.M. (BNA) 2244, 1977 U.S. App. LEXIS 5836 (9th Cir. 1977).

Opinions

[1076]*1076WALLACE, Circuit Judge:

The National Labor Relations Board (the Board), reversing the decision of an administrative law judge, held that Penasquitos Village, Inc. and affiliated companies (Pe-nasquitos) had engaged in coercive interrogation of employees in violation of section 8(a)(1) of the National Labor Relations Act (the Act), 29 U.S.C. § 158(a)(1), and had wrongfully discharged employees in violation of section 8(a)(3) of the Act, 29 U.S.C. § 158(a)(3). 217 NLRB 878 (1975). Penas-quitos petitioned us to review and set aside the Board’s order, alleging that it was not supported by substantial evidence. The Board cross-petitioned for enforcement. We refuse enforcement and set aside the order.

I.

This case presents no contested or novel legal issues regarding the alleged unfair labor practices. The dispute is basically factual, and the central legal principle requiring clarification concerns the respective and related roles of the administrative law judge, the Board and the Court of Appeals in resolving factual disputes, particularly those turning on the credibility of witnesses. Because of this, it would be more appropriate to first analyze the law before proceeding to a detailed examination of the facts.

We treat as conclusive the factual determinations in a Board decision if they are “supported by substantial evidence on the record considered as a whole.” § 10(e)-(f) of the Act, 29 U.S.C. § 160(e)-(f). This statutorily mandated deference to findings of fact runs in favor of the Board, not in favor of the initial trier-of-facts, the administrative law judge. Nevertheless, the administrative law judge’s findings of fact constitute a part of that whole record which we must review. We give those initial findings some weight, whether they support or contradict the Board’s factual conclusions. See Universal Camera Corp. v. NLRB, 340 U.S. 474, 492-97, 71 S.Ct. 456, 95 L.Ed. 456 (1951).

The most difficult problem facing the reviewing court arises when, as in this case, the Board and the administrative law judge disagree on the facts. The Supreme Court has given the following general guidance to the courts of appeals faced with such a Board-administrative law judge conflict.

We do not require that the examiner’s findings be given more weight than in reason and in the light of judicial experience they deserve. The “substantial evidence” standard is not modified in any way when the Board and its examiner disagree. We intend only to recognize that evidence supporting a conclusion may be less substantial when an impartial, experienced examiner who has observed the witnesses and lived with the case has drawn conclusions different from the Board’s than when he has reached the same conclusion. The findings of the examiner are to be considered along with the consistency and inherent probability of testimony. The significance of his report, of course, depends largely on the importance of credibility in the particular case.

Id. at 496, 71 S.Ct. at 169.

Although this guidance is assertedly as precise as the nature of the problem permits,1 an analysis of both the cases, with emphasis on their' facts, and basic policy considerations provides additional guidance to judicial review. Turning first to the cases, we have found no decision, nor has one been cited to us, sustaining a finding of fact by the Board which rests solely on testimonial evidence discredited either expressly or by clear implication by the administrative law judge.2 A typical case [1077]*1077demonstrating the need for independent, credited evidence is Amco Electric v. NLRB, 358 F.2d 370 (9th Cir. 1966). There the legality of a discharge turned on a narrow question of fact: Did the discharged employee use the company’s car radio to give orders to another employee or merely to contact the union steward? The trial examiner (now referred to as an administrative law judge) discredited the testimony of both the discharged employee and the employee receiving the call. The Board, however, disagreed and accepted the discharged employee’s version. In refusing to enforce the Board’s order against the company, we stated:

Considering the record as a whole the only evidence which we believe supports the Board’s findings is the [discredited] testimony of the [discharged employee]. While the Board is not bound by the credibility determinations of the trial examiner, nevertheless the probative weight which may be properly given to testimony is severely reduced when an impartial experienced examiner who has observed the witnesses and lived with the case has drawn different conclusions.

Id. at 373 (emphasis added; footnote omitted).

A similar case is Ward v. NLRB, 462 F.2d 8 (5th Cir. 1972). A discharged non-union, non-local employee brought unfair labor charges against his former employer and a union, alleging that they had caused his discharge because he was not a union member. The determinative factual question was the union’s motive for insisting on his discharge — either to secure employment for local residents (regardless of their union affiliation) or to secure employment only for union members. The union’s evidence consisted solely of the testimony of union officials. By clear implication, the trial examiner discredited that testimony and found against the union. The Board reversed. The Fifth Circuit reinstated the trial examiner’s decision, explaining that

when the ultimate determination of motive or purpose hinges entirely upon the degree of credibility to be accorded the testimony of interested witnesses, “the credibility findings of the Trial Examiner are entitled to special weight and are not to be easily ignored.” . . . The preeminence of the Examiner’s conclusions regarding testimonial probity does not amount to an inflexible rule that either the Board or a reviewing court must invariably defer to his decision, thereby effectively nullifying either administrative or judicial review. But when the Board second-guesses the Examiner and gives credence to testimony which he has found — either expressly or by implication — to be inherently untrustworthy, the substantiality of that evidence is tenuous at best.
Here the Board’s finding that the union’s motive in seeking [the non-union employee’s] discharge was to secure employment for local residents, rests for the most part, if not entirely, upon such Examiner-discredited testimony. There is no other direct or circumstantial evidence in the record from which that inference could have been drawn.

Id. at 12 (emphasis added; citations & footnotes omitted).

[1078]

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Cite This Page — Counsel Stack

Bluebook (online)
565 F.2d 1074, 97 L.R.R.M. (BNA) 2244, 1977 U.S. App. LEXIS 5836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penasquitos-village-inc-penasquitos-gardens-inc-penasquitos-hills-ca9-1977.