South Carolina State Ports Authority v. National Labor Relations Board

914 F.2d 49
CourtCourt of Appeals for the Fourth Circuit
DecidedSeptember 12, 1990
DocketNo. 89-1583
StatusPublished
Cited by1 cases

This text of 914 F.2d 49 (South Carolina State Ports Authority v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Carolina State Ports Authority v. National Labor Relations Board, 914 F.2d 49 (4th Cir. 1990).

Opinion

WILKINSON, Circuit Judge:

In this case, we must determine whether the district court possessed subject matter jurisdiction to enjoin the National Labor Relations Board from holding a representation hearing on behalf of the employees of the South Carolina State Ports Authority. The district court ruled that the State Ports Authority is a “political subdivision” of the state of South Carolina, that it is thus not an “employer” within the meaning of Section 2(2) of the National Labor Relations Act, 29 U.S.C. § 152(2), and that it is therefore not subject to the strictures of the Act. Accordingly, the district court determined that it had jurisdiction under the Supreme Court’s decision in Leedom v. Kyne, 358 U.S. 184, 79 S.Ct. 180, 3 L.Ed.2d 210 (1958), to prevent the Board from holding a representation hearing in clear derogation of its statutory authority. We hold that the district court’s invocation of Leedom was premature, as the Board had not had any opportunity to make the threshold jurisdictional determination whether the State Ports Authority is an “employer” subject to the Board’s authority. Because the Board must be given the initial opportunity to address its own jurisdiction, we reverse the judgment of the district court.

I.

On September 25, 1989, Local Union No. 509 of the General Drivers, Warehousemen and Helpers filed a representation petition with the National Labor Relations Board seeking certification as the exclusive collective bargaining representative of a unit of operations employees at the South Carolina State Ports Authority. On October 10, 1989, the Authority moved to dismiss the petition asserting that it was not an “employer” within the meaning of Section 2(2) of the National Labor Relations Act. That section provides that “[t]he term ‘employer’ ... shall not include ... any State or political subdivision thereof_” 29 U.S.C. § 152(2). The Authority argued that it was a “political subdivision” of the state of South Carolina and therefore beyond the Board’s jurisdiction. The union opposed the motion to dismiss, contending that whether the Authority was a political subdivision of the state depended upon a factual determination which had never been made by the Board.

What happened next is a matter of some dispute. The Board maintains that it decided that an evidentiary hearing was necessary to determine whether the Authority was a political subdivision and that it so notified the Authority. The Authority, on the other hand, contends that it was informed that its motion to dismiss was denied and that the Board intended to proceed with a hearing on the merits of the representation petition. On October 19, 1989, the Board issued a Notice of Representation Hearing for October 31, 1989.

On October 30, 1989, the Authority filed a motion for a temporary restraining order in federal district court to prevent the Board from proceeding with a hearing. The district court issued the restraining order. The Authority then moved for a preliminary injunction. The Board opposed the motion and also filed a motion to dismiss the complaint. Attached to the Board’s motion was the sworn statement of its Acting Regional Director stating that notwithstanding any prior misunderstanding to the contrary, the Board did indeed intend to hold' an evidentiary hearing on whether the Authority constituted a political subdivision. The district court granted [51]*51the Authority’s motion for a preliminary injunction.

The Board appeals.

II.

Section 9 of the National Labor Relations Act vests in the National Labor Relations Board the responsibility to conduct representation and certification proceedings. 29 U.S.C. § 159. As a general matter, courts lack subject matter jurisdiction to review these proceedings. See Boire v. Greyhound Corp., 376 U.S. 473, 476, 84 S.Ct. 894, 896, 11 L.Ed.2d 849 (1964). Instead, if a party is dissatisfied with a Board decision, it must ordinarily await an unfair labor practice proceeding in which, for example, an employer refuses to bargain with a Board certified representative on the grounds that an election was allegedly tainted by unlawful practices or was held in an inappropriate bargaining unit. The order resulting from the unfair labor practice proceeding is then reviewable by a federal court of appeals when the aggrieved party petitions for review of the order or the Board seeks its enforcement. See id. at 476-77, 84 S.Ct. at 896-97; American Federation of Labor v. NLRB, 308 U.S. 401, 409-11, 60 S.Ct. 300, 304-05, 84 L.Ed. 347 (1940); 29 U.S.C. § 160(e), (f).

However, in Leedom v. Kyne, 358 U.S. 184, 79 S.Ct. 180, 3 L.Ed.2d 210 (1958), the Supreme Court enunciated an exception to the general rule of nonreviewability of Board representation proceedings by federal courts. In Leedom, a labor association representing nonsupervisory professional employees at a Westinghouse plant petitioned the NLRB for certification as the exclusive collective bargaining agent for all such employees at the plant. The Board held a hearing on the petition, and permitted a competing labor organization to intervene. At the request of the competing labor organization, the Board expanded the collective bargaining unit to include nine nonprofessional employees. Section 9(b)(1) of the National Labor Relations Act explicitly provides that professional and nonprofessional employees not be included within the same bargaining unit “unless a majority of such professional employees vote for inclusion in such unit.” 29 U.S.C. § 159(b)(1). Nonetheless, the Board refused to take a vote among the professional employees to determine whether they favored inclusion in the same unit with the nonprofessional employees. Instead, the Board proceeded to hold an election in which the original labor association won a majority of the votes. The Board certified the association as the representative of the unit.

Although victorious in the election, the president of the association brought suit in federal district court alleging that the Board had exceeded its statutory power by including professional employees without their consent in the same bargaining unit with nonprofessional employees. The Board contended that the district court lacked subject matter jurisdiction to review the Board’s determination made in the representation proceeding. The district court concluded that it possessed jurisdiction and set aside the Board’s determination of the bargaining unit, the election, and the certification.

The Supreme Court affirmed the judgment of the district court. It held that the district court possessed subject matter jurisdiction to invalidate the Board’s ruling because “[t]his suit [wa]s not one to ‘review’ ... a decision of the Board made within its jurisdiction.

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Bluebook (online)
914 F.2d 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-carolina-state-ports-authority-v-national-labor-relations-board-ca4-1990.