Pulte Homes, Inc. v. Laborers' International Union of North America

648 F.3d 295, 191 L.R.R.M. (BNA) 2161, 2011 U.S. App. LEXIS 15828, 2011 WL 3274014
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 2, 2011
Docket09-2245, 10-1673
StatusPublished
Cited by68 cases

This text of 648 F.3d 295 (Pulte Homes, Inc. v. Laborers' International Union of North America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pulte Homes, Inc. v. Laborers' International Union of North America, 648 F.3d 295, 191 L.R.R.M. (BNA) 2161, 2011 U.S. App. LEXIS 15828, 2011 WL 3274014 (6th Cir. 2011).

Opinion

OPINION

COOK, Circuit Judge.

Plaintiff, an active and successful home builder, sued a national labor union and two of its officers for orchestrating an onslaught on the company’s phone and email systems. Plaintiff appeals two orders in this combined appeal: (1) the order denying its motio.n for a preliminary injunction and (2) the order granting Defendants’ motion to dismiss. We affirm in part and reverse in part.

I.

Pulte Homes, Inc.’s (Pulte[’s]) complaint stems from an employment dispute. Pulte alleges that in September 2009 it fired a construction crew member, Roberto Baltierra, for misconduct and poor performance. Shortly thereafter, the Laborers’ International Union of North America (LIUNA) began mounting a national corporate campaign against Pulte' — using both legal and allegedly illegal tactics — in order to damage Pulte’s goodwill and relationships with its employees, customers, and vendors.

Just days after Pulte dismissed Baltierra, LIUNA filed an unfair-labor-practice charge with the National Labor Relations Board (NLRB). LIUNA claimed that Pulte actually fired Baltierra because he wore a LIUNA t-shirt to work, and that Pulte also terminated seven other crew members in retaliation for their supporting the union. Pulte maintains that it never terminated any of these seven additional employees.

*299 Not content with its NLRB charge, LIUNA also began using an allegedly illegal strategy: it bombarded Pulte’s sales offices and three of its executives with thousands of phone calls and e-mails. To generate a high volume of calls, LIUNA both hired an auto-dialing service and requested its members to call Pulte. It also encouraged its members, through postings on its website, to “fight back” by using LIUNA’s server to send e-mails to specific Pulte executives. Most of the calls and e-mails concerned Pulte’s purported unfair labor practices, though some communications included threats and obscene language.

Yet it was the volume of the communications, and not their content, that injured Pulte. The calls clogged access to Pulte’s voicemail system, prevented its customers from reaching its sales offices and representatives, and even forced one Pulte employee to turn off her business cell phone. The e-mails wreaked more havoc: they overloaded Pulte’s system, which limits the number of e-mails in an inbox; and this, in turn, stalled normal business operations because Pulte’s employees could not access business-related e-mails or send e-mails to customers and vendors.

Four days after LIUNA started its phone and e-mail blitz, Pulte’s general counsel contacted LIUNA. He requested, among other things, that LIUNA stop the attack because it prevented Pulte’s employees from doing their jobs. When the calls and e-mails continued, Pulte filed this suit alleging several state-law torts and violations of the Federal Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030, a statute that both criminalizes certain computer-fraud crimes and creates a civil cause of action.

When it filed suit, Pulte simultaneously moved to preliminarily enjoin LIUNA’s phone and e-mail campaign. The district court denied Pulte’s motion, holding that it lacked jurisdiction under the Norris-LaGuardia Act (NLGA) to issue a preliminary injunction because the suit involves a labor dispute and LIUNA’s campaign attempts to publicize that dispute. See 29 U.S.C. §§ 101,104. Pulte appealed.

Despite Pulte’s interlocutory appeal, the parties’ legal battles raged on. The general counsel of the NLRB, acting on LIU-NA’s earlier charge, sued Pulte for unfair labor practices. LIUNA then moved to dismiss Pulte’s federal complaint on two grounds: failure to state a claim; and labor preemption under both San Diego Building Trades Council, Millmen’s Union, Local 2020 v. Garmon, 359 U.S. 236, 79 S.Ct. 773, 3 L.Ed.2d 775 (1959) (“Garmon preemption”), and Lodge 76, International Association of Machinists v. Wisconsin Employment Relations Commission, 427 U.S. 132, 96 S.Ct. 2548, 49 L.Ed.2d 396 (1976) (“Machinists preemption”). Rather than address preemption, the district court (1) held that Pulte failed to state a claim under the CFAA, (2) withheld leave to amend, (3) declined to exercise supplemental jurisdiction over Pulte’s state-law claims, and (4) dismissed the entire suit with prejudice. Pulte appealed this decision as well, and we granted its motion to consolidate the two appeals.

We address the following issues: (A) preemption, (B) the sufficiency of Pulte’s CFAA allegations, (C) Pulte’s request for leave to amend, and (D) its motion for a preliminary injunction.

II.

A.

We tackle first one of LIUNA’s alternative grounds for affirming the district court’s judgment — that Garmon preemption bars Pulte’s CFAA claims — because it questions our subject-matter jurisdiction. *300 See Trollinger v. Tyson Foods, Inc., 370 F.3d 602, 607-10 (6th Cir.2004).

Garmon strips courts of jurisdiction over conduct “arguably subject” to section 7 or section 8 of the National Labor Relations Act (NLRA), 29 U.S.C. §§ 157-58, and requires them to “defer to the exclusive competence of the National Labor Relations Board.” Trollinger, 370 F.3d at 609 (internal quotation marks and citation omitted). Sections 7 and 8 of the NLRA together protect certain labor practices and prohibit others, thus forcing courts to relinquish jurisdiction to the NLRB when a suit involves an “arguably protected” or “arguably prohibited” labor practice. Id. at 608-09.

An exception to this general rule— the independent-federal-remedy exception — nevertheless allows federal courts to “decide labor law questions that emerge as collateral issues in suits brought under independent federal remedies.” Id. at 609 (internal quotation marks and citation omitted). Our decision in Trollinger aptly illustrates the exception and demonstrates why it saves Pulte’s CFAA claims — even if, as LIUNA contends, section 8(c) of the NLRA arguably protects its phone and email campaign. See 29 U.S.C. § 158(c) (prohibiting injunctions against noncoercive labor speech).

In Trollinger, the plaintiffs brought civil RICO claims against their former employer and alleged, as the RICO predicate, that the employer depressed hourly wages by knowingly hiring undocumented illegal immigrants in violation of section 274 of the Immigration and Nationality Act (INA). 370 F.3d at 606-07, 611.

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Bluebook (online)
648 F.3d 295, 191 L.R.R.M. (BNA) 2161, 2011 U.S. App. LEXIS 15828, 2011 WL 3274014, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pulte-homes-inc-v-laborers-international-union-of-north-america-ca6-2011.