Silverman v. Major League Baseball Player Relations Committee, Inc.

67 F.3d 1054, 1995 WL 574780
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 29, 1995
DocketNo. 1999, Docket 95-6048
StatusPublished
Cited by6 cases

This text of 67 F.3d 1054 (Silverman v. Major League Baseball Player Relations Committee, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silverman v. Major League Baseball Player Relations Committee, Inc., 67 F.3d 1054, 1995 WL 574780 (2d Cir. 1995).

Opinion

WINTER, Circuit Judge:

This is an appeal by the Major League Baseball Player Relations Committee, Inc. (“PRC”) and the constituent member clubs of Major League Baseball (“Clubs”) from a temporary injunction issued by Judge Soto-mayor pursuant to section 10(j) of the National Labor Relations Act (“NLRA”), 29 U.S.C. § 160(j). The PRC is the collective bargaining representative for the twenty-eight Clubs. The Major League Baseball Players Association is a union that is the exclusive bargaining representative for the forty-man rosters of each major league club. The injunction is based on the district court’s conclusion that appellants violated NLRA §§ 8(a)(1) and (5), 29 U.S.C. §§ 158(a)(1) and (5), by unilaterally implementing terms and conditions of employment that differed from those in the last collective agreement. It orders the PRC and the Clubs to: (i) abide by the terms of an expired collective agreement, (ii) rescind any actions taken that are inconsistent with that agreement and (iii) bargain in good faith with the Players Association. See Silverman v. Major League Baseball Player Relations Comm., Inc., 880 F.Supp. 246, 261 (S.D.N.Y.1995). The injunction is to remain in effect until either (i) the expired agreement is replaced by a new collective bargaining agreement, (ii) the National Labor Relations Board (“NLRB”) renders a final disposition of the matters pending before it in the related administrative case, or (iii) the district court finds, upon petition of either of the parties, that an impasse has occurred. See id. We affirm.

BACKGROUND

On January 1,1990, the most recent collective agreement (“Basic Agreement”) between appellants and the Players Association became effective. It contained provisions implementing a combination of free agency and a reserve system — that is, a compromise between free competitive bidding for a player’s services and an individual club’s exclusive rights to those services.

Free agency, in its purest form, is a status in which the rights to a player’s athletic services are not owned by a club and may be shopped around by the player in a quest for the most attractive bid. However, for more than a century, Major League Baseball has had a reserve system that to one degree or another affords individual clubs exclusive property rights to the athletic services of certain players. Before the players were [1057]*1057organized and a collective bargaining relationship was established, the standard players contract with a club reserved to the club exclusive rights to a player’s services and provided for an annual right of renewal of the contract by the club in question. The Clubs interpreted the contract as allowing the club in question to renew all of an individual player’s contract, including the right of renewal provision. So interpreted, this provision — known generally as the “reserve clause” — bound a player to one club in perpetuity until traded or released. After the Clubs recognized the Players Association and entered into a collective agreement with it, an arbitrator held in a grievance proceeding that the reserve clause allowed a renewal for only one year rather than a succession of years. See National & American League Professional Baseball Clubs v. Major League Baseball Players Ass’n, 66 Lab.Arb. (BNA) 101 (1976) (Seitz, Arb.). Since then, appellants and the Players Association have struggled to accommodate their conflicting interests in the free agency and reserve issues, and a variety of compromises have from time to time been reached. However, relations have been acrimonious, and several strikes and lockouts have occurred. This appeal itself arises out of a strike that terminated the 1994 season before the playoffs and World Series.

Article XX of the Basic Agreement that became effective in 1990 contains a series of provisions that govern free agency and reserve rights. Players with six or more years of major league service are free agents and may seek competing bids in an effort to obtain the best contract, which may of course give exclusive rights to the club for a stipulated number of years. See Silverman, 880 F.Supp. at 250. Free agency is guaranteed by an anti-collusion provision, Article XX(F), which prohibits the Clubs from acting in concert with each other with respect to the exercise of rights under Article XX. See id. Article XX(F) thus prevents the Clubs from agreeing either to refuse to bid for the services of free agents or to offer only low bids to them. Article XX(F) also prohibits players from acting in concert with regard to Article XX rights. See id.

Players with less than six years of service remain under reserve to their individual clubs, although a club may reserve a player only once. Although a minimum annual salary is provided, players with less than three years of major league service must negotiate with their clubs to determine their salary for the coming season. Article XX allows certain reserved players — generally those with more than three but less than six years of service — to demand salary arbitration. See id. at 251. Salary arbitration is a mechanism for determining the individual salaries for that group of reserved players if they cannot arrive at an agreement with their clubs. The player and the club each present the arbitrator with a suggested salary figure for a new one-year contract. The arbitrator then inserts either the player’s or the club’s figure into a blank uniform contract that the parties have already signed. See id. Article VI(F)(12) provides the following with regard to the criteria to be used, and the evidence to be heard, by the arbitrator:

(12) Criteria, (a) The Criteria will be the quality of the Player’s contribution to his Club during the past season (including but not limited to his overall performance, special qualities of leadership and public appeal), the length and consistency of his career contribution, the record of the Player’s past compensation, comparative baseball salaries ..., the existence of any physical or mental defects on the part of the Player, and the recent performance record of the Club including but not limited to its League standing and attendance as an indication of public acceptance (subject to the exclusion stated in subparagraph (b)(i) below). Any evidence may be submitted which is relevant to the above criteria, and the arbitrator shall assign such weight to the evidence as shall to him appear appropriate under the circumstances. The arbitrator shall, except for a Player with five or more years of Major League service, give particular attention, for comparative salary purposes, to the contracts of Players with Major League service not exceeding one annual service group above the Player’s annual service group. This shall not limit the ability of a Player or his representative, because of special accom[1058]*1058plishment, to argue the equal relevance of salaries of Players without regard to service, and the arbitrator shall give whatever weight to such argument as he deems appropriate.
(b) Evidence of the following shall not be admissible:
(i) The financial position of the Player and the Club;

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67 F.3d 1054, 1995 WL 574780, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silverman-v-major-league-baseball-player-relations-committee-inc-ca2-1995.