Schwartz Partners Packaging, LLC v. National Labor Relations Board

12 F. Supp. 3d 73, 2014 WL 294622, 198 L.R.R.M. (BNA) 2267, 2014 U.S. Dist. LEXIS 10039
CourtDistrict Court, District of Columbia
DecidedJanuary 28, 2014
DocketCivil Action No. 2013-0343
StatusPublished
Cited by1 cases

This text of 12 F. Supp. 3d 73 (Schwartz Partners Packaging, LLC v. National Labor Relations Board) 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
Schwartz Partners Packaging, LLC v. National Labor Relations Board, 12 F. Supp. 3d 73, 2014 WL 294622, 198 L.R.R.M. (BNA) 2267, 2014 U.S. Dist. LEXIS 10039 (D.D.C. 2014).

Opinion

MEMORANDUM OPINION

BERYL A. HOWELL, United States District Judge

This action for declaratory and injunc-tive relief arises out of a union election conducted at the plaintiff, Schwarz Partners Packaging, LLC’s, manufacturing facility in Lakeland, Florida. Compl. ¶ 2, ECF No. 1. The plaintiff challenges the actions of the defendant, the National Labor Relations Board (“NLRB”), 1 in “sustaining certain objections to [the union] election” and “directing a ballot count and second election” at the plaintiff’s plant on grounds that “the Board lacked a quorum *76 and had no authority to act.” Id. ¶ 1. Pending before the Court are two motions: the plaintiffs Motion for Summary Judgment (“Pl.’s Mot.”), ECF No. 12, and the defendants’ Motion to Transfer or, in the alternative, Motion to Dismiss (“Defs.’ Mot.”) for lack of subject matter jurisdiction, ECF No. 13. For the reasons stated below, the defendants’ motion to dismiss is granted. The plaintiffs motion for summary judgment and the defendants’ motion to transfer are denied as moot.

1. BACKGROUND

The plaintiff manufactures packaging material at its Lakeland facility under the business name Maxpak and “is an employer within the meaning of section 2(2) of the National Labor Relations Act (“NLRA”).” Compl. ¶4; see also Deck of Joseph A. Kennedy, Director of Human Resources, Schwarz Partners Packaging, LP (“Kennedy Deck”) ¶ 1, ECF No. 12-1. 2 On March 15, 2012, the NLRB held an election (the “first election”) at the plaintiffs Lakeland facility to determine whether the United Steelworkers International Union (the “Union”) would represent certain employees. Compl. ¶ 12. More than ninety-six percent of the plaintiffs Lakeland workforce voted in the election. See Deck of David Cohen, NLRB Regional Atty., Region 12 (“Cohen Deck”) Ex. D at 63, ECF No. 13-1. Following the election, the Union challenged the validity of two ballots on the grounds that ineligible employees cast them. Compl. ¶ 12. Since the vote was very close, with thirty-nine votes in favor of the Union and thirty-eight votes opposed, these challenged ballots were potentially determinative. Id.

The objections posed by the Union and the plaintiff to the conduct of the election, including the ballot challenges, were presented to an NLRB hearing officer whose findings were eventually reviewed by a three-member panel of the NLRB, consisting of Chairman Mark Pearce, Member Richard Griffin and Member Sharon Block. Id. ¶ 13; see Compl. Ex. 1 (NLRB Decision and Direction in Schwarz Partners Packaging, LLC, D/B/A/ Maxpak v. United Steelworkers International Union, Case No. 12-RC-073852, 2012 WL 3757017 (N.L.R.B. Aug. 29, 2012)) (“NLRB Decision”) at 1-2, ECF No. 1-1. The plaintiff argued to the panel that Members Griffin and Block were not valid members of the NLRB because their “purported recess” appointments were “unconstitutional and void and that the Board therefore lacked a quorum to act.” Compl. ¶ 13. The panel considered and rejected this argument. NLRB Decision at 1 n.3, ECF No. 1-1 (citing Ctr. for Social Change, Inc., 358 NLRB No. 24 (2012)).

The NLRB panel ultimately adopted the hearing officer’s recommendation that the Union’s challenges to the two contested ballots be overruled and ordered that the ballots be counted. Id. at 1 n.2. In considering the remaining objections to the conduct of, and events leading up to, the first election, the NLRB panel determined that two of the Union’s objections “considered individually or cumulatively, would warrant setting aside the election” in its entirety. Id. at 2. In particular, the NLRB panel found no basis to overrule the hearing officer’s crediting of testimony that a supervisor told the plaintiffs employees that a “union would make it easier for him to fire people” and also told at least one employee that “he would have already discharged [the employee] if she were represented by the Union” during *77 the “critical period” prior to the election. Id. at 3.

The NLRB panel ordered the contested ballots counted and provided for two potential outcomes. If the revised ballot count resulted in the Union winning the first election, the NLRB’s regional director would be “directed to issue a certification of’ the Union as the employees’ bargaining representative. See id. at 4. Alternatively, if the contested ballots showed the Union losing the first election, the regional director was instructed to “set aside the election and order a new election.” Id. When the contested ballots were counted, the “Union lost the election 40 to 39.” Compl. ¶ 16. Consequently, the results of the first election were set aside and a second election was conducted. In this second election, ninety-nine percent of the plaintiffs workforce voted and a strong majority&emdash;fifty-five out of seventy-six votes cast&emdash;-voted for union representation. See Cohen Decl. Ex. I at 110, ECF No. 13-1. On November 6, 2012, the NLRB’s regional director “certified the Union as the collective bargaining representative” on behalf of the plaintiffs employees. Compl. ¶¶ 16-17.

The plaintiff filed suit in this Court on March 15, 2013, alleging that, under binding D.C. Circuit precedent, “the recess appointments of Ms. Block and Mr. Griffin to the [NLRB] were unconstitutional” and, therefore, the defendants could not “legally take any action, including but not limited to ordering, conducting, or certifying the results of any representative election” because it lacked a quorum. See id. ¶¶ 19-20 (citing Noel Canning v. NLRB, 705 F.3d 490 (D.C.Cir.2013), cert. granted NLRB v. Noel Canning, - U.S. -, 133 S.Ct. 2861, 186 L.Ed.2d 908 (2013)). The plaintiff seeks: (1) a declaration that the NLRB “exceeded its authority when it rendered a decision in the representation proceeding and certified the Union without a valid quorum[;]” (2) a declaration that the NLRB Decision “and the ensuing certification of representative issued on November 6, 2012 [were] void from their inception[;]” (3) an injunction barring the Acting General Counsel from “pursuing unfair labor practice charges against [the plaintiff] based on the void certification of representative including” unfair labor charges based on the refusal to bargain with the Union; and (4) litigation costs and reasonable attorneys’ fees. Compl. at 8.

II. LEGAL STANDARD

A motion to dismiss for lack of subject matter jurisdiction under Federal Rule of Civil Procedure 12(b)(1) focuses a federal court on its “affirmative obligation to consider whether the constitutional and statutory authority exist” for it to hear a case. James Madison Ltd. by Hecht v. Ludwig, 82 F.3d 1085, 1092 (D.C.Cir.1996) (internal quotation marks omitted). Article III of the United States Constitution limits the federal judicial power to the resolution of “Cases” and “Controversies,” U.S. Const, art.

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12 F. Supp. 3d 73, 2014 WL 294622, 198 L.R.R.M. (BNA) 2267, 2014 U.S. Dist. LEXIS 10039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartz-partners-packaging-llc-v-national-labor-relations-board-dcd-2014.