Tri-Fanucchi Farms v. Agricultural Labor Relations Board

405 P.3d 1110, 225 Cal. Rptr. 3d 545, 3 Cal. 5th 1161
CourtCalifornia Supreme Court
DecidedNovember 27, 2017
DocketS227270
StatusPublished
Cited by9 cases

This text of 405 P.3d 1110 (Tri-Fanucchi Farms v. Agricultural Labor Relations Board) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tri-Fanucchi Farms v. Agricultural Labor Relations Board, 405 P.3d 1110, 225 Cal. Rptr. 3d 545, 3 Cal. 5th 1161 (Cal. 2017).

Opinion

Liu, J.

*1163 In 2012, Tri-Fanucchi Farms (Tri-Fanucchi) refused to bargain with the United Farm Workers of America (the UFW), the labor union that its employees had elected in 1977 as their bargaining representative under the Agricultural Labor Relations Act (the ALRA or the Act). Tri-Fanucchi argued that the union had abandoned its employees for more than two decades and thus forfeited its status as bargaining representative. Consistent with its longstanding practice, the Agricultural Labor Relations Board (the Board or the ALRB) rejected the employer's abandonment defense and determined that Tri-Fanucchi's refusal constituted an unfair labor practice under the ALRA. The Board then ordered Tri-Fanucchi to pay make-whole relief under Labor Code section 1160.3, which is intended in part to compensate employees for employer-caused delays in the collective bargaining process. (All undesignated statutory references are to the Labor Code.) The Court of Appeal affirmed the Board's rejection of Tri-Fanucchi's abandonment defense. But the Court of Appeal reversed the Board's make-whole relief award, reasoning that Tri-Fanucchi's litigation "furthered the broader purposes of the ALRA" because no appellate court had expressly ruled on the abandonment issue presented here.

For the reasons set forth in Gerawan Farming, Inc. v. Agricultural Labor Relations Board (Nov. 27, 2017, S227243) --- Cal.5th ----, 225 Cal.Rptr.3d 517 , 405 P.3d 1087 , 2017 WL 5662395 *1164 ( Gerawan ), we *548 hold that the Court of Appeal correctly rejected Tri-Fanucchi's assertion of an abandonment defense. As we explain in Gerawan , the ALRA does not permit an employer to "unilaterally declare that it will refuse to engage with the union because it believes the union has abandoned its employees." ( Gerawan , at p. ---- [p. 44], 225 Cal.Rptr.3d 405 , 405 P.3d 1087 .) As to the issue of make-whole relief, we hold that the Court of Appeal did not accord the Board sufficient deference and improperly exercised the Board's remedial authority. We thus reverse in part the Court of Appeal's judgment. **1113 I.

Tri-Fanucchi is a farming business located in Kern County. It employs approximately 35 permanent employees and hires several hundred seasonal employees through various labor contractors.

On October 21, 1977, after a secret ballot election, the Board certified the UFW as the exclusive bargaining representative of Tri-Fanucchi's employees. Several days later, the UFW initiated collective bargaining negotiations. Tri-Fanucchi responded by refusing to bargain, purportedly to seek judicial review of the union's election. The following year, the UFW filed an unfair labor practice charge alleging that Tri-Fanucchi's refusal to bargain violated the ALRA. The charge was dismissed after Tri-Fanucchi reversed its position and agreed to begin negotiations. (See Tri-Fanucchi Farms (1986) 12 ALRB No. 8, p. 2 (hereafter ALRB 1986 Decision).)

Some initial bargaining sessions occurred after the UFW was certified. But between May 1979 and July 1981, "no communications between the parties took place and no negotiations were scheduled." (ALRB 1986 Decision, supra , 12 ALRB No. 8 at p. 2.) In July 1981, after the UFW requested to resume bargaining, Tri-Fanucchi conducted an employee "poll" to ascertain whether they desired to be represented by the UFW. As a result of this poll, Tri-Fanucchi concluded that the UFW had lost the support of a majority of its employees, and so the company again refused to bargain with the union. ( Id. at p. 3.) The UFW filed several unfair labor practice charges against Tri-Fanucchi, which the Board ultimately sustained. Finding that Tri-Fanucchi's refusal to bargain "was without justification or arguable legal support," the Board awarded make-whole relief under section 1160.3. (ALRB 1986 Decision, at p. 9.) In an unpublished opinion, the Court of Appeal affirmed both the Board's findings that Tri-Fanucchi committed unfair labor practices and its make-whole relief award.

According to Tri-Fanucchi, the company informed the UFW that it was willing to bargain in 1988. The UFW initially represented that it would schedule negotiations after the union's lead negotiator returned from vacation, but the UFW never responded and no dates were ever set. Tri-Fanucchi *1165 claims that the UFW then made no effort to communicate with the employer or to represent its employees for the next 24 years. The UFW disputes these claims, asserting that it maintained contact with the employees during this time period and even represented them on nonbargaining matters. Because the Board ruled that an employer cannot raise an abandonment defense as a matter of law, it took no evidence on Tri-Fanucchi's abandonment claim and simply assumed that the facts Tri-Fanucchi alleged were true.

On September 28, 2012, the UFW sent Tri-Fanucchi a formal request to restart bargaining. Tri-Fanucchi responded with a letter stating that "the UFW has ... abandoned the bargaining unit and is no longer the valid collective bargaining representative of its employees." Further, *549 Tri-Fanucchi said that because the question whether a union can lose its status as bargaining representative through abandonment had "never been conclusively addressed" by the courts, it would refuse to bargain "to obtain judicial review of the status of the UFW." The UFW urged Tri-Fanucchi to reconsider and said its refusal to bargain was "in clear bad faith" because relevant ALRB precedent rejecting abandonment was "so clear."

After Tri-Fanucchi did not retreat from its position, the UFW filed unfair labor practice charges with the Board in early 2013, alleging that Tri-Fanucchi violated the ALRA by refusing to bargain and to provide requested information. The Board's general counsel thereafter filed an administrative complaint against Tri-Fanucchi alleging that the company's actions violated section 1153, subdivisions (a) and (e), and seeking make-whole relief for the benefit of Tri-Fanucchi's employees. ( Tri-Fanucchi Farms (2014) 40 ALRB No. 4, p.

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405 P.3d 1110, 225 Cal. Rptr. 3d 545, 3 Cal. 5th 1161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tri-fanucchi-farms-v-agricultural-labor-relations-board-cal-2017.